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southmartin

Online Share Dealing Account

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Hi all

I'm thinking of diversifying some savings into shares, and want to make sure I can make instant trades without the need for a broker.

I see people like Motley Fool do things that might be suitable, but as i'm a newbie to shares, I thought I'd ask advice to see if there's any particular system that people trust and recommend

Thanks in advance

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Hargreaves Lansdown (www.h-l.co.uk) are good for newbies, but their dealing charges for shares are quite high. They are fantastic for unit trusts though as they have 0% commission on most things. I have an ISA and SIPP with them.

www.iii.co.uk have a £10 flat rate for most shares which is better if you want to trade rather than invest. iii also have a nice free online portfolio system which you can use to test your share dealing on paper before you lose real money.

You also need to invent a stock picking system you are comfortable with. I stick to FTSE100/250 companies and have a nice technical analysis trading system using Bollinger bands.

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Whatever you do, don't use Barclays. I made 4 complaints in 4 weeks about their execution and general handling of deals and then when I closed the account it took me a month to get my money back.

I use TD Waterhouse who are ok, although their platform is a bit backwards. iDealing are also good from my experience.

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Hi all

I'm thinking of diversifying some savings into shares, and want to make sure I can make instant trades without the need for a broker.

I see people like Motley Fool do things that might be suitable, but as i'm a newbie to shares, I thought I'd ask advice to see if there's any particular system that people trust and recommend

Thanks in advance

Halifax is worth looking at

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but as i'm a newbie to shares, I thought I'd ask advice to see if there's any particular system that people trust and recommend

As your a newbie i would suggest you play with funds rather than try to be clever picking your own stocks , as another poster said Hargreaves Lansdowne are excellent for buying and selling funds , over 1700 to choose from in every secter and a very informative web site ...... spread the risk by looking at funds from several secters ;)

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As your a newbie i would suggest you play with funds rather than try to be clever picking your own stocks , as another poster said Hargreaves Lansdowne are excellent for buying and selling funds , over 1700 to choose from in every secter and a very informative web site ...... spread the risk by looking at funds from several secters ;)

Ignore the terrible advice above. (whilst laughing at the loaded statement in bold!).

You can choose good companies based on what you see with your own eyes. You can check out their stores, you can examine their annual reports, and find all manner of data to help inform your decision.

With funds all you have is past performance, and the the fund manager\s glossy brochures/websites and promotional copy full of loaded statements like the one above. lol

p.s. www.selftrade.co.uk isn't bad. I use them for my shares ISA.

Edited by fildi101

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I have to say the buying funds advice is good advice, newbies buying shares doesn't usually end well :o .

There are some great equity income funds around at the moment, I've got several yielding 6-15%. I also trade in and out of them if I think things are a bit overbought/oversold.

Once you get the hang of unit trusts then buying individual shares can be profitable, but you need a decent trading strategy first.

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Ignore the terrible advice above. (whilst laughing at the loaded statement in bold!).

You can choose good companies based on what you see with your own eyes. You can check out their stores, you can examine their annual reports, and find all manner of data to help inform your decision.

With funds all you have is past performance, and the the fund manager\s glossy brochures/websites and promotional copy full of loaded statements like the one above. lol

p.s. www.selftrade.co.uk isn't bad. I use them for my shares ISA.

If you have a small amount of money to invest, a fund is better because it diversifies your risk. You are less likely to make extremely large profits, but also less likely to lose it all. Your charges are also likely to be smaller than buying individual shares, unless you are putting in 4-5 figure sums per share.

Generally speaking, picking companies based on their financial data etc is no better than picking them at random. At best you can pick the companies you want to avoid and buy everyone else, but you need a lot of money to make this work.

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If you have a small amount of money to invest, a fund is better because it diversifies your risk. You are less likely to make extremely large profits, but also less likely to lose it all. Your charges are also likely to be smaller than buying individual shares, unless you are putting in 4-5 figure sums per share.

Generally speaking, picking companies based on their financial data etc is no better than picking them at random. At best you can pick the companies you want to avoid and buy everyone else, but you need a lot of money to make this work.

I agree with this advice in general. A fund is a good way of spreading risk, but will not do as well as you might think. I can't remember the exact reason why but I have read that funds that track indices don't deliver quite as much increase as the index itself if it goes up.

As has already been pointed out you need 4 figures minimum to make it worthwhile investing in individual shares becasue of stamp duty and fees.

What do people feel about putting low 4-figures in a basket of high yield shares near their 52 week lows: value investment companies with very good shareprice/book value, low debt, high capital? I am thinking of doing this over the next few months. Say about 1500 per share 20k. I already have low risk investments outside the stock market. 20k would only be small portion of my net worth so I don't mind the risk.

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I do a lot of trading and usually put £1500 in per share. I have a trading system to pick out oversold stocks.

For investing I tend to stick to unit trusts. I like the Jupiter Monthly Income (full of investment trusts, ~8% yield), Artemis Income, Schroder Income Maximiser (~12% yield - it's run more like a hedge fund than a traditional unit trust), Newton Asian Income and Premier Optimum Income (ridiculously high yield - I hope they can keep it up!).

I use Bollinger bands to find good entry points on unit trusts, and accumulate units when the price hits the lower band and start offloading units on the higher band. It works quite well but you need to watch the bid/offer spread on some and there's always a 2-3 day delay when trading unit trusts.

I'm nervous about investing too much at the moment though, as if the deflation argument wins against inflation then the market could drop substantially :o .

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I agree with this advice in general. A fund is a good way of spreading risk, but will not do as well as you might think. I can't remember the exact reason why but I have read that funds that track indices don't deliver quite as much increase as the index itself if it goes up.

As has already been pointed out you need 4 figures minimum to make it worthwhile investing in individual shares becasue of stamp duty and fees.

What do people feel about putting low 4-figures in a basket of high yield shares near their 52 week lows: value investment companies with very good shareprice/book value, low debt, high capital? I am thinking of doing this over the next few months. Say about 1500 per share 20k. I already have low risk investments outside the stock market. 20k would only be small portion of my net worth so I don't mind the risk.

Funds under perform the index because of management charges. If you buy individual shares, you usually don't have management charges, but you do have stockbroker fees and stamp duty.

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which stockbroker would you recommend if i wanted to invest in RBS or Lloyds

One which gives you a set of brown trousers and a stress relief toy. The banks could be recovering. However, the shares look extremely overbought, and if the crisis is not over the potential downside is 60%+ :o . If you think CRE, credit card loans and Asia will implode then it's game over for the banking sector.

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One which gives you a set of brown trousers and a stress relief toy. The banks could be recovering. However, the shares look extremely overbought, and if the crisis is not over the potential downside is 60%+ :o . If you think CRE, credit card loans and Asia will implode then it's game over for the banking sector.

ye but im gonna buy when they fall further, i just wanted to know which online stockbroker i should use

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