Stocks and shares ISA - is there any point?

zedyy

Just abit of background, I'm interesting in some stocks and shares and have some money to invest. I know the shares and companies that I am going for, but recently, I was told by a family friend that unless I make a certain amount of return on shares, there's really no point in investing it within a stocks and shares ISA wrapper. I'm sure, someone can shed some light on this.

Secondly, Whats the best platform to use? I'm not interested in share certificates, I would like to execute sales/buys every 3-6 months. A lot of people have mentioned Hargreaves, self-trade, Halifax, but since I do not have any experience within stocks and share dealing, only what ive read over the past 2 years I'd like to ask you guys and gals what would be easiest platform to use?

Thanks in advance and appologies if this sounds like a broken record to some of you.

Lokolo

1) Yes that is correct. Tax advanatages on shares in an ISA are a) If you have a higher taxpayer b) If you make enough profit that it takes you over Capital Gains (~£10k). However, if it doesn't cost anything to have the shares in an ISA then why not, no difference otherwise (be careful though as a lot of providers do charge!)

2) Currently HL are £9.95 a trade for under £500. iii are free trade for regualr savers (but you can cancel after 1 trade!). I think a lot of people like iii though. I have always used HL for funds rather than individual shares.

Hugeass304

Does anyone provide Stocks and Shares ISAs without charging? I thought they all charged a fee of some sort. The Share Centre charge quarterly

Lokolo

Hugeass304 wrote: »

Does anyone provide Stocks and Shares ISAs without charging? I thought they all charged a fee of some sort. The Share Centre charge quarterly

I don't think HL do.... I am looking now and can't see anything as I have a Vantage ISA with them and I know they don't charge for that.

Scrap that

The annual management charge to hold shares and investment trusts within the Vantage ISA is 0.5% (+VAT) per year, which is capped at £200 (+VAT) per year.

Another edit, iii don't seem to charge anymore...?

No ISA administration fees or inactivity fees

Sceptic001

TD Waterhouse don't charge an admin fee if the ISA valuation is over £5,000. They charge £12.50 for online trades.

Aegis

You'll have more luck finding a stocks and shares ISA that doesn't charge an explicit annual fee if you go with mutual funds. That way the fund manager pays the ISA manager a fee from the trail commission of all the funds you hold, and if you're smart you'll also manage to get some of that fee rebated to you.

Of course, this will probably still leave you paying 1-1.25% per annum, but it'll give you a much more diversified holding than single share purchases with lower transaction costs and generally free switches from one fund to another.

Jonbvn

In the first few years the tax-free benefits of S&S ISA holdings may not be apparent. However, if you invest for several years, and given the increased allowances the amount you hold will become significant and CGT would become an issue outside an ISA.

In addition to the above, bonds pay all dividends free of tax in an ISA. We hold quite a lot of bonds in our ISA's for this reason.

Nearly forgot, anything you hold in ISA's is disregarded for WTC.

EdInvestor

Depending on how much you have to invest the very low dealing charges at the Halifax Sharebuilder service may be attractive.

Personally I have been happy with Selftrade, though there has been much criticism from other unhappy customers recentrly.