Stocks and Shares ISA

Hillwalker

So let me see if I've understood any of the above :-)
I could find myself a broker (someone who I can buy and sell shares through)
I could then use my own judgement to buy some shares.
Q what will the broker charge for this ? (do I have to subscribe + pay him/her commission etc...)

I could find a fund (no idea how to begin making a choice here other than say I'm prepared to see my investment drop say 20% before getting uncomfortable)
Q What are the typical costs to I have to pay this fund ?

The last couple of posts have added more jargon, what are IC's ???
Also,
the option of website tools, such as morningstar xrays or financial express analytic reports and other research info may be enough to justify not getting rebates on trail

Q Is this something I would need if I'm going for the broker approach ?

may thanks for your patience

torridon_2

I think you first of all have to work out what it is you want to invest in. No-one can tell you what is right for you. It is worth however searching through the Investment board going back quite a few months are there are some good threads which discuss some of the things you should be thinking of.

Whether you want to buy individual shares or to buy funds it is important to work out what you are going to be charged. The best option for one may not be the best for the other.

I use Hargreaves and Lansdown for funds as there is no annual charge for having an ISA with them, they refund nearly all of the initial commission (which can be up to 5.5%) and also refund a little amount of the trail commission. However they are expensive for shares - they charge 0.5% per year for holding shares in an ISA (up to £200).

For individual shares, this year I have set up an ISA with Selftrade. They charge £25 per year for the ISA wrapper whatever the size, but using the referral board on here you can get effectively 3 years free. They then charge £12.50 per share trade so you need to be making a reasonable size of purchase.

There are other companies which have slightly different different pricing structures - you have to research what is best for you. For instance I believe Halifax have a scheme where you can make smaller regular share purchases more cost effectively.

Morningstar and similar sites are useful for setting up fund portfolios on as they give detailed analysis of the assets different funds are investing in which helps with asset allocation. See this thread for more information http://forums.moneysavingexpert.com/showthread.html?t=431548