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  • FIRST POST
    • buzzbuzz
    • By buzzbuzz 6th Jan 18, 9:11 PM
    • 11Posts
    • 0Thanks
    buzzbuzz
    Cheapest platform for newbie infrequent shares investor
    • #1
    • 6th Jan 18, 9:11 PM
    Cheapest platform for newbie infrequent shares investor 6th Jan 18 at 9:11 PM
    Hi all,
    I'm a rookie infrequent trader, I want to start with buying shares from a UK company i work for. I monitor those shares so i know what i'm doing to start with. If i want to buy and sell those shares approximately 3-4 buys and 3-4 sells per year and total investment less than 5k. ( could be less depending on fluctuation).
    My question is which is the cheapest and best platform from the fee perspective ?
    So far from i'm considering
    - Halifax Share Dealing -
    - AJ BEll - from MSE article
    - TD direct investing
    This question may be answered elsewhere, I found an old thread but couldn't find anything new. So apologies if this has been answered already
Page 1
    • Ifts
    • By Ifts 6th Jan 18, 9:23 PM
    • 1,791 Posts
    • 1,131 Thanks
    Ifts
    • #2
    • 6th Jan 18, 9:23 PM
    • #2
    • 6th Jan 18, 9:23 PM
    You could use someone like X-O.co.uk share dealing services (5.95 per trade) for a cheap method of buying and selling.

    IWeb let you buy and sell for 5 per trade (25 account opening charge).
    Never let the perfume of the premium overpower the odour of the risk
    • ValiantSon
    • By ValiantSon 6th Jan 18, 9:39 PM
    • 2,004 Posts
    • 1,853 Thanks
    ValiantSon
    • #3
    • 6th Jan 18, 9:39 PM
    • #3
    • 6th Jan 18, 9:39 PM
    Hi all,
    I'm a rookie infrequent trader, I want to start with buying shares from a UK company i work for. I monitor those shares so i know what i'm doing to start with. If i want to buy and sell those shares approximately 3-4 buys and 3-4 sells per year and total investment less than 5k. ( could be less depending on fluctuation).
    My question is which is the cheapest and best platform from the fee perspective ?
    So far from i'm considering
    - Halifax Share Dealing -
    - AJ BEll - from MSE article
    - TD direct investing
    This question may be answered elsewhere, I found an old thread but couldn't find anything new. So apologies if this has been answered already
    Originally posted by buzzbuzz
    I assume you would do this in an ISA wrapper to avoid paying tax.

    Your rough figures suggest 8 trades per year and a 5000 investment so the following is the cost:

    Halifax Share Dealing = 112.50

    AJ Bell Younivest = 12.50 (0.25% value of investment) + 79.60 (for trades) = 92.10

    TD Direct - now Interactive Investor = 90 (take care feedback has been pretty dreadful.

    + Those suggested by Ifts:

    X-O = 47.60

    iWeb = 65 first year and 40 each subsequent year.

    However, I would caution strongly against simply buying individual shares. It is about as high risk an investing strategy as you can imagine. Really, you should be thinking about investing in funds (OIECs or ETFs). Take some time to learn about these.
    • ivormonee
    • By ivormonee 6th Jan 18, 9:45 PM
    • 167 Posts
    • 102 Thanks
    ivormonee
    • #4
    • 6th Jan 18, 9:45 PM
    • #4
    • 6th Jan 18, 9:45 PM
    IG are currently free of all charges apart from dealing commission at either 8 or 5 depending. I saw a thread somewhere though that they may start charging a platform fee although nothing as yet has appeared on their website. They also have no exit fees which you would incur with other platforms should you wish to transfer your holdings at a later date.
    • ValiantSon
    • By ValiantSon 6th Jan 18, 9:56 PM
    • 2,004 Posts
    • 1,853 Thanks
    ValiantSon
    • #5
    • 6th Jan 18, 9:56 PM
    • #5
    • 6th Jan 18, 9:56 PM
    IG are currently free of all charges apart from dealing commission at either 8 or 5 depending. I saw a thread somewhere though that they may start charging a platform fee although nothing as yet has appeared on their website. They also have no exit fees which you would incur with other platforms should you wish to transfer your holdings at a later date.
    Originally posted by ivormonee
    On the OP's criteria then they would pay the higher 8 fee as they wouldn't make enough trades for the reduced price.

    IG = 64

    Oh, and IG don't offer an ISA so you would pay tax on your dealing.
    Last edited by ValiantSon; 06-01-2018 at 10:00 PM.
    • buzzbuzz
    • By buzzbuzz 7th Jan 18, 4:41 AM
    • 11 Posts
    • 0 Thanks
    buzzbuzz
    • #6
    • 7th Jan 18, 4:41 AM
    • #6
    • 7th Jan 18, 4:41 AM
    Thanks for all the replies, very helpful. With regards using ISA wrapper, Don't we all get upto 12k CGT allowance on share profits and won't we still be taxed for share transactions even under ISA wrapper. Should i be using shares ISA wrapper even for smaller investments like 5k ?
    • Tom99
    • By Tom99 7th Jan 18, 6:39 AM
    • 2,218 Posts
    • 1,501 Thanks
    Tom99
    • #7
    • 7th Jan 18, 6:39 AM
    • #7
    • 7th Jan 18, 6:39 AM
    Buying shares in the company you work for is high risk. I am not saying don't do it but it can go wrong. Shares in the world class company I worked for went from 21 to 0.30p!
    • Linton
    • By Linton 7th Jan 18, 8:52 AM
    • 9,392 Posts
    • 9,526 Thanks
    Linton
    • #8
    • 7th Jan 18, 8:52 AM
    • #8
    • 7th Jan 18, 8:52 AM
    Buying shares in the company you work for is high risk. I am not saying don't do it but it can go wrong. Shares in the world class company I worked for went from 21 to 0.30p!
    Originally posted by Tom99
    Agreed. If things turn out badly you don!!!8217;t want to lose both your job and your life savings. So don!!!8217;t make your employer more than a minor component of your investments even if you can buy the shares cheaply.
    • oz0707
    • By oz0707 7th Jan 18, 10:10 AM
    • 538 Posts
    • 147 Thanks
    oz0707
    • #9
    • 7th Jan 18, 10:10 AM
    • #9
    • 7th Jan 18, 10:10 AM
    Agreed. If things turn out badly you don!!!8217;t want to lose both your job and your life savings. So don!!!8217;t make your employer more than a minor component of your investments even if you can buy the shares cheaply.
    Originally posted by Linton
    Some companies do a share save scheme. NXT for instance let employees put a certain amount away each month, for say 3 years with the buy price agreed at the start of the term. If SP higher after 3 years they hold/convert the shares, if SP lower then get the cash. No lose really I suppose you just effectively loaning the company money.

