silly share buying question

longwalks1

currently opening up a First Direct sharedealing account, and have approx £10k to use to start trading after selling some shares through another sharedealer last week.

When i find the shares im after, and i log on and click 'buy', where does the money come from to pay for them? bank transfer from my bank, or do i need to 'deposit' the money into the share account first?

Apologies but it'l lbe my first trade outside of my company nominated scheme.

Also, aside from the £10 charge to trade (both to buy and sell) is the only other charge on purchasing shares the 0.5% government tax?

Thanks in advance

westy69

i would imagine you need to deposit the money first, try and do it through a stocks and shares ISA that way the profits will be tax free assuming the shares you buy are applicable for an ISA

noh

From their FAQs:-

"How will my transactions be settled?
We will open a settlement account for you, linked to your nominated first direct account. You will be able to view all the transactions you make along with any cash dividends you receive, through your settlement account, online. The proceeds of your deals and dividends will be transferred overnight daily (in one transaction) to your nominated first direct account. The money will be taken from your first direct account to pay for any share purchases."

So it seems you need to have the funds available in your nominated FD account.

You already need to be a FD current account holder to apply for the Share Dealing Service."

From the FAQs

"Can anyone register with first direct shares?
Our sharedealing and associated investment services are only available to first direct current account customers who are resident in the UK, Channel Islands or Isle of Man and have a UK, Channel Islands or Isle of Man postal address."

Aegis

If FirstDirect operate on the same system as HSBC (which I imagine they do, pretty much all their systems and departments are the same) then you'll basically be given an overdraft-esque facility within your sharedealing account. You then settle in the next few days.