At 0.03%, Interactive Brokers has the lowest outright currency conversion or foreign exchange (FX) costs of all the investment platforms we cover at Good Money Guide. However, given that every broker has a slightly different fee structure, it may not be the best platform for you.
In this guide, we’ll provide a comparison of UK investment platforms’ FX charges and explain how fees can differ between platforms. Whether you’re an experienced investor or just starting out, this guide should help you reduce your FX fees and pocket more of your trading and investment gains.
Why do you get charged FX fees when buying international stocks?
When you buy or sell international stocks like Apple and Amazon in the UK, you typically have to pay foreign exchange (FX) fees. The reason for this is that you have to exchange your domestic currency (GBP for UK investors) for the foreign currency in which the stock is denominated (USD, EUR, AUD etc.) and brokers usually charge a fee for this service.
FX fees and charges can vary depending on several factors though. These include:
- The investment platform you’re using – different brokers have different fee structures.
- The account type – your account type (retail, professional, individual, corporate, etc.) may influence the FX fees charged.
- The size of the trade – larger transactions sometimes incur lower percentage FX fees.
Why are foreign exchange charges important when buying foreign stocks?
If you’re planning to buy and sell international stocks, it’s important to do some research into platforms’ FX charges. Because these fees can be substantial. Today, some UK investment platforms charge FX fees of around 1%. On a £10,000 international stock purchase, that translates to a fee of £100, which is significant.
Comparing UK investment platforms’ FX charges
The table below shows some of the biggest investment platforms in the UK and their FX charges. Note that every platform has an entirely different commission structure so it’s worth assessing their other charges when looking for the platforms with the lowest charges. You can find more information on these fees here.
| Broker | FX charge |
| Hargreaves Lansdown | 0.25% – 1.00% depending on trade size |
| AJ Bell | 0.25% – 0.75% depending on trade size |
| Interactive Investor | 0.25% – 0.75% depending on trade size/plan |
| Saxo | 0.20% – 0.60% depending on plan |
| Freetrade | 0.39% – 0.99% depending on plan |
| IG | 0.70% |
| Interactive Brokers | 0.03% |
| eToro | 0.75% |
| Trading 212 | 0.15% |
Which platforms have scaled FX charges?
Several brokers today offer scaled FX charges. These include:
- Hargreaves Lansdown
- AJ Bell
- Interactive Investor
Hargreaves Lansdown’s FX charges are as follows:
| 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% |
Note that with Hargreaves Lansdown, there are no FX charges for trades placed online within a Junior ISA.
Interactive Investor has FX fees of 0.75% for its Core plan and 0.25% for its Premium plan. For its Plus plan, fees are as follows:
| Value of trade | FX charge |
| First £50,000 | 0.75% |
| Over £50,000 | 0.25% |
AJ Bell’s FX charges are as follows:
| Value of trade | FX charge |
| First £10,000 | 0.75% |
| Next £10,000 | 0.50% |
| Value over £20,000 | 0.25% |
Which platforms have flat FX charges?
A number of brokers have flat FX charges. These include:
- Interactive Brokers – 0.03%
- IG – 0.70%
- eToro – 0.75%
Note that Interactive Brokers charges commissions based on the number of shares traded. For example, on US stock trades, it charges USD $0.0035 per share. So, while this platform offers low FX charges, it may not necessarily be the cheapest overall.
Do any brokers have plans with lower FX charges?
Brokers that offer plans with lower FX charges include:
- Interactive Investor – with its Premium plan, FX charges are only 0.25%.
- Freetrade – with its Plus plan, FX charges are only 0.39%.
- Saxo – with its VIP plan, FX charges are only 0.25%.
Which platform has the lowest overall FX fees?
Given that every broker tends to have a slightly different fee structure, the answer to this is going to depend on several factors including the value of your trades and whether or not you are willing to pay for a premium plan.
In the table below, we show how much different platforms would charge for an international stock purchase worth £2,000 and an international stock purchase worth £20,000. As you can see, fees vary between the different platforms. Of course, other fees such as regular trading fees and account management fees also need to be considered. You can find more information on these fees here.
| Broker | FX charge on £2,000 trade | FX charge on £20,000 trade |
| Hargreaves Lansdown | £20 | £137.50 |
| AJ Bell | £15 | £125 |
| Interactive Investor | £15 | £150 |
| Saxo | £12, £8, or £4 depending on plan | £120, £80, or £40 depending on plan |
| IG | £14 | £140 |
| Interactive Brokers | £0.60 | £6 |
| eToro | £15 | £150 |
| Freetrade | £19.80, £11.80, or £7.80 depending on plan | £198, £118, or £78 depending on plan |
| Trading 212 | £3 | £30 |
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
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