    I'm not associated with them btw
    • cloud_dog
    • By cloud_dog 7th Jan 18, 10:49 AM
    • 3,724 Posts
    • 2,214 Thanks
    cloud_dog
    Thanks for all the replies, very helpful. With regards using ISA wrapper, Don't we all get upto 12k CGT allowance on share profits and won't we still be taxed for share transactions even under ISA wrapper. Should i be using shares ISA wrapper even for smaller investments like 5k ?
    Originally posted by buzzbuzz
    You don't need to but it will be dependent on the profit you make over and above the CGT threshold, as you mention.

    You also no need to be aware of the rules for calculatibg CGT, i.e. the 30 day rule for selling (crystalising gains or losses) and then re-buying.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • ColdIron
    • By ColdIron 7th Jan 18, 10:54 AM
    • 4,249 Posts
    • 5,371 Thanks
    ColdIron
    With regards using ISA wrapper, Don't we all get upto 12k CGT allowance on share profits and won't we still be taxed for share transactions even under ISA wrapper. Should i be using shares ISA wrapper even for smaller investments like 5k ?
    Originally posted by buzzbuzz
    Up until very recently many people didn't believe there was any point in an ISA for their shares as dividends were not taxed if they were a basic rate taxpayer, until they were. Even with the 11,300 CGT allowance you will be required to keep a record of all transactions to prove you have not exceeded the threshold should you be challenged. It seems to me to be a no brainer to tax protect your investments if only for peace of mind
    • andy001
    • By andy001 7th Jan 18, 11:08 AM
    • 42 Posts
    • 17 Thanks
    andy001
    How about Charles Stanley Direct? i've started monthly small investment with ISA wrapper. The rates are quite cheap
    • capital0ne
    • By capital0ne 7th Jan 18, 3:34 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    Up until very recently many people didn't believe there was any point in an ISA for their shares as dividends were not taxed if they were a basic rate taxpayer, until they were. Even with the 11,300 CGT allowance you will be required to keep a record of all transactions to prove you have not exceeded the threshold should you be challenged. It seems to me to be a no brainer to tax protect your investments if only for peace of mind
    Originally posted by ColdIron
    This is so true, on a couple of points
    Next FY 2018-19 you'll be taxed on dividend income over 2,000 (it's 5,000 right now)
    People are moaning about how they rely on dividend income, but now it's gong to be taxed! Simple answer move 20k of investments now into an ISA and another 20k on April 6th so that takes care of 40k (or 80k if you have a partner)

    Next point, record keeping, no need to do this for an ISA based portfolio. This point is missed by lots of people, but you need to keep records for your tax return, so imaging a portfolio with 20 investments all paying dividends or even ACC fund or ETFs. You would need to know the dividend paid and when. This I think is second biggest benefit for ISAs.
    • ValiantSon
    • By ValiantSon 7th Jan 18, 5:15 PM
    • 2,004 Posts
    • 1,853 Thanks
    ValiantSon
    How about Charles Stanley Direct? i've started monthly small investment with ISA wrapper. The rates are quite cheap
    Originally posted by andy001
    Charles Stanley Direct would be more expensive than other options outlined above. They charge 0.25% platform fee and 11.95 per trade. (Is it possible that you use them for OEICs, which have no trading fee? The OP is talking about share dealing). Based on the OP's original plan that would be a cost of 108.10, which is easily beaten.
    Last edited by ValiantSon; 09-01-2018 at 9:55 PM. Reason: Typo
    • Eco Miser
    • By Eco Miser 7th Jan 18, 7:13 PM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    With regards using ISA wrapper, Don't we all get upto 12k CGT allowance on share profits and won't we still be taxed for share transactions even under ISA wrapper. Should i be using shares ISA wrapper even for smaller investments like 5k ?
    Originally posted by buzzbuzz
    With most platforms there's no reason not to use an ISA. It saves on record keeping as well as tax.
    Yes we do all have 11300 CGT allowance per year of disposal. If your shares do well you may need to split your disposals over multiple years to avoid the tax. This also has to cover any chargeable gains on other assets you dispose of.

    You're right that Stamp Duty is still payable on buying shares.
    Eco Miser
    Saving money for well over half a century
    • chutney51
    • By chutney51 1st Feb 18, 3:43 PM
    • 10 Posts
    • 5 Thanks
    chutney51
    Beware IG
    Regards the comments about IG.

    They are about to start charging a quarterly fee (approx 20 per quarter starting in April I think).
    They do have an ISA but beware when it comes to share buying as they do not offer a dividend re-investment scheme. For the small investor this can make a sizeable difference.
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