Beware hidden share trading charges
Normal traders don’t apply stop losses!
I have just opened a normal trading account with ‘Interactive Investor‘ (www.iii.co.uk). They sell themselves on the platform of being completely transparent with their charges. However, as I found out to my frustration hidden charges do exist.
If you open an ordinary trading account it says:
- £10 commission for real-time UK trades
- £15 commission for US and European trades
- £1.50 for regular trades
- No inactivity or subscription fees
- No ISA or other administration fees
- Phone trading at no extra cost
What they don’t mention, is that the most basic of trading tools a ’stop loss’ is classed as not part of a normal trade. If you want to use a stop loss – and who in their right mind would not, it is an extra charge.
Unfortunately this only becomes apparent after you have made your first deal and try to apply a ’stop loss’ to it. It is only then that you find it is not available unless you open a ‘TradePlan’.
When I rang the Interactive Investor trading team to ask why I could not apply a ’stop loss’ they said it is not seen as a normal part of trading.
Just another part of the virgintrader learning curve I’m afraid. I would recommend opening an account with another broker for example share.co.uk at least they have stop losses as a normal part of the deal, at no extra charge.
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