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stocks and shares ISA or share dealing account?

Banned 24 replies
Found 9th Jan
I want to know which account is better than the other.
which does well?
IV always wanted one of these accounts but never got the grip with them Incase I loose out, just the worry. currently I have current accounts .
have few spare cash , say 3-4k in banks but I'd like to do something else with them.

24 Comments

They're both a gamble of sorts, they can both increase and decrease in value. Personally I went with a fund linked stocks and shares ISA, as I don't have to manage it and it's and also easy to switch to tax free cash. If you're unsure I'd suggest you seek the advice of a financial advisor.

Have a look at Nutmeg investment works for me.

I've been using Hargreaves Lansdowne for share/fund dealing for a few years and they are very good but you need to take advice on what to buy if unsure

If you're going to get an ISA I'd say opt for a stocks and shares one. The normal ISA savings ones give you very little rates. I had stocks/shares one which just finished in Dec16. It was a 6 year fund and received 27% increase of what I initially invested in. This was through Nationwide, but the actual fund was through L&G.

Wait for mutley to come along, he/she will know the answer!

You can combine both - I have a self select Stocks & Share ISA (I use IWebSharedealing, others available) which has all the tax benefits of an ISA along with the ability to pick & choose.
But - unless you have a good, reliable source of research it is very much a gamble. Even if you make a good share selection you need to know when to take your profits. Several times I've had a nice paper profit wiped out because I held on too long and the company suddenly issued a warning.
You should only really invest in shares what you can afford to lose and it should normally be a long term investment (several years). I know some people do day trading on penny stocks but the risks there are even higher.
It's not an easy quandary wanting make money in a low interest economy.
HTH.

Go for a stocks and shares ISA from a fund supermarket (Fidelity or Hargreaves Landsdown are 2 of the biggest ) . If you are a novice to the Stock market picking individual shares is difficult and the dealing costs £10 -£15 per deal plus about 5% stamp duty make it uneconomical to buy individual shares unless you have a "Sure thing "! or are buying at least £1K worth of the share .

Decide your fund - say UK or USA then buy that fund or a mix of funds from the supermarket ,ensure they are under your ISA wrapper (you will need to open an account ) . Good Luck !
Edited by: "rogparki" 10th Jan

Original Poster Banned

I will be popping in Halifax bank next week.

2 totally different things. Honestly i say you should first do your research and remember that you should only invest what you are willing to lose.
Secondly share/stock dealing is safer, but usually a long term thing. Whereas sharedealing is very intense and more of a quick thing. You can easley make and lose £££ in minutes.

Also if you do go in to stock, I reconmend you stay away from the penny stocks. So many off them will mess you up.

A good stock forum: lse.co.uk

Hey sofiasar. At this level of funds, i wouldnt bother with splitting it into more than one fund. Just stick it all into one fund i would say.

Before investing answer the following questions

1. Are you prepared to leave the money locked in for two to five years if things get rough?
2. There are safe funds which i can point you to. I am not a registered independent financial adviser so i am not authorised to give you advice but i can give you guidance if you will find this helpful.
3. Definately dont go to the halifax, their fees are very high. I made this mistake when i started. Hargreaves lansdowne is the provider i would go for as their fees are low and they are trustworthy with your money.
4. The fund i am thinking of as being the one i would invest in if i were you will return about 3.5% to 4% dividend per annum irrespective of the capital value fluctuation.

You can choose to have the dividends paid out to your bank account or you can have it added to the fund. Do you have any preference of whether you want the income paid to your bank account? Dividends are ordinarily paid every 6 months.

Original Poster Banned

mutley1

Hey sofiasar. At this level of funds, i wouldnt bother with splitting it … Hey sofiasar. At this level of funds, i wouldnt bother with splitting it into more than one fund. Just stick it all into one fund i would say.Before investing answer the following questions1. Are you prepared to leave the money locked in for two to five years if things get rough?2. There are safe funds which i can point you to. I am not a registered independent financial adviser so i am not authorised to give you advice but i can give you guidance if you will find this helpful.3. Definately dont go to the halifax, their fees are very high. I made this mistake when i started. Hargreaves lansdowne is the provider i would go for as their fees are low and they are trustworthy with your money.4. The fund i am thinking of as being the one i would invest in if i were you will return about 3.5% to 4% dividend per annum irrespective of the capital value fluctuation.You can choose to have the dividends paid out to your bank account or you can have it added to the fund. Do you have any preference of whether you want the income paid to your bank account? Dividends are ordinarily paid every 6 months.



