Should I invest in stocks through a bank or an app trading platform?

cheapgames

I understand the very basics of stock markets and have used the 212 app before. I'm thinking of investing a bit larger than I have previously, I've just tinkered with small amounts before. I enjoy picking companies myself in the 212 app , but I worry that I'll forget about the account for ages and suddenly discover they removed my funds because I didnt verify or respond or some b/s (etoro were a week away from removing my funds because they had asked me to verify my account a SECOND time after it had already been verified once!!!). Should I just buy stocks through a bank or am I being overly cynical of just using an app and having a bit more fun picking what I want to invest in ? Pros and cons of each?

Many thanks

masonic

When investing significant amounts, I think it's important to look for a provider with a track record, plenty of assets under management and a sustainable business model. There are quite a few cheap providers that fit that bill, iWeb and Jarvis X-O are quite popular around these parts. The main risk is that the provider becomes insolvent and you don't regain access to your investments for a significant period of time, or for those operated by a foreign parent company, you become subject to a legal or regulatory regime that is less favourable.

george4064

Following up on what Masonic said, you should put invest via either a bank or an app. Use a standard reputable online broker, good place to look is here: https://monevator.com/compare-uk-cheapest-online-brokers/

You didn’t mention any tax efficient wrapper, if you haven’t then you should consider opening a Stocks & Shares ISA for the tax benefit rather than a standard ‘General Investment Account’ which won’t shield you from any tax.

cheapgames

That sounds like good advice I'll research that further. What's the negatives of using a trading ap like trading 212? My plan was to invest small amounts in as many medium to large companies as possible .. like hundreds.

bowlhead99

cheapgames said:

That sounds like good advice I'll research that further. What's the negatives of using a trading ap like trading 212? My plan was to invest small amounts in as many medium to large companies as possible .. like hundreds.

Do you know how long it would take to adequately research "like hundreds" of companies to assess their prospects and invest in the ones which will do well, while doing similar research on the thousand of rival companies to ensure you avoid the ones that don't?

Even clicking through the buttons to buy small amounts of each of these hundreds of companies once you've decided the ones you want, will take you all day.

Just buy shares of an investment fund or investment trust - a collective investment scheme which has a fund manager to make the choices on investment and divestment of holdings in individual companies (or allocates the money in line with a recognised stock market index) on behalf of all the fund's owners.

That's how your pension investments work, to benefit from stock market growth over many decades. You do have a pension, right?

Alexland

It's not best practice to pick individual shares and then forget about them as lots of things can happen to companies while you are away which might change your view on if they remain suitable investments.

You might do better picking a sensible multi asset fund where diversification means their long term performance is more predictable and they can be left to run on auto-pilot in periods where you are not looking at them. You would still need to dial-down into lower risk funds or cash in the years leading up to withdrawal although target date funds can even do this for you.

iWeb might be suitable as they offer both shares and funds and have no ongoing platorm fee to forget to pay. Alternatively if the money isn't large enough to justify the trade fees then a percentage based platform such as Vanguard or Cavendish might suit.

cheapgames

bowlhead99 said:

cheapgames said:

That sounds like good advice I'll research that further. What's the negatives of using a trading ap like trading 212? My plan was to invest small amounts in as many medium to large companies as possible .. like hundreds.

Do you know how long it would take to adequately research "like hundreds" of companies to assess their prospects and invest in the ones which will do well, while doing similar research on the thousand of rival companies to ensure you avoid the ones that don't?

Even clicking through the buttons to buy small amounts of each of these hundreds of companies once you've decided the ones you want, will take you all day.

Just buy shares of an investment fund or investment trust - a collective investment scheme which has a fund manager to make the choices on investment and divestment of holdings in individual companies (or allocates the money in line with a recognised stock market index) on behalf of all the fund's owners.

That's how your pension investments work, to benefit from stock market growth over many decades. You do have a pension, right?

This is exactly why I am here asking questions .

Yep , military pension I'm only young though so isn't worth a lot after 6 years. I'm going to look into pensions more now I'm career changing .

Finally - what about stocks and shares isas from a bank vs the companies mentioned on here ?

Eco_Miser

cheapgames said:
Finally - what about stocks and shares isas from a bank vs the companies mentioned on here ?

They have higher fees, and possibly a very limited selection of funds.
Having said that Iweb is a trading name of Halifax Share Dealing Ltd, which is part of Lloyds Banking Group, so you've got the reassurance of a big bank, but you deal directly online, rather than going through a bank branch.
The Monevator link above is a good guide to which brokers/platforms to consider.