Looking to take the plunge into more risky investments

tradetime

I like to go to the source first, here is Barclays iShares site, select United kingdom from the menu for those that trade on the LSE. the ticker symbol or epic code for the FTSE 100 ETF is ISF these can vary slightly depending on the provider
Here is that product on Selftrade.

Kua

tradetime wrote: »

Well that's good, to me it's pricey

Sorry I came across as a bit arrogant there. I was really asking why somebody in the know considers it to be pricey...

tradetime wrote: »

ETF's I trade, on what is referred to as a "swing trading" basis, that is I hold for days to weeks, sometimes months at a time.

Hehe you talk as though this is a long period of time. But I suppose you have a much more involved and active relationship with the markets, so to speak. Its good to know I'm getting advice from somebody who knows the markets so well.

Kua

tradetime wrote: »

I like to go to the source first, here is Barclays iShares site, select United kingdom from the menu for those that trade on the LSE. the ticker symbol or epic code for the FTSE 100 ETF is ISF these can vary slightly depending on the provider
Here is that product on Selftrade.

Thanks. Here's a direct link to it on the ishares website. Am I right in thinking that I have to go through a broker in order to invest in it though?

beingjdc

tradetime wrote: »

Sorry, if something has "big windows" it refers to the fact that they "see you coming" £20 per side of a trade is a tad excessive

Probably. That's the Hargreaves Lansdown fee for buying or selling between £2k and £4k worth of shares - I find it easier to keep everything in the same place and (mostly) in my S&S ISA than have an additional account for a £5 a time saving. Not very MSE, clearly.

tradetime

Kua wrote: »

Sorry I came across as a bit arrogant there. I was really asking why somebody in the know considers it to be pricey...

Nah, not arrogant at all, it's an opinion, just like mine. When I first took an interest in stockmarkets I was living abroad, after surveying all the online brokers available to me I went with a US broker, I knew very little about investing or markets, so it mattered little to me whether I invested in the US or Europe / UK. It was very quickly obvious to me that the US brokers were light years ahead in terms of technology and fees, plus all the people around me with market knowledge were American, thus I have always been used to US brokerage fees, and still balk everytime I see UK fees.

Kua wrote: »

Hehe you talk as though this is a long period of time. But I suppose you have a much more involved and active relationship with the markets, so to speak. Its good to know I'm getting advice from somebody who knows the markets so well.

My ETF trades to me are "long term" I usually joke with a stolen line from some movie that long term to me is anything after the market closes today. As regards getting advice from someone "who knows the markets well" I'm sure you are smart enough to know this anyway and just being polite, but it would be remiss of me not to say it anyway, I'm just some bloke posting on a bulliten board, I am what is classed as a retail trader, as opposed to an institutional trader or "Pro" It has been established fairly extensively by a number of studies that better than 80% of retail traders (or people trying to make short term gains trading markets), lose money. So statistically you would have to believe you are talking to one of the top 20% of retail traders in the world, (or at least the US since that's where all the studies I've seen were done) Frankly, if we're honest, that's a 4:1 shot, so always view anything posted as an opinion, nothing more and verify anything with your own research.

tradetime

Kua wrote: »

Thanks. Here's a direct link to it on the ishares website. Am I right in thinking that I have to go through a broker in order to invest in it though?

Yes you would need a broker, such as Selftrade, or whoever you ultimately choose, to purchase those

Kua

tradetime wrote: »

Frankly, if we're honest, that's a 4:1 shot.

In that case, why on earth do you do it?? :rotfl:

Kua

tradetime wrote: »

Yes you would need a broker, such as Selftrade, or whoever you ultimately choose, to purchase those

Using Selftrade as an example again. Presumably I'd be after a "Dealing Account".

Also it says in that link: "Standard dealing fee £12.50 and no account charge." If that is a per transaction fee, that's pretty good....

tradetime

beingjdc wrote: »

Probably. That's the Hargreaves Lansdown fee for buying or selling between £2k and £4k worth of shares - I find it easier to keep everything in the same place and (mostly) in my S&S ISA than have an additional account for a £5 a time saving. Not very MSE, clearly.

Ouch dude, wasn't aware someone actually charged that high a fee, damn that's pricey, hope there's no mangement on top:eek: Interactive Brokers charge £6 per trade on LSE listed stocks up to £50k, however they don't do ISA's and there are data fees if you require data, which I think runs at about £60 per year for LSE level 1, I don't do UK stocks so not 100% sure.

sabretoothtigger

Commission can be as low as £7. Average is about 10 and 20 is just bad imo

A small private investor might like halifax sharebuilder where the price to buy a share (or etf ) scheduled in advance is only £1.50 and £3 to sell upto £250 of shares (afaik)

He said Unit Trusts command high fees and suggested ETFs, which I understand track anything from indexes, to commodities, to geographical areas...

Your uncle might be a clever bloke but you need to understand things for yourself

You cant invest with someone elses understanding any more then you can drive a car while sitting as a passenger in the back.
You might be able to set the car in motion but it'll end in a crash most likely



ETF are generally (passive) trackers, think of them as a robot if you like. Unit trusts are generally (active) managed, you have to pay a real person so it costs more

ETF can be managed (and cost more) Unit trust can be trackers (and cost less)

ETF can be more expensive then unit trusts. Its all down to you and how you trade, thats why you have to understand for yourself


http://www.investorschronicle.co.uk/InvestmentGuides/Funds/article/20090403/87da6332-1f6d-11de-b093-00144f2af8e8/The-Active-vs-Passive-debate-continues.jsp


If you are an active investor, I think passive funds actively traded are best. If you are a typical 'buy and hold' passive private investor, a (good) managed fund can often be worth the money



Anything less then 10k a trade makes you a small private investor imo and as you are new to it all I think regular investment into unit trusts is better for you and maybe also cheaper.
If you want to buy in the morning and sell in afternoon then etf is definitely the choice



Start Here ----> http://www.investorwords.com/1755/ETF.html



Keep clicking on every blue word you dont recognise until you are clear on everything