Platform for beginner to dabble

jamels2

I'd like to dabble in shares and invest in a few companies I believe may do well in the future. I would look to put £100 or so into a few stocks probably around one a month and monitor their progress.
I will be putting most of my funds in fixed savings so this is just for a learning experience and maybe a small profit.
So my question is what platform is suitable? I'm confused by the fee structures and such.
Thanks

Alexland

For that amount of money you could consider a general non-ISA account with Freetrade (there is a signup bonus free share being offered if you contact others on the MSE referrals forum) however buying individual companies is high risk and will for most people generate lower returns than investing in a suitable low cost diversified fund on a low cost platform such as Cavendish or Vanguard Investor who would offer an ISA wrapper for no extra charge.

jamels2

Thanks I am aware index funds are the best option for most in the long term , but id like a little active investment with small amounts just as an interest. Maybe just for a couple of years. Then if I find I'm losing money or doing no better than index funds ill just go down that route.

TJB24

jamels2 wrote: »

I'd like to dabble in shares and invest in a few companies I believe may do well in the future. I would look to put £100 or so into a few stocks probably around one a month and monitor their progress.
I will be putting most of my funds in fixed savings so this is just for a learning experience and maybe a small profit.
So my question is what platform is suitable? I'm confused by the fee structures and such.
Thanks

Hi jamels2,

If you're interested in active investing but don't have too much to invest right now, I'd really recommend you use a virtual portfolio. Give yourself £10k in imaginary money but use the platform to "buy" real stocks and see how they perform; no cost and no risk.

I am an active investor and use Hargeaves Lansdown, personally, due to their customer service and good website and mobile app. They offer a virtual portfolio that costs nothing; I use it sometimes to gameplan my more speculative bets. So I'd suggest going with them.

If you really want to invest your own money, be aware that most platforms charge you £10 per trade - both buying and selling. So if you're investing £100 into multiple stocks, this cost would wipe out any return.

jamels2

Thanks I might give the virtual option a go, should be fun?

N1ckS

The virtual portfolio is a good idea, but perhaps you could use it to hold passive funds. Then compare it with your active investments over a period of time and subsequently give up the idea of share gambling.

Freetrade is a good option for small amounts if you want to go down the active trading route in a general investment account:
https://blog.freetrade.io

DrSyn

I to think do the virtual portfolio just for now. I have not done the sums but expect for the amount you intend to invest a month in individual shares, if you do make a profit the charges would greatly eat into it.

Watch the video below. While it is about index funds, it will show you why you need to consider the charges when making an investment.

http://www.kroijer.com/


Good luck.

eskbanker

jamels2 wrote: »

Thanks I am aware index funds are the best option for most in the long term , but id like a little active investment with small amounts just as an interest. Maybe just for a couple of years. Then if I find I'm losing money or doing no better than index funds ill just go down that route.

You'd be comparing apples and oranges though - 'investing' is generally regarded as a long term activity designed to accumulate optimal returns consistent with the investor's risk tolerance. Playing about with shares and judging relative success only on the basis of a couple of years would typically be seen as 'trading'....

jamels2

I'm happy to give the virtual trading a go , is HL the way to go or any other ones recommend?

A_T

Trading212 do a virtual account - then if you're comfortable you can open an ISA or Trading account with them. There are no transaction charges.

Thrugelmir

Trading costs are going to eat into any return you make. Then there's the spread between buy and sell to be considered. £100 a stock isn't worth the effort. You'd be better off looking to the longer term future and investing in a fund or IT instead.