I would like to buy penny stocks, but which platfrom? please help
zexbox
Posts: 12 Forumite
Hello all,
What it is, I am a guy who does not have a huge amount of money but im going to start putting bits away month by month. But I have been talking to a person who is in a similar situation to myself, that person only has between £50 to £100 a month they can put into shares, so what they have done is invested longterm into penny stocks.
Now the person I have lost contact with, but after reading and doing more research into this, investing into penny stocks does not seem a bad thing as long as it is a real long term investment. Anyway, I am after a platform where by I can buy some stocks here and there, but without it costing me £15 to buy a £50 amount of shares.
I am still all new to this and saving is not something I have done before, but I do like the excitement of being able to buy shares in different companies. Can anyone recommend a platform which is good within the UK and has regulations. I see there is many binary options companies on the web which are fake so I do not want to go down that route. I do however have some shares but the platform im using is Degiro, and I have recently found out that people are getting random fee's slapped at them from this company, but also there terms and conditions are so badly laid out, that they cannot read it themselves.
Anyway thanks everyone, and have a good day
What it is, I am a guy who does not have a huge amount of money but im going to start putting bits away month by month. But I have been talking to a person who is in a similar situation to myself, that person only has between £50 to £100 a month they can put into shares, so what they have done is invested longterm into penny stocks.
Now the person I have lost contact with, but after reading and doing more research into this, investing into penny stocks does not seem a bad thing as long as it is a real long term investment. Anyway, I am after a platform where by I can buy some stocks here and there, but without it costing me £15 to buy a £50 amount of shares.
I am still all new to this and saving is not something I have done before, but I do like the excitement of being able to buy shares in different companies. Can anyone recommend a platform which is good within the UK and has regulations. I see there is many binary options companies on the web which are fake so I do not want to go down that route. I do however have some shares but the platform im using is Degiro, and I have recently found out that people are getting random fee's slapped at them from this company, but also there terms and conditions are so badly laid out, that they cannot read it themselves.
Anyway thanks everyone, and have a good day
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Comments
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To be blunt, "that person" is an idiot and so will you be if you buy stocks merely because of their price and in particular on the utterly spurious grounds (I assume, correct me if I'm wrong) that because the shares are "pennies" that a small increase of a penny or two is a large percentage so they area better deal than "expensive" shares that cost pounds.
It doesn't work like that, all you'll do is lose money.
This might seem very dull advice but you willl likely be better off puttting your money in a pension since it will get a boost from tax relief. Downside it will of course be locked up for years (possibly a good thing to stop it being wasted)?
If it being locked up doesn't appeal open an ISA take your £100 a month and put it In a fund, not a share chosen at random on the grounds it's "cheap" or on the basis of some con operations ramping efforts. Choose a dull global fund like l&g international index trust or vanguard lifestyle 100 and start reading about investing (not saving, that is keeping it as cash) in places like Moneyvator.
To start with, somewhere like Hargreaves Landsdown will be a cheap place for these amounts. Later on when you have tens of thousands, maybe not but you can move it later.0 -
Fools rush in where wise men fear to tread
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
I agree with AnotherJoe. You may as well just go to the bookies' and throw £50 a month at a horse! Read monevator, think long term, think "get rich slowly", not "get rich quick". You will be doing yourself a massive favour believe me!
Let's take an example...Fortune Oil..current share price 10.5p. The market capitalisation of that company is £257,000,000. That means there are 2.5 billion (2,500,000,000) shares in issue! All that has happened is that the value of the company is spread across a large number of shares, it does not mean that the share, because it is cheap, represents good value. If the share price doubles to 20p say (unlikely), then the value of the whole company would also have to double, and that could take a very long time. From what I see it's been sat wobbling around the 10.5p mark for at least 5 years, staying at 10.5 for the last 2! I used to own shares in Fortune Oil and some other "penny stock" companies, but I was young and foolish and I learned fast and hard!
Stash your money is this order:
1. Cash Emergency Fund: 3 to 6 months of expenditure.
2. Pension - depending on your tax band pay into a SIPP, or AVC on top of your company's contribution. Skim off that 40% tax!
3. Stocks and Shares ISA with a cheap multi index tracker fund...Vanguard Lifestrategy.
4. Enjoy life...there's more to life than money!
Good luck!If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
thankyou everyone for your input, I shall take that all onboard 0
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Bravepants wrote: »Let's take an example...Fortune Oil..current share price 10.5p. The market capitalisation of that company is £257,000,000. That means there are 2.5 billion (2,500,000,000) shares in issue! All that has happened is that the value of the company is spread across a large number of shares, it does not mean that the share, because it is cheap, represents good value. If the share price doubles to 20p say (unlikely), then the value of the whole company would also have to double, and that could take a very long time. From what I see it's been sat wobbling around the 10.5p mark for at least 5 years, staying at 10.5 for the last 2! I used to own shares in Fortune Oil and some other "penny stock" companies, but I was young and foolish and I learned fast and hard!
Good luck!
Its even worse than that because the percentage spread (broker's profit = difference between selling and buying price) is invariably higher with penny shares. And because relatively small trades affect the share price they are partricularly vulnerable to ramping (people persuading you to buy them so it temporarily raises the price for them to sell theirs)
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Glen_Clark wrote: »Its even worse than that because the percentage spread (broker's profit = difference between selling and buying price) is invariably higher with penny shares
Good point.0 -
Watch Wolf of Wall Street 0
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Glen_Clark wrote: »Its even worse than that because the percentage spread (broker's profit = difference between selling and buying price) is invariably higher with penny shares. And because relatively small trades affect the share price they are partricularly vulnerable to ramping (people persuading you to buy them so it temporarily raises the price for them to sell theirs)
Yes, ramping, I remember that!If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
Taylor Wimpey was a penny stock during the credit crunch and you could buy for 4p. Now it's 200p!
But in general penny stocks should be on the periphery of one's investments and not the core.0
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