Best shares app for beginners
Discussion
Being a millennial myself trading 212 is a modern app and importantly with her investment size she wont lose 5% straight away in dealing fees (average dealing fee of £10) as the trading is fee free investing.
Fair play to her and gl, funds may be a easier choice unless she wants to actively manage/trade herself.
Fair play to her and gl, funds may be a easier choice unless she wants to actively manage/trade herself.
indestructible focus said:
Being a millennial myself trading 212 is a modern app and importantly with her investment size she wont lose 5% straight away in dealing fees (average dealing fee of £10) as the trading is fee free investing.
Fair play to her and gl, funds may be a easier choice unless she wants to actively manage/trade herself.
Fee free but part of the deal is you agree to 'lending them shates'?Fair play to her and gl, funds may be a easier choice unless she wants to actively manage/trade herself.
If that's so it's actually more expensive than paying a fee,if the shares are then hired out to people shorting the stock,trying to drive sp down?
Hargreaves Lansdown is a good app but quite expensive if you're buying in small amounts. Its £12 to buy and £12 to sell. So if you spend £200 on a share deal you'll only get effectively £176 of shares (by the time you sell). I'd recommend HL if you're trading in £1k or £2k sizes.
At the other end of the scale you can trade for free with apps like Trading123. The trade off is that the platform may be a bit flaky - eg you want to sell something and it may take a few attempts or you may want to buy something but it's not available on that platform. With free platforms there may be hidden charges and advertising. eToro is another free app.
So to find a combination of lower cost and good functionality is what you're after.
I find Interactive Brokers to be pretty decent. It's £6 a trade - pretty decent platform. But they don't offer ISA wrappers which HL do. Other downside is they don't allow you to load cash from a card - you need to do a bank transfer. There are a pretty massive global organisation so pretty much no chance of it going under either.
At the other end of the scale you can trade for free with apps like Trading123. The trade off is that the platform may be a bit flaky - eg you want to sell something and it may take a few attempts or you may want to buy something but it's not available on that platform. With free platforms there may be hidden charges and advertising. eToro is another free app.
So to find a combination of lower cost and good functionality is what you're after.
I find Interactive Brokers to be pretty decent. It's £6 a trade - pretty decent platform. But they don't offer ISA wrappers which HL do. Other downside is they don't allow you to load cash from a card - you need to do a bank transfer. There are a pretty massive global organisation so pretty much no chance of it going under either.
Like others have said, she'd be a lot better off buying funds in an ISA, rather than trading shares. Trading shares hardly ends well for beginners with low sums of money. Look at investment management firms for example, most will only invest client money into direct equities once the client's portfolio hits a certain value as the risk is a lot greater, my firm as an example is £350k+
Jackals said:
Like others have said, she'd be a lot better off buying funds in an ISA, rather than trading shares. Trading shares hardly ends well for beginners with low sums of money. Look at investment management firms for example, most will only invest client money into direct equities once the client's portfolio hits a certain value as the risk is a lot greater, my firm as an example is £350k+
Agree with this - plus HL doesn't charge for buying and selling funds (as long as they're not exchange-traded funds).It's covered in the 0.45% annual charge.
Jackals said:
Trading shares hardly ends well for beginners with low sums of money.
True, but only by buying and selling do you actually learn much about the stock market. If its all in funds with a regular contribution, its all a bit distant. How about having 75% in Funds and investment trusts and dabbling with the rest?Top slicing, or cashing in the original stake, if the share gains value is a good way of minimising the risk. I wish I had done that with a few of my early climbers (Ted Baker & Fevertree to name a couple). Of course it needs to climb in the first place...
Hargreaves Lansdown allow you to create virtual portfolios, so you can follow what would have happened without risking real money.
GliderRider said:
True, but only by buying and selling do you actually learn much about the stock market.
I suppose the question is "why do you want to learn anything about the stock market".The amateur trader is statistically unlikely to outperform a low cost index tracker... what's the point in trying?
GliderRider said:
Jackals said:
Trading shares hardly ends well for beginners with low sums of money.
True, but only by buying and selling do you actually learn much about the stock market. If its all in funds with a regular contribution, its all a bit distant. How about having 75% in Funds and investment trusts and dabbling with the rest?Top slicing, or cashing in the original stake, if the share gains value is a good way of minimising the risk. I wish I had done that with a few of my early climbers (Ted Baker & Fevertree to name a couple). Of course it needs to climb in the first place...
Hargreaves Lansdown allow you to create virtual portfolios, so you can follow what would have happened without risking real money.
It would minimise risk, but the shares have to gain considerable value first for that to even be possible.
NickCQ said:
I suppose the question is "why do you want to learn anything about the stock market".
The amateur trader is statistically unlikely to outperform a low-cost index tracker... what's the point in trying?
What's the point in trying, could you clarify what you mean?The amateur trader is statistically unlikely to outperform a low-cost index tracker... what's the point in trying?
There are clearly "safer options" but that's not the point really.
She wants to risk some money hopefully learning along the way. Making 2% is not very exciting, there need to be some riskier bets to get the blood flowing.
GliderRider said:
Hargreaves Lansdown allow you to create virtual portfolios, so you can follow what would have happened without risking real money.
Don't they have a reputation for being expensive?https://uk.trustpilot.com/review/www.hl.co.uk
BGARK said:
NickCQ said:
I suppose the question is "why do you want to learn anything about the stock market".
The amateur trader is statistically unlikely to outperform a low-cost index tracker... what's the point in trying?
What's the point in trying, could you clarify what you mean?The amateur trader is statistically unlikely to outperform a low-cost index tracker... what's the point in trying?
There are clearly "safer options" but that's not the point really.
She wants to risk some money hopefully learning along the way. Making 2% is not very exciting, there need to be some riskier bets to get the blood flowing.
Jackals said:
What Nick is saying people very rarely beat an index tracker by picking individual shares let alone a beginner. L&G US Index (Class C) for example performance the last 5 years are 32.13%, 12.46%, 9.93%, 15.53% and 15.18% and the ongoing charge on HL is only 0.06%.
Makes sense, thank you.Jackals said:
BGARK said:
NickCQ said:
I suppose the question is "why do you want to learn anything about the stock market".
The amateur trader is statistically unlikely to outperform a low-cost index tracker... what's the point in trying?
What's the point in trying, could you clarify what you mean?The amateur trader is statistically unlikely to outperform a low-cost index tracker... what's the point in trying?
There are clearly "safer options" but that's not the point really.
She wants to risk some money hopefully learning along the way. Making 2% is not very exciting, there need to be some riskier bets to get the blood flowing.
Ie recently when teh vaccine from pfiser was announced.
BGARK said:
What's the point in trying, could you clarify what you mean?
She wants to risk some money hopefully learning along the way. Making 2% is not very exciting, there need to be some riskier bets to get the blood flowing.
I think another poster said it but she will likely make most money on the market by buying low fee equity index trackers and forgetting about them. Time spent looking for share tips and punting individual stocks (paying more fees along the way) is probably time wasted.She wants to risk some money hopefully learning along the way. Making 2% is not very exciting, there need to be some riskier bets to get the blood flowing.
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