Interactive Brokers have just released their ISA product for 2022 in the UK for the first time and it's a game changer.
This is a very serious stocks and shares ISA proposition with cheaper fees than the best options on the market with far more choice of stocks and a solid platform.
In this video I will explain exactly how the fees work for Interactive Brokers and why I think this is now the best Stocks & Shares ISA product in the UK.
I myself am moving to Interactive Brokers with my ISA in the new financial year because in my opinion, IBKR is the best stocks and shares ISA in 2022 in the UK.
YOU CAN SIGN UP FOR THE INTERACTIVE BROKERS HERE
https://bit.ly/interactive-brokers-sasha-yanshin
This is an affiliate link - I will get a small commission if you choose to use it.
INTERACTIVE BROKERS REVIEW VIDEO
https://youtu.be/iJkytMiAuN0
☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE
https://www.patreon.com/sashayanshin
💵 OTHER GREAT INVESTING APPS I USE (BUT DO NOT OFFER ISAS)
SIGN UP FOR ETORO (Global)
https://med.etoro.com/B15358_A95689_TClick_SSasha.aspx
GET $10 IF YOU SIGN UP WITH LIGHTYEAR (UK only)
https://lightyear.app.link/sasha-yanshin
You need to sign up and make a deposit to get the $10 bonus.
GET A FREE SHARE WORTH UP TO $150 WITH STAKE (UK, Australia, NZ)
https://hellostake.pxf.io/qnA3xq
You will get a free share if you sign up using this link and deposit a minimum of £50.
👍 SUBSCRIBE TO MY CHANNEL
https://www.youtube.com/c/SashaYanshin?sub_confirmation=1
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
This is a very serious stocks and shares ISA proposition with cheaper fees than the best options on the market with far more choice of stocks and a solid platform.
In this video I will explain exactly how the fees work for Interactive Brokers and why I think this is now the best Stocks & Shares ISA product in the UK.
I myself am moving to Interactive Brokers with my ISA in the new financial year because in my opinion, IBKR is the best stocks and shares ISA in 2022 in the UK.
YOU CAN SIGN UP FOR THE INTERACTIVE BROKERS HERE
https://bit.ly/interactive-brokers-sasha-yanshin
This is an affiliate link - I will get a small commission if you choose to use it.
INTERACTIVE BROKERS REVIEW VIDEO
https://youtu.be/iJkytMiAuN0
☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE
https://www.patreon.com/sashayanshin
💵 OTHER GREAT INVESTING APPS I USE (BUT DO NOT OFFER ISAS)
SIGN UP FOR ETORO (Global)
https://med.etoro.com/B15358_A95689_TClick_SSasha.aspx
GET $10 IF YOU SIGN UP WITH LIGHTYEAR (UK only)
https://lightyear.app.link/sasha-yanshin
You need to sign up and make a deposit to get the $10 bonus.
GET A FREE SHARE WORTH UP TO $150 WITH STAKE (UK, Australia, NZ)
https://hellostake.pxf.io/qnA3xq
You will get a free share if you sign up using this link and deposit a minimum of £50.
👍 SUBSCRIBE TO MY CHANNEL
https://www.youtube.com/c/SashaYanshin?sub_confirmation=1
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Hey guys, it's sasha, interactive brokers have just launched a brand new isa account in the uk. This brand new isa is extremely interesting and might just be the best stocks and shares isa in 2022. In fact, in my opinion, it is the best one. However, in true interactive broker style, the pricing for this new isa is somewhat complicated, so it is cheap, but it is really hard to actually understand how cheap it is, and in this video i will walk you through exactly how much this new iso costs explain.
All the details and some of the unique features that the interactive brokers, isa has that other accounts do not have just in case you're wondering this. Video is a genuine review and is not paid for or sponsored by interactive brokers. They don't even know i'm doing this. Video, this is just me sharing my personal opinion.
I have an affiliate link in the description and the pin comment for anyone wants to try it out, but i have affiliate links for every other investing platform out there too. In this video i will tell you all the good things and share some bad things about the interactive broker stocks and shares isa as well, and i will compare it to the most popular iso option in the uk. So you can decide if you think it is better or worse. So, let's start with the pricing, because that's probably the thing that you want to know most about - and it is also the thing that is most difficult to understand, because interactive brokers haven't done very much marketing of this product and the marketing that does exist is somewhat Confusing there is this page that tells you actually very little.
