£1000 to dabble in shares

bartsimpson

I've never bought any shares before, and I want to get into it, but it seems to be such a complex area of finance with so many differing opinions and jargon that i get very confused by it all.

However I really want to get into buying up shares, i'm getting sick of earning a measly 5% interest on my money when i know i could be doing better. I figured that I would start with £1000 and see what I can turn it into. I know it's like gambling but it's £1000 I can afford to lose.

My question is, can someone give me a very basic idea of where to start. I've just opened up a Natwest stockbroker account but I'm not even sure:

1) if i can buy and sell online using this service
2) are they buying on behalf of me (ie a broker) and do i have to pay them a commission, if so how much?

Hopefully someone can give a complete novice a bit of guidance!

Aegis

Before you get a dealing account, you'd be better prepared if you knew exactly what you wanted to buy.

Are you looking at buying shares, ETFs, Investment Trusts, Unit Trusts, OEICS, Corporate Bonds, Gilts, or something else?

If you're wondering what any of those are, you might want to slow down before diving in to the market, as direct investment in equities is one of the most risky investments you can make, and right now there's a very real chance that you will lose money very quickly. You can diversify easily by buying in to investment trusts, OEICs or Unit Trusts instead of shares, as each of those essentially splits your investment across 30-150 different companies within the mandate of the collective fund in question.

With £1000 this might be the safest option that still gives a good chance of higher returns than cash over a 5+ year period.

cheerfulcat

bartsimpson wrote: »

My question is, can someone give me a very basic idea of where to start.

Try incademy and Motley Fool's Fool School.

I've just opened up a Natwest stockbroker account but I'm not even sure:

1) if i can buy and sell online using this service
2) are they buying on behalf of me (ie a broker) and do i have to pay them a commission, if so how much?

Yes, you can deal online and yes, there is a dealing charge - online dealing costs a flat £15 per trade ( buying or selling ).

Cozworth806

Share centre has a £2,50 +vat per quarter charge, but the lowest buying fees at £2,50 min or 1% + stamp duty of 0.5%.
The sale charges are £7.50 or 1% so I would only advise maybe 1 or two shares, and that is pretty risky. What would think if it halved in value?

McSaver

Get yourself an Iwebsharedealing account - £10 per trade (£15 for international) and if you dont trade very often there is no annual or quarterly fees.

I got a sharedealing account and bought a few shares just based on the Idea of putting cash in a savings account is boring and you know how much interest your gonna get on it. 5% is okay on savings but theres always ISAs and perhaps a Unit trust might be a good option for your £1,000.