Shares

bowlhead99

sevenhills wrote: »

I have a share certificate, but I am thinking that opting for the cheaper fixed fee by post, I will get a lower share price that is decided by them, rather than seeing a good price and trading at my choice. I don't know how it works by post.

They will take your order to trade 'at best price available' when they get the order and the market is open, just like if you placed an order out of hours. They will sell it on the open market and have no incentive to place your order at a time that gets you a particularly bad price. Brokers are regulated and have a duty of best execution and various policies and procedures to keep them compliant.

You might of course prefer to pick a time and price yourself by doing a market quote online or over the phone and accepting the price within a 15 second window rather than just requesting it be sold ASAP. Of course, indulging in timing yourself can be expensive given a share price could move 5% in a day; e.g. on Monday Sainsury opened about 20% up but was only up by 15% by end of the day. An instant 20% change due to big news is £120ish on your £600; a 5% change between morning and the afternoon would have been £30.

With larger amounts of shares if you want to exit it can be important to just do it in the very fastest way possible rather than shop around for the absolute lowest possible fee. However if you're only talking £600, a percent movement is not much more than a fiver and you probably have some time to look into the different options.

AnotherJoe

sevenhills wrote: »

I have a share certificate, but I am thinking that opting for the cheaper fixed fee by post, I will get a lower share price that is decided by them, rather than seeing a good price and trading at my choice. I don't know how it works by post.

1. It makes no odds to them whether you get a high price or low one so why would they try to get a low price?
2. If you are so astute you can determine when to get the highest prices you must be a mega multi millionaire already and so this shouldn't be an issue in the first place?