First Time Share Buyer

Michael1010

Hi,

I'm looking to buy my first long term shares - not a large some - Currently under £500.

I'm looking for an online platform that I can use to purchase my shares & generally any tips to my first time buy.
I understand Rolls Royce is a safe bet for long term shares?
What fees are associated with the purchase? It will simply be a one off purchase not a monthly imvestment

Appreciate any help
Thanks

bigadaj

What are you trying to do?

That's a low sum for a single transaction, if you don't have any other equity holdings then most people would start with a fund.

No single share is really safe, so it's. A high risk transaction, do you have an emergency fund or other savings, or a pension?

Michael1010

Hi

Thanks for the reply. Yes I have used my full ISA allowance - for this year.

Was just looking at investing a small amount in stocks - for the long term.

eskbanker

Michael1010 wrote: »

I understand Rolls Royce is a safe bet for long term shares?

People probably used to say the same about Enron, Woolworths, etc, or see this post for another example of why investment rule number one is to diversify.

However, if it's just a bit of a flutter without risking much capital then choose from the range of brokers at sites like http://monevator.com/compare-uk-cheapest-online-brokers/

One other thing worth considering if you're using your annual allowance in cash ISAs is that it might be beneficial to put cash into other places giving better interest (regular savers, current accounts, etc) and use your ISA allowance to shelter investments from tax instead....

Apodemus

I know I will be shot down in flames for this, but if you decide to go against the undoubted wisdom of the posts above and you really want to invest for the long term, You could consider buying your chosen share (i can't comment about Rolls Royce) in certificated form through a suitable broker (HL are easy for a first timer).

A certificated trade will cost you more but has no further costs until you sell. You get your dividends direct from the company and also get all the company information sent to you, giving you a greater sense of ownership, including a right to turn up and vote at the AGM. Many also offer cheaper ways to invest further in the company should you wish to do so.

colsten

Michael1010 wrote: »

Hi

Thanks for the reply. Yes I have used my full ISA allowance - for this year.

Was just looking at investing a small amount in stocks - for the long term.

what did you use your ISA allowance for - a cash ISA?

If you want to invest long term (7+ years), S&S ISA is a better option, as is a pension. You don't need to invest in individual shares - most investors opt for funds to spread their risk.

colsten

Apodemus wrote: »

I know I will be shot down in flames for this, but if you decide to go against the undoubted wisdom of the posts above and you really want to invest for the long term, You could consider buying your chosen share (i can't comment about Rolls Royce) in certificated form through a suitable broker (HL are easy for a first timer).

A certificated trade will cost you more but has no further costs until you sell. You get your dividends direct from the company and also get all the company information sent to you, giving you a greater sense of ownership, including a right to turn up and vote at the AGM. Many also offer cheaper ways to invest further in the company should you wish to do so.

Without commenting on the wisdom of buying an individual share, especially if all you have is £500: how much does a certified trade cost, and why would you choose it over and above a company like x-o?

Apodemus

Simply raising this as an option!

If the OP's main interest is simply in getting a safe return on £500 they won't go anywhere near an individual share in any form.

If instead they are actually interested in investing in an individual company and holding for the long term, then directly investing in the company rather than in a nominee gives them that direct exposure.

Michael1010

Yes, its a simple 3 year cash ISA. I understand there is a higher risk to S&S ISA's

I didnt opt for anything else as i was looking for a safe return with the option of using it after the three years for anything that may pop up.

This year I will only have the >£500 to invest but next year will have a larger sum to invest when a separate ISA matures.

I am completely new to investments and just looking at different ways to invest my savings & shares popped up as a possible method

Michael1010

Apodemus wrote: »

I know I will be shot down in flames for this, but if you decide to go against the undoubted wisdom of the posts above and you really want to invest for the long term, You could consider buying your chosen share (i can't comment about Rolls Royce) in certificated form through a suitable broker (HL are easy for a first timer).

A certificated trade will cost you more but has no further costs until you sell. You get your dividends direct from the company and also get all the company information sent to you, giving you a greater sense of ownership, including a right to turn up and vote at the AGM. Many also offer cheaper ways to invest further in the company should you wish to do so.

Thanks for the reply.

Your suggestion does sound like something I will be interested. I do like the idea of a greater sense of ownership. Is investment in a single company riskier?

Archi_Bald

I would recommend you read up about investing. Even if you use an S&S ISA, which is a good idea as it provides a great tax wrapper, you don't need to buy a single share ever, and most investors don't.

As a novice to investing, you would be well advised not to go anywhere near individual shares. Buying just 1 share is most likely way beyond the level of risk you would find acceptable as you could lose 100% of your capital, even if your share is in a seemingly rock solid company.

One book people keep recommending is Smarter Investing by Tim Hale but there is a host of other goo things to read https://forums.moneysavingexpert.com/discussion/5043692