Global Wealth Investor

Investing wealth globally

Category: Stocks

  • A Guide to the UK’s Cheapest Share Trading Apps for FX Rates

    Don’t Let Hidden Fees Gobble Your Global Gains!

    So, you’re ready to expand your investment horizons beyond the FTSE 100. You’ve been eyeing up those US tech giants or perhaps some promising European stocks. That’s fantastic! Investing globally is one of the best ways to diversify your portfolio and tap into worldwide growth. But before you dive in, there’s a sneaky cost that many new investors overlook: foreign exchange (FX) fees.

    Every time you buy shares in a currency different from your own (like buying Apple stock in US dollars with your British pounds), your broker has to convert your money. For this service, they charge a fee, and trust me, these fees can vary wildly between platforms. A seemingly small percentage can nibble away at your profits over time, turning a great investment into a mediocre one.

    So, how do you keep more of your hard-earned money? By choosing a trading app with low FX rates. We’ve done the digging to find out which UK share trading apps are the best for cost-conscious global investors.

    The Low-Fee Champions: Where to Get the Best Rates

    For those who want the absolute lowest FX charges, two platforms consistently come out on top:

    • Interactive Brokers: This platform is a favourite among serious and frequent traders for a reason. It boasts an incredibly low FX fee of just 0.03%. This is about as close to the raw market rate as you can get as a retail investor, making it a powerful choice for those making larger or more frequent international trades.
    • Trading 212: A hugely popular app, Trading 212 offers a very competitive and simple flat FX fee of 0.15%. Its user-friendly interface combined with this low rate makes it an excellent all-rounder for both new and experienced investors looking to trade overseas.

    The Challenger Apps: Hot on Their Heels

    The fintech revolution has brought a wave of new, agile platforms challenging the old guard. These apps often focus on transparency and low costs:

    • Lightyear: A newer entrant to the scene, Lightyear is making waves with its transparent fee structure. It charges a flat 0.35% on currency conversions, placing it firmly in the low-cost camp and making it a strong contender.
    • Freetrade: Known for its commission-free trading model, Freetrade operates a tiered FX fee system. Your rate depends on your subscription plan: the free Basic plan has a 0.99% fee, which drops to 0.59% on the Standard plan, and an attractive 0.39% on the Plus plan.

    A Note on Traditional Brokers

    What about the more established, traditional brokerage platforms? While they offer a wealth of research and a huge range of investments, their FX fees are often higher and more complex. Platforms like Interactive Investor and AJ Bell use a tiered fee system, where the percentage fee gets lower as the size of your trade increases. This can be cost-effective for very large lump-sum investments, but for smaller, regular purchases, the fees can be significantly higher than the newer apps.

    The Secret Weapon: Multi-Currency Accounts

    Here’s a pro tip: some platforms, including Trading 212 and Lightyear, allow you to hold cash in different currencies within your investment account. This is a game-changer for active international investors. You can convert a larger sum of pounds to dollars in one go (paying just one FX fee) and then use that dollar balance to buy and sell US stocks as often as you like, without incurring conversion fees on every single trade.

    The Bottom Line

    Choosing the right platform can make a real difference to your long-term returns. While commission-free trading is a great headline feature, it’s crucial to look under the hood at other costs, especially if you’re investing internationally. For UK investors, the evidence is clear: for the lowest FX fees, Interactive Brokers and Trading 212 are leading the pack.

    UK Trading App FX Fee Comparison

    AppForeign Exchange (FX) FeeKey Feature
    Interactive Brokers0.03%Industry-leading low rate for active traders.
    Trading 2120.15%Simple, low flat fee and multi-currency account option.
    Lightyear0.35%Transparent flat fee and multi-currency account option.
    Freetrade0.99% (Basic) 0.59% (Standard) 0.39% (Plus)Tiered fees based on subscription plan.
    AJ BellTiered (Higher for smaller trades)Fee percentage decreases as trade value increases.
    Interactive InvestorTiered (Higher for smaller trades)Fee percentage decreases as trade value increases.
    Hargreaves LansdownGenerally higher tiered ratesEstablished platform with extensive research tools.

