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  • FIRST POST
    • novice_investor
    • By novice_investor 5th Dec 17, 4:13 PM
    • 6Posts
    • 1Thanks
    novice_investor
    Buying shares question from novice investor
    • #1
    • 5th Dec 17, 4:13 PM
    Buying shares question from novice investor 5th Dec 17 at 4:13 PM
    I am a new investor who has never bought shares before so apologies in advance if these questions sound very basic.

    I did a little bit of research into the whole process but am confused by the fees/taxes etc and want to make sure my understanding is correct before I dive in.

    I understand that there is a choice of different platforms and they all have different charges depending on how many deals are made each month. If I was to open, for example, a Hargreaves Lansdown share dealing account, it says on their website that they charge £11.95 for 0-9 deals per months which is about my expected level. What I don't understand is whether this is a one off charge, for example, if I open an account in December and make 3 deals, am I charged a one off charge of £11.95 or is it £11.95 per deal? Also, if I don't make any new deals the following month, do I still have to pay £11.95 (since it says 0-9 deals) or am I only charged for months where I make deals? It says on their website that there is no annual charge for management of a sharedealing account but do I have to pay a monthly or yearly fee to hold my shares on their platform?

    I also understand I have to pay Stamp Duty which is paid automatically when I buy shares at 0.5%.

    Are there any other fees, charges or taxes that I would pay for buying and holding shares (for example if I buy 3 lots of different shares and hold them for 18 months, what costs would I incur ?).

    I have used Hargreaves Lansdown as an example, I know they are not the cheapest but what do people recommend? I understand they are often recommended because there is a lot of information on their platform for investors.

    Thanks in advance for all responses.
Page 2
    • martinthebandit
    • By martinthebandit 6th Dec 17, 3:34 PM
    • 3,319 Posts
    • 5,626 Thanks
    martinthebandit
    Interesting article here
    http://monevator.com/the-permanent-portfolio/
    Politics -
    from the words Poli, meaning many
    and tics meaning blood sucking parasites


    (thanks to Kinky Friedman (or Larry Hardman) for the quote}
    • cloud_dog
    • By cloud_dog 6th Dec 17, 5:11 PM
    • 3,309 Posts
    • 1,866 Thanks
    cloud_dog
    Yes, I think I might need to rethink the £1000 thanks to the advice on here and up it to perhaps £1k per investment. Thanks for the Fund recommendation, will look into it.
    Originally posted by novice_investor
    I think you said that you already had gold and palladium ETF investments. I wouldn't go for the PM basket as well as your existing holdings (but then I don't really know the scale / shape of your portfolio). Possibly consider switching the individual ETFs in PMs in to the basket offering.

    ETF Securities also offer a Industrial Metals ETF (Cu, Al, Zn, and Ni).

    Just like to comment that I am only going down the very specific road of discovery with you as it sounds as though you already have a reasonable portfolio of investments managed by an IFA already so, these other 'niche' / high risk investments are likely acceptable in the bigger scheme of things.
    Last edited by cloud_dog; 06-12-2017 at 5:24 PM.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Audaxer
    • By Audaxer 6th Dec 17, 6:45 PM
    • 660 Posts
    • 300 Thanks
    Audaxer
    Possibly 5-10 different shares. I would hold them longterm 10-20 years if possible. Most of them are precious metal miners and industrial/technology/energy companies. I'm in the process of compiling a list.

    I am already invested in a Gold ETF and a Palladium one via my ISA but am interested in specific mining companies and I'm not sure if there is an ETF that covers different metals (they all seem to cover one type of metal) or perhaps I am just reading the information incorrectly?
    Originally posted by novice_investor
    Thanks for answering. It sounds a risky strategy for a novice investor, but I hope it works out for you.
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