​is or best to stick it in my kids account then?
4℅ on Young's saver @ Halifax for a year currently and normally stays that much each year.
i don't need the money as yet, it's more for my future and kids but they are still young, 10 & 9
they have 4k each so would it matter if I added my money in.
obviously they will give me my share back but their money is for uni time and buying a house etc.

which other safe funds did you mean

Hargreaves Landsdown combine both - I have an ISA and I can purchase shares through it.

You can check out the fund comparisons and pick the one that seems to have the best results - or multiple funds if you like, you can also buy individual stocks.

Original Poster Banned

Bigfootpete

Hargreaves Landsdown combine both - I have an ISA and I can purchase … Hargreaves Landsdown combine both - I have an ISA and I can purchase shares through it.You can check out the fund comparisons and pick the one that seems to have the best results - or multiple funds if you like, you can also buy individual stocks.



​thank you guys

il definitely research on Hargreaves

sofiasar

​is or best to stick it in my kids account then?4℅ on Young's saver @ Hal … ​is or best to stick it in my kids account then?4℅ on Young's saver @ Halifax for a year currently and normally stays that much each year. i don't need the money as yet, it's more for my future and kids but they are still young, 10 & 9 they have 4k each so would it matter if I added my money in. obviously they will give me my share back but their money is for uni time and buying a house etc. which other safe funds did you mean



Lol X)

It all depends on your view on risk and reward. Whether you are happy with 4% return where you know it is certain and you have no risk of loss. If so, then sticking it in the kids account is not a bad idea.

However, if you are willing to take a bit of risk for the prospect of a higher reward then i am happy to answer any questions.

Good that you are planning for your kids's future. We have friends who spend all the money on themselves and laughed when we asked if they put anything away for their kids' future because they have none since they have spent it all.

Original Poster Banned

mutley1

Lol X)It all depends on your view on risk and reward. Whether you are … Lol X)It all depends on your view on risk and reward. Whether you are happy with 4% return where you know it is certain and you have no risk of loss. If so, then sticking it in the kids account is not a bad idea.However, if you are willing to take a bit of risk for the prospect of a higher reward then i am happy to answer any questions.Good that you are planning for your kids's future. We have friends who spend all the money on themselves and laughed when we asked if they put anything away for their kids' future because they have none since they have spent it all.



​thats the problem with parents not saving up. I mean adults are suffering on a tight budget now and it makes me think how it will be for them. I started when they were 4 and they have become serious savers now lol
my parents didn't save a penny for tho lol

what other way is there like you said above?


sofiasar

​thats the problem with parents not saving up. I mean adults are s … ​thats the problem with parents not saving up. I mean adults are suffering on a tight budget now and it makes me think how it will be for them. I started when they were 4 and they have become serious savers now lolmy parents didn't save a penny for tho lolwhat other way is there like you said above?



The couple i was referring to, travel first class on holiday. Pays over a £100 for a shot of wisky, goes to expensive restaurants, has all your latest tech stuff, drives a fancy car, have designer handbags, hires a boat for their birthday party. Then they say they have no money left for the kids. They said that the kids will need to fend for themselves when they grow up. I feel sorry for those kids as they wont get any help in life.

The stocks i was referring to are called tracker funds. I trade at the next level, etf - exchange traded funds, which wont be appropriate to you as that is active trading where you need to make a judgement on the price to buy and sell. Tracker funds are passive trading where you can put money in and just wait for them to grow. As long as you dont need to get your money out urgently, you are expected to outperform the 4% that you would get from the children isa that you mention.

They come as income funds or accumulation funds. You will probably want accumulation funds as that reinvests the dividends back into the value of the fund. Now is not the time to invest however as the stock market is at an all time high. You heed to wait for it to drop then invest. It will drop alright as the stock market get jitters all the time. It is just a matter of playing the waiting game.

However, you will need to realise that although the risk is low, there is still a 10% risk that you may lose half of your money. There is a 70% chance that you will outperform the 4% return. Over a five year period, i would expect a return of between 6%pa to 10%pa. But it may be more. It could also be less but if you can hang in there when it gets rough, this is less likely.

Please note that i can not give you financial advice as i am not authorised to do so i am merely stating my opinion as a fellow hukd member. It is up to you how you view this opinion.

If you are still interested in investing, taking on what the probabilities are. Then i can look at some funds that may be of interest for you to look into.

