Charges & Fees @ IG - Clarification

[mg3768]

Hello,

I have just joined IG and not bought/sold shares before. Furthermore this is a single investment,  just that a single one off investment.

I wish to purchase 100 shares in a US based company [currently @ £9.75 X 100 = £975.00} and retain those shares for several years.

I have looked at the IG charges and fees and below is a relevant paragraph:

 

Share dealing: charges and fees

We are always transparent with our charges, so you know what costs you may incur when you trade with us. Pay zero commission on US share trades, and just £3 on UK share trades, when you trade three or more times a month with us.¹

 

^{I seek clarification on:}

• The cost of purchase - from the above I believe it to zero commission
  • That said as I will not be trading three or more times a month,will I pay any additional commission?
• The cost of selling the shares currently?
• Are quarterly/yearly managements fees applied by IG and if so what are the current charges?
• Any other costs?

Whilst I appreciate is the most basic of questions, your answers/clarification will be most welcome.

 

Regards

 

MG

[mawdskj]

dig a bit deeper, i think there are charges if you dont trade within 2 years. may be £30 or something like that.

[CharlotteIG]

On 12/04/2020 at 16:15, mg3768 said:

Hello,

I have just joined IG and not bought/sold shares before. Furthermore this is a single investment,  just that a single one off investment.

I wish to purchase 100 shares in a US based company [currently @ £9.75 X 100 = £975.00} and retain those shares for several years.

I have looked at the IG charges and fees and below is a relevant paragraph:

 

Share dealing: charges and fees

We are always transparent with our charges, so you know what costs you may incur when you trade with us. Pay zero commission on US share trades, and just £3 on UK share trades, when you trade three or more times a month with us.¹

 

^{I seek clarification on:}

• The cost of purchase - from the above I believe it to zero commission
  • That said as I will not be trading three or more times a month,will I pay any additional commission?
• The cost of selling the shares currently?
• Are quarterly/yearly managements fees applied by IG and if so what are the current charges?
• Any other costs?

Whilst I appreciate is the most basic of questions, your answers/clarification will be most welcome.

 

Regards

 

MG

If you're looking to simply buy some US shares and it's your first purchase the charge is £10 on the open and close. You get the free if you have traded 3 times (US stocks) in the previous calendar month: 

https://www.ig.com/uk/investments/share-dealing

We do also have a quarterly fee of £24. 

 

3 hours ago, mawdskj said:

dig a bit deeper, i think there are charges if you dont trade within 2 years. may be £30 or something like that.

The fee you're refering to is the £12 inactivity fee and that only applied if there are funds on the account and no open positions. If you were holding shares on your share dealing account this fee will not apply to you. 

All the best 

[mg3768]

Hello,

 

Thank you to all who responded. I have now clarified this matter.

 

Regards

 

MG

[dmedin]

On 16/04/2020 at 13:23, CharlotteIG said:

We do also have a quarterly fee of £24. 

Yuck!

£100 a year just to hold your shares and you don't even properly own them - you can't vote at AGMs and IG can force you to sell your shares like they did with cannabis stocks. 

[spawlowski]

On 16/04/2020 at 13:23, CharlotteIG said:

If you're looking to simply buy some US shares and it's your first purchase the charge is £10 on the open and close. You get the free if you have traded 3 times (US stocks) in the previous calendar month: 

https://www.ig.com/uk/investments/share-dealing

We do also have a quarterly fee of £24. 

 

Hi,
@CharlotteIG

if I made the minimum 3 trades on US stocks at £10/trade in month 1, then I will get a £0/trade rate in month 2. What will be the fee/trade in the month 3 taking that I will make at least 3 trades in month 2 at £0/trade? Will that stay at £0/trade? 
And if so, the quarterly custody charge for the Q1 in that scenario should be then £0 since I'd make the minimum of 3 trades each month.

Could you please clarify if I understand that correctly? 

Thanks,

[mg3768]

Hello,

 

Thank you for your response.

