Share Dealing

Introduction to Share Dealing (UK)

The most common way of buying and selling shares today is through an online brokerage account. The majority are easy to open, and once open and funded they can be used immediately to buy and sell shares.

share dealing

When opening an account with an online broker it is worth checking to ensure that they allow transfer in of existing investments, and also that the broker will support the investment vehicle you want to use for your share dealing. All the brokers mentioned below allow trading in Unit Trusts, Bonds, ISAs and SIPPs (self-invested personal pensions), and so will cater for almost every need of an investor.

Useful Guides on Share Dealing:

Top 5 Share Dealing Accounts 2017:

Each of these five brokers has a good trading application, and offer services for trading on the go through mobile devices, and direct market access (DMA), meaning orders are placed directly through to market without human intervention.

NatWest Stockbrokers (www.natweststockbrokers.com)

NatWest offers a choice of accounts, and an easy to navigate front end. It supports electronic trading and investment statements as well as share trading across 15 international markets. At £15 per trade, the service is not the cheapest on the market, but its system does support a variety of types of orders as well as the ability to seek advice in branch. NatWest also offer a trading limit that allows you to trade through your account and then post funds across from your bank account (though they stress it is not a credit limit).

iWeb (www.iwebsharedealing.co.uk)

Offering share dealing at a cost of just £5 per trade, iWeb offers great value for money – though they do charge a one-off account opening fee of £25. Its direct market access trading screen is easy to navigate and it also offers CFD and spread betting. There are no administration charges, and it allows scheduled purchases for just £2 which facilitates the building of positions over time. IWeb also helps switch accounts from current providers, in much the same way that banks relocate direct debits when customers switch accounts.

TD Waterhouse (www.tddirectinvesting.co.uk)

One of the largest brokerage houses in the world, it would be expected that the TD Waterhouse offering is one of the better ones on the market. The company doesn’t disappoint. In the UK it has been trading since 1997 and now boasts over 200,000 clients. It offers trading capability in a number of instruments as well as shares, and its trading platform is home to a great charting application as well a live streaming company news. Commissions start at just £5.95 per trade, though the price depends upon volume.

The Share Centre (www.share.com)

The Share Centre was founded by Gavin Oldham in 1990, and its 160,000 customers pay a commission 1% on share deals, with a minimum of £7.50. Share dealing is conducted over the telephone or online using its state of the art investment and dealing tool. This allows an investor to conduct research and read Share Centre’s analysts views. It also has a stock picker tool helping investors to select the best investment for them. On top of all this, investors can speak to the Share Centre’s advice team over the phone for advice at no cost.

Hargreaves Lansdown (www.hl.co.uk)

Hargreaves Lansdown’s website is very easy to navigate and tracking of accounts is fast and real time. There fund offering is more than enough for most investors, with funds supplied by all the major fund companies. The website also publishes stock tips from brokers and the press, as well as its own recommendations and advice. At £8.95 per share trade, it is not the cheapest option but the overall package puts it up there with the best online trading brokerages in the UK.

In summary

The choice of broker will depend upon an investor’s individual circumstances and requirements. The cheapest trade facility will be offered by execution only brokers, but for newer investors it may be more appropriate to work with a broker that offers advice within its base charging structure.

For investors who want to use funds to create a diverse portfolio then fund choice will be a prime consideration, though for the more experienced investor a good solid platform with extensive charting and research capability might be a key consideration.

Whatever the requirements and aims for investment, an investor will also need to be at ease with the trading platform he decides to use. When comparing different online brokers, their websites and trading interfaces should be tested for ease of use and compatibility with investment needs. Most firms have a test system to enable new customers to do this, and many will then have a ‘paper trading’ interface that allows an investor to trial trading strategies.

As with choosing the best shares to buy, the key to selecting the right online broker is to conduct thorough research.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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