Stocks and Shares ISA - how do they work ?

Jazzmaster

Could some-one explain what a Stocks and Shares ISA is please !!

I am interested in the mini ISA (3k in cash and 4k in securities).

Now, do I self select stocks and shares, or does the individual ISA provider do that for me ?

If there is a charge per trade, when is this cost paid ?

Do you spend 4k in April on say 5 different securities with a charge of £10 - £15 for each, or does the charge come out of the money you invest ?

Can you pay in monthly, like in a cash ISA; or would you have to buy more securities (and therefore be charged), each time you pay in ?

Apart from the tax benefits, how does a Stocks and shares ISA differ in execution from just buying stocks and shares ?

And one last question, if I have less than 7k to save/spend in a year, is it better to use the 3k cash, or the 4k stocks and shares first ?

I have search this site and the net for this info. but only seem to find the info. about what it is, rather than the info. about how to actually do it !

dunstonh

Now, do I self select stocks and shares, or does the individual ISA provider do that for me ?

If you choose a self select ISA, then you pick the shares. If you choose a funds ISA, then either you pick the shares or you get an IFA to pick the funds (with 4k, you would look for at least 4 funds and upto 10 funds).

Can you pay in monthly, like in a cash ISA; or would you have to buy more securities (and therefore be charged), each time you pay in ?

You can. Funds ISAs would cost no difference but Self select share ISAs would cost more. They arent designed with regular in mind. Although they do exist.

Apart from the tax benefits, how does a Stocks and shares ISA differ in execution from just buying stocks and shares ?

Not a lot at all.

And one last question, if I have less than 7k to save/spend in a year, is it better to use the 3k cash, or the 4k stocks and shares first ?

Makes no difference.