Is my son about to be scammed or the next financial genius
Discussion
Hi all, Just looking for some advice as I'll be the first to admit to being a financial luddite,
I spent some quality father/son time last night and he show'd me an app he downloaded last month and how he'd made over £6 profit,
He's put £80 into the app and he claims has bought shares in 8 companies of about £10 each,
I've looked at the app this morning and it appears you can buy & sell shares with no charge (I guess the buy & sell will be different ??), When I say you buy shares you can buy a portion of a share eg a share is £200 but you can buy £20 therefore 1/10th of a share
We're not a PH director level wealthy family and my son was talking about putting between £50~£100 per month into this app,
It looks like you have to put a deposit of money into the app to buy and it doesn't draw direct to his bank account so I guess there isn't a risk of the app emptying his bankaccount like the stories you here of in-game app tokens,
He understand that shares can go down as well as up (although he appears blind to the risk of this happening with his profit)
This money he's looking at investing as from his apprenticeship wages so around 10% of his wages (not significant but also a not insignificant amount of money)
I guess my question is … is the company behind the app legitimate or a beardman scam site?
The app claims to be UK’s #1 trading & investing app and authorised and regulated by the FCA
MOD's you may want to remove this …. The app is "Trading212"
I spent some quality father/son time last night and he show'd me an app he downloaded last month and how he'd made over £6 profit,
He's put £80 into the app and he claims has bought shares in 8 companies of about £10 each,
I've looked at the app this morning and it appears you can buy & sell shares with no charge (I guess the buy & sell will be different ??), When I say you buy shares you can buy a portion of a share eg a share is £200 but you can buy £20 therefore 1/10th of a share
We're not a PH director level wealthy family and my son was talking about putting between £50~£100 per month into this app,
It looks like you have to put a deposit of money into the app to buy and it doesn't draw direct to his bank account so I guess there isn't a risk of the app emptying his bankaccount like the stories you here of in-game app tokens,
He understand that shares can go down as well as up (although he appears blind to the risk of this happening with his profit)
This money he's looking at investing as from his apprenticeship wages so around 10% of his wages (not significant but also a not insignificant amount of money)
I guess my question is … is the company behind the app legitimate or a beardman scam site?
The app claims to be UK’s #1 trading & investing app and authorised and regulated by the FCA
MOD's you may want to remove this …. The app is "Trading212"
T6 vanman said:
Hi all, Just looking for some advice as I'll be the first to admit to being a financial luddite,
I spent some quality father/son time last night and he show'd me an app he downloaded last month and how he'd made over £6 profit,
He's put £80 into the app and he claims has bought shares in 8 companies of about £10 each,
I've looked at the app this morning and it appears you can buy & sell shares with no charge (I guess the buy & sell will be different ??), When I say you buy shares you can buy a portion of a share eg a share is £200 but you can buy £20 therefore 1/10th of a share
We're not a PH director level wealthy family and my son was talking about putting between £50~£100 per month into this app,
It looks like you have to put a deposit of money into the app to buy and it doesn't draw direct to his bank account so I guess there isn't a risk of the app emptying his bankaccount like the stories you here of in-game app tokens,
He understand that shares can go down as well as up (although he appears blind to the risk of this happening with his profit)
This money he's looking at investing as from his apprenticeship wages so around 10% of his wages (not significant but also a not insignificant amount of money)
I guess my question is … is the company behind the app legitimate or a beardman scam site?
The app claims to be UK’s #1 trading & investing app and authorised and regulated by the FCA
MOD's you may want to remove this …. The app is "Trading212"
Look at this thread... a lot of people using the app mentioned with people putting 000s in so he should be ok..of course he can invest in companies that will fold and he may lose money..I spent some quality father/son time last night and he show'd me an app he downloaded last month and how he'd made over £6 profit,
He's put £80 into the app and he claims has bought shares in 8 companies of about £10 each,
I've looked at the app this morning and it appears you can buy & sell shares with no charge (I guess the buy & sell will be different ??), When I say you buy shares you can buy a portion of a share eg a share is £200 but you can buy £20 therefore 1/10th of a share
We're not a PH director level wealthy family and my son was talking about putting between £50~£100 per month into this app,
It looks like you have to put a deposit of money into the app to buy and it doesn't draw direct to his bank account so I guess there isn't a risk of the app emptying his bankaccount like the stories you here of in-game app tokens,
He understand that shares can go down as well as up (although he appears blind to the risk of this happening with his profit)
This money he's looking at investing as from his apprenticeship wages so around 10% of his wages (not significant but also a not insignificant amount of money)
I guess my question is … is the company behind the app legitimate or a beardman scam site?
