Buying and selling shares

youknowwho

I am a novice when it comes to this and i was just looking for a bit of guidence really form anyone who knows what they are talking about.

Im looking to by some shares from certain companoes i have been tracking(different sectors).

I need some advice on how you actually go about buying the shares and also the cheapest share dealing account. I am happy to buy and sell online, and im looking to be able to see my shares in real time so i can watch, and buy and sell instantly. were are only looking at a couple of hundred punds max, so i dont really want to be payinmg £50 fees etc, maybe something based on a % or my sales as to maximise any return.

If anyone has any advise, or knows of any dealing accounts which would suit my buying style that would be great.

I appreciate any advice, and i am not going into this without being 100% sure, so anyone who wants to lecture, please, it will be wasted on me.

Many thanks

vbrindle

Hi,

The cheapest I know of is the Share Centre which charge £2.50 for batch dealing as opposed to real time which is £7.50 from them.

I'm not aware of any cheaper than that.

purch

There are plenty of Online Share trading platforms to choose from, with Dealing Fees in the £ 6.95 to £ 12.50 range....but remember there will be Stamp Duty and other bits n bobs to pay too.

However trying to trade Stocks in

couple of hundred punds max

when you are in your own words a novice, is a good way to lose money IMHO.

'Real Time' trading is not as Real Time as the name suggests BTW

The prices shown on the screen will rarely be available to you, and will mostly be indicative, or made up from what is available in the LSE 'Order Book'

Contrary to popular belief, most UK Equity trades executed for retail share dealers (ie. you) do not go anywhere near the London Stock Exchange's systems. Instead they go to RSPs (Retail Service Providers). RSPs are typically Investment Banks or Brokerage Houses that provide electronic quotes to you via your online broker. These quotes are typically small in terms of the number of shares that may be traded, and are valid for a few seconds.

To get best execution the online broker will get a price from as many of the RSP's as possible, and by doing this they will most likely be able to get you a better price either to buy or sell than the original prices they displayed on their website as indication prices.

Bottom line is that sitting watching a screen of prices jumping about (most of which won't be available to you, however fast you react) is'nt as much fun as it might sound, and dealing in small amounts will mean (if you have any sense) that your stops will need to be tight, so you could be 'whipped' into submission long before you've made any money.

vbrindle

What shares did you have in mind? If they're pennies and could rise up to pounds it may pay off, but if they're pounds you won't get many. You'd get about 20 shares with Shell :rotfl:

debbie42

vbrindle wrote: »

What shares did you have in mind? If they're pennies and could rise up to pounds it may pay off, but if they're pounds you won't get many. You'd get about 20 shares with Shell

I'd be more concerned with the potential of a share, rather than its initial cost.

I agree with Purch in that it's not likely to be cost effective to deal in shares at such amounts. The overheads are not insignificant.

tradetime

Hi youknowwho, you seem to be thinking sensibly in not risking a whole lot of money, but I'd agree with purch and debbie, a couple of hundred, is really cost prohibitive, in that the costs of doing business will eat any profits you may make.
If you want to invest in the stock market with that sort of money, possibly some sort of diversified fund may work, I don't know, there are people here who understand those. But you'd be looking at a long term return. I'm inclined to think you will get better returns with a good high interest savings account, perhaps into an ISA, for a couple of years, whilst studying up, and if still interested then give it a go

davidlee

There are many FREE online comparison service available on the web. You can go and compare providers to find cheap share dealing accounts.

youknowwho

Thanks for all the replies so far.

I understand that playing with a couple of hundred pound is not going to make any/very small profit, thats why I would be looking for a cheap account to use - thanks for the posts on that.

I would like to have a go, and i beleive that doing it this way and making a very small profit/loss, is much better than getting £5000 and having a go witht that, just because the profits would be better.

I have some shares in mind, which cost very little at the mo, and i have been keeping an eye on the way they fluctuate ( i know that the past is not evidence for what will happen in the future) If im crap, and lose £50, im not going to be upset, and declare bankrupcy, then ring the bank and blame them, i will take it n the chin, and say i tried it, didnt work.

Thanks again