FYI, HL now do their own funds too. I stuck £5k in their new HL Select UK Shares (as an ISA) in Dec and with the FTSE on a roll, its 7.66% up in a month

Original Poster Banned

mutley1

The couple i was referring to, travel first class on holiday. Pays over … The couple i was referring to, travel first class on holiday. Pays over a £100 for a shot of wisky, goes to expensive restaurants, has all your latest tech stuff, drives a fancy car, have designer handbags, hires a boat for their birthday party. Then they say they have no money left for the kids. They said that the kids will need to fend for themselves when they grow up. I feel sorry for those kids as they wont get any help in life.The stocks i was referring to are called tracker funds. I trade at the next level, etf - exchange traded funds, which wont be appropriate to you as that is active trading where you need to make a judgement on the price to buy and sell. Tracker funds are passive trading where you can put money in and just wait for them to grow. As long as you dont need to get your money out urgently, you are expected to outperform the 4% that you would get from the children isa that you mention.They come as income funds or accumulation funds. You will probably want accumulation funds as that reinvests the dividends back into the value of the fund. Now is not the time to invest however as the stock market is at an all time high. You heed to wait for it to drop then invest. It will drop alright as the stock market get jitters all the time. It is just a matter of playing the waiting game.However, you will need to realise that although the risk is low, there is still a 10% risk that you may lose half of your money. There is a 70% chance that you will outperform the 4% return. Over a five year period, i would expect a return of between 6%pa to 10%pa. But it may be more. It could also be less but if you can hang in there when it gets rough, this is less likely.Please note that i can not give you financial advice as i am not authorised to do so i am merely stating my opinion as a fellow hukd member. It is up to you how you view this opinion.If you are still interested in investing, taking on what the probabilities are. Then i can look at some funds that may be of interest for you to look into.



​thank you for your advice.
il think about it.

gosh aren't the parents akward, spending too much money on hand bags etc
I have a brother like that but he says he'll give the money in a lump sum at a particular age rather than starting now.

sofiasar

​thank you for your advice. il think about it. gosh aren't the parents a … ​thank you for your advice. il think about it. gosh aren't the parents akward, spending too much money on hand bags etc I have a brother like that but he says he'll give the money in a lump sum at a particular age rather than starting now.



Please dont say advice as i will get in trouble. Opinion is fine.

Happy to give my opinion

Original Poster Banned

mutley1

Please dont say advice as i will get in trouble. Opinion is fine.Happy … Please dont say advice as i will get in trouble. Opinion is fine.Happy to give my opinion



​lol
you won't .
alot of us trust you

sofiasar

​lolyou won't . alot of us trust you



alot of us = safiasar . Lol X)

There are mechanism in place to protect the public from being misled by someone giving them financial advice when that person is not regulated or authorised to do so. Either deliberately misleading the public or giving bad advice because they are not trained properly.

Therefore unless you are regulated and authorised to give financial advice, you can not do so. As i am not regulated and authorised, i can not give you or anyone else financial advice even if i wanted to.

So all i can do is voice my personal opinion without accreditation and what i say should be treated as such, just an opinion and nothing more.

Original Poster Banned

mutley1

alot of us = safiasar . Lol X)There are mechanism in place to protect the … alot of us = safiasar . Lol X)There are mechanism in place to protect the public from being misled by someone giving them financial advice when that person is not regulated or authorised to do so. Either deliberately misleading the public or giving bad advice because they are not trained properly.Therefore unless you are regulated and authorised to give financial advice, you can not do so. As i am not regulated and authorised, i can not give you or anyone else financial advice even if i wanted to.So all i can do is voice my personal opinion without accreditation and what i say should be treated as such, just an opinion and nothing more.



​i understand mutley
thanks for replying

Please be very careful taking any sort of advice/opinions from folks on here. I shuddered when i read the suggestion to wait until the stock market falls again - who's to say it won't fall even more! ANYTHING involving the stock market involves an element of risk and you need to get professional guidance from an authorised financial advisor.

Original Poster Banned

HantsShopper

Please be very careful taking any sort of advice/opinions from folks on … Please be very careful taking any sort of advice/opinions from folks on here. I shuddered when i read the suggestion to wait until the stock market falls again - who's to say it won't fall even more! ANYTHING involving the stock market involves an element of risk and you need to get professional guidance from an authorised financial advisor.


Iv left it for now
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