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Buying Shares
15 Answers
How do you go about buying shares? It’s mostly for my grandchildren rather than popping in an ISA
I’m not talking thousands but a regular (monthly) amount long term - is that realistic or do you need to make substantial amounts
I’m not talking thousands but a regular (monthly) amount long term - is that realistic or do you need to make substantial amounts
Answers
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There are lots of good articles on this. Here is one:
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Open a shares broker account, fund, select companies to invest in and buy. I have used a few brokerage companies over the years and found Hargreaves and Lansdown to be problem free with very fair pricing with no annual charges (It cost on average £10-£15 to buy shares).
As far as I remember, with HL, if you have a monthly direct debit you only pay a very small fee to buy shares, about £1.
As far as I remember, with HL, if you have a monthly direct debit you only pay a very small fee to buy shares, about £1.
Hargreaves Lansdowne charge £11.95 to buy or sell shares (with lower rates for frequent users). However, you must also remember that when you buy (but not sell) shares of companies listed on the main markets you also pay 0.5% "Stamp Duty" (i.e. tax).
Buying individual shares in the way you suggest (i.e. by a small monthly contribution) is not really a viable proposition and I doubt you will find anywhere that you can do this. If you really want to invest in the Stock Market you should consider buying shares in a Fund. This is where a Fund Manager invests in shares of their choice, using the contributions you make. You should bear in mind that the value of these funds can go down as well as up.
If you want to do this for your grandchildren the best way is certainly a Junior ISA:
https:/
(Other providers are aviailable)
Buying individual shares in the way you suggest (i.e. by a small monthly contribution) is not really a viable proposition and I doubt you will find anywhere that you can do this. If you really want to invest in the Stock Market you should consider buying shares in a Fund. This is where a Fund Manager invests in shares of their choice, using the contributions you make. You should bear in mind that the value of these funds can go down as well as up.
If you want to do this for your grandchildren the best way is certainly a Junior ISA:
https:/
(Other providers are aviailable)
"Buying individual shares in the way you suggest (i.e. by a small monthly contribution) is not really a viable proposition"
That depends on many factors but being as this is going to be a long term plan it very easily could be a viable proposition.
As mentioned a fund is another viable way to invest in the stock market and there are a few good ones out there but as with all investments due diligence is key.
That depends on many factors but being as this is going to be a long term plan it very easily could be a viable proposition.
As mentioned a fund is another viable way to invest in the stock market and there are a few good ones out there but as with all investments due diligence is key.
"Buying individual shares in the way you suggest (i.e. by a small monthly contribution) is not really a viable proposition and I doubt you will find anywhere that you can do this."
Check this out New Judge-
https:/
HL are saying invest automatically with a monthly Direct Debit from £25 per investment, It's free - no charge to buy shares compared to £11.95 (Plus Stamp duty and spread) online. Restricted to FTSE-350 shares, but that's fine.
Check this out New Judge-
https:/
HL are saying invest automatically with a monthly Direct Debit from £25 per investment, It's free - no charge to buy shares compared to £11.95 (Plus Stamp duty and spread) online. Restricted to FTSE-350 shares, but that's fine.
//Check this out New Judge-//
Thanks for that, Cooly.
I must say I am a little surprised. However, I still don't think it is a very good way to invest the relatively small sums that Ric has in mind. He would be restricted to a small portfolio of shares and the exposure risk would be quite high. But it's certainly something to consider.
Thanks for that, Cooly.
I must say I am a little surprised. However, I still don't think it is a very good way to invest the relatively small sums that Ric has in mind. He would be restricted to a small portfolio of shares and the exposure risk would be quite high. But it's certainly something to consider.
Hi NJ
It is surprising as to me that is a very good deal!
I don't know what sum of money the author of this post wants to invest monthly and how old their grandchildren are, so it's difficult to assist Ric.ror at the moment, but we will get there :)
If the author wishes to disclose these matters then I am sure we can help with suggestions with the positives and negatives.
It is surprising as to me that is a very good deal!
I don't know what sum of money the author of this post wants to invest monthly and how old their grandchildren are, so it's difficult to assist Ric.ror at the moment, but we will get there :)
If the author wishes to disclose these matters then I am sure we can help with suggestions with the positives and negatives.
In my opinion, the UK stock markets are the best and safest in the world to invest in particularly now we are out of the financially unstable and deranged EU.
The FTSE-350, comprises of the top 350 companies floating on the UK's stock exchanges and HL appear to recognise the risk to investors of companies outside of these parameters, say, the very higher risk AIM shares (and the associated liquidity issues).
Personally, if I didn't understand the stock market I would say stick with the FTSE-250 to FTSE-350 shares to reduce risk. These are the top companies on the UK financial markets, therefore, the FTSE-350 gives you access to invest in the UK's top 350 companies.
Basic understanding of compounding interest is important to long term investing.
Albert Einstein quoted the following “Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't… pays it.
The more safer places to invest are compounding interest in a bank or better, good interest paying building societies, chances in premium bonds and decent Investment Trust funds. You can earn lot's more individually investing in shares but you have to know what you are doing and understand the significant associated risk involved.
The FTSE-350, comprises of the top 350 companies floating on the UK's stock exchanges and HL appear to recognise the risk to investors of companies outside of these parameters, say, the very higher risk AIM shares (and the associated liquidity issues).
Personally, if I didn't understand the stock market I would say stick with the FTSE-250 to FTSE-350 shares to reduce risk. These are the top companies on the UK financial markets, therefore, the FTSE-350 gives you access to invest in the UK's top 350 companies.
Basic understanding of compounding interest is important to long term investing.
Albert Einstein quoted the following “Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't… pays it.
The more safer places to invest are compounding interest in a bank or better, good interest paying building societies, chances in premium bonds and decent Investment Trust funds. You can earn lot's more individually investing in shares but you have to know what you are doing and understand the significant associated risk involved.
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