Issue with averages

Hi,

Does anyone get a different number when trying to calculate averages it works with bigger stocks like the snp but penny stocks the answer is way different in the free trade app to the calculator.

My guess how many decimal places it may be rounding to? I may have to spreadsheet it to check later.

1 Like

Have you taken into account 0.5% stamp duty on UK stocks & 0.45% FX fee for US stocks?

The stocks I tested it on don’t have stamp duties on them and also are uk stocks

The only exclusions to the 0.5% stamp duty are AIM listed companies and ETF’s.

Which companies did you have trouble with?

Well I was testing MGC Pharmaceuticals as I already have 5 different share prices so was testing what my new average would be had I bought more etc.

On all my sales tickets there’s zero stamp duty u like say the Royal mail where there is. My average works with the snp etc

1 Like

Is it because penny stocks are 6 decimals but the front page may only show 4 . This means when you multiply by X amount of shares it works on the round up/down figure so can look well out. If you use the 6 decimal receipt number it should be fine. :+1:

Example being the front MGC says £0.0265 but when you buy them it will move to something like £0.026462 and when you multiply by however many it can be a lot.

2 Likes

Thanks Gary I will give that ago, cheers for the information :slight_smile:

1 Like

Also, if/when you sell Freetrade use the “first in first out” averaging approach.

3 Likes

Yeah thanks I new about his one but others may not if they come across this topic cheers.

2 Likes