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
    • HardSpend
    • By HardSpend 17th Jul 17, 12:05 PM
    • 181Posts
    • 140Thanks
    HardSpend
    buying shares with specific company
    • #1
    • 17th Jul 17, 12:05 PM
    buying shares with specific company 17th Jul 17 at 12:05 PM
    I would like to buy shares in a FTSE250 company. I only have £300-£500 and not interesed in making lots of investments right now. I've never bought shares before and confused by the wealth of info on here.

    Should I go about this using a stocks and shares ISA from the likes of Cavendish or Charles Stanley who are recommended on here (not sure if I can select the company shares I want with this?). Or do I go to someone else who lets me buy specific shares.
Page 1
    • jimjames
    • By jimjames 17th Jul 17, 12:19 PM
    • 11,903 Posts
    • 10,284 Thanks
    jimjames
    • #2
    • 17th Jul 17, 12:19 PM
    • #2
    • 17th Jul 17, 12:19 PM
    Do you already have other investments? Before starting you should be aware that the amounts you're looking at will make the transactions very expensive and you are taking a pretty big risk just having shares in one company.

    With all that said there are platforms that will allow you to buy shares but Cavendish isn't one of them. HL is easy to use but higher cost, iWeb is only £5 per trade once you've opened an account. A S&S ISA will avoid the need to keep records and save tax but unless you have masses of money elsewhere that's unlikely to be a problem with £500.

    But if this is done with the intention of making money I'd suggest you think very carefully as it's unlikely to make you much on the amounts you're proposing
    Last edited by jimjames; 17-07-2017 at 12:22 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • AndyT678
    • By AndyT678 17th Jul 17, 12:31 PM
    • 692 Posts
    • 921 Thanks
    AndyT678
    • #3
    • 17th Jul 17, 12:31 PM
    • #3
    • 17th Jul 17, 12:31 PM
    I'd second everything jimjames has said but if you really want to do it then X-O is probably cheapest. £5.95 per trade and no account opening fee.

    http://www.x-o.co.uk/
    • HardSpend
    • By HardSpend 17th Jul 17, 3:15 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    • #4
    • 17th Jul 17, 3:15 PM
    • #4
    • 17th Jul 17, 3:15 PM
    Thanks both that's helpful, I have no other investments, just money sitting about in current account.

    Sounds like it's not really worth investing such small amounts, using my crystal ball my best realistic case was withdraw in 3 years for 30% margin, i.e. around £150.

    Question: If I go with the ISA option as opposed to "dealing" or "nominee" account (iWeb and X-O naming, same thing?) then can I still select which company I want my shares to go into?
    • Reaper
    • By Reaper 17th Jul 17, 4:05 PM
    • 6,086 Posts
    • 4,126 Thanks
    Reaper
    • #5
    • 17th Jul 17, 4:05 PM
    • #5
    • 17th Jul 17, 4:05 PM
    Whether you put it in an ISA or not makes no difference to the type of account. All the cheap share platforms are "nominee" accounts. That means behind the scenes when you buy shares they actually buy them and put them in their own name. When you want to sell they sell them for you. It helps keep costs down.

    And yes "dealing" doesn't mean much except you can buy and sell whenever you want. All these types of accounts are that.
    • HardSpend
    • By HardSpend 17th Jul 17, 4:23 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    • #6
    • 17th Jul 17, 4:23 PM
    • #6
    • 17th Jul 17, 4:23 PM
    Whether you put it in an ISA or not makes no difference to the type of account. All the cheap share platforms are "nominee" accounts. That means behind the scenes when you buy shares they actually buy them and put them in their own name. When you want to sell they sell them for you. It helps keep costs down.

    And yes "dealing" doesn't mean much except you can buy and sell whenever you want. All these types of accounts are that.
    Originally posted by Reaper
    http://www.x-o.co.uk/register.asp it has ISA and nominee account, are you saying I can buy specific FTSE250 shares in either, but perhaps there are some tax benefit reasons for higher sums for the ISA one?
    • AndyT678
    • By AndyT678 17th Jul 17, 4:31 PM
    • 692 Posts
    • 921 Thanks
    AndyT678
    • #7
    • 17th Jul 17, 4:31 PM
    • #7
    • 17th Jul 17, 4:31 PM
    ISA is tax free on dividends and capital gains but at the moment there is a £5,000 tax free allowance for dividend income and £11,300 for capital gains so neither are likely to cause you a problem on a £500 investment.

