Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • CaptainWales
    • By CaptainWales 15th Oct 16, 7:45 PM
    • 26Posts
    • 0Thanks
    CaptainWales
    HSBC Sharedealing
    • #1
    • 15th Oct 16, 7:45 PM
    HSBC Sharedealing 15th Oct 16 at 7:45 PM
    I am interested in buyer shares myself but have never done this before - would hsbc sharedealing be a good place to start? Their charges seem reasonable.
Page 1
    • Lakeuk
    • By Lakeuk 15th Oct 16, 9:39 PM
    • 1,059 Posts
    • 557 Thanks
    Lakeuk
    • #2
    • 15th Oct 16, 9:39 PM
    • #2
    • 15th Oct 16, 9:39 PM
    There are cheaper brokers out there -

    Broker comparison as at Dec 2015
    • Thrugelmir
    • By Thrugelmir 15th Oct 16, 10:38 PM
    • 55,850 Posts
    • 49,219 Thanks
    Thrugelmir
    • #3
    • 15th Oct 16, 10:38 PM
    • #3
    • 15th Oct 16, 10:38 PM
    Personally I use x-o at £5.95p a trade. No frills service and website. Excellent customer support.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • Pincher
    • By Pincher 15th Oct 16, 11:24 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #4
    • 15th Oct 16, 11:24 PM
    • #4
    • 15th Oct 16, 11:24 PM
    I am using InvestDirect, not the Plus version.

    It's antiquated and basic, and I don't see how they can be making money. Started charging annual fee £42 (= £10.50 x 4) this year, was free before, so probably struggling.

    Amusingly, I am holding a large tranche of HSBC shares in InvestDirect. Other than the initial £10.50 trading fee, and the £1 PTM Levy, there are no custodian charges.

    Assuming I have 10,000 shares of HSBA, which pays 41p a share, which is £4,100 a year. 10,000 shares at £6.20 is £62,000, so it's like depositing £62,000 and getting interest at 6.6%. Even with the £42 annual fee, it's still 6.5%. I actually bought the shares at £4.25, so the £4,100 dividend is more like 9.5% interest.

    The upshot is, I no longer need to keep £50k with HSBC to qualify for the Premier account.

    So, on an ongoing basis, if I don't sell the shares, they will take £42 annual fee, but I will get the Premier account for free, and they will PAY ME 9.5% dividend, on which I will pay 7.5% dividend tax, INSTEAD of 20% income tax (for interest).

    I borrowed £3,000 on a long term 0% BT (credit card) deal from TescoBank, which I put into the TescoBank 3% interest current account. This HSBC set up is on a whole other level, though strictly speaking it's not stoozing.

    So, it's not the best dealing account you can have, but if you want irony and comedy, it's right up my sick sense of humour. Milking HSBC using their own dealing account, who's the cash cow now!
    • Glen Clark
    • By Glen Clark 16th Oct 16, 12:31 PM
    • 3,891 Posts
    • 2,890 Thanks
    Glen Clark
    • #5
    • 16th Oct 16, 12:31 PM
    • #5
    • 16th Oct 16, 12:31 PM
    who's the cash cow now!
    Originally posted by Pincher
    That depends how much longer HSBC can maintain its dividend.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • Glen Clark
    • By Glen Clark 16th Oct 16, 12:32 PM
    • 3,891 Posts
    • 2,890 Thanks
    Glen Clark
    • #6
    • 16th Oct 16, 12:32 PM
    • #6
    • 16th Oct 16, 12:32 PM
    Personally I use x-o at £5.95p a trade. No frills service and website. Excellent customer support.
    Originally posted by Thrugelmir
    Another vote for x-o
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,308Posts Today

9,002Users online

Martin's Twitter
  • Sneaky NAKED photo... ...of the room where many political and regional TV interviews are done. This is before the? https://t.co/fDdeKQOQuU

  • The Premium Bond rate is being boosted from 1.15% to 1.4% should you pile in? My analysis... https://t.co/3Q7tjphAFO

  • RT @colinjdunn: First #Plevin cheque received this morning - £548.66 from Nationwide & with other claims still outstanding - so thanks @Mar?

  • Follow Martin