Starting out with investing

skepta

Hi all,

Firstly, apologies if this has already been asked elsewhere - have looked but couldn't find anything!

I'm a working young professional looking to dip my toes in with a few low-value stock investments. I've previously only ever used high street savings accounts or Vanguard ETFs, so have little practical experience of buying stocks. I understand current rules regarding CGT and would not be breaching that allowance threshold with the amounts I'd potentially look to invest (a few hundred as much for interest sake as anything else).

My questions then are about the most practical way to start doing so in the UK. If I was only investing small amounts, would I still need to do so via a S&S ISA or could I simply use one of the many trading apps? If the latter, are there any to avoid? And is there any way to buy non-UK stocks without suffering a foreign exchange penalty?

Appreciate the help in advance!

Sorcerer2018

Your questions leads me to believe you want to trade stocks for fun on something like Trading 212, if you do don't put a lot in, as you are likely to lose most or all of it, and so you won't need to worry about CGT. Perhaps a better strategy would be to continue putting regular amounts each mouth away in your Vanguard ETF, but this is boring right.

labp04

Here's a great source of information which is a must for all of any experience: Monevator - Make more money, invest profitably, retire early

Eyeful

Your post suggests you want to start trading This is basically gambolling, the equivalent of betting on a horse race. You are very unlikely to need to worry about CGT, or S&S ISA's, for the simple reason that the vast majority of the traders are on the losing side of the trade. Indeed on Etoro they state that 76% of there traders lose money. It sounds like you are to young to remember the last time there was such an interest in share trading. Most punters then also lost a lot of money. History repeats.

 I suggest that you ignore the social media which make it sound so easy to come out on top and stick to your Vanguard ETF's.

If you want to gambol buy a National Lottery ticket. At least when you lose some of your money will go to good causes. Or buy Premium Bonds, where you can get your money back. 

Adyinvestment

Eyeful said:

Your post suggests you want to start trading This is basically gambolling, the equivalent of betting on a horse race. You are very unlikely to need to worry about CGT, or S&S ISA's, for the simple reason that the vast majority of the traders are on the losing side of the trade. Indeed on Etoro they state that 76% of there traders lose money. It sounds like you are to young to remember the last time there was such an interest in share trading. Most punters then also lost a lot of money. History repeats.

 I suggest that you ignore the social media which make it sound so easy to come out on top and stick to your Vanguard ETF's.

If you want to gambol buy a National Lottery ticket. At least when you lose some of your money will go to good causes. Or buy Premium Bonds, where you can get your money back. 

I believe the 76% you are quoting is in relation to CFD's (I have seen this on lots of trading sites) and not individual stocks, etf's etc.

Investing in stocks (whichever format you choose) is in no way the same as betting on a horse or buying a lottery ticket - are you saying that everyone with an invested pension might as well go to a casino?

*Edited as I skipped where you mention ETF's - although I still think individual shares although risky are not the same as betting on a horse, and with due diligence and portfolio control can be a good way to invest*

eskbanker

Eyeful said:

Your post suggests you want to start trading This is basically gambolling

Seems somewhat unlikely (but would be entertaining to watch), although it's often compared to gambling....

gambol

verb

1. run or jump about playfully.

Thrugelmir

Adyinvestment said:

Eyeful said:

Your post suggests you want to start trading This is basically gambolling, the equivalent of betting on a horse race. You are very unlikely to need to worry about CGT, or S&S ISA's, for the simple reason that the vast majority of the traders are on the losing side of the trade. Indeed on Etoro they state that 76% of there traders lose money. It sounds like you are to young to remember the last time there was such an interest in share trading. Most punters then also lost a lot of money. History repeats.

 I suggest that you ignore the social media which make it sound so easy to come out on top and stick to your Vanguard ETF's.

If you want to gambol buy a National Lottery ticket. At least when you lose some of your money will go to good causes. Or buy Premium Bonds, where you can get your money back. 

Investing in stocks (whichever format you choose) is in no way the same as betting on a horse or buying a lottery ticket - are you saying that everyone with an invested pension might as well go to a casino?

If it's a bit of fun. Might as well go to a casino. Anybody can read a name in the media and join the game of musical chairs. Eventually the music stops, and people will be left without a chair to sit on. 

sevenhills

skepta said:

I'm a working young professional looking to dip my toes in with a few low-value stock investments.

I have often wondered what it means when people are described as 'professionals'.

You need to tell us how long you are investing for, do you own or rent, are you looking to own.

Are you comfortable with high/med/low risk investments?

Eyeful

Adyinvestment, You are correct about the 76%  being in relation to CFD's. However using CFD's or day trading with shares, is still gambling and not investing. Both are high risk.

Investing is long term (10 years ) gambling, where the odds of winning is is greatly on the side of the person doing the investing. 

Trading is short term gambling, where the odds of winning is greatly against the person doing the trading.

skepta

sevenhills said:

I have often wondered what it means when people are described as 'professionals'.

You need to tell us how long you are investing for, do you own or rent, are you looking to own.

Are you comfortable with high/med/low risk investments?

Thank you for the helpful response.
I have a long-term secure job with a pension and own my own flat.
Appreciate people looking out for me and take on board comments about the risk of investing - I'm not oblivious to this. I'd be looking for investing for a few years, and would be happy for mid-high risk investments as I'm able to lose the amounts (only small) I'd be investing. It really is more for fun really. 
I'm seeking advice more for the practicalities - eg it's hard to find unbiased trading app reviews, genuinely thoughtful inputs about the relative security eg of Freetrade vs 212, etc

Would appreciate any help

sevenhills

I started with a Hargreaves Lansdown ISA around 4 years ago; then when I realised that because I am 59 I might be better of with a SIPP, because of the tax relief. So when I sell an individual share in my ISA I then move the money to my SIPP and buy a share with it.

I have around 10 individual shares in total, around £1,000 each.