Best broker for this type of trading?

RebTech

I'm looking for opinions on the most cost effective way to drip-feed money into an index tracker, but rather than setting up a monthly direct debit, I want to watch the relevant index and buy when it's low. The FTSE All Share is a likely candidate.

At the moment I'm contributing the maximum monthly amounts into a personal pension and a S&S ISA, but I'm expecting to get a lump sum soon and that's what I'd use for the tracker, holding it in a high interest savings account and transferring an average of maybe £1k/month to my trading account. I expect to trade only 2-3 times in the average month, but maybe 5-6 times some months and not at all, others. (But that's sheer guesswork at the moment, to be honest.)

I've looked at the Share Centre and that seems pretty good, though I'd probably be using the standard variable commission arrangement rather than the Trader account for such amounts. Also, I think their batch system (3 times a day) would probably be good enough, "instant" trading not being required. Any other suggestions, or general comments on the idea?

dunstonh

At the moment I'm contributing the maximum monthly amounts into a personal pension

Wow. Well done. Its not often you come across someone who puts 100% of their earned income into a pension.

What type of investment are you intending to use for the tracker? I assume ETFs? This is important as the answer will be different depending on the type of instrument you intend to use.

RebTech

dunstonh wrote: »

Wow. Well done. Its not often you come across someone who puts 100% of their earned income into a pension.

As you might guess, it's not coming out of income.:cool:

dunstonh wrote: »

What type of investment are you intending to use for the tracker? I assume ETFs? This is important as the answer will be different depending on the type of instrument you intend to use.

Yes, most likely an ETF.

Biggles

Selftrade now allow you to put an amount once each month into an ETF (only certain ones, tho) for £1.50 a shot.

RebTech

Biggles wrote: »

Selftrade now allow you to put an amount once each month into an ETF (only certain ones, tho) for £1.50 a shot.

"The investments you select will be purchased on the fourth Thursday of the month." This is not what I'm looking for. (Edit: I thanked you before checking it.)

Biggles

RebTech wrote: »

"The investments you select will be purchased on the fourth Thursday of the month." This is not what I'm looking for. (Edit: I thanked you before checking it.)

I did point out it was only once a month, Reb. But it is cost-effective. Sorry if I wasted your time. ;-)

RebTech

Biggles wrote: »

I did point out it was only once a month, Reb. But it is cost-effective. Sorry if I wasted your time. ;-)

The frequency is not the problem, it's the fact that you get no choice about when the trade takes place. No offence, but I think "rather than setting up a monthly direct debit, I want to watch the relevant index and buy when it's low" is quite clear.