Hi everyone, I just got my IBKR account verified recently, and I wanted to purchase RM1500 (approximately 3 shares) worth of VWRA ETF. I'm planning to purchase it using tiered pricing as everyone suggests using it while purchasing a small volume of shares.
After skimming through the tiered pricing structure of commission fees on the IBKR official website, I managed to find the market where VWRA is listed (London Stock Exchange). Below is the information I found. Could anyone tell me how they charge the commission fees for the VWRA ETF? Thank you.
@gift2christian VWRA is denominated in USD, so you need to look at the first table under Europe. As you can see, minimum is USD1.70. Then you need to add the exchange fees for LSE (last link before the section transitions to Asia Pacific). There you can see it's min GBP 0.10 per order, which is around USD 0.14. Lastly you have clearing fees of GBP0.06, which is about USD0.08. Adding all up you get USD 1.92, which is exactly what I paid:
@georgiew Yes fees more expensive for Irish domiciled due to being charged London Stock Exchange rates. But holding them in the long run they will beat most US domiciled ETFs, due to cheaper 15% withholding tax on dividends. Even if you are to buy accumulation type ETFs (where the fund reinvest your dividends) you'll still be taxed the withholding amount everytime a dividend is paid out.
Do note that buying a stock outright (even for US stocks), you'll likely have higher growth in the long run. But yea only apply for very good stocks in the market such as Tesla or Apple.
@gift2christian You can preview your commission rate when you are at the buy screen. With tiered pricing it will be around 1.91USD per trade based on my past experience.
