Ask your beginners questions here 🐣


(Emma) #79

Every time I think I’ve understood something but then more information is posted…

image

Thanks for the KID link, that helps :grin:


#80

The way I understand it, a Key Information Document ( KID ) is required for any packaged investment, so where you are not holding the investment directly.

With ETC’s you are not buying the commodity itself so a KID is needed. Same with ETF’s you are not buying the stocks directly so a KID’s required.


(Alex Sherwood) #81

Yes & yes :slight_smile:


Do you / will you use ISAs?
(Harley-James Orchard) #82

£2 there and back, sold. How about the alpha account, what kinda pricing does it have?


(Emma) #83

(Harley-James Orchard) #84

thanks Emma, do you know if that 0.5% gov
charge is paid on US stocks?


(Emma) #85

Stamp duty (the government charge) is U.K. only, and isn’t payable on ETFs. No idea about American stocks, I’m sure (:crossed_fingers:) there will be a lovely blog when they’re available, explaining everything


(Vladislav Kozub) #86

100% there are no charges on US shares.

However, there is a 30% withholding tax on dividends received (no allowances to mitigate this), which is reduced to 15% if you file a W-8BEN form to prove you are not a US resident.

As far as I am aware, that is the only extra charge that is applicable to the US stocks.


(Giridhar Tammana) #87

I have iweb, what is more important incase of US stocks is FX conversion. As far as I’m aware there is no broker that provides Isa does FX conversion at interbank rate.
Recently I got GOOG in iweb Isa and I was 1.5% down right after the purchase :rage:
With FT it would be around 0.5%, I think.


(Vladislav Kozub) #88

Yes, it is the case at the moment. If you buy and sell within a second, you will be ~1% down (subject to one-second FX and stock price fluctuations).


(Harley-James Orchard) #89

Cheers Vlad, I suppose this create another question. Will Canadian stocks be available? BMO is what I was interested in dividend wise and now I wonder if it will be available on here and how the dividends will be taxed.


(Vladislav Kozub) #90

I doubt Canadian Stock Exchange will be more of a priority over Hong Kong, Tokyo and Euronext due to the significance of the last three.

But who knows, if there will be demand and if it will not be too difficult to implement - it could very well be available sooner or later :wink:


(Scott weatherall) #91

Cracking question, I’m a uk based complete newbie to all of this,studying many online videos to learn from the start they all seem to be US based, I’d like to learn what’s required tax wise as I’m currently employed and also I find it so interesting still only paper trading simulation access to real time data like think or swim would be also a great learning opportunity


(Ben #88) #92

Shares come under Capital Gains Tax. Unless in an ISA, then they are exempt.


(Martin) #93

Hi Guys

Just set up this account 10 minutes ago, look forward to trading.

One question I can seem to find the answer to though is, Do you charge any fees for dividend re- investments??


(Ben #88) #94

If I remember correctly, Dividends are paid to your freetrade balance so would be treated as a normal trade when invested.


(Alex Sherwood) #95

Yes there’s no fee for this :moneybag:


(Martin) #96

Thanks, and I assume i can set up the dividends to automatically be re-invested?


(Alex Sherwood) #97

Not yet but you can vote for that idea here -

Drip (automatically reinvesting dividends)


(Martin) #98

Seen the link but how do I actually vote for this, would be a great advantage for someone like me with longer term investments.

Also, are there any costs to move my existing stock and shares isa to Freetrade