Are there alternatives to paying 0.5% stamp duty

I am very late getting a pension set up - …ok, so I’ll do a FreeTrade SIPP and do some trading off my own research - all good…

…then I find out the scumbag government want to charge me 0.5% of the captial on each trade!!! …so angry about that as it renders any “trading up” ideas totally bunk to me, and anyway I dont want to pay the govenment a single penny if I don’t have to…

…so what are the alternatives? - does anyone know how I find which assets in a Freetrade SIPP are not subject to some charge like this, or otherwise have suggestions, or words that might calm me down?
thanks-
O.

ETFs and AIM listed shares have no stamp duty.

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AIM, ETFs or foreign companies. You only pay stamp duty on UK companies.

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thanks David. Not sure it helps me that much though as surely sticking all my pension in ETFs is a bad idea.

also - AIM’s are non-uk aren’t they? - so there’d be some charges there too one way or another… I’ll look into it though.

thanks a lot-
O.

AIM is the Alternative investment market

https://www.londonstockexchange.com/raise-finance/equity/aim

Most people’s pensions will be entirely held in funds (exchange traded or otherwise), why do you think it is a bad idea?

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thanks Cameron - I don’t really know much about funds. Is this a way to go that avoid this 0.5% stamp duty? I imagine there are management fees, but don’t know how much they are. Can I buy these through free-trade on my own, or will I have to go through some other pension provider that will charge me god knows what?

any clues much appreciated :slight_smile:

EDIT - oh - “ETF” is a fund? - I thought we were talking about these crypto signed things, but those are “NFTs” -

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sticking all your pension into ETFs sound like a great idea, and it is what almost every financial advisor would recommend…

edit: you don’t pay stamp duty for a ETFs, but you still pay annual management fees. Which over 5+ years will likely be more than stamp duty.

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Haha yes, it’s just a fund that is bought/sold on an exchange. I would have serious reservations about a pension of NFTs.

Although you can avoid the stamp duty funds will still have management fees, you can buy through Freetrade but however you buy them you have to pay the management fee (which isn’t a separate charge it’s just baked into the price of the fund.

Each fund will tell you how much you pay (in %) for management fees in the documentation.

The reason so many people choose funds is to diversify risk and because they believe they cannot outperform the market. If they believe they can identify talented fund managers who will beat the market they might choose an actively managed fund if not they will probably choose a passive fund, which tends to be cheaper.

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There is no stamp duty on cryptos :sunglasses:

If you’re investing with your pension it’ll likely be far larger than any other savings you have, please please please research before buying anything! Waiting a few days to ask questions here and read that extra article might make the difference between eating AND heating as opposed to having to choose.

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Here’s some info on ETFs: What is an ETF or exchange-traded fund? - Invest Hub | Freetrade

But many exchange charge 0.5% or more to let you buy crypto!

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But tax and cost are different concepts. There’s no free lunch, so of course crypto exchanges have to charge to make money.

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Indeed, it was more a joke and me trying to shill crypto then a serious answer. Hope I have not offended/upset people 🥲

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No worries … Yesterday I bought some Bitcoin on Kraken after transferring via bank transfer and then sent the BTC to exodus wallet… I lost 8% of the value in the process… Bear in mind Kraken is one of the cheapest exchanges! Therefore I’m not complaining about 0.5%

8% sounds awful, I am using kraken myself but I don’t an hard wallet to store my crypto. The majority are in staking but I should really start to look for an hard wallet to securely store my cryptos.

Hi, @tiger66
ETF = Exchange Traded Fund (there are hundreds)
ETC = Exchange Traded Commodity (like an ETF but has holdings only in specific commodities such as Gold, Silver…).

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