The app claims to be UK’s #1 trading & investing app and authorised and regulated by the FCA
MOD's you may want to remove this …. The app is "Trading212"
https://www.pistonheads.com/gassing/topic.asp?h=0&...
The app's legit. Those shares will go down at some point (the last month or two has been relatively plain sailing, you don't have to look much further back than that to when it wasn't), but it's not the worst gamble for a young person to be taking with their money. I'd probably even encourage it, to a point.
Mr Pointy said:
I'd encourage looking at shoving £100 a month into an ISA & pension & getting an instant 20% boost to some of my savings.
I'm putting £200pm into a HTB ISA that's in his name … I note he's using the 212 Invest rather than the 212 ISA,
Like I say I'm a luddite but (correct me if I'm wrong) With the ISA the gains are tax free but with the Invest account the gains will be taxed at ?? rate
Also can he have 2 ISA's running at the same time (212 & HTB)
All … Thanks for putting my mind to rest that it's a legit company, I'm looking at it as
1, It's his money
2, It's going to be more financially beneficial than another purchase of £100 trainers or £50 baseball cap
Please be aware that the model these "free" online share dealing platforms use is to get you doing a few share deals one at a time then over time they use carrot and stick methods to get you into CFDs.
They deal the shares for you for free becuase they know a % of their customers will then go on to have a punt on CFDs and thats where they make their money.
And by make their money I mean you lose your money.
They deal the shares for you for free becuase they know a % of their customers will then go on to have a punt on CFDs and thats where they make their money.
And by make their money I mean you lose your money.
T6 vanman said:
I'm putting £200pm into a HTB ISA that's in his name …
I note he's using the 212 Invest rather than the 212 ISA,
Like I say I'm a luddite but (correct me if I'm wrong) With the ISA the gains are tax free but with the Invest account the gains will be taxed at ?? rate
Also can he have 2 ISA's running at the same time (212 & HTB)
All … Thanks for putting my mind to rest that it's a legit company, I'm looking at it as
1, It's his money
2, It's going to be more financially beneficial than another purchase of £100 trainers or £50 baseball cap
You can have a HTB/Lifetime ISA and a normal ISA running and being invested in at the same time I believe, as long as you don’t blow through the yearly contribution limits on either, which it doesn’t sound like you will from the amounts mentioned.I note he's using the 212 Invest rather than the 212 ISA,
Like I say I'm a luddite but (correct me if I'm wrong) With the ISA the gains are tax free but with the Invest account the gains will be taxed at ?? rate
Also can he have 2 ISA's running at the same time (212 & HTB)
All … Thanks for putting my mind to rest that it's a legit company, I'm looking at it as
1, It's his money
2, It's going to be more financially beneficial than another purchase of £100 trainers or £50 baseball cap
Regarding using 212 trading vs ISA. With the sums you have mentioned, I doubt dividend payments or capital gains are going to exceed annual allowances so probably doesn’t really make much difference.
Day trading and investing are not the same thing, and I’d not recommend he does day trading.
Investing is relying on the growth of a nice balanced portfolio of quality stocks over a reasonable period of time. No problem with that, you’re really betting on the growth of the UK or global economy (which may or may not be a good idea at present).
However, if he’s buying and selling fairly regularly - day trading - then he’s actually betting against thousands of Maths PhDs across the world who have access to company analytics reports, sophisticated AI models, nanosecond trading speeds, and wholesale trading costs. Going “l like the look of that”, especially whilst paying the bid/offer spread on an app like this will just lose him money.
My advice is that if he fancies a go at it, encourage him to do a trial on a spreadsheet for a few weeks using the app prices and pretend money. He’ll quickly and safely discover that what he thought was skill was just good luck, and he is quickly wiped out by the skill of the world’s professional traders competing against him. It’s a good lesson in humility!
