Best way to buy a share a month

JimMcL

Hi. I'm new to share buying. I want to buy one share a month in Tesla (TSLA:NASDAQ). Currently they cost about $226. I was wondering what the cheapest and easiest way was to set up a share buying account , with a direct debit to buy one share a month. Thanks.

edinburgher

Someone new to investing should not be making purchases of a single, unprofitable company because they're not equipped to make an informed decision re. valuation etc.

Can I politely suggest that you consider dipping your toes into the water with some passive investments/index funds? A blog such as Monevator would be a good start for reading up.

Stock picking is a great way to lose money unless you have done your research (and plenty of people who have done their research still lose money!)

JimMcL

Hi fellow 'edinburgher'. To be honest I'm not really going in to this to learn about investing in shares per se. I just like what the company are doing and believe (hope) that in the longer term they will be successful and I would just like to have a small part in that. If it all went horribly wrong and I lost my investment, I would be very surprised - but could take the hit, so although you're right that it's probably not the most sensible way to get into share buying, I think I would still like to do it...

colsten

Might as well put your money on the 3:15 fav in Musselburgh.

N1AK

JimMcL wrote: »

Hi. I'm new to share buying. I want to buy one share a month in Tesla (TSLA:NASDAQ). Currently they cost about $226. I was wondering what the cheapest and easiest way was to set up a share buying account , with a direct debit to buy one share a month. Thanks.

Unfortunately there isn't really a good way to buy specific company shares cost effectively:

1. You have to buy whole shares which means you don't know what it will cost each month in advance
2. You'll be paying transaction fees for each individual purchase
3. You'll be paying a platform fee when you hold virtually no assets

One way to decrease the cost would be to buy in batches (yearly could turn a £200 cost into a £100 cost for example). Another option would be to invest in a fund that invests in Tesla and similar firms. That avoids the share dealing and whole stock issues.

edinburgher

JimMcL wrote: »

Hi fellow 'edinburgher'. To be honest I'm not really going in to this to learn about investing in shares per se. I just like what the company are doing and believe (hope) that in the longer term they will be successful and I would just like to have a small part in that. If it all went horribly wrong and I lost my investment, I would be very surprised - but could take the hit, so although you're right that it's probably not the most sensible way to get into share buying, I think I would still like to do it...

Never invest based on hope. If you'd like some hope, send me your money and I may send you some back in 20 years....

JimMcL

Hi n1ak. Thanks for the reply...
1. I guess as long as it stays within certain limits then that's ok...and I can always cancel the DD
2. Can you say what the typical transaction fee would likely be? If it were less than say 5% I would probably be ok with that.
3. Do all brokers charge this platform fee?

JackRussell

Interesting article here;
http://www.telegraph.co.uk/finance/personalfinance/investing/10356760/The-cost-of-buying-US-shares-in-the-UK.html

Its a few years old so may be slightly out of date, but I had no idea about the 30% tax on divis (unless you fill in form, or their held by broker).

Pincher

Maybe you can get a share certificate, and frame it.

But if you must, it will keep some admin clerks with employment.
Try

http://www.schwab.co.uk/

slowpoke_rodriguez

Hargreaves Lansdown,
Charles Stanley,
AJ Bell Youinvest,
TD direct,
etc, etc,

will all be able to buy and hold US shares for you.
Some will charge platform fees, some won't.
You'll typically pay about a tenner per deal, buy or sell, plus 1.5% ish foreign currency transaction fee.

Hargreaves Lansdowne will hold your hand through the process, and for shares they won't charge a platform fee.Dealing charges are top end at £11.95 per deal but you may be able to get a cheaper regular investment rate with them or another broker.

If you like what Tesla are doing, then why not?

Vortigern

Are there any "regular investment" schemes that charge a small amount (£2?) for a scheduled monthly purchase?