buying shares

dano1234

In your opinion when does it become cost effective to invest in a single share. (Based on the current dealing prices on HL)

Some people would say invest in funds if you only have X amount to invest, but i was looking to add a few shares.

What would be the recognised industry minimum to make it cost effective?

Jake'sGran

You don't have to use HL. They are said to expensive for share buying. I use Share.com but I understand that a lot of people are using a broker called X-O who are cheaper. I don't know the industry minimum is but if you are a regular trader the dealing charges are a lot less with some.

dano1234

Would i be able to invest in shares within an isa, as well as using my HL isa though ?

DavidHayton

dano1234 wrote: »

Would i be able to invest in shares within an isa, as well as using my HL isa though ?

No, you can't subscribe to two stocks and shares ISAs in the one year. It is fine to leave your money in the HL ISA, but you can't add to it in the same tax year that you invest in another ISA.

If you are juut dabbling in small amounts and you are not a higher rate tax payer then you could open up a straightforward trading account for your share dealings outside an ISA.

As Jake's Gran has said, HL aren't the cheapest for share dealing - especially inside their ISA where they wallop on an extra management fee - I think it's 0.5% pa, but I might be wrong on that.

Finally, in answer to you original question, I don't like to buy or sell shares in lots of less than £1000

Best wishes
David

jimjames

There are 2 elements to consider.

Firstly the amount of the purchase and the % that the fees are out of this. With £10 trade costs plus stamp duty, it isn't really effective to trade at much less than £1000

You also need to consider how it fits in with a balanced portfolio if that is what you are building. To reduce the risk of a single share doing badly you probably need around 10 different companies so that would equate to a total of £10,000 you need but it wouldn't all need to be done at once.

The reason why many people use funds instead is that they are accessible for much lower starting sums and allow you to diversify worldwide.