It just says: low commissions, our commissions are just three pounds or three euros per trade for uk and most european stocks, while u.s stocks start from just half a cent per share. Now you can also click on this faq section, which is actually very handy, and then, if you want to understand the pricing, you have to click the link in question 14 over the faq, which takes you to the overall pricing tables. And there are a lot of tables, so i do not blame anyone who gets pretty confused. How much exactly does this is cost? Well, i'm going to break it down for you.
Unfortunately, i do not have this iso, because i am with a different provider. This financial year, and so i am unable to open one, but i have had some people in the discord community help me out so hopefully this is going to be very, very accurate. The interactive brokers, iso works differently to their regular, investing account with the regular investing account. You can keep your money in different currencies within the account, which means you don't have to pay foreign exchange fees every single time you trade.
I do have one of those accounts and i've used it quite a lot with the i said, the rules in the uk, so you can only keep cash in pounds, so the iso works as a gbp cash account type. This means that you always have to keep your money in the account as pounds, and that means that you have to exchange money into dollars. If you want to buy your stocks every single time you trade, which is different to their other account, so in a normal ibkr account, you have to convert your pounds into dollars before buying u.s stocks and then after you've converted it. Then you can use those dollars to buy your stocks and in this one that actually happens automatically in the background. But here is the seriously cool thing. The fee for converting money is incredibly cheap. They have set it to just not point, not three percent. This is ridiculous: it is 15 times cheaper than the free trade foreign exchange fee 15 times cheaper.
You can see the example at the end of the faqs. If you convert a thousand pounds into dollars, the cost is just 30p. The same fee on free trade would be four pounds 50, but wait. It gets even better like free trade, which seems to be the most popular icer out there at the moment for new accounts, interactive brokers charge three pounds per month for you to use the isis.
So those two are kind of the same on the surface, but the really cool thing is that if you do any transactions with interactive brokers, the first three pounds worth of fees that you spend are included within that fee. So you don't have to pay extra. So you won't pay three pounds, plus all the fees, the first three pounds of any fees that you incur in a month, basically get written off. Okay.
So now, let's talk about those transaction costs, because transaction costs on interactive brokers are actually quite complicated. The fact is, they are incredibly cheap, but very complicated, i'll, explain them briefly and then i'll show you a few examples now, if you want a full detailed breakdown of how these fees work on interactive brokers, i will put my interactive broker's review video in the description And up here so feel free to watch it afterwards for more detail. Okay, so interactive brokers has two different ways that you can pay fees, tears and fixed, and i checked in my disk community because some people in there already have their iso with interactive brokers and i do not uh and you can go and choose which of those. Two structures you like even with the icer, which i thought would not be the case now just remember you can't just keep switching between them well in alias and when you want it takes a full day to propagate for that option to be enabled so generally you'll, Probably tend to stick with one or the other.
They work in slightly different ways, but the long and short of it is that both fee structures are very cheap for smaller transactions in general. The tiered pricing is going to be cheaper, for example, if you're trading u.s stocks. This will be different if you're buying stocks based on other countries, because they all have slightly different pricing structures. I'll cover the etf bit a bit later, but i predominantly, for example, invest in u.s stocks, and i know that a lot of you watching may also be investing in u.s stocks. So that's where i'm going to be focusing attention if you're interested in something else, please go and check these same tables. The fixed pricing structure charges half a cent per share to transact, but there is a one dollar minimum and a one percent maximum and that one percent maximum supersedes the one dollar minimum according to 0.7 in the notes. So that means that the most you will ever pay using the fixed fee is one percent, but if you're buying more than a hundred dollars a stock, it pretty much is going to be one dollar per transaction, pretty much regardless of how much it is that you're Buying with tiered pricing, you pay two fees, you pay 0.35 cents per share in commission with a 35 minimum, and then you also pay the exchange fee. So there's two things that add up together with the tiered pricing for most transactions.
You will just pay 35 cents to interact with brokers because you have to buy over a hundred shares to go above the minimum and even if you're, buying a ten dollar stock. A hundred shares is one thousand dollars and most people probably will not be making transactions. Above that per single trade than their isa, if you're making regular deposits now the exchange fees look pretty complicated, but it's actually really quite simple. If you place a market order, so the transaction executes immediately, it will cost another, not 0.3 cents per share.
If you place any pending order, like the limit order, you get paid, not 0.21 cents per share back, just be careful. If you place a limit order that executes immediately, it still counts as a pending order. So if the share price, for example, is 10 and you go and place a limit order and you set the buy price to 11, because in that case the transaction executes immediately, because you are happy to pay above with the current prices, you're still going to pay. That 0.3 cents share per share fee.
