Let’s blow 5K on BP Shares

JamesU

hodd wrote: »

HL were happy to let me open a HL Vantage Fund & Share Account. So I did. I could have used my German bank account to buy BP shares, but the fees seemed high (70 euros) and the accompanying bumph would’ve taken months to read.

Taking a punt on BP, and being successful with this is anybody's guess. Obviously it is your choice. But if you are new to investing taking a punt on a single share is risky in it's own right, and in a company with BP's current problems, even more so. Quite a few OPs have discussed the BP crisis period to date (including punts on the shares) in the thread here:

https://forums.moneysavingexpert.com/discussion/2446861


If you have the HL Vantage fund and share account, before a share purchase, I think you should check very carefully the ongoing charges for holding single shares in the HL account (see T+Cs). If you have the account I am thinking of, the annual charge may amount to 0.5% + VAT on shares (on £6K shares = £30, but capped at £200/yr + £35 VAT = £235/yr). See pdf on key features with the charges for holding shares in the link HL here:

http://www.h-l.co.uk/investment-services/fund-account/frequently-asked-questions

UPDATE/EDIT: Above charges not relevant! As non-ISA, no 0.5% +VAT annual charge, see T+Cs, top of page 2, and Jamesd's post and comments below.


If the charges above are correct, somehow a 70 Euro charge buying shares from the bank is not too high against say £30 of ongoing charges at Hargreaves Lansdowne.

That said, another consideration on the German side is the taxes on share dividends are higher than in the UK. For a typical DAX 30 share which you can buy directly from the bank with receipt of regular statements, you will be looking at around 27% tax on the dividends:

Kapitalertragsteuer 25%
Solidaritaetszuschlag (unification tax) = 5.5% of Kapitalertragsteuer
i.e. Total dividend tax =26.37%

Some good bargains on the DAX30 right now, and DeutscheBank can also supply the DB-X trackers, all purchased as resident at Euro rates. But if BP is your cup of tea, good luck with this.


JamesU

noh

0.5% of £6000 is £30 not £300

JamesU

noh wrote: »

0.5% of £6000 is £30 not £300

Right! Thanks NOH it is late and I am in autopilot, in that case ignore the costs Hodd, I shall edit/delete last post quickly.

Edit: last post corrected, thanks NOH

JamesU

jamesd

JamesU, "There are no annual charges to hold shares, gilts and corporate bonds in the Vantage Fund & Share Account", so you get to blush and edit a second time.

And also worth noting that "There are no charges to hold any funds in the Vantage Fund & Share Account".

The charges differ depending on exactly which part of the Vantage service you're using and you were probably thinking of the ISA or SIPP charges:

"Within the Stocks and Shares ISA the annual charge to hold shares, gilts and corporate bonds is 0.5% (+VAT) per year, restricted to a maximum of £200 (+VAT) a year"

ses6jwg

i bought some bp at £3.03

sabretoothtigger

hodd wrote: »

I think my 5K of BP shares can only grow in that time.[/FONT]
[/FONT]

Masomnia wrote: »

Sounds like you're aware of the risks, can afford to lose the money...

If you've done the research and you're happy with it, why not?

Hardly, can only grow ? That must be a turn of phrase because you can lose all the money.
Sounds like the normal private investor approach, to talk up prospects instead of examine the boring realities of balance sheets and so on
What happens when they can and do go down, would you sell at a loss or hold to zero, its best to be prepared anyhow.
Have a target, aim for better reasoning then hype

If this is a one off then good luck with the gamble, Ive heard of far worse ideas


The euro to sterling rate is fairly weak at the moment unfortunately but maybe you already have the sterling.
I would guess europe has depressed prices, shell have shares issued in euro?


434 was a top for BP short term and inversely I think 381 should be some support, these are % degrees of the fall from the highs to the lows, 38 and 23% respectively

[Deleted User]

hodd wrote: »

Indeed.

My 50K is earning 3% at the mo.

I think I can afford to gamble with 10% of that. If BP goes bust tomorrow, and that isn't going to happen, I will live.

Just stuck 6K, asking for 398 in the morning.

spread it around into different risk factors. I just added to a pib at over 8% current yield, tax free into a sipp basket.

Gamble??? do your homework and take gamble out of the equation. It is the quickest way to decimate your pot of money

Dave101t

im in p at 299p, and 356p, avg 345p. they are going up, they will reach the 'dizzying(!)' heights of before, they already said when the dividend is being reinstated.
bp is not a gamble.

C_Mababejive

Why would you buy via HL when other borkers are cheaper eg TDW??

Thrugelmir

hodd wrote: »

I don’t need dizzy heights. More than 398 will probably beat my current 2.91%. There are also loads of examples of companies, e.g. American Express, who nearly went bust.

Who said BP was going bust?