Buy shares without broker uk

Share dealing is no longer the preserve of City men in striped suits. Everyone is at it these days, from a day trader hunched over a computer to the woman in the street who likes the look of Royal Mail shares. The rise in the popularity of share trading is partly because it has become more accessible. You can now buy shares through the post, over the phone, online or even with a mobile app. So how do you get started? First, you need to understand the risks.

Yes, share prices can rocket, but they can also plummet — and there are no guarantees either way. For example, you might buy 50 shares in Company A at p a share. The shares could climb to p in the first few months, but then drop to p after some poor trading results. This risk element means you should only ever invest money in shares that you can afford to lose.

In other words, make sure you can pay your mortgage and any other essential bills before you start dabbling in the stock market.

Remember, too, that some firms are inherently more risky than others. A FTSE company, for example, is probably a safer bet than a small start-up business, though if you can stomach the greater risk, you might be in line for a greater reward. Most people are advised to keep their shares for at least five years, if not longer, so riding out the inevitable ups and downs of the market.

If you want to buy shares, you have to trade through a stockbroker — and there is an extensive choice. You can stick with an established City name, or you can opt for the stock-broking division of one of the big banks or building societies.

Alternatively, some of the larger firms of financial advisers offer stock-broking services, as do a growing number of online companies. There are three different types of stock-broking service. You then decide what shares to buy and when.

Top 10 Share Dealing Accounts - Best Buy & Sell Platforms

People who are not so confident might prefer to take advice from the stockbroker. If you choose an advisory service, the firm will offer investment guidance, in line with your goals and attitude to risk as you set them out.

The final decision, though, is up to you. Alternatively, a discretionary service allows you to hand over complete control of your portfolio to the stockbroker. The firm will then make all the investment decisions, though it should take account of your aims and risk profile.

Best way to buy and sell shares - cheapest stock brokers | This is Money

Some brokers only offer an execution only service - and it is the simplest and usually the cheapest. However, cheapest is not always best and you should pick the right service for your circumstances. However, you are still the ultimate owner, though you should check that you will receive all shareholder information as well as any shareholder perks such as, for example, discounts associated with the companies whose share you buy.

Nominee accounts are popular because they are convenient — and fast. But if you prefer to hold paper share certificates in your own name, then you need to select a certificated account. Bear in mind, though, that the trading process could take a lot longer.

Most stockbrokers publish information and research about company shares and prices to help with your investment decisions. If you are new to buying shares, you can also usually practice with a virtual or fantasy portfolio to help you gain confidence. You can start trading as soon as you put money into your account, which must often be with a cheque or debit card. The stockbroker will charge a commission for each deal, which can be a flat rate or a percentage.

The rate of commission will depend on a number of factors, including the type, size and frequency of the transaction. Larger transactions are generally cheaper than smaller trades and people who deal regularly usually pay less than infrequent traders. Most stockbrokers offer a choice of accounts, so you should select the one that suits your trading habits.

Watch out for inactivity fees. Many firms also charge if you want to transfer your portfolio to another stockbroker. In addition, some brokers levy account fees, which could be charged monthly, quarterly or annually. When you buy shares, you must pay stamp duty to the government — and the current rate for UK shares is 0.

3 Ways to Buy Stock Without a Broker - wikiHow

Some other countries also levy stamp duty and the rates could be higher. You normally earn interest on any cash sitting in your trading account, but the rate is often quite low. Stockbrokers in the UK must be regulated by the Financial Conduct Authority, which means they are also members of the Financial Services Compensation Scheme FSCS.

Assets held in a nominee account should also be ring-fenced. If a firm cold calls out of the blue to try to persuade you to buy shares, you should be extremely wary. It could be a so-called boiler room scam, where the shares are worthless.

David's Park, Ewloe, CH5 3UZ. We use cookies to give you the best experience.

By using our website you agree to our use of cookies in accordance with our. Cookies are harmless files which can help improve the experience.

Share Dealing - Buy and Sell Shares Online | HSBC UK

Cookies allow websites to respond to you as an individual. The website can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences.

Sign in to view your previous quotes Home Money Share dealing How to buy shares How to buy shares. Close Cookie use We use cookies to give you the best experience.