If he really wants to play the stock market for real I’d recommend he buys a few quality stocks on a normal low-cost share platform, and then leaves them for a sensible period of time. Alternatively, if he wants to make money, then there are many less exciting ways to get a return on his investment that are less likely to just burn it.
Investing is relying on the growth of a nice balanced portfolio of quality stocks over a reasonable period of time. No problem with that, you’re really betting on the growth of the UK or global economy (which may or may not be a good idea at present).
However, if he’s buying and selling fairly regularly - day trading - then he’s actually betting against thousands of Maths PhDs across the world who have access to company analytics reports, sophisticated AI models, nanosecond trading speeds, and wholesale trading costs. Going “l like the look of that”, especially whilst paying the bid/offer spread on an app like this will just lose him money.
My advice is that if he fancies a go at it, encourage him to do a trial on a spreadsheet for a few weeks using the app prices and pretend money. He’ll quickly and safely discover that what he thought was skill was just good luck, and he is quickly wiped out by the skill of the world’s professional traders competing against him. It’s a good lesson in humility!
If he really wants to play the stock market for real I’d recommend he buys a few quality stocks on a normal low-cost share platform, and then leaves them for a sensible period of time. Alternatively, if he wants to make money, then there are many less exciting ways to get a return on his investment that are less likely to just burn it.
As you say, better he is doing this than spend it on trainers or something.
If I were you, I'd ask him what his strategy is, as a way to make him think of one. Reason for this is that, as he is young, compound interest is his friend!!!
Money chimp do a good compound interest calculator that is good to play around with and eye opening in terms of the amount you can get over time and there are loads of things fo watch about it and the Warren Buffet style of investing on YouTube.
If he sees himself as a day trader, trying to make a quick buck to buy a lambo,like the fake people on YouTube, it may be a very quick way to lose his money.
If I were you, I'd ask him what his strategy is, as a way to make him think of one. Reason for this is that, as he is young, compound interest is his friend!!!
Money chimp do a good compound interest calculator that is good to play around with and eye opening in terms of the amount you can get over time and there are loads of things fo watch about it and the Warren Buffet style of investing on YouTube.
If he sees himself as a day trader, trying to make a quick buck to buy a lambo,like the fake people on YouTube, it may be a very quick way to lose his money.
T6 vanman said:
Hi all, Just looking for some advice as I'll be the first to admit to being a financial luddite,
I spent some quality father/son time last night and he show'd me an app he downloaded last month and how he'd made over £6 profit,
He's put £80 into the app and he claims has bought shares in 8 companies of about £10 each,
I've looked at the app this morning and it appears you can buy & sell shares with no charge (I guess the buy & sell will be different ??), When I say you buy shares you can buy a portion of a share eg a share is £200 but you can buy £20 therefore 1/10th of a share
We're not a PH director level wealthy family and my son was talking about putting between £50~£100 per month into this app,
It looks like you have to put a deposit of money into the app to buy and it doesn't draw direct to his bank account so I guess there isn't a risk of the app emptying his bankaccount like the stories you here of in-game app tokens,
He understand that shares can go down as well as up (although he appears blind to the risk of this happening with his profit)
This money he's looking at investing as from his apprenticeship wages so around 10% of his wages (not significant but also a not insignificant amount of money)
I guess my question is … is the company behind the app legitimate or a beardman scam site?
The app claims to be UK’s #1 trading & investing app and authorised and regulated by the FCA
MOD's you may want to remove this …. The app is "Trading212"
If your son is young enough and is serious about investing a small amount each month I'd gently nudge him towards investing over trading or buying individual shares.I spent some quality father/son time last night and he show'd me an app he downloaded last month and how he'd made over £6 profit,
He's put £80 into the app and he claims has bought shares in 8 companies of about £10 each,
I've looked at the app this morning and it appears you can buy & sell shares with no charge (I guess the buy & sell will be different ??), When I say you buy shares you can buy a portion of a share eg a share is £200 but you can buy £20 therefore 1/10th of a share
We're not a PH director level wealthy family and my son was talking about putting between £50~£100 per month into this app,
It looks like you have to put a deposit of money into the app to buy and it doesn't draw direct to his bank account so I guess there isn't a risk of the app emptying his bankaccount like the stories you here of in-game app tokens,
He understand that shares can go down as well as up (although he appears blind to the risk of this happening with his profit)
This money he's looking at investing as from his apprenticeship wages so around 10% of his wages (not significant but also a not insignificant amount of money)
I guess my question is … is the company behind the app legitimate or a beardman scam site?
