Share Dealing Discussion Area

sabretoothtigger

Etrade seems to be giving out a bit more info then the average highstreet broker does usually

Qualification Criteria at a glance IN-DEPTH RESEARCH PACKAGE
Available to all UK Trading Account customers (including ISA and SIPP).
Gain access to information on Director Deals, Broker views, Market Calendar, News Maps and more.


TECHNICAL ANALYSIS PATTERN RECOGNITION TOOL
Available to all UK Trading Account customers (including ISA and SIPP).


LIVE MARKET DATA (excluding Level 2 data)
Trade just 5 times per month.
Gain access to real-time streaming charts, watchlists, heatmaps and more. LIVE MARKET DATA (including Level 2 data)
Trade just 19 times per month.
Gain access to Live Market Data in addition to complementary Level 2 data.

http://msg.uk.etrademail.com/rp//272/process.clsp?EmailId=42448&Token=2AC1EA503DC71A4AED393289202F03FEA

NotAnExpert_3

Hi everyone

I was wondering if someone could help me with a few questions:

Can I, for example, use Hoodless Brennan/Halifax to buy say £2,000 worth of shares in company A, and then, say, a few weeks/months later sell those shares (hopefully at a higher price)? Would I not only owe the share dealing service/broker just the costs associated with the 2 actions (buying and selling) - whatever that is?

Also, in the guide it says "It's likely your existing broker will charge you to transfer the shares to a new broker". I am not sure what this really means. If I buy shares through say, Halifax, aren't they just a "middle man"? I don't understand why I'd need to then pay them if I want to "transfer shares".

I mean, is it not as simple as this:

I want to buy shares.
I find a middle man (eg, Halifax)
I use them to buy shares, paying them whatever they charge.
I take ownership of shares

At this stage, if I so wish, can I not just end my "relationship" with them?
If so, what are the monthly management/admin costs? Or am I wrong in assuming the brokers are merely middlemen? It is more of a "contract" we enter with them?

Thanks

Biggles

If you use a broker to buy shares and you are sent the certificate then, as you say, you don't necessarily have any 'relationship' with them and can sell your shares with any other broker who is prepared to sell your certificated shares for you.

The references to transferring shares refer to what is now the most common arrangement, ie that the broker holds your shares in your name in a 'nominee account', thus you can buy and sell them without having to post the certificate backwards and forwards. The commission can be lower, though there may be an administration fee for holding your shares, and you may have to pay if you want to move the shares to another broker or you later change your mind and ask for a certificate.

NotAnExpert_3

Biggles wrote: »

If you use a broker to buy shares and you are sent the certificate then, as you say, you don't necessarily have any 'relationship' with them and can sell your shares with any other broker who is prepared to sell your certificated shares for you.

The references to transferring shares refer to what is now the most common arrangement, ie that the broker holds your shares in your name in a 'nominee account', thus you can buy and sell them without having to post the certificate backwards and forwards. The commission can be lower, though there may be an administration fee for holding your shares, and you may have to pay if you want to move the shares to another broker or you later change your mind and ask for a certificate.

Biggles, thanks for your reply.

So, unless I am willing to take paper certificates (and all the costs associated with selling those!), I will need to have a relationship with my broker?

But say, I buy shares, then sell them, am I then free from my broker? ie, could I then just use a different broker to buy different shares?


Alternatively, I just want to know this:

I have say £500-1,000 to invest. I want to buy shares in a company (yes, one company; let's put the point about 'all eggs in one basket' to one side for a moment).

So, I want to buy shares, with the intention of selling them in 4/6/8 weeks (again, ignore the wisdom of this in terms of investing).

What would be the cheapest way of me doing this?

I know I will have to pay stamp duty (on £1000 this is £5 [0.5%]). But other than this, what is the cheapest way of buying and selling shares in one company.

Also, if things go well, I'd like to then perhaps invest again, using same amount, in a different company, perhaps in 6/8 weeks.

Thanks for all your help

Biggles

NotAnExpert wrote: »

So, unless I am willing to take paper certificates (and all the costs associated with selling those!), I will need to have a relationship with my broker?

You'll need to open an account, which will mean going through all the usual ID procedures.

But say, I buy shares, then sell them, am I then free from my broker? ie, could I then just use a different broker to buy different shares?

Yes (but you would need to make sure the account was closed so there were no management or inactivity charges at a later date). On the other hand, if you found they were good, you could stay with them.

I know I will have to pay stamp duty (on £1000 this is £5 [0.5%]). But other than this, what is the cheapest way of buying and selling shares in one company.

Check out the various execution-only brokers to see who is cheapest. There may be some clues in this thread, alternatively have a look at the Selftrade thread currently running, as people are discussing cheaper alternatives: http://forums.moneysavingexpert.com/showthread.html?t=1710569

tradetime

So, I want to buy shares, with the intention of selling them in 4/6/8 weeks (again, ignore the wisdom of this in terms of investing).

What would be the cheapest way of me doing this?

Given that you have set a few "things" aside and then asked a very specific question, I might be drawn to say, depending on what the share was, a spreadbetting company may be the "cheapest" way, since you don't actually own the share, there's no stamp duty, and no commission, since it's in the spread.
Of course this is a whole different ballgame, but it does provide an alternative answer to that question, which is somewhat relevant to the way it was asked.

Also there are cfd's which share some similarities to sb in the fact that you do not own anything, therefore there is no stamp duty. This route is not for everyone, but it is still worthy of consideration.

efex

Hi

Is anyone buying shares `in the UK` on the OTC.BB in the USA (sort of like US penny shares) I`ve been doing mock investing in this market for a few months and now want to start to buy shares but i`m hitting alot of walls ... either the brokers want thousands up front or they limit to only certain companies on the OTC.BB. So the question is " has anyone had any luck trading in this market with a no minimum start and with no restrictions to the companies to buy shares in.

Thanks

ps. i know of every single risk in this area, so please keep the answers if possible to brokers in the UK that deal in this market please.

Thanks for any info.

sabretoothtigger

I think you'd want to deal internationally with american brokers, uk retail brokers barely deal with american shares properly nevermind anything lighter volume

NotAnExpert_3

Hi, does anyone know if any of these brokers doesn't do a credit check when you sign-up? I know iii said they do a check, but it's not logged on your credit file, but I'm not sure what that would entail, then.

But if anyone here has an account with them, or Sharecrazy or Shareview etc, and can confirm that they don't do a credit check, I'd appreciate it.

Thanks

SPACON

NotAnExpert wrote: »

But if anyone here has an account with them, or Sharecrazy or Shareview etc, and can confirm that they don't do a credit check, I'd appreciate it.
Thanks

I have an account with Shareview for a share option scheme that was set up by my company. I don't believe a credit check was performed but perhaps was not required in my case as it was organised by my company and so Shareview may have had gotten certain information from my company.