Just a question about entering the Share investing world

peace800

Hi

I'm new into share dealing. I plan to start small and slow and gain experience.

I just have a question regarding share dealing sites. I want to be able to invest say £1000 and have the option of withdrawing me total cash and earned profit immediately from an online share dealing site. For example if I put in £1000 and make a profit of say £200 I would like to withdraw that £1200 out of the online share dealing site into my own bank account straight away. I dont want penalties to pay or have to keep an amount of my profit loccked into my online share account.

I've been looking into "Hargreaves Lansdown". Can anyone recommend a dealing site that can give me the flexibility mentioned above?

dunstonh

I think you need to research how buying and selling shares works. If you sell a share you can wait upto 2 weeks before you get the funds in your bank. You will also incur costs when buying and selling shares such as stockbrokers charge and stamp duty.

So, with a small amount like £1000 you wouldnt want to buy any more than 1 share, maybe 2 and there is little point selling £200 of shares if it gains £200 unless you need to spend that £200. And to be honest, if you are in a position where you need to spend that £200 then you probably shouldnt be looking at investing but instead building up your cash savings.

peace800

dunstonh wrote: »

I think you need to research how buying and selling shares works. If you sell a share you can wait upto 2 weeks before you get the funds in your bank. You will also incur costs when buying and selling shares such as stockbrokers charge and stamp duty.

So, with a small amount like £1000 you wouldnt want to buy any more than 1 share, maybe 2 and there is little point selling £200 of shares if it gains £200 unless you need to spend that £200. And to be honest, if you are in a position where you need to spend that £200 then you probably shouldnt be looking at investing but instead building up your cash savings.

I do understand that there will be stamp dute and tradeing fee (selling and buiyng) to pay..I do know that much.

Thanks for your advice. The abov was an example only. The main point being I wanted the freedom of withdarawing my cash and profits from the share account without having it locked in i.e. minimum amount to be kept in online share account etc - I do understand that stamp dute and trade fees have to be paid, I have no problem with that. I was just wondering about withdrawing flexibility.

purch

You should be able to access any Cash held in your account with most Online Brokers as soon as it comes to value

Most Online Brokers won't have a minimum balance in Cash terms, but will charge you inactivity charges if you don't do a certain # of trades a month or quarter (similarly they will offer cheaper trades if you exceed a certain # of trades)

debbie42

Hargreaves Lansdowne tend to be better for investing in funds, in terms of their charges. I use Selftrade and Halifax for share dealing, and have been happy with both.

Selftrade charge £12.50 per trade, Halifax £11.95 (for the amounts I normally deal in).

Neither have inactivity fees, and cash can be electronically transferred out in the normal way.

cheerfulcat

peace800 wrote: »

I've been looking into "Hargreaves Lansdown". Can anyone recommend a dealing site that can give me the flexibility mentioned above?

All of the online brokers should offer this ( I think dh must be thinking of certificated dealing ). You can normally withdraw money via a debit card. I don't know of any brokers who require a cash balance to be left in a normal dealing account. Second the suggestion of Selftrade - HL can be on the expensive side for shares.

tradetime

cheerfulcat wrote: »

All of the online brokers should offer this ( I think dh must be thinking of certificated dealing ). You can normally withdraw money via a debit card. I don't know of any brokers who require a cash balance to be left in a normal dealing account. Second the suggestion of Selftrade - HL can be on the expensive side for shares.

Any brokerage which allows daytrading on US exchanges requires a min balance of $25,000 to comply with Nasdaq and NYSE pattern day trading rules.

As to the OP, the flexibility you seeks suggests an urgency to withdraw money on occaisions which would really not be in keeping with the concept that investing is a long term activity, 5+ years, in so much as if you have your money in for more than 5 years, a day or two here or there to get it out isn't really going to make a great deal of difference. As such investing may not really be what you are looking for, sa dunstonh perhaps has picked up on.

cheerfulcat

tradetime wrote: »

Any brokerage which allows daytrading on US exchanges requires a min balance of $25,000 to comply with Nasdaq and NYSE pattern day trading rules.

Who said anything about daytrading US securities? I assumed that the OP was referring to shares listed on UK exchanges. Nor did I get the impression that he wanted to day-trade...

debbie42

The "small and slow" reference doesn't imply day trading in large quantities to me either.

tradetime

cheerfulcat wrote: »

Who said anything about daytrading US securities? I assumed that the OP was referring to shares listed on UK exchanges. Nor did I get the impression that he wanted to day-trade...

Yeah, fair point, and I'd guess you're right, I just get the impression the OP really isn't sure what he wants and may be looking at anything and everything, the point being he will come across brokers with min account requrements even thoough they would be useless to him.