Any advantage buying ISEQ vs FTSE?

ionapaul

I just opened a new execution-only brokerage account with Sharewatch and have a question for those in the know. Say I want to purchase shares in an Irish company listed both on the ISEQ and FTSE exchanges (say Bank of Ireland or Ryanair), is there any particular advantages or disadvantages of either index, other than you pay a higher amount of govt stamp duty when buying Irish shares (1% vs 0.5%)? Any thoughts or experiences? Thanks

RainyDay

You'd need to find out how Sharewatch handle GBP transactions - Where they get the rate from? Do they add any commission onto the FX rate?

Selik

I own shares in two blue-chip UK companies and the main risk for me is my exposure to Sterling and any fluctations in it's value relative to the Euro. Of course this is also a double-edged sword in that I could reap some serious dividends (not from the shares!) if Sterling gets stronger and I decide to sell and vice versa if my shares to well but Sterling goes down I could end up just about breaking even.

Assuming that my stock doesn't crash of course!

Another thing to remember is that you will receive your dividends in Sterling and your bank might charge you commision. Oh and the cheques take alot longer to clear as well!

capistrano

I bought both Ryanair and BOI shares in London, listed in Euros. They were both hit by the Irish 1% stamp duty.

Maybe if you bought in sterling you might get the 0.5% UK tax.

Victor

Originally posted by Giles
I own shares in two blue-chip UK companies and the main risk for me is my exposure to Sterling and any fluctations in it's value relative to the Euro. Of course this is also a double-edged sword in that I could reap some serious dividends (not from the shares!) if Sterling gets stronger and I decide to sell and vice versa if my shares to well but Sterling goes down I could end up just about breaking even.

ionapaul is specificly referring to shares with dual Euro / Sterling listings which are less prone to currency fluctuations between the two currencies (this of course also depends on where the company does it's trading).

Originally posted by Giles
Another thing to remember is that you will receive your dividends in Sterling and your bank might charge you commision. Oh and the cheques take alot longer to clear as well!

Bank of Ireland will lodge (not cash) a sterling cheque for you as if it was an Irish cheque.

RainyDay

Originally posted by Victor
Bank of Ireland will lodge (not cash) a sterling cheque for you as if it was an Irish cheque.

With a nice little FX commission for them built into the rate they give you, presumably?

Blackjack

Maybe if you bought in sterling you might get the 0.5% UK tax.

Unfortunately no, you will pay 1% stamp on purchases of shares all Irish companies, regardless of the currency the trade settles against.

Victor

Originally posted by RainyDay
With a nice little FX commission for them built into the rate they give you, presumably?

Spread, but no commission or sterling handling charge (plus usual lodgement fee).

RainyDay

Originally posted by Victor
Spread, but no commission

What's the difference?

Victor

Odd question from you Rainyday. Banks (at the retail level) have the habit of quoting one buy rate and another sell rate (the spread) and then charging a commission fee (fixed fee + %) on top of that.

RainyDay

Just trying to confirm that it's a pretty arbitary distinction. The bank can make money from the spread and/or the commission, right? The only restriction is that the commission must be notified to ODCA (in the old days), now IFSRA.

I suppose I'm just trying to highlight the absence of an explicit commission does NOT mean that the bank aren't taking a slice of the transaction.