If you want to enter a larger order - Freetrade make you trade in increments of £9900. Is this correct? Is this just a way to generate more trade commissions?
No, since there is no commission on UK trades. It’s a regulatory shortcut.
thanks, I forgot to mention it is a US stock. What is the regulatory shortcut by the way?
Read the link. It’s 25k for US stocks.
Question on buying US shares - I am new here. Do you know what Freetrade charge on the conversion? And are there any cheaper ways of buying larger position in US shares (since order limit seems to be £25k for US shares).
Dropping £10k+ in one transaction might not be advisable as FT will match that to one buyer which could execute at a lower price. You’d better, if you’re in to fortunate position to be trading more than £10k in one stock, to do it in 10 x £1000.
Thanks, that’s interesting. I’m looking at 2 trades, one is for >£10K for a widely traded ETF, so presumably not much risk to placing a larger order? Second trade is large one for US stock (again widely traded), just wondering about execution costs, if I need to break it up into small chunks although I’ve just looked and freetrade FX costs are relatively low. Also, do you pay stamp duty on ETFs?
No stamp duty on ETF’s.
If I were doing what you’re planning I would break it down just to be on the safe side - there is no incentive other than ease.
Thank you !
By the way how do you keep track of your trades, do you use software or just write them down?
A lot of folks around here use Google Sheets along with the Google Finance tools. That way, you can track changes in prices along with your holdings. It’s very simple to get started and there are plenty of tutorials out there.
What @heytokyo said.
Also having to actually type what trade you made makes you stick to your investments instead of jumping around too much - it’s been helpful for me.
Supply and demand principles do apply to ETFs as well