Any broker recommendations?

Darkblue

I'm getting fed up with such a low rate of interest on my savings, I am considering getting into shares. I've played around with this idea for a long time, but have never taken plunge.

It's not something I would do on a whim either, I have done some research but brokers seem a little lite on the recommendations side, and there is a lot of them too.

Also, any recommendations for an S&S ISA?

Dark.

jimjames

It really is jumping from one end of the risk scale to the other going from cash to individual shares so make sure you know exactly what you are doing.

A good place to look is hl.co.uk, they aren't the cheapest but a good website and lots of useful info there.

Archi_Bald

Good comparison: http://monevator.com/compare-uk-cheapest-online-brokers/

Recommendations for S&S ISA? Read up about investments! Because all an S&S ISA is is an investment in a tax wrapper. Some suggested reading: https://forums.moneysavingexpert.com/discussion/4752194

brendon

I've just started getting into shares for exactly the same reason -- it seems may of us are being 'forced' away from traditional savings to shares. Unlike you, I've gone in on a whim and not done any research -- we'll just have to wait and see how that pays off! I ended up going with iWeb, which is run by Halifax, because it is the cheapest per trade (£5). It's not fancy, but it does exactly what I need it to.

jimjames

Just wanted to add that you don't "need" to go from cash directly to shares.

There are lots of funds that cover almost any combination you can think of for worldwide investments and they spread the risk across many companies so you won't lose everything if one company fails.

For small amounts funds will work out much cheaper than buying shares and end up with a more balanced portfolio.

Darkblue

Thanks for all the links and advice.

Funds are still an option I haven't ruled out.

bluesnake

If one new how to breed geese that laid golden eggs, would you sell advice for £5 a transaction fee, or £25 per quarter fee on how to aquire such geese, rather than farm these geese on your own?

One person whom I know does trading does make money - after 3 years loosing about 15k and he is quite smart.

I also tried it over 7 years and lost about 15K in total.

Housing is a more boring but a far better bet!

grey_gym_sock

bluesnake wrote: »

If one new how to breed geese that laid golden eggs, would you sell advice for £5 a transaction fee, or £25 per quarter fee on how to aquire such geese, rather than farm these geese on your own?

this sounds like an argument against active fund management. well, there is an alternative: passive management.

or is it an argument against IFAs? though nobody has recommended them (yet).

it's not a good argument against investing in general. just because there are dodgy characters promising golden eggs, it doesn't mean you shouldn't keep geese at all. learn a little bit about what you're doing, and they will produce eggs. but do have realistic expectations (i.e. not golden eggs).

One person whom I know does trading does make money - after 3 years loosing about 15k and he is quite smart.

I also tried it over 7 years and lost about 15K in total.

perhaps your mistake is trading rather than investing. just buy a decent variety of geese and keeping feeding them. what could go wrong? well, lots of things, but it's a more reliable method than trading half your geese in for different geese every week. keep it simple!

Housing is a more boring but a far better bet!

that's a non-sequitur. that's like saying: there are some dodgy geese salespersons, so you should buy ducks instead. you're comparing apples to oranges. it's a whole different ball game. whether you go for geese or ducks, you need to do your research and have a (preferably simple) plan.

also, i'm not sure whether housing or shares are more boring (not to mention geese or ducks - don't worry: i won't mention them again!), but shares certainly don't ring you up in the middle of the night to tell you the toilet is blocked.

dunstonh

bluesnake wrote: »

If one new how to breed geese that laid golden eggs, would you sell advice for £5 a transaction fee, or £25 per quarter fee on how to aquire such geese, rather than farm these geese on your own?

One person whom I know does trading does make money - after 3 years loosing about 15k and he is quite smart.

I also tried it over 7 years and lost about 15K in total.

Housing is a more boring but a far better bet!

Losing money over a 7 year period indicates you were doing something wrong. Especially if you now consider housing better.

Perhaps you were an inexperienced investor going into high risk stocks or not having a suitable asset allocation (such as going 100% into financials before the credit crunch). However, I don't think someone who has managed the very difficult task of losing money over 7 years is best placed to tell someone else how to invest. That said, you do highlight what can happen if you start investing in things you know nothing about in a way that is unsuitable.

Losing money over 3 years is fine. That can and will happen and is nothing to be concerned about. Unfortunate timing can result in that. Although trading is higher risk than investing and the chances of losses are greater than investing.

bluesnake

My experience was many years before this crunch (except for day trading). I have traded, done shares and got the 1am phone call that the internet was not working, no heating, no water, no electricity.

Housing was the most troublesome, but gave rewards.

Everyone I know (and I work with a lot of people) those whom have gone down the housing route, had more trouble, is the most troublesome, but some also again re-invested in housing. Non have withdrawn. They have done in most part very well, bar two, the second worst I know is a chap whom is breaking even but has gained in equity. The worst was a person whom bought off plan in a Latvia, did not know their legal system, could not speak Latvian, and no friends or contacts there and the company folded - surprisingly did nor loose his money due to Section 75, but it was a long, hard battle extracting money from banks.

People dealing with shares have not done that well - in my circle. Day traders - out of 10, one made profit (think he started making in end of year 3, recouped all his losses after 5 years) and the rest lost their multiple deposits fairly quickly.

dunstonh, I am not advising people not to invest, and I am sure many people that earn their money in investing, gain majority of their money from advising, rather than from their own portfolio. Sort of 'Physician heal thy self'

I admit very few person had used brokers for stocks, but the ones that have used brokers winged about losses, unnecessary transactions to build up billing, and their broker had as much foresight and vision as a glass eye in pitch black. Think it is why myself and others avoided brokers.

grey gym sock, I thought I bought very decent geese from the FTSE100 farm, but one night the foxes came in with new legislation and cause a riot. Also some of the other geese while gaining a larger dominance and greater consumption, also decided to lay the same, but often smaller eggs. Daily one had to keep up with news, innovations, the implied meanings and how these would effect ones market and segment. Slaughtered the lot to make mortgage pie.

jimjames

bluesnake wrote: »

People dealing with shares have not done that well - in my circle. Day traders - out of 10, one made profit (think he started making in end of year 3, recouped all his losses after 5 years) and the rest lost their multiple deposits fairly quickly.

Just shows that day trading is not a way to make money.

Investing however is. Despite the FTSE still being below the peak value in 1999, if you'd invested in a boring tracker you'd be over 60% up due to compounded dividends. Holding funds for 15 years through thick and thin, crash and boom can make you money. Many other markets have done far, far better than the FTSE which is what you would have in a balanced portfolio and no phone calls at 1am reporting problems with the house.

bluesnake wrote: »

dunstonh, I am not advising people not to invest, and I am sure many people that earn their money in investing, gain majority of their money from advising, rather than from their own portfolio. Sort of 'Physician heal thy self'

I don't think this is true. Fund managers obviously make money as do advisers but in the end it is the portfolio that grows.

You've lost money and your vision is clouded by that but you were not investing and day trading is a world apart from that.