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I would like to buy some shares, i have about 5 in mind initially, and would like to put around £2000 into each. I am a total novice and have never bought any shares before
Am i right in thinking that it's worth putting say 3 into a self select shares isa (i am happy to hold onto a couple for a few years) - i am still eligible as i have not taken my cash isa yet.
Now where is a reasonable place to put it? I have an savings account with halifax, but i have read
Competitive admin fee paid half- yearly (0.05% per month - min £2.16,max £8.33 per month)
Why should i pay £35 a year to select my own shares and put them into an isa - it would be cheaper to buy the shares myself and just hold them outside of the isa?
If an isa would be the best solution, i would then buy the rest with an execution only broker and sell when i want to (probably in a year -18 months), probably with ii - now i have a second question here. The £1.50 deal for the next day, does one get a poor price compared to the £10 real time execution? I don't really understand how these work.
Also, can i put american shares into the isa too? I have my eyes on a stock that is listed on the NYSE
Thanks
Am i right in thinking that it's worth putting say 3 into a self select shares isa (i am happy to hold onto a couple for a few years) - i am still eligible as i have not taken my cash isa yet.
Now where is a reasonable place to put it? I have an savings account with halifax, but i have read
Competitive admin fee paid half- yearly (0.05% per month - min £2.16,max £8.33 per month)
Why should i pay £35 a year to select my own shares and put them into an isa - it would be cheaper to buy the shares myself and just hold them outside of the isa?
If an isa would be the best solution, i would then buy the rest with an execution only broker and sell when i want to (probably in a year -18 months), probably with ii - now i have a second question here. The £1.50 deal for the next day, does one get a poor price compared to the £10 real time execution? I don't really understand how these work.
Also, can i put american shares into the isa too? I have my eyes on a stock that is listed on the NYSE
Thanks
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Why should i pay £35 a year to select my own shares and put them into an isa - it would be cheaper to buy the shares myself and just hold them outside of the isa?
If you have an online account you will likely pay an annual charge of around that figure or more, whether it be in an ISA or a standard account. The 'cheapest' online brokers have the shares held in nominee accounts, if you want the certificate you will have to pay an additional fee. If you buy shares through a bank you will not pay an annual charge, but your buying and selling costs will be over double. You can use a high street broker, if you can find one, who will impose eye watering charges.
Also, can i put american shares into the isa too? I have my eyes on a stock that is listed on the NYSE
No
Competitive admin fee paid half- yearly (0.05% per month - min £2.16,max £8.33 per month)
You might consider a company like iDealing (no connection, but I have an account with them). They charge £5 a quarter to manage your account, dealing fees are £9.90 per bargain. They operate a self select ISA, but I'm unsure whether you can open an ISA account without holding a standard account as well.
Am i right in thinking that it's worth putting say 3 into a self select shares isa (i am happy to hold onto a couple for a few years) - i am still eligible as i have not taken my cash isa yet.
With the prospect of a hike in CGT it may very well make sense to shelter your investments in an ISA wrapper. Your ISA allowance for a self select ISA is £10,200 for 2010/11 tax year.
If you have an online account you will likely pay an annual charge of around that figure or more, whether it be in an ISA or a standard account. The 'cheapest' online brokers have the shares held in nominee accounts, if you want the certificate you will have to pay an additional fee. If you buy shares through a bank you will not pay an annual charge, but your buying and selling costs will be over double. You can use a high street broker, if you can find one, who will impose eye watering charges.
Also, can i put american shares into the isa too? I have my eyes on a stock that is listed on the NYSE
No
Competitive admin fee paid half- yearly (0.05% per month - min £2.16,max £8.33 per month)
You might consider a company like iDealing (no connection, but I have an account with them). They charge £5 a quarter to manage your account, dealing fees are £9.90 per bargain. They operate a self select ISA, but I'm unsure whether you can open an ISA account without holding a standard account as well.
Am i right in thinking that it's worth putting say 3 into a self select shares isa (i am happy to hold onto a couple for a few years) - i am still eligible as i have not taken my cash isa yet.
With the prospect of a hike in CGT it may very well make sense to shelter your investments in an ISA wrapper. Your ISA allowance for a self select ISA is £10,200 for 2010/11 tax year.
Open an Share ISA account with TDWaterhouse and you don't pay an annual fee.
Thanks for the replies - in the nominee accounts, do i get the dividends paid to me still?
I have been recommended iii who also have no annual fee or inactivity fee - any reason i should avoid them?
I have been recommended iii who also have no annual fee or inactivity fee - any reason i should avoid them?
in the nominee accounts, do i get the dividends paid to me still?
Dividends will be paid into your account. You can then re-direct them into your nominated bank. I haven't looked by there should not be a fee for doing this, though there will probably be a minimum transfer amount. Normally one would expect to accumulate the dividends and re-invest, getting the benefit of compound interest.
I have been recommended iii who also have no annual fee or inactivity fee - any reason i should avoid them?
None at all, but under their terms and conditions you will receive no interest on your cash balances held in your trading account - thats how they make their money. Other companies will pay interest on any cash balances, which will often counterbalance annual charges.
Dividends will be paid into your account. You can then re-direct them into your nominated bank. I haven't looked by there should not be a fee for doing this, though there will probably be a minimum transfer amount. Normally one would expect to accumulate the dividends and re-invest, getting the benefit of compound interest.
I have been recommended iii who also have no annual fee or inactivity fee - any reason i should avoid them?
None at all, but under their terms and conditions you will receive no interest on your cash balances held in your trading account - thats how they make their money. Other companies will pay interest on any cash balances, which will often counterbalance annual charges.
I closed my share dealing TD Waterhouse account some years ago due to them trying to add inactivity charges, so check on the above suggestion.
I'd look at Alliance trust as a choice of ISA holder as they allow you to hold ETFs in an ISA. ETFs carry the lowest costs. I use Alliance trust and Funds Direct. You should look at managed funds as well. In fact I'd advise funds over shares given your inexperience in shares.
Stick some Asian funds in for the long term.
Good luck!
http://www.dbxtrackers.co.uk/EN/showpage.asp?pageid=132&forwardid=203
http://www.fundsdirect.co.uk/Default.asp?
http://www.alliancetrust.co.uk/
http://www.smashiton.com/Main/Shares.htm
I'd look at Alliance trust as a choice of ISA holder as they allow you to hold ETFs in an ISA. ETFs carry the lowest costs. I use Alliance trust and Funds Direct. You should look at managed funds as well. In fact I'd advise funds over shares given your inexperience in shares.
Stick some Asian funds in for the long term.
Good luck!
http://www.dbxtrackers.co.uk/EN/showpage.asp?pageid=132&forwardid=203
http://www.fundsdirect.co.uk/Default.asp?
http://www.alliancetrust.co.uk/
http://www.smashiton.com/Main/Shares.htm
No admin charge or inactivity fees at the Alliance trust
http://www.alliancetrust.co.uk/alliancetrustsavings/isa.htm
http://www.alliancetrust.co.uk/alliancetrustsavings/isa.htm
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