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Hi all
I'm looking to invest $2m in low-cost ETFs on the Australian and UK stock markets. Most of the portfolio will go into Australian Vanguard ETFs but about $300,000 into the UK stock market to get access to ETFs that aren't available on the ASX (such as a Global Value ETF) or have lower ongoing managment costs.
I expect to make periodic dividend reinvestments, do annual rebalancing and maybe occasional switching of funds so I want to keep costs as low as possible.
Up to now I've used Interactive Brokers for a smaller portfolio. The fees are very good: 0.08% commission on stocks and 0.02% commission on forex at almost mid-market rates. But it's not good for a large portfolio because (a) Shares are held in the name of Interactive Brokers not the client and (b) The US assets of non-residents over 60,000 USD are subject to inheritance tax.
Nabtrade's 0.11% commissions are okay but for international investments they also apply a forex spread of 0.5% to 0.8% each time a security is bought or sold, ie about 1.5% costs for a round-trip. I think the same would apply when reinvesting dividends or to switch from one fund to another.
Can anyone suggest a better broker than Nabtrade to use for this?
Has anyone managed to negotiate better fees with Nabtrade?
I'm looking to invest $2m in low-cost ETFs on the Australian and UK stock markets. Most of the portfolio will go into Australian Vanguard ETFs but about $300,000 into the UK stock market to get access to ETFs that aren't available on the ASX (such as a Global Value ETF) or have lower ongoing managment costs.
I expect to make periodic dividend reinvestments, do annual rebalancing and maybe occasional switching of funds so I want to keep costs as low as possible.
Up to now I've used Interactive Brokers for a smaller portfolio. The fees are very good: 0.08% commission on stocks and 0.02% commission on forex at almost mid-market rates. But it's not good for a large portfolio because (a) Shares are held in the name of Interactive Brokers not the client and (b) The US assets of non-residents over 60,000 USD are subject to inheritance tax.
Nabtrade's 0.11% commissions are okay but for international investments they also apply a forex spread of 0.5% to 0.8% each time a security is bought or sold, ie about 1.5% costs for a round-trip. I think the same would apply when reinvesting dividends or to switch from one fund to another.
Can anyone suggest a better broker than Nabtrade to use for this?
Has anyone managed to negotiate better fees with Nabtrade?