Buying and selling shares is something that many people want to do as a way of building up a retitrement income and diversifying asway from property or too much cash (losing value) in a low interest account. However you want to trade shares, you’ll need to find a share dealing service, preferably a low cost one to suit your needs.
If you want to have a decent retirement, you will almost certainly have to invest some of your money in the stock market. Dealing in shares (also known as stocks, or equities) is actually very easy.
There are now a great many low cost share-dealing services available online and the best way to find one is by using a price comparison website. Most online sharedealing accounts will offer a Broker nominee account: This is a common type of service. You do not receive a share certificate – instead the shares are held electronically by your broker on your behalf in a “nominee”. This makes trading more convenient, and cheaper than holding paper shares, but it does mean that the broker’s name appears on the company’s share register, rather than your own. While this means that your details are not in the public domain, it also means that you do not automatically receive a copy of the annual reports, or have the right to attend and vote at the AGM, though these can be arranged in most cases.
Select the stock name you want and you are given an indicative price quote, normally in pence per share. Then you choose the amount you want to spend, and deal. You'll get a real-time quote and have around 15 seconds to execute the deal. The money is cleared from your online account. Obviously you can only deal with the amount of money you have deposited with the share dealer.
There are a lot of share dealing services in the UK to choose from. So check out the terms and conditions and what additional services they offer. Most online dealers will tell you how easy it is to get started. Once you have made an initial deposit into the account so that there is enough cash available to settle your trades, you are ready to go. Your online share dealing account can be topped up at any time with fresh funds by cheque or BACs payments. Once the money is in the account, you can trade straightaway.
You can compare share dealing services with online comparison sites such as GoCompare, MoneySupermarket and Comparethemarket.
Once you've set up a share dealing account, you're ready to start investing. Shares can be bought and sold by telephone, online or by post. These days the majority of trading is done on the internet because of the speed and convenience. It is also the cheapest way of trading shares and investors will usually have access charts, information and educational tools to help with their investment decisions.
Copyright © 2021 NiceChoice.co.uk