Im looking into buying shares (small stakes for now)

15 replies
Found 18th Jan 2010
I have just opened an account with iii.co.uk, and was wondering if this is the best way to go?
Does anyone have any experience of doing this, im only looking to invest 50 quid or so to start till i find my feet. I dont quite understand the charges for it all etc.
Please, only serious answers, not the usual 'i invest £500,000 all the time' posts!!

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The worst part of only investing £50 here and there are the charges associated with buying/selling shares which usually negates any profit on these. I suggest you wait until you have £200-£300 saved before starting any portfolio

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Subbed intrested also


My mum has done this thing before poss with a different
group.

Original Poster

Am i right in thinking this site (iii.co.uk) charges £1.50 per investment, then £10 to withdraw any profits?
Can anyone see any extras or something i've missed?

Just a little bit of info.

This web site lets you put in the code of a particular share and see it's price changes

lse.co.uk/Sha…OUP

Yes, you can do the same on CEEFAX or Channel 4 text, but that can take ages, if there are 20 pages to look through.

Maybe, buy some 'imaginary shares' as a trial, then in a few days time see the price change and count your winnings or losses

IT'S NOT EASY TO GET IT RIGHT !!!

I thought it was £10 per trade (buy or sell).

No disrespect intended to OP but it sounds as though you have no experience and therefore little knowledge about the markets. You will lose money.

It would be better if you put your money into a scheme which invests in the stock market, meaning that your money is pooled with other investors so that individually you aren't paying dealing charges. A percentage of what you invest each month is charged in costs. These are called funds. If you put your money into a managed fund (i.e. a real person is in charge and needs to be paid) the charges are higher than one which just follows the market and can be run by computers (a tracker fund, for example). Investing a sum monthly would spread your risk - you wouldn't be buying all in one go when everything was priced high (but there again, you wouldn't be buying everything low).

You can't choose the actual shares you invest in, but can choose the type of shares - ethical, Asian, FTSE top 100 etc.

£50 a month should get you into a decent enough fund.

TIP: On iii set yourself up a dummy portfolio and see how you do over 3 months.

You will need to research.

Hello,

Buying small amounts would be very expensive. There is the cost of buying, selling, stamp duty and the difference between buying and selling (bid/offer price buy for 100p and sell for 99p)

Amount to be invested: £50
Buying cost: £10
Selling cost: £10
Stamp duty: £0.25
Total cost: £20.25
Bid/offer difference: 1% (could be more or less - different for each stock)
Total cost %: 41.5%

Therefore share price could have to go up by at least 41.5% before you would see any profit... highly unlikely. Invest what you can afford to lose!

You would be better off paying any debts you have first. In the meantime as virus suggested create a dummy portfolio and see if you can make a profit. Take in account all the costs to give your accurate figures.

Take a further look at some of these:
ft.com
fool.co.uk
10sharetips.com
advfn.com

Again invest only what you can afford to lose!

Unfortunately the charges and 'spread' meaning the difference between the bid and offer price would make it almost impossible to trade with sums this small (small for trading not meaning small amount in general)

The only way this would be worthwhile would be high risk AIM shares and leave them for a LONG time. But to be honest if you havn't studied the markets/technicals/how to read financial pages/reports etc you might as well stick it on a horse..

IMHO of course

Just found out the other day I got nearly 1000 in the BT group, plus dividends. Halifax have baffled my head with all the options available to me.

Original Poster

Well, thanks for the opinions guys.
Taking on board what you all seem to be saying, i'll wait a few weeks and try a 'dry-run' then look at investing a few hundred maybe.

This was mainly planned for fun, but any profit is always a bonus.
I was thinking of RBS shares, because at 37p they can ONLY really go up, may take a year or 2 but i can see nice few quid to be made here. (Obviously just my opinion this but they're not paying the new exec guy £9 million to see the share price dive are they?)

...and yes its obvious i dont know much about these things, thats why im asking for advice!! Cheers

££ JASE ££;7579192

Well, thanks for the opinions guys.Taking on board what you all seem to … Well, thanks for the opinions guys.Taking on board what you all seem to be saying, i'll wait a few weeks and try a 'dry-run' then look at investing a few hundred maybe.This was mainly planned for fun, but any profit is always a bonus.I was thinking of RBS shares, because at 37p they can ONLY really go up, may take a year or 2 but i can see nice few quid to be made here. (Obviously just my opinion this but they're not paying the new exec guy £9 million to see the share price dive are they?)...and yes its obvious i dont know much about these things, thats why im asking for advice!! Cheers



I bought RBS at around 12p, they went up to 22p and I sold :oops:

Original Poster

bazzaric;7579213

I bought RBS at around 12p, they went up to 22p and I sold :oops:



Nearly 100% profit. Nice one :thumbsup:

££ JASE ££;7579232

Nearly 100% profit. Nice one :thumbsup:



about £200 :-D

A friend bought £5k of BARC.L at 60p...I was not impressed when the shot up lol

I've subscribed to this thread as I have been interested in popping a bit of money in myself as I watch shares all the time!
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