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I'm learning the basics of stock trading using Degiro with a UK account.

I'm currently holding a long position in EZJ (100 shares) on London Stock exchange.

Let's say that I no longer want to hold on to that position and I want to sell. If I set up a "sell" limit order at 969.90 GBX (current bid price is 951.50), will I get charged the 1.75 GBP fee at:

  1. The moment I make the order?
  2. The moment somebody buys my shares?

If 2 is true (as I expect), am I free to cancel the order (if my price isn't met) without incurring any fees after a couple of hours if I change my mind?

In either case, will I get the stamp duty back (the 0.5% tax I paid on the shares purchase) when I sell the shares?

The fee structure is documented here (but it isn't very clear)

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An order is not a transaction. It is a request to make a transaction. If the transaction never occurs (e.g. because you cancel the order), then no fees should be charged.

will I get the stamp duty back (the 0.5% tax I paid on the shares purchase) when I sell the shares?

I'm not a UK tax expert, but accorging to this page is seems like you only pay stamp tax when you buy shares, and don't get it back when you sell (but may be responsible for capital gains taxes). That makes sense, because there's always a buyer and a seller, so if you got the tax back when you sold, the tax would effectively be transferred from the buyer to the seller, and the government would never collect anything.

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  • Thanks, I just set up a limit order to sell, and it doesn't look like the fee was charged. Feb 16, 2017 at 16:50
  • Would I be exempt from the stamp duty if I were resident outside of UK for tax purposes? Feb 16, 2017 at 16:52
  • @AdamKurkiewicz I have no idea. My guess is yes, but that's a complete guess.
    – D Stanley
    Feb 16, 2017 at 16:58

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