x-o.co.uk Share Dealing, Feedback / Advice.

dreamypuma

Hi All,

Hoping for a bit of feedback or recomendations of x-o.co.uk. I'm quite new to this and hold share certificates for the company I work for through a share save scheme.

I can't see myself buying or selling regularly and there is a possibility my account may remain dormant for a considerable time with or without shares. In essence I would like a cheap cost effective way to sell my shares when the time is right.

I'm looking at x-o due to the low transaction fee, and zero annual charges. Am I looking at the too simplistically?

Does x-o seem a good service for me? Are there any issues I should anticipate, are there other better services I should be considering?

Lokolo

They are good (cheap) but you can only trade UK based shares. So it has its advantages and disadvantages.

dreamypuma

Lokolo wrote: »

They are good (cheap) but you can only trade UK based shares. So it has its advantages and disadvantages.

Being new to all this I doubt I'd be looking at anything beyond FTSE 350 shares unlikely to look at AIM. If I do get a taste for more (unlikely) I guess X-O is going to be restrictive.

dreamypuma

Based on what I'm planning on selling I should make just in excess of £1K profit.

Assuming I was a basic rate tax payer, would HMRC want 20% of the profits, and will this be deducted automatically from my x-o account, similarly to a savings account? or do I have to complete a self assessment.

Is the Tax Free Allowance for Capital Gains Tax over and above the personal allowance for Income tax?

I always subscribe to my cash ISA in full annually on the first day of the financial year. Would an ISA Account be better than a standard account for me?

Lokolo

There are 2 ways to make money, either through Income or through Growth. Income Tax and Dividend Tax is through income and Capital Gains Tax is through growth.

Your shares will have grown and you are making £1k profit. Assuming you haven't used your Capital Gains Allowance elsewhere then you will owe no tax as you haven't used any CGA (which is seperate to personal allowance which is based on income tax!)

dreamypuma

Lokolo wrote: »

There are 2 ways to make money, either through Income or through Growth. Income Tax and Dividend Tax is through income and Capital Gains Tax is through growth.

Your shares will have grown and you are making £1k profit. Assuming you haven't used your Capital Gains Allowance elsewhere then you will owe no tax as you haven't used any CGA (which is seperate to personal allowance which is based on income tax!)

Thanks Lokolo.

I haven't touched my CGA, so based on your comments am I correct in thinking an ISA wrapper for my shares is irrelevant until such time as I start reaching my CGA allowance?

Lokolo

If the ISA is free, you may as well use it. It will save you having to keep track of your gains incase you get close to your allowance threshold.

You also may have to report any gains to HMRC if outside an ISA (I haven't used outside ISA so unsure about this!) which is more effort if you could have just put it in an ISA for free.

Glen_Clark

dreamypuma wrote: »

Hi All,

Hoping for a bit of feedback or recomendations of x-o.co.uk.

Looks Great at the moment.
But it must cost them money to maintain nominee accounts.
How long can you expect them to do that for nothing?
How long will it be before they introduce and increase fees, when you are already locked in?

I am paying 0.75% for certificated trading with Skipton Building Society. But at least I can be certain I will only pay the fee once. Even if I hold the shares for 50 years.

Annual fees are the real killer to long term investments like pensions. On another thread I showed that a 2.25% annual charge on a regular savings fund over 45 years is actually over half of your total fund gone in charges. :eek:
But which sounds better, 2.25% annual, or 51% overall.
So which do you think they prefer to use?

Lokolo

Glen_Clark wrote: »

Looks Great at the moment.
But it must cost them money to maintain nominee accounts.
How long can you expect them to do that for nothing?
How long will it be before they introduce and increase fees, when you are already locked in?

I am paying 0.75% for certificated trading with Skipton Building Society. But at least I can be certain I will only pay the fee once. Even if I hold the shares for 50 years.

Annual fees are the real killer to long term investments like pensions. On another thread I showed that a 2.25% annual charge on a regular savings fund over 45 years is actually over half of your total fund gone in charges. :eek:
But which sounds better, 2.25% annual, or 51% overall.
So which do you think they prefer to use?

None of that has anything to do with x-o. They do not charge on an annual basis, they charge trading fees and thats it.

Your points are all rediculous made up future possibilities.

srcandas

Lokolo wrote: »

You also may have to report any gains to HMRC if outside an ISA (I haven't used outside ISA so unsure about this!) which is more effort if you could have just put it in an ISA for free.

I use hl and they make the tracking very simple. I could just cut and past a transaction log or refer to the report produced 6 monthly. Simples

I guess beyond costs that is a consideration when weighing up providers.

Along with:

website security (which is why I rejected x-o even though their lower level of security than other sites is probably unlikely to concern many).

the spreads on buy and sell although that is difficult to ascertain without a scientific and controlled test.

the ability to link accounts which I find useful with both the wife and I with independent hl accounts

:beer:

Glen_Clark

Lokolo wrote: »

None of that has anything to do with x-o. They do not charge on an annual basis, they charge trading fees and thats it.

Your points are all rediculous made up future possibilities.

Another one today has just introduced a quarterly charge after getting the punters hooked in by loss leaders https://forums.moneysavingexpert.com/discussion/comment/53463707#Comment_53463707