  • Baronsmead Venture Trust (VCT): A Comparative Analysis

    How does Baronsmead stack up against the competition?

    The Baronsmead VCTs, managed by Gresham House, represent a long-standing and distinct proposition within the VCT market.1 When compared against the top-performing VCTs on the metrics of total return and dividend yield, a clear picture emerges of a trust with a different risk-return profile, driven by a unique investment strategy.3

    Performance on Total Return

    The primary metric for assessing a VCT manager’s performance is the 5-year Net Asset Value (NAV) Total Return. On this measure, the Baronsmead VCTs have delivered significantly lower returns compared to the sector leaders over the last five-year period.

    • Baronsmead Venture Trust delivered a 5-year NAV Total Return of 9.0%.4
    • Baronsmead Second Venture Trust delivered a 5-year NAV Total Return of 9.8%.4

    This performance is considerably below the average for Generalist VCTs, which was 33.1% for the same period, and trails the top performers by a substantial margin.4 For context, the top-ranked VCTs from the initial analysis delivered returns such as 94.2% (Foresight VCT) and 74.3% (British Smaller Companies VCT).4 This indicates that over the past market cycle, the Baronsmead strategy did not capture the same level of capital growth as its top-tier peers.3

    Differentiating Investment Strategy

    The divergence in performance can be largely attributed to Baronsmead’s distinct “hybrid” investment strategy.3 Unlike many VCTs that focus almost exclusively on direct investments into unquoted companies, the Baronsmead portfolio is constructed with three core components:

    1. Direct Unquoted Investments: Like other VCTs, it invests directly in early-stage, high-growth UK businesses across sectors like technology, healthcare, and business services.1
    2. AIM-Quoted Companies: The portfolio includes a significant allocation to companies listed on the Alternative Investment Market (AIM).5
    3. Listed Equity Funds: A substantial portion of the portfolio is invested in other open-ended funds also managed by Gresham House, such as the WS Gresham House UK Micro Cap Fund and the UK Smaller Companies Fund.3

    This fund-of-funds approach provides a high degree of diversification, spreading risk across a much larger number of underlying companies than a typical VCT.3 However, this structure also means that the VCT’s performance is a blend of direct venture capital returns and the performance of these other public equity funds. While this may offer stability, it can also dilute the high-growth potential from direct, successful venture capital exits that have driven the outsized returns of the top-performing VCTs.

    Performance on Dividend Yield

    Where Baronsmead VCTs compare more favorably is in their objective for income generation. The board has a stated dividend policy that uses a target of 7% of the opening NAV of the financial year as a guide when setting dividends.9

    This is an ambitious target, placing it in the same category as the Gresham House Income & Growth VCTs, which were highlighted in the initial report for their income focus. The current dividend yield for Baronsmead Venture Trust is approximately 7.75%, confirming its status as a high-yielding VCT.9

    Conclusion: A Comparison Summary

    VCT5-Year NAV TR (%)Dividend TargetInvestment Focus
    Foresight VCT94.2%~5% of NAVGeneralist Growth (Direct)
    British Smaller Co. VCT74.3%Attractive long-term yieldTech-enabled B2B (Direct)
    Gresham House I&G VCT56.3%7% of NAVGeneralist Growth (Direct)
    Baronsmead Venture Trust9.0%~7% of NAVHybrid (Direct, AIM, Funds)
    Generalist VCT Average33.1%

    Source for performance data: Morningstar, Wealth Club. Data to 30 June 2025.4

    In summary, the Baronsmead Venture Trust does not compare favorably with the best-performing VCTs on a total return basis over the last five years. Its hybrid investment strategy, while highly diversified, has resulted in performance that lags both the sector leaders and the generalist VCT average.4

    However, for an investor whose primary objective is to generate a high level of regular, tax-free income, the Baronsmead Venture Trust is a strong contender. Its 7% dividend target and high current yield make it a competitive alternative to other income-focused VCTs.9 The choice ultimately depends on an investor’s priority: for maximum capital growth, the top performers from the initial analysis remain superior; for a high and consistent dividend stream, Baronsmead Venture Trust warrants consideration.

