Buying shares for the first time into BP

jellybean09

stormy wrote: »

Hi Jellybean09,
Sorry I've just seen your last message and you mention just wanting to make a return next year, I do too and have put money in NS&I Index linked savings certificates (my money is safe).
Make no mistake share investing can be very risky hence my modest purchase of BP shares, I write this because it sounds like you need to have a good think and realise what a high risk you would be taking.
I understand fully the risks and have invested in companies that have gone bust before (losing my money).

Have a think mate and I hope this has helped.

Glad I posted on here. Some definite food for thought. Thanks everyone.

catz1ct

Be very careful about this, I have seen people loose so much money on shares in the past.

sabretoothtigger

BP is about 6 or 7% of the ftse. Owning only one share would be risky, if you buy the index it'll be 100 and more then a few are oil companies

debbie42

I have an Interactive Investor account, and find them a value for money online broker. If you really wanted to buy BP shares, you could buy them in an ISA, as III don't charge extra for the privilege.

There are plenty of other oil stocks worth considering before you commit, though. There is way too much uncertainty in BP for my liking at the moment: I'd rather take my risk at the drill bit than the law courts :cool:

lvader

debbie42 wrote: »

I have an Interactive Investor account, and find them a value for money online broker. If you really wanted to buy BP shares, you could buy them in an ISA, as III don't charge extra for the privilege.

They charge £10 per deal in an ISA vs £1.50 without ISA.

debbie42

lvader wrote: »

They charge £10 per deal in an ISA vs £1.50 without ISA.

The £1.50 is for the "portfolio builder" service. It's £10 for a real-time trade otherwise.

C_Mababejive

Dont assume that its easy to make money on the stock market.

It isnt.

Its just another big roulette wheel.

Its very easy to loose money big time.

LOST

£5.95 per deal with x-o.co.uk - cheapest (UK stocks only)

Keltyx

BPs liability in this fiasco is not unlike the deepwater well, far from capped.

Estimates of the clean up and fines have been flying around, however BP can expect civil and class action lawsuits to come flying at them with potential for massive punitive damages.

Bearing that in mind, I have still been very tempted myself to sink a £k into BP as a speculative venture. However, if I do it wont be for a quick sale next year, it will be a long term investment (i.e. retirement) for growth and dividends.

turbobob

jellybean09 wrote: »

I am looking to purchase £3000 in BP shares maybe tomorrow.

I am a first time share buyer and pretty clueless. I have been looking into the interactive investor website but not sure if this is the best way to purchase them.

I am looking to hold them for 12 months and then depending on the worth decide whether to sell or hold longer.

I don't really understand the cost side of things and whether there are fees and to whom?

Can anyone give me a basic run down on things?

As already said several times you need to take care here. You can get hurt 'catching falling knives' which means buying a share on the way down. I'm sure you could find posts on this forum from people asking if they should buy shares in Northern Rock, Bradford & Bingley etc. following heavy falls. In those cases they carried on falling!

Costs wise you pay 0.5% stamp duty on UK share purchases (but not when you sell). You will also have to pay dealing costs per transaction which vary depending on the broker you use (e.g. £10 with III).

There is also a bid/offer spread (the difference between the bid price and the offer price of shares). This is fairly small on a share like BP (around 0.15p-0.3p at the time of writing) but it can be significant on smaller companies.