Investment / Share Dealing - Where do I start?

trev1

This question has probably been asked a thousand times before but I need advice on where to start with investing or share dealing. I have recently come by £500, I could put it into an account or pay it off my mortgage but I want to try something different. I have read a few posts on the forum about on-line share dealing and fancy giving it a try, but I don't know where to start. I would like some advice on the following:-

• A reputable company and costs involved with setting up on-line share dealing.
• what should i be looking for when picking shares to purchase (the million dollar question).

any advice would be warmly welcomed and until then its back to investing for dummies.

CLAPTON

500 is too little ..forget it; just save the money in a savings account
but if you wish to learn about stocks and shares then set up a 'fantasy' portfolio and see how you get on in a year or so

snowqueen555

its not too little for a first time experience, better to experiment with a small amount than a large one surely...

My friend made about £200 recently from a similar figure, so it depends

sabretoothtigger

Its not impossible but a book might be the best thing to get first.
Also I wouldnt do stocks, try unit trust funds first as there is no dealing cost and they are going to be less risky because they contain hundreds not just one company

When you get how to deal a unit trust it will help explain how markets hop around

C_Mababejive

I agree..£500 is way to little to dabble in stocks and funds.

You could take your chances and buy premium bonds? You never know,it could be you...

Mickygg

I disagree £500 is not too little - as snowqueen says. If you buy £500 here, £500 there you can over time build a diversified portfolio. That is what I am planning to do - buy every now and again shares between £500 - £1,000 and build up a portfolio.

I am also new to this Trev1. I have done a lot of research on here and google. There are reputable companies like X-O and iii that you can use, although each stockbroker has its little querks that may or may not work for you. Foe example X-O is lim ited to just UK share dealing.

As for what to look for when picking shares.... forget it - there is no safe bet, they are all risky. I personally look for those that I THINK will do well in years to come and there is chance for share price to grow, although this is down to personal preference and research.

C_Mababejive

If you do decide to go down the on line broker route,look out for charges and inactivity fees. If you think you might like to strike it big with penny shares,check out VOG, FTO and particularly..FWEB..not ramping,just giving my hot tips