  • Does Robinhood UK Charge FX Fees?

    Robinhood UK: No Direct FX Fees, But a 0.03% Third-Party Cost Applies

    Robinhood UK promotes “no foreign exchange (FX) fees” for its customers trading US-listed stocks.1 While technically true that Robinhood doesn’t levy its own separate commission for currency conversion, there is an “implicit third-party cost” of 0.03% applied to all GBP to USD conversions.2

    This charge is factored into the exchange rate you receive when you deposit or withdraw funds from your account. For example, on a £1,000 transfer to your USD balance, this would amount to a cost of £0.30.

    This structure is a key part of Robinhood’s offering in the UK, which aims to provide a low-cost platform for accessing the US stock market. The company emphasizes that this 0.03% cost is from a third party and not a direct fee from Robinhood itself.3

    It’s important for users to be aware of this cost, as it will affect the final amount of USD they have available for trading and the GBP amount they receive upon withdrawal. While small, this percentage can become more significant with larger transaction volumes.

    In addition to this currency conversion cost, other standard regulatory and trading activity fees may apply to transactions on the platform.4 Users are encouraged to review Robinhood’s official UK fee schedule for a comprehensive understanding of all potential charges.

  • Pandemic-Era High-Fliers: Gauging the Potential for a Stock Market Comeback

    Still holding?

    Once the darlings of Wall Street during the global pandemic, many high-growth technology and stay-at-home stocks have since experienced a significant downturn. As the world has largely returned to pre-pandemic routines, these companies have faced headwinds from slowing growth, increased competition, and a shifting economic landscape. However, some analysts believe that a number of these former high-fliers may be poised for a recovery, presenting potential opportunities for investors with a long-term perspective.

    Among the sectors that saw a surge in demand during the pandemic were e-commerce, video conferencing, home fitness, and telemedicine. Companies like Shopify, Zoom Video Communications, Peloton Interactive, and Teladoc Health became household names as their services became essential for remote work, online shopping, and virtual healthcare. Their stock prices soared to unprecedented heights as a result.

    The subsequent correction in the stock prices of these “pandemic darlings” was driven by a combination of factors. As lockdowns eased, consumers began to spend less time and money on at-home activities. The rising interest rate environment also put pressure on the valuations of growth stocks, which are often more sensitive to changes in borrowing costs. Furthermore, increased competition from both established players and new entrants has intensified the challenges for these companies.

    Despite the downturn, the underlying trends that propelled these companies to prominence have not entirely disappeared. The adoption of hybrid work models continues to support the need for effective video conferencing solutions. E-commerce as a share of total retail sales remains above pre-pandemic levels. The convenience and accessibility of telemedicine are likely to ensure its continued role in healthcare delivery.

    For investors considering these stocks, a careful evaluation of each company’s fundamentals is crucial. Key factors to consider include their ability to innovate and differentiate their products and services, their path to profitability, and their valuation relative to their growth prospects.

    Companies to Watch:

    • Shopify (SHOP): While the e-commerce giant has faced a slowdown from its pandemic peak, it continues to be a dominant platform for businesses of all sizes. The company’s ongoing investment in its fulfillment network and international expansion could drive future growth.
    • Zoom Video Communications (ZM): Despite increased competition, Zoom remains a leading player in the video conferencing market. Its expansion into enterprise communications with offerings like Zoom Phone and its focus on a hybrid work environment could provide avenues for recovery.
    • Peloton Interactive (PTON): The connected fitness company has endured significant challenges, including slowing demand and inventory issues. However, its strong brand recognition and loyal subscriber base could provide a foundation for a turnaround if it can successfully execute its new strategies, which include a focus on software and a more varied product lineup.
    • Teladoc Health (TDOC): As a leader in the telemedicine space, Teladoc is well-positioned to benefit from the long-term shift towards virtual healthcare. The company’s ability to integrate its services and demonstrate improved patient outcomes will be critical for its future success.

