stocks and shares newbie - buying shares online

dolly74_2

I want to take a chance on some RBS shares at the moment while they are cheap. I know obviously if they nationalise then they will be worthless but its a gamble i will take. So - as i am new to all this, can someone help. If i set up an account with an online broker, is it quite easy to do. I was thinking of using Hoodless Brennan. So i just deposit the money into an online account with my debit card and then just look for some to buy? I dont want to get in above my head and its all a bit scary! Any tips? Also if i then want to cash them in, is it just as easy? Are there limits on how minimum/maximum shares you can buy? I have read about leverage and CFDs and dont want to get into anything like that as i only want to potentially lose real money i actually have and i am a bit scared of clicking on the wrong thing and ending up doing that! Thanks

turbobob

Yes, its quite easy to do. Essentially, yes you can load up the account with money from your debit card, and go and buy some shares.

Any tips? OK. Your account will have a few different options for placing buy orders (buying shares). The basic types are "at market" or "limit order". At market means you buy immediately at the current market price. A limit order means you set the (lower) price you want to buy at, which stays on their system, and if the share price drops to the level you want to pay, they should fulfill the order.

There are similar options with selling the shares. At market is to sell immediately at current market price. Limit is sell it if the price is over a certain amount. Another type of sell order can be useful - a "stop loss" order. A stop loss order will automatically sell your shares if they drop below a certain price - in order to limit your losses.

If I've made it sound complicated then I apologise, as its really not. The accounts will have a trading limit, the one I have has a £10k limit. For me thats quite enough.

You can't "accidentally" take out a CFD, in order to do that you would have to take out a CFD account, separately from a standard trading account. As you are aware you can lose a lot more than your investment with these, so if you are unsure about anything do not go near them.

HTH

dolly74_2

Thanks for that reply. Does anyone also know what the tax implications are? It wouldn't be that much i was investing (probably afew hundred pounds or so) but obviously i want to make sure everything is above board. Would i need to send the tax office anything or is it only if i make money above a certain limit? Thank you. Also, on the online accounts, can you just buy shares in big companies or can you also buy shares in smaller companies (are they the penny shares i have heard of?) Thanks

tradetime

dolly74 wrote: »

Thanks for that reply. Does anyone also know what the tax implications are? It wouldn't be that much i was investing (probably afew hundred pounds or so) but obviously i want to make sure everything is above board. Would i need to send the tax office anything or is it only if i make money above a certain limit? Thank you. Also, on the online accounts, can you just buy shares in big companies or can you also buy shares in smaller companies (are they the penny shares i have heard of?) Thanks

For tax you have a capital gains allowance, currently £9,600, so unless you make more than that (profit) in a tax year there is nothing to report. The only exception being if your turnover (value of shares sold) in a tax year exceeded, I think £38,400

CLAPTON

I would suggest you play with a fanasty portfolio before you actually buy any shares ... there are a lot of sites that provide this for free but try
www.iii.co.uk
you have to register but its totally free and quite a useful site.

and yes you can buy low value stocks as you can buy shares in any stock listed on london stock exchange.

tradetime

Thank you. Also, on the online accounts, can you just buy shares in big companies or can you also buy shares in smaller companies (are they the penny shares i have heard of?) Thanks

You can buy shares in any company that is listed on an exchange your chosen broker has access to. Personally I would recommend anyone new to investing stayed away from "penny shares" that being true penny shares of course, given the current rout a lot of companies could be described as penny shares based on their share price. Apart from your stated intention to buy RBS, I'd look towards large companies with good cash flow, low levels of debt, and a good dividend. You'll need to do some study to find those.

Broadback

I am a H B customer, though I rarely deal in shares now, they have been fine for me. Remember there is a charge both to buy and sell, plus the government take their cut in stamp duty. If not already used why not use part of your share Isa account? This way you will, if, and only if, you make a profit pay less tax. However,again, there will be a charge for this.

robertcc

I'm happy sold friday with a good profit, but I think its still worth a gamble

zedyy

might read this later

LRW1975

Hi, i also use HB and bought £50 of RBS shares when they were at just over 10p (hey big spender )

I've found the HB site very easy to use. I opened the account and bought the shares within 5 minutes.

Lisa x

J_Devon

I've not any problems with Hoodless Brennan either, and had the same thoughts as you. I've only bought about £200 of shares at when they were about 10.1p with RBS. I'm fully aware that I could lose my money but its a risk I'm willing to take.

They take £8 per transaction, but I find the site is easy to use and set up so I'm happy with that

Good luck!