The below is the response from IG. Sadly it does not specify the fiscal amount you had to trade in a 3 month period to avoid the £24 [custody fee]. I therefore cannot answer your question.

Regards

MG

XXXXXXXXXXXXXXXXXXXXX

Thanks for your email.

Unfortunately , we can not disclose the details of the three or more trades , it is part of our internal procedures.
Custody fee GBP 24 : £24 per quarter, charged if you hold share dealing or ISA investments at the end of the quarter.

You will be exempt from the charge if you fulfil one of the following criteria:

Deal three or more times on your share dealing account during the quarter
OR
Hold investments worth £15,000 or more across your IG Smart Portfolio accounts only, at the end of the quarter
 

If a custody fee is due, we’ll debit it from your share dealing account first. If sufficient funds aren’t available, we’ll then deduct from your ISA account

If there is insufficient cash on both accounts, the account with the highest asset value will be taken overdrawn.
https://www.ig.com/uk/investments/share-dealing/costs-fees

[Fletch]

12 minutes ago, TrendFollower said:

@mg3768,

That is a very interesting point. Surely the client/customer needs to know what the value of the three trades needs to be in the month or is there no monetary limits on that part of the criteria?

It seems from the criteria that IG want either investors who invest large amounts or those who invest/trade frequently in their ISA's. Anyone else is going to incur the charges. Having said that most other brokers will have one form of charges or another as they are offering a service and nothing is free in life. The only difference will be that they will present these charges in unique ways. 

I suppose the base minimum it could possibly be is either £9 (3 x the £3 preferential UK trading fee), or the sum of the FEX charges of 3 x 'zero' commission US trades. Though, if you qualified for the waiver through the bare minimum trades in one quarter, you would lose your regular trading reduction. So in the next quarter the bare minmum you would pay is the quarterly trading fee, as regaining the waiver would cost either the same or more in commission (3x£8 for UK trades vs 3x£10+FEX charge for US trades). If they don't get you on the swings, they'll cosh you over the head on the roundabouts.

[mg3768]

Hello,

Thank you for your responses.

My view is that any broker/company are going to charge a fee for custody of your shares. I simply wanted clarification on the charges and the minimum fiscal trades within that period to avoid charges.

If that clarification is not forthcoming then I will not take this mater any further and hope that the final outcome from the shareholding will outweigh the charges and initial investment.

 

Regards

 

MG

[Caseynotes]

16 minutes ago, mg3768 said:

Hello,

Thank you for your responses.

My view is that any broker/company are going to charge a fee for custody of your shares. I simply wanted clarification on the charges and the minimum fiscal trades within that period to avoid charges.

If that clarification is not forthcoming then I will not take this mater any further and hope that the final outcome from the shareholding will outweigh the charges and initial investment.

 

Regards

 

MG

Hi, did you see this IG page which would seem to answer your questions on criteria for avoiding the custody fee.

https://www.ig.com/uk/investments/share-dealing/costs-fees

[mg3768]

Hello,

 

Thanks to all for your posts.

 

I do not require any further contact regarding this matter.

 

Regards

 

MG

[Mohineesh]

Does anybody know why I am being charged 10SGD each day for each position I own? Are the positions being sold and being bought again? And is this an overnight charge? 

Also I am being charged 10 SGD for each trade for USD trades? I thought there was no commission?

[sun191]

Why Daily Commodities overnight holding cost all of sudden jumped 10 folds in these few days? How does that calculated, isn't it suppose to be lower when the spot price in 10s/barrel range now?

[Guest Susianna]

Before joining I would like to know if I can buy US shares from outside recommendations and sell aagain and preferably do within an ISA

[Guest Susianna]

 

 

 

thanks - i had similar email from admin. still begs the question.  

I still like to know what it means re telephone charges of  £40 or 50 please. 

and for clarification -if invest 20k in trading ISA is it  cap gains tax free and ok to trade/

grow the investment exponentially in the account same tax year. and can trading in that ISA continue next tax year  and can profits be removed tax free? 

Many thanks for your help Susan Reed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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