What account for buying/selling shares?

Pl0x

Hi all,

Due to a pay rise at work :beer: i have some spare money i would like to save/invest.

I already put a fair amount into an ISA each month and want to open a stocks and shares account. The plan is to buy shares that pay good dividends and either re-invest the dividends or keep the money from them. So it will be done over a long period of time (20-30 years)

Suggestions to what account and to either re-invest dividends or take the payments

thanks :rolleyes:

Aegis

Go with a stocks and shares ISA if you don't have one already. As time passes and you build up a large amount of invested assets, the higher rate tax-exemption on income and the total exemption from capital gains tax will be really useful.

You might want to consider mutual funds rather than direct equities, as this allows you to diversify across a number of companies with a single transaction.

Pl0x

thank-you Aegis for your input,

Do you have any account recommendations. I would be looking to invest a fixed amount a month and buy my own stocks

gozomark

how much are you talking about a month ?

cashbackproblems

www.iii.co.uk is currently the cheapest and easiest to use imo and they are currently offering chance to buy shares in advance for free. Alot of bargains today with the huge falls in some stocks during this week e.g. barcs/lloyds/aviva etc.

G_M

iii is pretty good but it depends on

how often you will buy/sell
what sort of value
whether you want to be in total control (ie buy at the time/price you want) Vs placing orders in advance for a specific day (can be cheaper but you are commited before you know the price)

Remember on low-value buys, the dealing costs can be a significant %, so higher value is preferable.

Gymgenius

I've recently looked into a few small-scale share deals, and registered with iii....but had second thoughts (cold feet even), changed my mind and opened a S&S ISA instead.

I'm hoping that the fund manager(s) can do a better job of growing my money than I would be able to!

Jake'sGran

Gymgenius wrote: »

I've recently looked into a few small-scale share deals, and registered with iii....but had second thoughts (cold feet even), changed my mind and opened a S&S ISA instead.

I'm hoping that the fund manager(s) can do a better job of growing my money than I would be able to!

I know the "cold feet" feeling but I have been buying recently through The Share Centre (Share.com). Have a look at their site; they have three lots of buying terms. For amounts less than £750 I believe they charge £2.50 plus stamp duty and a small quarterly charge. I bought National Grid this week because of the good dividend which I have asked them to re-invest in the same company. When buying funds I use Hargreaves Lansdown as many other forum contributors do. They refund the initial charge in the form of more units and also rebate a small amount of the annual commission they receive if you open a Vantage a/c. One fund has gained 25% in a few months.

Pl0x

wow thankyou for all your replies!

I will be investing around £150-£200 per month consistently!

My main concern is that the account is an ISA or does this not matter. I will try do some research into The Share Company and iii.

I am looking for the long term so it will mainly be buying with occasionally selling but always re-investing the dividends.

With reference to G_M i want to be in total control. Am i able to do this through a S&S ISA?



UPDATE

The Share Company have a dealing charge of 1% or a minimum of £7.50 - Does this mean they charge £7.50 per trade?
The also charge 0.5% stamp duty - which seams fair enough
and a quarterly charge of £2.50 + VAT and an additional charge of £2.00 Per quarter.

These look reasonable but this wont be tax free will it?

cashbackproblems

Pl0x wrote: »

wow thankyou for all your replies!

I will be investing around £150-£200 per month consistently!

My main concern is that the account is an ISA or does this not matter. I will try do some research into The Share Company and iii.

I am looking for the long term so it will mainly be buying with occasionally selling but always re-investing the dividends.

With reference to G_M i want to be in total control. Am i able to do this through a S&S ISA?



UPDATE

The Share Company have a dealing charge of 1% or a minimum of £7.50 - Does this mean they charge £7.50 per trade?
The also charge 0.5% stamp duty - which seams fair enough
and a quarterly charge of £2.50 + VAT and an additional charge of £2.00 Per quarter.

These look reasonable but this wont be tax free will it?

why pay quaterly fees when iii dont charge anything other than when you trade, or in your case the perfect option would be to set the trades in advance/around pay day, and they will charge you £0 to purchase shares, just the standard stamp duty.

Pl0x

cashbackproblems wrote: »

why pay quaterly fees when iii dont charge anything other than when you trade, or in your case the perfect option would be to set the trades in advance/around pay day, and they will charge you £0 to purchase shares, just the standard stamp duty.

Ahh that good to know. Is this tax free like if i was to go into Natwest or Barclays and open a S&S ISA?

The main concern is opening an account and then 20-30 years down the line having to pay a massive amount of tax on the dividends etc