But if you place a pending order for just nine dollars and then you wait for the share price to drop to nine dollars and it does, then you will get that rebate. So, let's presume you just by using market orders, to keep things simple. If you do limit orders, it's going to be even cheaper. Let me show you a few examples of how much it will cost you to buy shares in the sizer.
Let's start small and let's say you want to buy two shares of fiverr, for example, a stock that i am invested in. Let's round five, the share price up to 70 dollars and keep it very simple if you're buying two shares it'll cost you 140, by the way, the interactive brokers, iso does let you buy fractional shares as well. If you want to i'm just using whole numbers here to make the examples easier, so two shares of fiver using the fixed pricing tier will cost you that one dollar minimum per transaction plus the not point not three percent foreign exchange fee, which is another four cents. So your total cost here will be one dollar and four cents. If you use tiered pricing, the same transaction will cost you 35 cents as the minimum commission fee, because you're buying less than 100 shares, and then you pay that extra 0.3 cents per share for the exchange fee times. Two shares rounds up to about one cent and then the same four cent for an exchange fee, so you'll be paying 35 cents, plus one cent plus four cents for a whole grand total of 40 cents for that transaction. So 40 cents of 140 is about 0.29. So, even for a relatively small transaction like this, which is about 100 pounds worth you're, paying a whole lot less than even on free trade, who are the most popular new icer out there by the sounds of it, and these he's become a whole lot cheaper.
If you're making larger transactions, so if you're going higher, the difference becomes much bigger, let's say, for example, you're just buying one share of tesla. So, let's round it up and let's assume the tesla share price at the moment is 850. The tiered price on interactive brokers would be 35 cents, plus zero one cents for the exchange fee. I don't know exactly what they do with not point three cents: maybe they ignore it.
Maybe they round it up whatever, but anyway, plus foreign exchange fee of 0.3, which is another 26 cents, so that one share of tesla at 850 will cost you 35 plus 1 plus 26 equals 62 cents in total, and that is not point not 7 in fees. So buying one share of tesla for eight hundred and fifty dollars cost 0.07 in this isa compared to 0.45 on free trade, that's about six times cheaper, but remember these fees actually come out of your monthly iso fee. So if you say deposit 750 pounds until i say in one month, uh, which is about 990 and you go and, for example, buy one share of tesla and two shares of five are the two examples that i just looked at. Then your fees will be 40 cents for those two fiber shares and 62 cents for the tesla shares.
So the total of your fees will be one dollar and two cents, and that total is a lot less than the three pounds per month fee that you have to pay. So you actually don't have to pay those fees at all. Those transactions are essentially free because they are within your three pound buffer on free trade that 990 dollars worth of free shares. Cost you on free trade that 990 dollars worth of shares will cost you four dollars, forty six in fees, because they charge not point four.
Five percent for an exchange fee, so that is about three pounds: forty one so with free trade, you're gon na pay, the three pound monthly fee, plus three pounds: forty one in those additional fees compared to just the three pound fee for interactive brokers. So in that example, free trade will be more than two times as expensive. Now, if you want to buy etfs, remember that the minimum cost per transaction for the london stock exchange is one pound. So that's going to be higher, but even if you just want to invest in the s p 500, whether you're depositing 10 pounds a month, 100 pounds a month or a thousand pounds a month, the fee will still be less than the three pounds you get waived. Every month, so, if you're buying vusa, the cost will be exactly the same as with free trade, except you get to have an account with a much more established company and, in my opinion, a company that has significantly better support. I have used that support multiple times and you don't have to wait for two days for somebody to reply to one of your messages. You can speak to a person right away instead and they've in general being extremely helpful. So i hope that you can see that the most typical examples, like the ones that i've just shown you interactive brokers, is a much cheaper and much better option.
In my opinion than what we've had available on the market before and interactive brokers also has a vastly bigger number of stocks that you can invest in. The company is one of the biggest investing companies in the world with the solen's bad, solid balance sheet and extremely good reputation. So i personally i'm starting my new stocks and shares in the new financial year with interactive brokers. For these reasons, because, in my opinion, it is by far the best option out there.
If you found this video useful, please don't forget to smash the like button for the youtube algorithm. Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later, you.
Great news! Hopefully they allow options as well under the ISA
Excellent video thanks so much
Me to thank you mate for this video
I was waiting for 212 getting sick of waiting. It will be either invest engine or Interactive.
Do you invest in other countries besides US and UK Sasha?
Been waiting for this! Thanks I'll watch it carefully