    Having said that the ISA doesn't cost any more so you may as well use it.

    Have a think about what you're actually going to buy though. Collective investments are much lower risk than individual shares and if you go with X-O you'll be limited to ETFs and ITs. They don't do OEICs or unit trusts.
    • HardSpend
    • By HardSpend 17th Jul 17, 4:59 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    • #8
    • 17th Jul 17, 4:59 PM
    • #8
    • 17th Jul 17, 4:59 PM
    ISA is tax free on dividends and capital gains but at the moment there is a £5,000 tax free allowance for dividend income and £11,300 for capital gains so neither are likely to cause you a problem on a £500 investment.

    Having said that the ISA doesn't cost any more so you may as well use it.

    Have a think about what you're actually going to buy though. Collective investments are much lower risk than individual shares and if you go with X-O you'll be limited to ETFs and ITs. They don't do OEICs or unit trusts.
    Originally posted by AndyT678
    Thanks, the individual shares in single company are what I want for now so I think this suits me. Not planning on investing for 3 weeks yet but just getting ready.
    • Reaper
    • By Reaper 17th Jul 17, 5:17 PM
    • 6,086 Posts
    • 4,126 Thanks
    Reaper
    • #9
    • 17th Jul 17, 5:17 PM
    • #9
    • 17th Jul 17, 5:17 PM
    Yes as above I meant both the ISA and non-ISA are nominee accounts. It's just that one is completely tax free and the other is only tax free up to a certain point.

    ISA accounts may (or may not) have additional fees. Read up on all the fees and charges. For example the XO ISA has a £50 closure fee which would make a big impact on your small investment.

    As mentioned previously investing all your money in a single company is dodgy. You are putting all your eggs in one basket. Normally investors start out with funds that spread the risk for you.
    • jimjames
    • By jimjames 17th Jul 17, 5:22 PM
    • 11,903 Posts
    • 10,284 Thanks
    jimjames
    Thanks, the individual shares in single company are what I want for now so I think this suits me. Not planning on investing for 3 weeks yet but just getting ready.
    Originally posted by HardSpend
    Have you decided which company? Bear in mind the price can go down as well as up so your 30% might actually be a loss not a gain.

    What about if you'd invested in Carillion? They've dropped 70%, 192p on 7th July, now 67p. So your £500 would be worth £175. Admittedly it's small amounts of money but still a drop. In the same time a fund investing in the FTSE has probably moved 1-2%
    Remember the saying: if it looks too good to be true it almost certainly is.
    • AnotherJoe
    • By AnotherJoe 17th Jul 17, 5:23 PM
    • 6,881 Posts
    • 7,319 Thanks
    AnotherJoe
    This is one of those "if you need to ask, you shouldn't do it" questions.

    £300-£500 in a FTSE250? Not worth it. Maybe if it was a small new co it might be worth punting the money on the chance it was 10x in 3 years. Thats not going to happen to an FTSE250.

    Costs and fees will likely negate much of what you would gain.

    And if you can only afford £500 for 3 years, than you cant afford it anyway.
    Concentrate on basics first. Emergency expenses, mortgage, pension. Then start investing.
    • HardSpend
    • By HardSpend 17th Jul 17, 5:37 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    Have you decided which company? Bear in mind the price can go down as well as up so your 30% might actually be a loss not a gain.

    What about if you'd invested in Carillion? They've dropped 70%, 192p on 7th July, now 67p. So your £500 would be worth £175. Admittedly it's small amounts of money but still a drop. In the same time a fund investing in the FTSE has probably moved 1-2%
    Originally posted by jimjames
    Yes decided, I understand it's a risk but one I am comfortable about losing. Carillion made 15% today, looking good!
    • HardSpend
    • By HardSpend 17th Jul 17, 5:43 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    This is one of those "if you need to ask, you shouldn't do it" questions.

    £300-£500 in a FTSE250? Not worth it. Maybe if it was a small new co it might be worth punting the money on the chance it was 10x in 3 years. Thats not going to happen to an FTSE250.

    Costs and fees will likely negate much of what you would gain.

