Help - newby wants to self invest

MarcoM

Hi,

I would like to invest in a stocks and shares ISA.
I do not wish to use an IFA.

Can anyone suggest a good internet based broker I could use?

I understand that my best option would be an ISA which is tracker based.

Also I would like to gamble 500 quid on some diy direct share buying (FTSE linked)in order to gain investment experience. It would be great if I could do this and the above through the same internet based platform.


Regards,

psychic_teabag

Have a look at https://forums.moneysavingexpert.com/discussion/3153942

Note that the cheapest platforms for funds tend to be either expensive for stocks, or not support them at all. But the cheapest stock platforms don't hold funds.

Might be best to get at least some trading experience on a virtual stockbroker platform before using real money. (Or just using a spreadsheet to track the trades you would have done - need to be honest with yourself !)

MarcoM

Thanks.

I was interested in H and L but it seems to get negative reviews on here.

Is there a platform which is simple to use for a newbie?

laurel7172

It depends on your strategy. The trouble with "gambling" £500 is that the dealing charges are incredibly high pro rata. If you have to pay £9.95 per trade, that's 2% of your fund gone if you invest in just one share. If you spread your risk across five shares, you're down 10%. And if you "churn" regularly...you do the maths.

I say it depends on your strategy because I have a fledgling SIPP, and £500 is...just...within what I'd be prepared to commit to a single trade. But I plan to hold shares for the long term and not to be constantly trading them...chopping and changing with the sum I currently have invested would be madness. In my opinion, because I'm learning too.

Aegis

If you don't mind using an IFA to get a good deal, you can go via Cavendish Online to open a Fidelity Fundsnetwork ISA, as they offer full rebates on all initial and annual charges on funds. I think I saw recently that they have extended their fee-free account opening offer indefinitely, so it's not a bad way to invest.

If you are ONLY interested in a limited range of trackers, then you might want to go direct to a provider of such funds, like Legal & General or HSBC, as direct offerings on trackers tend to be fairly cheap. However, if you go to one of these you will very heavily restrict your available options.

If you definitely want sharedealing and fund investments in one ISA, then you'll need to explore the options which aren't the cheapest in either camp. Off the top of my head, iii and Alliance Trust both offer ISAs in which you can make investments into shares and funds, but they won't be as cheap as a dedicated provider of one or the other, especially not for a smaller portfolio. There might be a cheaper hybrid one out there, but as I don't use the hybrids myself, it's not something I can immediately recall.

Linton

Aegis wrote: »

If you don't mind using an IFA to get a good deal, you can go via Cavendish Online to open a Fidelity Fundsnetwork ISA, as they offer full rebates on all initial and annual charges on funds. I think I saw recently that they have extended their fee-free account opening offer indefinitely, so it's not a bad way to invest.

If you are ONLY interested in a limited range of trackers, then you might want to go direct to a provider of such funds, like Legal & General or HSBC, as direct offerings on trackers tend to be fairly cheap. However, if you go to one of these you will very heavily restrict your available options.

If you definitely want sharedealing and fund investments in one ISA, then you'll need to explore the options which aren't the cheapest in either camp. Off the top of my head, iii and Alliance Trust both offer ISAs in which you can make investments into shares and funds, but they won't be as cheap as a dedicated provider of one or the other, especially not for a smaller portfolio. There might be a cheaper hybrid one out there, but as I don't use the hybrids myself, it's not something I can immediately recall.

iii do ISA's with shares, funds, bonds, preference shares, covered warrants etc etc. Dealing charge for shares IIRC £12.50.

But £500 isnt enough IMHO for gambling, Buying one share perhaps but active trading, no.

Totton

I use Hargreaves Lansdown, I can't fault them for their customer service and speed of transactions etc. They are very good at transferring cash between accounts the same day if needed and answer telephone and email enquiries quickly. Not everyone's cup of tea but I use them for equities and funds without problem.

Best Wishes,
Mickey

MarcoM

Thanks for the responses.

I wanted to get a tracker fund for my ISA and a separate share dealing account online.

I am in the lucky position where I could burn up to 1k to gain experience in share dealing.
I don't want to buy and asell every five minutes. I would like to buy some shares and see how they go over the next five years or so, how do these internet platforms work and how the charges apply etc etc. If I !!!!!! it up then so be it but the learning experience would be useful.

I may be in a position in a few years time where I would have a considerable amount to invest so I want to learn now.
But in order to avoid squandering the lot I wanted to invest most of my spare cash in a Stocks and Shares ISA via tracker fund linked to the FOOTSIE100 and separately "play" with 500 to 1000 pounds worth of shares buying equities directly.

As a separate question for Aegis I would like to ask if by using HSBC for the tracker fund he mentioned I would have to go through a detailed FA session in the bank. I use HBSC for a couple of accounts and they always try to coerce me into a Financial Review which I don't want / need.
Could I purchase said fund online?

Aegis

MarcoM wrote: »

Thanks for the responses.

I wanted to get a tracker fund for my ISA and a separate share dealing account online.

I am in the lucky position where I could burn up to 1k to gain experience in share dealing.
I don't want to buy and asell every five minutes. I would like to buy some shares and see how they go over the next five years or so, how do these internet platforms work and how the charges apply etc etc. If I !!!!!! it up then so be it but the learning experience would be useful.

I may be in a position in a few years time where I would have a considerable amount to invest so I want to learn now.
But in order to avoid squandering the lot I wanted to invest most of my spare cash in a Stocks and Shares ISA via tracker fund linked to the FOOTSIE100 and separately "play" with 500 to 1000 pounds worth of shares buying equities directly.

As a separate question for Aegis I would like to ask if by using HSBC for the tracker fund he mentioned I would have to go through a detailed FA session in the bank. I use HBSC for a couple of accounts and they always try to coerce me into a Financial Review which I don't want / need.
Could I purchase said fund online?

Best not to go to the bank sales teams, especially if you know what you want already. You can buy the FTSE trackers online. That said, if you eventually want the managed funds instead, you should aim for somewhere which discounts the initial and ongoing costs.

MarcoM

Can I buy the tracker via hsbc online or via different provider?

Aegis

MarcoM wrote: »

Can I buy the tracker via hsbc online or via different provider?

Both, and at the same cost via Fidelity and the HSBC website (I believe), however Fidelity is likely to start introducing a platform charge at the end of this year which hopefully won't affect direct purchases from providers, so you MAY end up with a cheaper offering if you decide to only stick with trackers.

Might end up being wrong though, it depends what happens with the platform review.