Share trading - how?
Discussion
ringram said:
long term you are better holding the shares.
spread betting pays no income and you hold no equity, its betting, pure and simple.
Do it via an ISA for sure. But check out costs. Low for a low cost provider. H&L usually rates well.
Agree that physical stock is better in this situation but I don't understand your remark that spreadbets pay no income?spread betting pays no income and you hold no equity, its betting, pure and simple.
Do it via an ISA for sure. But check out costs. Low for a low cost provider. H&L usually rates well.
divis are always included in any spread bet otherwise you would arb the broker's book to crap twice a year.
The spread bet must always mirror the underlying it is based upon, just like a CFD as they are one in the same product.
The key with the spread bet is that you cannot have external charge elements as it would cease to be a 'bet' under UK law and you'd have a CFD. The solution is the to include comm, funding and divis in the spread on quarterlies or on dailies it is via the rollover.
As such when a stock goes XD the divi will be accounted for in the relevent rollover.
The key to comparison between the physical and a spread bet or CFD is the stamp duty. With typical funding premium of 1.5 -2.5% around LIBOR you are looking at 3-5 weeks of holding before the funding cost erodes the saving on avoiding stamp.
The spread bet must always mirror the underlying it is based upon, just like a CFD as they are one in the same product.
The key with the spread bet is that you cannot have external charge elements as it would cease to be a 'bet' under UK law and you'd have a CFD. The solution is the to include comm, funding and divis in the spread on quarterlies or on dailies it is via the rollover.
As such when a stock goes XD the divi will be accounted for in the relevent rollover.
The key to comparison between the physical and a spread bet or CFD is the stamp duty. With typical funding premium of 1.5 -2.5% around LIBOR you are looking at 3-5 weeks of holding before the funding cost erodes the saving on avoiding stamp.
I can recommend halifax share builder, it designed for infrequent buyers, but they have buying days once a week, so they pool together all the people that want that particular share and reduce the cost between them, currently the rate is 1.50 per trade, but 11.95 for selling at ANY time, you can also buy anytime for 11.95 if you must.
Its a good way of drip feeding small amounts in, or to slowly build, expand and add to a portfolio. I makes trade small amount better value.
Ive been using them for years, good service, and suits me fine, because I have yet to sell anything. And you can set up a regular investment monthly too.
Its a good way of drip feeding small amounts in, or to slowly build, expand and add to a portfolio. I makes trade small amount better value.
Ive been using them for years, good service, and suits me fine, because I have yet to sell anything. And you can set up a regular investment monthly too.
jagman21 said:
I can recommend halifax share builder, it designed for infrequent buyers, but they have buying days once a week, so they pool together all the people that want that particular share and reduce the cost between them, currently the rate is 1.50 per trade, but 11.95 for selling at ANY time, you can also buy anytime for 11.95 if you must.
Its a good way of drip feeding small amounts in, or to slowly build, expand and add to a portfolio. I makes trade small amount better value.
Ive been using them for years, good service, and suits me fine, because I have yet to sell anything. And you can set up a regular investment monthly too.
Seems a very good concept for building a genuine staged investment portfolio. Assuming they execute the trade within the liquidity available. For anything other than the top FTSE 100 stocks they must end up paying above market for the fill.Its a good way of drip feeding small amounts in, or to slowly build, expand and add to a portfolio. I makes trade small amount better value.
Ive been using them for years, good service, and suits me fine, because I have yet to sell anything. And you can set up a regular investment monthly too.
No good at all if you are planning to spank all your cash on crappy penny shares.
Edited by DonkeyApple on Monday 18th October 12:33
Gassing Station | Finance | Top of Page | What's New | My Stuff