    It is important for investors to conduct their own due diligence and consider their risk tolerance before investing in any stock. The path to recovery for these pandemic-era darlings is not guaranteed and will likely depend on their ability to adapt to the evolving market landscape and execute their growth strategies effectively.

  • The Definitive Guide to Stamp Duty on the FTSE 100

    What shares trade without the tax?

    When buying shares in the UK’s leading FTSE 100 index, most investors are familiar with the standard 0.5% Stamp Duty Reserve Tax (SDRT). However, a company’s legal domicile—not its stock market listing—determines the tax you pay, creating three distinct categories of stocks within the index.

    Understanding this difference is key to knowing the true cost of your investment. While some companies are genuinely free of stamp duty, others, particularly those from Ireland, carry a tax rate that is double the UK standard. This guide provides the definitive breakdown.

    Category 1: Truly Stamp Duty-Free (0% Tax)

    These companies are incorporated in jurisdictions that do not charge stamp duty on share transfers for UK investors. As they are not UK-domiciled, they are also exempt from the 0.5% SDRT. Buying shares in these firms offers a genuine cost advantage.

    • Swiss Domiciled Companies:
      • Coca-Cola HBC (CCH)
      • Glencore (GLEN)
    • Spanish Domiciled Companies:
      • International Airlines Group (IAG)
    • Companies in Crown Dependencies (Jersey & Guernsey):
      • Experian (EXPN) (Jersey)
      • Pershing Square Holdings (PSH) (Guernsey)
      • WPP (WPP) (Jersey)

    Category 2: The Irish Exception (1% Tax)

    Several major FTSE 100 companies are incorporated in Ireland. While this exempts them from the 0.5% UK SDRT, they are instead subject to 1% Irish Stamp Duty.

    This higher tax is levied by the Irish government and is typically collected automatically by brokers. This means investors in these companies pay double the stamp duty rate of a standard UK-listed company.

    • Irish Domiciled Companies (Subject to 1% Irish Stamp Duty):
      • CRH (CRH)
      • Flutter Entertainment (FLTR)
      • Smurfit Kappa Group (SKG)

    Category 3: The UK Standard (0.5% Tax)

    The majority of companies in the FTSE 100 are incorporated in the United Kingdom. Any electronic purchase of their shares attracts the standard Stamp Duty Reserve Tax (SDRT) at a rate of 0.5%.

    On the Horizon: A Stock to Watch

    Investors should keep an eye on Ashtead Group (AHT). The equipment rental firm is currently UK-domiciled (0.5% stamp duty) but has discussed moving its primary listing to the US. Should this happen, its shares would likely become exempt from UK stamp duty, moving it into the 0% category.

    The Investor Takeaway

    To avoid surprises, always consider a company’s domicile before investing. The true cost of your transaction on a FTSE 100 stock will fall into one of three distinct bands: 0%, 0.5%, or 1%. Knowing which band a company falls into is a crucial part of making an informed investment decision.

  • LSEG Share Price: A Tale of Strong Fundamentals and Market Headwinds

    Mind the Dip

    London Stock Exchange Group (LSEG), a stock recently touted by analysts as a strong buy, has seen its share price take a hit, leaving many investors wondering about the disconnect between its recommended status and its recent performance. Despite posting robust financial results and enjoying a positive outlook from market experts, the company’s shares have been on a downward trend, influenced by a confluence of broader market anxieties and specific industry challenges.

