Self Select ISA - best buy for one-off trade?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 1.4K views
Rate_TartRate_Tart Forumite
3 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi,

I'm a complete newby to stocks & shares ISAs, purely needing one to make a one off purchase (£4000) of shares in 1 company (appreciate this is high risk but I'm purely doing it as it makes more sense than leaving this money in their employee sharesave scheme and paying more for the shares than what they are worth now).

I've identified that I need a self-select ISA for this purpose but I'm struggling to find guidance on the best buys as there seems to be numerous fees and charges i.e. admin fee, setup costs, trading fee, commission, annual fee, account management fee.

Can anyone please enlighten me as to what the different types of fee are & whether I would be subject to any/all of them in this instance?

Also, how does the process work - do I also have to open a sharedealing account in order to purchase the shares in the first place & then transfer them into the ISA? Or do I have to fund the ISA with cash & then use it to buy the shares?

Many thanks

Replies

  • AegisAegis Forumite
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    From what I've seen, somewhere like x-o.co.uk will have the lowest dealing fees for a one-off transaction if you don't need any advanced features like charting, stop loss orders, etc. You literally pay the dealing fee as you make the transaction and they look after your shares for you until you want to sell.

    I've no idea if they're any good as a provider in terms of interface or customer service, but they seem pretty good on price for shares.

    The other option is to find one of the brokers who will do a large scale investment for a number of customers at the same time, which typically seems to cost about £1.50 per transaction but occasionally gets reduced to zero for special offers. The disadvantage is that you can't time your entry (should that be a concern) and you have to pay full exit cost at their normal dealing rate, which might be a lot higher than x-o.

    If you prefer not to buy shares but want funds instead, then Hargreaves Lansdown are likely to still be the most competitive for £4,000 for the moment, though the other offer is Cavendish Online's offer of a Fidelity ISA with full trail commission rebate for a one off fee of £25, I believe.

    In short, the answer depends on what and how you want to buy!
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • gadgetmindgadgetmind Forumite
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    Rate_Tart wrote: »
    I'm purely doing it as it makes more sense than leaving this money in their employee sharesave scheme and paying more for the shares than what they are worth now).

    Why not use it as a chance to diversify?
    Or do I have to fund the ISA with cash & then use it to buy the shares?

    This is the usual way that things are done because you cannot move existing shares into an ISA other than for one interesting exception. This exception is that approved share options (which includes SAYE) can be moved into an ISA without there being a disposal for CGT purposes within 90 days of exercise. This won't benefit you with your £4k that's "under water" but might in the future.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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