Help with Stocks?

matthew55325

Hi all,

I'm new to the world of stocks, I saw earlier a post from Martin stating that Hoodles and Brennan are the cheapest for buying stocks and selling them. I have some definite ideas on which stocks I want, the question I have is when I purchase them were do they go? Do I need an ISA account? Or can you buy stocks and shares from an ISA? I thought when you put cash in an ISA it was frozen? I want to buy the stocks and obviously avoid the theiving tax man as much as possible, I am new to all this any assistance you could relay would be greatly appreciated

Regards
M

dunstonh

the question I have is when I purchase them were do they go?

If you get share certificates, the go into safe keeping. Ideally a fireproof safe but a secure cabinet if not. A lot of the time you dont need certificates now if you use a nominee account.

Do I need an ISA account?

If you benefit from using an ISA, then yes. If not, then no.

Or can you buy stocks and shares from an ISA?

You can. A self select ISA is the product there.

I thought when you put cash in an ISA it was frozen?

No. There would be no reason to put money into an ISA if it was then frozen.

I want to buy the stocks and obviously avoid the theiving tax man as much as possible

What sorts of amounts are you looking at? If you arent a higher rate taxpayer and the amounts are small, then utilising the ISA may be an unneccessary cost. Although if the plan is for a long term holding, then it could be worthwhile if you see your income rising to higher rate tax levels in future.

cheerfulcat

matthew55325 wrote:

Hi all,

I'm new to the world of stocks, I saw earlier a post from Martin stating that Hoodles and Brennan are the cheapest for buying stocks and selling them.

The cost of commission should not be your principal reason for choosing a broker. The level and quality of service are equally important. If you are only thinking of investing small amounts ( under £1000 per trade ) you might like to consider the Halifax Sharebuilder; I have heard no complaints about them ( unlike HB ) and the scheme allows you to buy shares for £1.50 ( sales cost £11.50 IIRC ).

I have some definite ideas on which stocks I want, the question I have is when I purchase them were do they go? Do I need an ISA account? Or can you buy stocks and shares from an ISA? I thought when you put cash in an ISA it was frozen?

You can hold the shares in certificate form at home or in the bank, or in a nominee or personal Crest account with a broker. If you want them in an ISA you need to open a self select ISA account with your chosen broker, deposit the money in it and then buy the shares. With an ISA the certificated route is not an option, btw. Holding the shares in an ISA needn't add that much to your costs - Selftrade charge £25 per annum - and will safeguard any profits ( until 2010 anyway...). It also saves a lot of faffing about with CGT calculations, which can get pretty complicated.

HTH

Cheerfulcat

matthew55325

Well, I would like to thank both of you for taking the time out to answer my questions, I am more aware now of what I can do and how to go about setting it up, once again thanks

M

matthew55325

Also what if i wish to purchase stocks from the USA, the New York Stock exchange can this be done with a halifax self select ISA??

cheerfulcat

Hi,

Just a small clarification; the Halifax Sharebuilder is not an ISA, it's just a share dealing account, specially tailored for small investments. But once you have a reasonable number of shares in there you can move them to an ISA - this will give rise to dealing costs but if you move the shares to the ISA provider first and then ask to transfer them in the broker may give you a deal on the price.

As to US shares, it depends on the broker; they're certainly allowed within an ISA.