    As of mid-September 2025, LSEG’s share price has seen a significant decline from its 52-week high, a trend that stands in contrast to the company’s strong underlying performance.1 In its first-half results for 2025, the company reported a notable increase in revenue and profits, driven by the successful integration of data and analytics giant Refinitiv. This strategic acquisition has transformed LSEG into a major player in the financial data sphere, a key reason for the enthusiastic analyst recommendations.

    Furthermore, LSEG announced a new £1 billion share buyback program, signaling confidence from the management in the company’s future prospects and a commitment to delivering shareholder value.2 The majority of analysts covering the stock maintain a “Strong Buy” consensus, with price targets indicating a significant potential upside from the current levels.3

    So, why the downward pressure on the share price?

    Several factors appear to be contributing to the decline, creating a narrative of caution that is currently overshadowing the company’s solid fundamentals:

    • Broader Market Headwinds: Global markets have been contending with economic uncertainty, and the UK market has faced its own specific challenges. Concerns about inflation, rising interest rates, and a potential economic slowdown have led to a risk-off sentiment among investors, impacting even fundamentally sound companies like LSEG.
    • A Slowing IPO Market: The London Stock Exchange has experienced a significant slowdown in Initial Public Offerings (IPOs), a traditionally lucrative part of its business. This trend has been fueled by market volatility and has raised concerns about a key revenue stream.
    • The Automation Narrative: A prevailing market narrative suggests that increasing automation and the rise of artificial intelligence in the financial sector could lead to a reduction in the number of human traders and analysts.4 This has sparked some investor anxiety about the long-term demand for LSEG’s data and services, which are often sold on a per-user or “seat” basis.
    • General UK Market Sentiment: There has been a broader negative sentiment towards the UK stock market from some international investors, which can indiscriminately affect even large, globally diversified companies like LSEG.5

    In conclusion, the story of LSEG’s recent share price performance is one of a company with strong financial health and a promising strategic direction being caught in the crosscurrents of a challenging market environment and specific industry concerns. While the “heavily recommended” status is backed by solid earnings and the transformative potential of the Refinitiv integration, the recent price drop highlights the impact of external market forces and evolving industry narratives on investor sentiment. The coming months will be crucial in determining whether the company’s strong fundamentals can overcome the prevailing market headwinds.

  • Leading the Pack: London’s Most Recommended Tech Stocks Revealed

    In the dynamic world of London’s technology sector, a handful of companies have emerged as clear favourites among market analysts. While a definitive, all-encompassing league table remains fluid, consistent “buy” recommendations point towards strong confidence in the growth prospects of several key players. Topping the charts with a significant number of positive ratings are software giant Sage Group, IT infrastructure providers Softcat and Computacenter, and software reseller Bytes Technology Group.

    While specific numbers of “buy” ratings fluctuate with market conditions and analyst updates, these companies have consistently garnered favourable reviews. For instance, data from the London Stock Exchange Group (LSEG) has indicated that some of its listed companies command as many as 16 “buy” ratings from covering analysts, demonstrating a strong bullish consensus.

    Sage Group, a FTSE 100 constituent and a stalwart of the UK tech scene, is frequently lauded for its established market position and successful transition to a subscription-based model. Its consistent revenue streams and dividend payouts make it a popular choice for investors seeking a blend of growth and stability.

    Similarly, Softcat and Computacenter, both key players in the IT services and solutions space, have received numerous “buy” recommendations. Analysts often highlight their strong client relationships, robust demand for their services in an increasingly digital world, and impressive financial performance.

    Bytes Technology Group, another firm with a strong showing of analyst support, is praised for its expertise in software and cloud solutions. The company’s growth trajectory and its ability to capitalise on the ongoing digital transformation across various industries are frequently cited as key investment positives.

    Beyond these frontrunners, other technology and tech-related firms listed in London also enjoy positive sentiment, though perhaps with a slightly lower number of “buy” ratings. These include companies in the fintech, cybersecurity, and e-commerce spaces.