    And if you can only afford £500 for 3 years, than you cant afford it anyway.
    Concentrate on basics first. Emergency expenses, mortgage, pension. Then start investing.
    Originally posted by AnotherJoe
    Surely everyone has to ask to start with questions or we wouldn't get anywhere? For the x-o website the "dealing commission" is £5.95 and "ISA closure" £50, are there other costs/fees I should be aware of? Obviously the risk of losing everything.

    I have a lot more to invest but I wanted to start low with something I can afford to lose. I thought about it for a long time and did research into the company.
    Last edited by HardSpend; 17-07-2017 at 8:48 PM.
    • bigadaj
    • By bigadaj 17th Jul 17, 8:09 PM
    • 9,360 Posts
    • 5,981 Thanks
    bigadaj
    An old adage is make your first million in collective investments, then it can try putting on individual shares, nothing wrong with that.

    For the sums you're talking about and liking a bit of risk why not do some p2p, risk of capital loss but double digit returns aren't too difficult.
    • TheShape
    • By TheShape 17th Jul 17, 10:02 PM
    • 961 Posts
    • 703 Thanks
    TheShape
    Surely everyone has to ask to start with questions or we wouldn't get anywhere?
    Originally posted by HardSpend
    Yes, but you've got to be prepared to listen to the answers!
    • AnotherJoe
    • By AnotherJoe 17th Jul 17, 11:33 PM
    • 6,881 Posts
    • 7,319 Thanks
    AnotherJoe
    Surely everyone has to ask to start with questions or we wouldn't get anywhere? For the x-o website the "dealing commission" is £5.95 and "ISA closure" £50, are there other costs/fees I should be aware of? Obviously the risk of losing everything.

    I have a lot more to invest but I wanted to start low with something I can afford to lose. I thought about it for a long time and did research into the company.
    Originally posted by HardSpend
    I didn't say you shouldn't ask questions, just that for some questions, if you need to ask, you shouldn't. But not all questions are of that nature. Yours was :-)

    "I've only got £500 and no other savings I want to invest it Ina single company" is one.
    " I've got 10 k in emergency savings and £100/month id like to start investing what should I invest in? " , isn't.
    • Malthusian
    • By Malthusian 18th Jul 17, 10:45 AM
    • 2,404 Posts
    • 3,333 Thanks
    Malthusian
    I have a lot more to invest but I wanted to start low with something I can afford to lose.
    Originally posted by HardSpend
    Everyone can afford to lose money. We have a generous welfare system and everyone in this country can afford to lose every penny and every asset they own. No-one actually wants to lose money. When people say "I'm only investing money I can afford to lose" it indicates they haven't thought through how they would feel if they did lose it.

    I thought about it for a long time and did research into the company.
    Waste of time. You could do research for a thousand years and not discover anything that the market doesn't already know, and if you did, you would by law have to declare it to the market and so you still wouldn't know anything that would make you money. "Doing your research" achieves nothing but a false sense of security.
    • HardSpend
    • By HardSpend 18th Jul 17, 4:44 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    Yes, but you've got to be prepared to listen to the answers!
    Originally posted by TheShape
    I am, hence the follow up questions
    • HardSpend
    • By HardSpend 18th Jul 17, 4:52 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    I didn't say you shouldn't ask questions, just that for some questions, if you need to ask, you shouldn't. But not all questions are of that nature. Yours was :-)

    "I've only got £500 and no other savings I want to invest it Ina single company" is one.
    " I've got 10 k in emergency savings and £100/month id like to start investing what should I invest in? " , isn't.
    Originally posted by AnotherJoe
    ah I'm being misquoted but that's okay

    on the x-o website the "dealing commission" is £5.95 and "ISA closure" is £50, it doesn't seem much in terms of fees?
    • HardSpend
    • By HardSpend 18th Jul 17, 5:02 PM
    • 181 Posts
    • 140 Thanks
    HardSpend
    derail

    Waste of time. You could do research for a thousand years and not discover anything that the market doesn't already know, and if you did, you would by law have to declare it to the market and so you still wouldn't know anything that would make you money. "Doing your research" achieves nothing but a false sense of security.
    Originally posted by Malthusian
    Each to their own but in my opinion doing your own research (DYOR) into the mass of information freely and legally available will help any threwd investor.
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

4,004Posts Today

9,500Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin