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Best SIPP for buying US Shares?

Including Financial Independence and Retiring Early (FIRE)
TomKe
Posts: 4
Joined: November 10th, 2016, 5:37 pm

Best SIPP for buying US Shares?

#336185

Postby TomKe » August 26th, 2020, 8:37 pm

I am currently with SIPPDeal but the 'FX' charges they add to trades in US Shares are high.
First £10,000 = 1.00%
Next £10,000 = 0.75%
Next £10,000 = 0.50%

Last year I made a £19k purchase and the FX charges were £175 on the trade.

Do any fools know of a better SIPP?

Regards
Tom

dspp
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Re: Best SIPP for buying US Shares?

#336261

Postby dspp » August 27th, 2020, 9:05 am

The ii ones may be a useful comparison :

https://www.ii.co.uk/investing-with-ii/ ... -investing
https://media-prod.ii.co.uk/s3fs-public ... ges_uk.pdf

page 5 of that second link (pdf) gives their forex charges. Eyeballing it you are better off where you are if this is your only cost of interest.

regards, dspp

hiriskpaul
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Re: Best SIPP for buying US Shares?

#336286

Postby hiriskpaul » August 27th, 2020, 10:42 am

HL's FX fees: https://www.hl.co.uk/shares/share-deali ... ce#charges

Value of trade	FX charge
First £5,000 1.00%
Next £5,000 0.75%
Next £10,000 0.50%
Over £20,000 0.25%


AJBell Youinvest: https://www.youinvest.co.uk/sipp/charges-and-rates

First £10,000       1%
Next £10,000 0.75%
Next £10,000 0.5%
Value over £30,000 0.25%


Both expensive IMHO, although our SIPPs are with HL.

You may get better with other brokers, such as IG, who use James Hay for pension admin. IG charge a flat 0.5% for currency conversion, but offer multi-currency accounts, so your money is not automatically converted every time you do a deal or receive a dividend.

For really cheap FX, close to interbank, you could look at Interactive Brokers. Like IG, you have to use a separate SIPP administrator. Very complicated to set up though with a bewildering array of charges and fees.

One other aspect to consider with US shares is to make sure you are investing in a SIPP that offers zero dividend withholding taxes as over the longer term, paying 15% withholding tax on your dividends is likely to outweigh any up front saving you might make in dealing FX fees. Both HL and Youinvest support zero US withholding taxes in their SIPPs, not sure about IG/James Hay or IB.


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