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IG Australia charging quarterly A$50 share dealing subscription fee

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I have used IG for a year now and have been very happy with the charges and service provided. But common, to whack us with a no trading charge of $50.00 is just ridiculous.  I now also feel very embarrassed for telling all my mates to switch to IG. One thing is for sure, we will all be moving elsewhere

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Guest njd007
11 hours ago, JasmineC said:

Hello all, to transfer shares out of IG, you will have to request the receiving broker to contact us to initiate the transfer.

As mentioned above, our share trading accounts operate under a direct custody model, meaning that instead of you – the client – being personally registered on CHESS, it is our custodian Citicorp Nominees who will hold the HIN for all shares held with us. The custody model is a standard global practice that allows our clients to trade local and international shares easily and is cost effective.

For this reason, we will not be able to provide you a HIN or SRN. Please ask the receiving broker to contact us, and we will provide this information to them directly .  

Generally, to complete a transfer form, the receiving broker only needs our PID (CHESS Participant Identification number), which is 20018.

In addition, broker-to-broker transfers are free (like to CommSec or NebTrade), issuer sponsored transfers will incur a $50 charge per line of stock.

I hope the above clarifies, if you have any further queries please do not hesitate to contact us.

Thank you for your response.

Does this only apply to Australian shares?

How does one go about transferring US shares?

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10 hours ago, Guest njd007 said:

Thank you for your response.

Does this only apply to Australian shares?

How does one go about transferring US shares?

Hi there, this applies to both local and International shares. 

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With these fees it states that there is an exemption if you ""hold no open positions in your share trading account at the end of the quarter". Can someone explain what that means exactly? Does that just mean that you have shares that you own? Or does that mean you have unfulfilled open orders? I only recently open an IG trading account to buy US shares for long term holding, maybe buying once a year or less, so... that's pretty annoying.

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And this might be against forum rules of something, but any recommendations for US trading accounts for infrequent traders (e.g., once or twice a year) who are just planning to buy and hold for 10+ years?

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Hi @unclerico, I see you have some quite good stock broker comparison sites in Australia and also note the huge difference in commissions charged between brokers. You will need to calc which is cheaper in the long run for your own frequency of trading.

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2 hours ago, unclerico said:

With these fees it states that there is an exemption if you ""hold no open positions in your share trading account at the end of the quarter". Can someone explain what that means exactly? Does that just mean that you have shares that you own? Or does that mean you have unfulfilled open orders? I only recently open an IG trading account to buy US shares for long term holding, maybe buying once a year or less, so... that's pretty annoying.

assume no open positions means just that ... you're fine if you have no open trade (i.e. you don't have a trade where you can see your profit and loss going up/down). Working orders isn't an open position so you're fine there.

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2 hours ago, unclerico said:

And this might be against forum rules of something, but any recommendations for US trading accounts for infrequent traders (e.g., once or twice a year) who are just planning to buy and hold for 10+ years?

also when it comes to this make sure you look at fx conversion costs which is where so many others will **** you over. IG is 0.3% whilst others can very easily be closer to 1.75 / 2% etc. On a $5000 USD trade a 1.75% FX charge would cost an additional 175 USD for a round trip whilst IG would be 30 USD.

People **** about the transparent upfront costs but always miss the hidden costs.... Maybe IG should just scrap the monthly charge, whack FX conversion up to 2% which no one ever looks at and not have to deal with all the whining :D

I'm all for cheaper services and don't like it when companies put up costs - but just make sure ya'll look at those hidden costs.

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Guest Investor

I am also disappointed. I've convince my friends to use IG and now they are also not happy. 

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On 8/30/2018 at 9:46 AM, JasmineC said:

In addition, broker-to-broker transfers are free (like to CommSec or NebTrade), issuer sponsored transfers will incur a $50 charge per line of stock.

Can someone explain what "issuer sponsored" means?

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Guest Trader invested

Tbf I don’t think the charges are outrageous. I don’t like them and yeh I’ll be moving... but for what you get I guess it isn’t that bad. Especially when you look at all the other costs which are very good. Like the FX conversion fees etc. 

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6 hours ago, clicktracy said:

Can someone explain what "issuer sponsored" means?

Broker sponsored shares, which are generally what IG deal with as they are far more cost efficient, are issued to you via CHESS and sponsored by a stockbroker such as ourselves or our prime broker. An issuer sponsored share basically pulls it into your own name and are issued directly from the company and are maintained by a share registry. You will find they are generally identified by a Securities Reference Number (SRN) which typically starts with an “I” in it's code. 

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Guest jabroni

so has anyone moved to CBA yet? i get this HIN thing but ive sent them the reply from IG posted here so hoping its a smooth transfer

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Thanks for wasting my time IG - now i get this when trying to switch over

 

"We have just received a notification that we are unable to proceed with the transfer at this point in time due to the following issues.

- the other broker required all the shares to be listed on the form for the transfer to take place. Please provide all your listed shares with IG Trading on the form."

 

Just stop delaying and transfer ALL my shares why delay tactic by making people list each one by one
  

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Hi @jabroni - when transferring shares out of IG you need to be in contact with the new broker you are moving your positions to. In most cases this involves you filling out a form on their side. As you noted above, the rejection seems to have come from your new broker, not IG, rejecting your form due to you not filling in the specific lines of stock (or all stock lines) you are looking to transfer. 

We'll look to get this resolved as soon as you have completed their requirements for transfer. 

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