investing in stocks and shares

hi all,

im looking into trading 212 to do some stocks and shares but i dont know what account to set up ie

invest
CFD
ISA

also it wants my NI number, isnt this a bit dodge, what you say?

basically, lets say i put in X amount, i know i can lose X amount or gain but i dont want go in debt over it

thanks,
rob
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Replies

  • edited 13 December 2022 at 4:36PM
    jimjamesjimjames Forumite
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    edited 13 December 2022 at 4:36PM
    ISA is normally the default option if you've not already got one open elsewhere as it's then tax free. CFD could lose you more than you put in but an ISA won't allow that. NI number is standard requirement for an ISA as they need to report to HMRC each year.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • dunstonhdunstonh Forumite
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    also it wants my NI number, isnt this a bit dodge, what you say?
    NINO is needed as your tax number proof for UK.  It is also needed for ISAs (and other wrappers)


    basically, lets say i put in X amount, i know i can lose X amount or gain but i dont want go in debt over it
    Avoid gearing then.

    im looking into trading 212 to do some stocks and shares but i dont know what account to set up ie

    invest
    CFD
    ISA


    Which best matches your objectives?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AlbermarleAlbermarle Forumite
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    hi all,

    im looking into trading 212 to do some stocks and shares but i dont know what account to set up ie

    invest
    CFD
    ISA

    also it wants my NI number, isnt this a bit dodge, what you say?

    basically, lets say i put in X amount, i know i can lose X amount or gain but i dont want go in debt over it

    thanks,
    rob
    I would not do anything until you understand a bit more about investing in general.

    'invest' is normally a long term activity, often just buying one investment and leaving it alone for years.

    CFD and share trading, is akin to short term gambling. When you want to trade in CFD's you will see this warning.
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

    An ISA is a tax wrapper and not an investment

    Investing in stocks for beginners: how to get started - MSE (moneysavingexpert.com)
    Stocks & shares ISAs: find the best platform - MSE (moneysavingexpert.com)
    How to buy shares: Investing in the stock market – MSE (moneysavingexpert.com)
  • Richard1212Richard1212 Forumite
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    You sound like a candidate for an ISA, Robert. I don't bother with them but they are solid for beginners ( though they usually result in people not bothering to find out all about investing by themselves, which is a shame).
    When you learn everything about investing and all its complexities, it is far more interesting to invest in individual companies by yourself ( or with professional advice) via an investment platform  and , if you have enough capital, to filter your money through such a platform and build up your own portfolio.

    For someone starting off , leaving boring ISAs aside, you may wish to look at a good investment platform----Etoro springs to mind : simple, straightforward, easy to use ----and you can put in as much as you want and take out as much as you want quickly and efficiently in complete safety ( though the share prices themselves are, of course , never "safe" :) .

    But, as other posters have said, investing is not a simple matter. So my suggestion is to go for ISA; and, if you want to handle your own buying and selling, especially if you have large amounts, take the ISA time to learn all you can about stocks and shares and dealing----there is plenty of info available on google ( and you need all of it ). Whatever you decide on, Robert, I wish you every success and I also hope you have fun as well. All the best.
  • edited 13 December 2022 at 5:46PM
    jimjamesjimjames Forumite
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    edited 13 December 2022 at 5:46PM
    For someone starting off , leaving boring ISAs aside, you may wish to look at a good investment platform
    As above, an ISA is purely a tax free wrapper. It is neither boring or exciting in itself but the investments you put inside it can be boring or adventurous ranging from government bond funds through to penny shares that might be worthless tomorrow or could have quadrupled in value. Most investment platforms offer ISAs. 
    Remember the saying: if it looks too good to be true it almost certainly is.
  • edited 13 December 2022 at 5:48PM
    wmb194wmb194 Forumite
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    edited 13 December 2022 at 5:48PM
    "Invest" is T212's standard trading account for buying and selling shares in individual companies, investment trusts, ETFs and the like. "Isa" is the same but a stocks and shares Isa with its attendant tax and reporting benefits but with an annual deposit limit and "CFD" is contracts for difference. I'd avoid CFDs.

    A brokerage and most financial institutions asking for your NI number is normal.
  • robertkwildrobertkwild Forumite
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    ok i have read a link and the only real difference between ISA & INVEST is ISA you can only pay in MAX 20k a year and whatever you bank out you wont get taxed, where as invest anything over 2k you do get taxed

    but what if you lose your 20k for example (i wont be paying in anywhere near that), lets say you you invest in all the 20k and you lose all of it and its -22k, you wont have to pay back that extra 2k do you

    sorry for the dumb question



  • robertkwildrobertkwild Forumite
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    sorry, i just want to add, can i make money from the ISA account in the short term like i can with the invest account and for both i cant lose more than i put in can i?
  • AlbermarleAlbermarle Forumite
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    You sound like a candidate for an ISA, Robert. I don't bother with them but they are solid for beginners ( though they usually result in people not bothering to find out all about investing by themselves, which is a shame).
    When you learn everything about investing and all its complexities, it is far more interesting to invest in individual companies by yourself ( or with professional advice) via an investment platform  and , if you have enough capital, to filter your money through such a platform and build up your own portfolio.

    For someone starting off , leaving boring ISAs aside, you may wish to look at a good investment platform----Etoro springs to mind : simple, straightforward, easy to use ----and you can put in as much as you want and take out as much as you want quickly and efficiently in complete safety ( though the share prices themselves are, of course , never "safe" :) .

    But, as other posters have said, investing is not a simple matter. So my suggestion is to go for ISA; and, if you want to handle your own buying and selling, especially if you have large amounts, take the ISA time to learn all you can about stocks and shares and dealing----there is plenty of info available on google ( and you need all of it ). Whatever you decide on, Robert, I wish you every success and I also hope you have fun as well. All the best.
    Just probably worth saying that it is best to be careful what you 'advise' ,when the OP is obviously lacking in any basic knowledge on the subject, although I would not be 100% surprised if it was a wind up . It happens regularly.
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