    Investors looking to gauge the sentiment surrounding a particular London-listed tech stock can often find analyst consensus data on the investor relations pages of the company’s website, as well as on major financial news platforms and stockbroker research portals. This data typically provides a breakdown of “buy,” “hold,” and “sell” ratings, offering a valuable snapshot of expert opinion. However, it is important to remember that analyst ratings are just one factor to consider when making investment decisions, and thorough personal research is always recommended.

  • The Silicon Wadi Connection: Israeli Innovators on the London Stock Exchange

    Israeli companies listed in London

    When investors think of high-growth tech and innovation, Israel’s “Silicon Wadi” often comes to mind. But you don’t need to trade on the Tel Aviv Stock Exchange to get a piece of the action. A dynamic group of Israeli companies has chosen the London Stock Exchange (LSE) for its primary or dual listing, offering UK investors direct access to their growth stories.

    Listing in London gives these firms access to deep, international capital pools and a robust regulatory environment. For investors, it’s a fantastic opportunity to diversify into a market known for its cutting-edge technology and entrepreneurial spirit.

    Let’s dive into some of the key Israeli players you’ll find trading in London.

    The Tech Titans and Fintech Disruptors 🚀

    This is the sector Israel is most famous for, and its representatives on the LSE don’t disappoint. These are companies at the forefront of cybersecurity, digital marketing, and financial technology.

    • Plus500 (PLUS): A major global player in the online trading world, Plus500 provides a popular platform for trading Contracts for Difference (CFDs).
    • Playtech (PTEC): A true heavyweight, Playtech is a leading technology provider for the gambling industry and has a significant division in financial trading (Finalto).
    • Kape Technologies (KAPE): In an age of digital privacy concerns, Kape is perfectly positioned. It’s a cybersecurity company that owns well-known brands like ExpressVPN and CyberGhost.
    • Windward (WNWD): Tapping into the power of big data, Windward provides a maritime AI platform for risk management, crucial for shipping, finance, and security sectors.
    • XLMedia (XLM): A digital performance marketing company that uses its proprietary technology to drive high-value customer acquisition for its clients, primarily in online gaming.

    Powering the Future: Energy and Resources ⛏️

    Beyond software and code, Israeli-linked companies are also making significant waves in the energy sector, particularly in natural gas exploration and production.

    • Energean (ENOG): A key energy producer in the Mediterranean. Energean has been instrumental in developing offshore gas fields, positioning itself as a vital supplier for the region.
    • Ithaca Energy (ITH): While a UK-focused exploration and production company, Ithaca is backed by Israeli parent company Delek Group, making it a significant Israeli-linked entity on the LSE.

    Beyond the Obvious: Other Key Innovators 💡

    From advanced communications to gaming, Israeli innovation is broad. These companies showcase the diverse range of opportunities available.

    • Evoke plc (EVOK): You might know it by its former name, 888 Holdings. Evoke is a giant in the online betting and gaming industry, owning brands like William Hill, 888casino, and Mr Green.
    • BATM Advanced Communications (BVC): A long-standing tech company, BATM operates in two main areas: providing real-time networking technologies and developing diagnostic systems for medical laboratories.
    • MTI Wireless Edge (MWE): A specialist firm that designs and manufactures high-quality, flat-panel antennas for commercial and military applications worldwide.

    Why Should Investors Pay Attention? 🔍

    Investing in these companies offers a unique blend of benefits:

    1. Access to Innovation: You’re tapping into one of the most innovative economies in the world without leaving the LSE.
    2. High-Growth Sectors: Many of these firms operate in high-growth areas like cybersecurity, fintech, and digital entertainment.
    3. London’s Governance: You get the reassurance of the LSE’s strict regulatory and reporting standards.

    Whether you’re a tech enthusiast or looking for energy plays, the Israeli companies on the LSE are well worth keeping on your radar.