Share dealing accounts
Share Dealing can be a little daunting, especially if you are new to the world of shares. Prudent Minds have put together a brief guide to try and assist you with what types of share dealing accounts may be available and of interest to you.
Basic Share Dealing Accounts
Usually have a set trading fee so it is easier to calculate the costs of dealing your shares and more often than not you aren't charged management fees or fees when you have not used your account. The charges often do vary so check out providers before signing up, don't just assume that they will all be the same. You would normally be offered the use of an on-line account, providing you with the option of dealing over the phone or online. Dealings are available in the UK and overseas though beware that you would normally be restricted as to the countries where you can deal.
Regular Share Purchase Schemes
You can decide to purchase investment shares on a set day each month from a previously stated investment choice. This option is great if you don't have the money to make a huge stock purchase all at once, it instead gives you the option of buying a bit at a time and building your investments over time.
The purchase fee can also be low on this type of fund and ranges from around £1 per purchase, you can purchase shares from as little as £20 per month. Shop around and you may even find providers who will not charge you management fees or a fee if you choose not to make a purchase at all.
You can invest up to £7200 per year with no tax being charged and in addition to this a number of Fund ISA providers do not charge administration fees or trade commission.
Stocks and Shares ISA
Again you are able to invest £7200 per year and any profit this investment makes is free from capital gains tax. This type of ISA also gives you more choice with regards to your investments as you have the option of investing in Gifts & Bonds, Funds or Stocks and Shares. As with a Funds ISA you have to option to deal on-line or over the phone and your deal charges start from around £1.