Best way to buy a share a month

DesG

The cheapest way of doing what you want would probably be to use degiro

bowlhead99

Vortigern wrote: »

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

Yes, loads, but none with plans that include stocks listed on a foreign markets because they don't have the volume of business to allow for a collective bulk-purchase of shares and pass on the savings to the customer.

So you are going to be paying a tenner plus, for each trade, and you are going to have to manually request each purchase. That rate is over 5% of Tesla's current share price, but if you bought two shares every two months instead of one share every month, you would halve the transaction costs and be below 5%. Which is ten times the ideal level really, but each to their own.

You could look at http://www.ig.com/uk/share-dealing/charges-fees

Alternatively if you used a broker like TD Direct or Youinvest mentioned above, which have regular purchase schemes for UK stocks, you could set up the account for regular purchases to get a certain level of direct debit cash flowing into the account every month, but not actually select any UK stocks to purchase, and just manually buy the Tesla shares whenever you feel like it. That would at least take care of some of the admin so you wouldn't need to keep getting your debit card out.

*edit, just saw the reference to Degiro above. They are cheap as chips but I've never used them (they don't offer ISAs for example) and they are not directly FCA authorised, but Netherlands authorised and passported in, with no UK FSCS protection (only Netherlands equivalent) in the event of their failure.

N1AK

JimMcL wrote: »

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?

There are sites that do broker comparison tables. There's one I like but I can't remember the MSE policy on linking to external resources so you'll have to google I'm afraid.

~£10-£12.50 is a pretty normal transaction cost range (and remember it applies to buys and sells). There are low platform cost brokers but generally they'll charge higher transaction fees to balance it out. You can also get platforms that charge a % of your holding which would probably work out more cost effective for you.

eskbanker

N1AK wrote: »

There are sites that do broker comparison tables. There's one I like but I can't remember the MSE policy on linking to external resources so you'll have to google I'm afraid

I'll run the risk!

http://monevator.com/compare-uk-cheapest-online-brokers/
http://www.comparefundplatforms.com/

Eco_Miser

N1AK wrote: »

There are sites that do broker comparison tables. There's one I like but I can't remember the MSE policy on linking to external resources so you'll have to google I'm afraid.

Monevator

N1AK wrote: »

~£10-£12.50 is a pretty normal transaction cost range (and remember it applies to buys and sells). There are low platform cost brokers but generally they'll charge higher transaction fees to balance it out. You can also get platforms that charge a % of your holding which would probably work out more cost effective for you.

There's even one that only charges £5 per transaction, no percentage fee, no annual fee.
The one-off £200 joining fee may or may not be off-putting, depending on how much is going to be invested.