Has anyone had issues with hidden charges (aka egregious FX rates) applied dividends from US stocks held through Interactive Investor (II)?

My kids have child ISA’s, in which they hold a small amount of LON:DGOC. They held 961 shares each on the ex-dividend date (6-Mar-21). On 26-Mar-21 the company paid a dividend of US cents 4 / share. The company give you the option of receiving your dividend in GBP and paid GB pence 2.85 / share (an FX rate of US$ 1.4035 / GBP 1.00. Unfortunately, this option is not available through II.

My kids received dividends of GB pence 2.19 / share at an FX rate of US$ 1.8265 / GBP 1.00. This is an FX rate premium of 30.1% over the rate applied by II, and a 29.0% premium of US$ 1.4134 / GBP 1:00 the 52 week high FX rate as reported by the Bank of England on 26-Mar-21 (https://www.bankofengland.co.uk/boeapps/database/Rates.asp?Travel=NIxAZx&into=GBP). The premium seems a little at odds with Interactive Investor’s state margin rate of 1.5% (https://www.ii.co.uk/our-charg...).

I understand their share-holding is tiny, and charges are on average (for smaller holdings) higher, I’m not sure they should be so much higher…?

Does anyone else have similar issues? Or can anyone give recommendations on better (more cost effective) brokers?

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