Dabbling in shares

[boyse7en]

I've had a few share buying experiences in the past (first was when Electricity board was privatised) but haven't done anything for years. All for low amounts (about £500 per deal) and I used my bank as broker.

With my ISA earning pennies in interest, and having some 'spare' savings, I'm thinking about dabbling again. Presumably an online broker is the best bet, but which one is best for occasional small trades (probably still £500 per deal). I prefer to buy and hold shares for a while rather than constantly trade so it wouldn't be that often.

Any other tips/pitfalls to avoid?

[trashbat]

I use The Share Centre - costs the higher of £7.50 or 1% per deal (so once to buy, once to sell) plus £1.50 a month while your account is open. Bigger deals and someone like Hargreaves Lansdown with flat rates (e.g. £11.95) may be better value.

I asked similar about Euro shares and didn't get a reply - anyone care to comment? http://www.pistonheads.com/gassing/topic.asp?h=0&a...

[The Stiglet]

trashbat said:

I use The Share Centre - costs the higher of £7.50 or 1% per deal (so once to buy, once to sell) plus £1.50 a month while your account is open. Bigger deals and someone like Hargreaves Lansdown with flat rates (e.g. £11.95) may be better value.

Yeah, that's why I picked HL because although I don't make enough trades to qualify for the lower dealing charges, I didn't like the idea of a £1.50 monthly account charge, which racks up over the course of a year. HL don't have charges for their Fund & Share Account.

If you want a Stocks & Shares ISA though you'll pay 0.5% per annum capped at £45.

This is rather useful and you can download the full stockbroker report at the end of the article http://www.investorschronicle.co.uk/your-money/too...

[boyse7en]

Hadn't thought of a Stocks and Shares ISA. Better go an investigate the tax position. I'm in the lower-rate income tax bracket so may not make such of a difference if they are taking 0.5% commission/charges.

[trashbat]

The Stiglet said:

This is rather useful and you can download the full stockbroker report at the end of the article http://www.investorschronicle.co.uk/your-money/too...

Thanks for this - answers my question about internationals too.

[Jimmy No Hands]

I also have some spare savings, looking for somewhere to go long term. Would a self select ISA be right for me? I am a complete novice, so if anybody doesn't mind me picking their brains then drop me a PM.

[northandy]

boyse7en said:

Hadn't thought of a Stocks and Shares ISA. Better go an investigate the tax position. I'm in the lower-rate income tax bracket so may not make such of a difference if they are taking 0.5% commission/charges.

First direct self select s&s has no fee.

But with £500 investments you'd have to back the next google when its a one man band to worry about using your capital gains allowance.

[B17NNS]

Happy HL customer here.

Use the self select ISA and fund and share.

Fun thread... http://www.pistonheads.com/gassing/topic.asp?h=0&a...