I am a complete noob to IG and I have a question to which I am unable to find the answer. I hope someone can help me, please?
My understanding is that after the 1st month of 3 transactions in a month at full price on IG, subsequent transactions are commission free for US based investments. This leads me to wonder, for my ISA, should I invest purely in US based stocks/ETFs and pay the fx rate and the 15% US government tax later or should I simply invest in U.K. based stocks/ETFs only and pay the £3 commission for each trade. It seems like if I go down the US route, I’ll be saving a bit on commission upfront, however the exchange rate and US withholding tax is very high and could come back to get me later, although this could be offset by the possible gains achieved in the markets.
What do you do for your ISA investments? Do you go for U.K. based stocks only or go with US based investments and hope they go up to offset the exchange rate and taxes?
All comments gratefully received! Thanks in advance for your help!