Whether you are an investor with experience or into shares for the first time, you’ll want to keep trading charges and administration costs to a minimum. In recent years, investing in stocks and shares has become increasingly popular, as low interest rate on most savings accounts has meant a disparity between income from savings accounts and an ever-increasing cost of living which has seen a rise in the number of UK stock brokers.
Stocks and shares, or equities as they are otherwise known, offer potentially high returns, but investing in individual shares is not for the faint-hearted as stock markets can dive, remain down and be volatile.
Buying shares from UK stock brokers basically means buying part of a certain company or organisation. If that company performs well, then your shares will gain in value, but in case of poor performance, your shares could become worthless. The risk factor of shares varies with the number of companies you invest your capital. Risks are bigger if you invest in lesser number of companies.
Those who are prepared to accept the risks involved in the trade, will need to sell and buy their shares through UK stock brokers or share-dealing service. Costs can vary widely, so it’s important that you collect all the required information before investing and don’t end up paying more than you need to.
You may also be charged an ‘inactivity fee’, so that it might cost you more if you only trade very infrequently. Some share-dealing services don’t impose an inactivity fee but might have higher trading charges.
If you want to hold your shares in an individual savings account (ISA), where returns are free of income tax and capital gains tax, or a self-invested personal pension (SIPP) then you will need to check whether there is any charge for this. Charges may vary depending on whether or not you plan to hold your investments in one of them.
Many share-dealing services also offer useful research, information and broker share tips to investors. However, often you pay more for services which offer a level of advice. They may also guide as to the risk level of individual investments to enable investors make informed decisions to fulfil their purpose of investment. This makes it worth visiting different share dealing websites to see what they offer.
You should compare the different available options if you’re looking for a trading account for shares to find the best solution for you. It is vital to think carefully about your requirements and measure the costs involved to ensure the best share-dealing account for your individual needs.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.