The app claims to be UK’s #1 trading & investing app and authorised and regulated by the FCA
MOD's you may want to remove this …. The app is "Trading212"
Look at somewhere such as Vanguard for a simple low cost route but there are lots of others.
Starting young gives him a massive advantage HOW TO BUILD A COMPOUNDING MACHINE
Luke. said:
Hobo said:
most compa is have recovered well since there drops in March.
There are plenty that still haven't.Cineworld, John Menzies, IAG, BP, Shell, GPH, MCRO, to name but a few.
AIG near 100% in the same period.
Yes, they still have a way to recover, but I was pointing out that making 8% in a month in the current climate has proved to be relatively easy, and far in excess of it. Just pick decent companies.
Hobo said:
Cineworld has recovered 300% from its price mid March.
AIG near 100% in the same period.
Yes, they still have a way to recover, but I was pointing out that making 8% in a month in the current climate has proved to be relatively easy, and far in excess of it. Just pick decent companies.
I see what you're saying. But if you look back to January there's still a long way to go to where they were and the decent companies should, I reckon, get back there.AIG near 100% in the same period.
Yes, they still have a way to recover, but I was pointing out that making 8% in a month in the current climate has proved to be relatively easy, and far in excess of it. Just pick decent companies.
So …. To return to the thread, Thanks for confirming the app is genuine and a cheap way into share/investment dealing,
My son has commented his plan is to put around £100 per month into this "as nan has some share" (f
k knows how as she hasn't 2 beans to rub together) "and it's a good way to save"
His plan is to either buy more of shares he holds or "diversify" with new company shares. (he says he'll reviews previous share price & direction but clearly hasn't financial knowledge or understanding of why shares may be rising or any incoming risk to companies)
His plan is to hold these until he's older (years older)
He created his account at the start of May
1 - His keep will be substantially reviewed
2 - His portfolio of holdings would be available for a small fee
3 - I'll have to reconsider his ancestry as for the previous 19 years I've seen no genius tendencies
My son has commented his plan is to put around £100 per month into this "as nan has some share" (f
k knows how as she hasn't 2 beans to rub together) "and it's a good way to save"His plan is to either buy more of shares he holds or "diversify" with new company shares. (he says he'll reviews previous share price & direction but clearly hasn't financial knowledge or understanding of why shares may be rising or any incoming risk to companies)
His plan is to hold these until he's older (years older)
He created his account at the start of May
red_slr said:
CFDs.
I've spent some time reading up & youtubing on CFD's and can wholly confirm to still being a financial luddite, My son has said he has no interest in this .... only "like nan" having a few sharesSJfW said:
ISA .
Thanks … He's not going to be anywhere near any financial limits anytime soon but I'll advise him that any new shares are bought in the ISA account67Dino said:
However, if he’s buying and selling fairly regularly - day trading -
He's planning on buying to keep and not sell - no intention of day tradingHobo said:
Would.love to know what the 8 no. £10 investments are that have resulted in a 6k profit in a month.
Sorry, I thought I'd seen 6k profits which may suggest a genius.
Should my son being in profits of this marginSorry, I thought I'd seen 6k profits which may suggest a genius.
1 - His keep will be substantially reviewed
2 - His portfolio of holdings would be available for a small fee
3 - I'll have to reconsider his ancestry as for the previous 19 years I've seen no genius tendencies
T6 vanman said:
His plan is to either buy more of shares he holds or "diversify" with new company shares. (he says he'll reviews previous share price & direction but clearly hasn't financial knowledge or understanding of why shares may be rising or any incoming risk to companies)
Good for him that he is putting some money aside each month rather than pissing it all up the wall. he should probably try to do some research on companies and what moves SP, and how to judge a companies health - that would be a v good general education and the basics are fairly simple Gassing Station | Finance | Top of Page | What's New | My Stuff