Share Dealing Discussion Area

Biggles

Why not use Hargreaves Lansdown?

cloud_dog

Biggles wrote: »

Why not use Hargreaves Lansdown?

A) They are expensive for holding shares. (Good for UTs).

hodd

cloud_dog wrote: »

A) They are expensive for holding shares. (Good for UTs).

I have a HL Vantage and Share account. They weren't the cheapest for buying/selling, but as a non-resident it proved difficult to open an account with some other companies.

I'm interested to know why HL are expensive for holding shares, though. If I let shares sit there, what charges do HL generally make?

sabretoothtigger

I believe HL will charge 0.5% on all shares and also some very low fee funds. Thats annual, its like you have to pay stamp duty all over again every year you hold them

ChrisEvanson

Incorrect. HL don't charge an annual fee on their share account. "The Share Account is for clients who deal less frequently and do not want to pay any management fee"

sabretoothtigger

Good to hear, must just be on the sipp thats true then

holloholloway

Hi guys
I am new to share dealing and signed up with lloyds share dealing and have made some trades on there. However, i think 15 pound a trade is a little steep as it is eating into the money i am trying to invest. Are you allowed more than one share dealing account. Could i for example have a lloyds and a self trade share dealing account.
I have bought some shares in RBS, LLOYDS AND BARCLAYS, Aviva, Bowleven, Tesco, glaxosmithkline. Only RBS and Barclays are making me a profit.
My second question is will i receive dividends and will these be in cash or more shares. When i signed up with lloyds i don't remember being asked what my preferences would be for receiving dividends. Also i've had shares in these companies for a month. Do i have to hold them a certain length of time (a year for e.g) in order to be eligible for dividends. How does it work. Sorry i am a little green but any advice would be greatfully received.

cloud_dog

ChrisEvanson wrote: »

Incorrect. HL don't charge an annual fee on their share account. "The Share Account is for clients who deal less frequently and do not want to pay any management fee"

Maybe so but they are still expensive. They have an old style tiered charging structure ranging from £9.95 (for less than £500 trade) to £29.95 for £20k+.

Similarly their telephone trades are 1% based with a min of £15 and a max of £50.

When compared to Halifax (iii, fool) £10 per trade, X-O £5.95 per trade, and some others they are expensive.

Their ISA and SIPP wrappers charge the 0.5% commission up to £200 (I believe) for non-commission based investments, as Sabre mentioned.

Blobby8_2

holloholloway wrote: »

Hi guys
I am new to share dealing and signed up with lloyds share dealing and have made some trades on there. However, i think 15 pound a trade is a little steep as it is eating into the money i am trying to invest. Are you allowed more than one share dealing account. Could i for example have a lloyds and a self trade share dealing account.
I have bought some shares in RBS, LLOYDS AND BARCLAYS, Aviva, Bowleven, Tesco, glaxosmithkline. Only RBS and Barclays are making me a profit.
My second question is will i receive dividends and will these be in cash or more shares. When i signed up with lloyds i don't remember being asked what my preferences would be for receiving dividends. Also i've had shares in these companies for a month. Do i have to hold them a certain length of time (a year for e.g) in order to be eligible for dividends. How does it work. Sorry i am a little green but any advice would be greatfully received.

http://www.thisismoney.co.uk/

Have a look @ this is money, among other sites it will allow you to create a portfolio, and gives access to dividend info

n.b.
Ex dividend date - if you hold the share on this date you are entitled to receive the dividend
Payment date - the date dividends will be paid
Glaxosmithcline went ex dividend (XD) on feb 9th, the dividend is 19p/share and will be paid on 7th April.

cloud_dog

holloholloway wrote: »

Hi guys
I am new to share dealing and signed up with lloyds share dealing and have made some trades on there. However, i think 15 pound a trade is a little steep as it is eating into the money i am trying to invest. Are you allowed more than one share dealing account. Could i for example have a lloyds and a self trade share dealing account.

Yes, as long as you are not referring to ISA S&S dealing accounts.

holloholloway wrote: »

My second question is will i receive dividends and will these be in cash or more shares. When i signed up with lloyds i don't remember being asked what my preferences would be for receiving dividends. Also i've had shares in these companies for a month. Do i have to hold them a certain length of time (a year for e.g) in order to be eligible for dividends. How does it work. Sorry i am a little green but any advice would be greatfully received.

I think you are slightly confusing stocks/shares with funds. You have opened a nominee account with Lloyds where your investments are 'assigned' to you and held under a nominee account. There is nothing unusual or risky with this situation, it is common for most online brokers to operate this way.

Regarding dividends..... For stocks you need to be holding the investment at the 'record' date (sometimes this date is after the date at which they go 'ex-dividend'). I won't go into the reason for the two dates. After this date the dividend will be paid to you on a defined future date.

Regarding cash or additional shares.......This depends on your broker and/or the stock in question. Some registras (who manage stocks shares) provide a DRIP (Dividend Re-Investment Programme) which will automatically convert your divi in to shares. However, most DRIP schemes (I believe) don't allow this to opperate for nominee accounts. The other option is if your online broker provides a cheap dividend investment option where you can set it up to automatically re-invest in shares. This usually isn't cost effective as you will still incure dealings fees for a relatively small amount, although some allow you to set a figure to reach and then automatically buy shares.