Investing under 18?
Discussion
Hi, I was wondering if anybody could help me out. I am 16 at the moment and wanting to start investing, preferably in to individual stocks, more as a learning exercise than for a proper income. I've looked at Junior ISA, which say you can invest, however there are no platforms that allow JISA to trade on them (currently using trading 212 practice account). I was wondering if there was a way I could begin investing and what the best route would be to go about it. Thank you 
The problem you have is that in English law under-18s cannot bind themselves by contract (other than for necessary items like food etc). So it's a non-starter. https://www.gillhams.com/site/library/legal_articl...
The way to do it is through the name of an adult who would then hold the investments in "bare trust" for you. So in reality you definitely can't do it through your phone or whatever. But if the "adult" was to hand you their phone so that you could push the buttons then clearly no one would be any the wiser. The adult would obviously be bound by the contracts on their account.
The way to do it is through the name of an adult who would then hold the investments in "bare trust" for you. So in reality you definitely can't do it through your phone or whatever. But if the "adult" was to hand you their phone so that you could push the buttons then clearly no one would be any the wiser. The adult would obviously be bound by the contracts on their account.
scottmac123 said:
Hi, I was wondering if anybody could help me out. I am 16 at the moment and wanting to start investing, preferably in to individual stocks, more as a learning exercise than for a proper income. I've looked at Junior ISA, which say you can invest, however there are no platforms that allow JISA to trade on them (currently using trading 212 practice account). I was wondering if there was a way I could begin investing and what the best route would be to go about it. Thank you
Mind if I ask why individual stocks?From what I can see a Junior ISA allows quite wide access so perhaps the issue is the trading platform?
Have you looked at (for example) Interactive Investor and Hargreaves Lansdown?
rockin said:
The problem you have is that in English law under-18s cannot bind themselves by contract (other than for necessary items like food etc). So it's a non-starter. https://www.gillhams.com/site/library/legal_articl...
The way to do it is through the name of an adult who would then hold the investments in "bare trust" for you. So in reality you definitely can't do it through your phone or whatever. But if the "adult" was to hand you their phone so that you could push the buttons then clearly no one would be any the wiser. The adult would obviously be bound by the contracts on their account.
Yeah thats what I've heard, will look in to that, appreciate the reply, cheersThe way to do it is through the name of an adult who would then hold the investments in "bare trust" for you. So in reality you definitely can't do it through your phone or whatever. But if the "adult" was to hand you their phone so that you could push the buttons then clearly no one would be any the wiser. The adult would obviously be bound by the contracts on their account.
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hstewie said:
hstewie said: Mind if I ask why individual stocks?
From what I can see a Junior ISA allows quite wide access so perhaps the issue is the trading platform?
Have you looked at (for example) Interactive Investor and Hargreaves Lansdown?
Not sure, just wanted to experiment to try and learn some skills for later on. Will have a look at both of those sites, been looking at some of the vanguard funds which seem pretty good as well. Appreciate it, cheers.From what I can see a Junior ISA allows quite wide access so perhaps the issue is the trading platform?
Have you looked at (for example) Interactive Investor and Hargreaves Lansdown?
smc14 said:
Not sure, just wanted to experiment to try and learn some skills for later on. Will have a look at both of those sites, been looking at some of the vanguard funds which seem pretty good as well. Appreciate it, cheers.
So here's the bit where I sound like I'm patronising you but if I could go back to my 16 year old self and if the Internet existed I'd be suggesting read up on compound interest Have a look at this.
How to build a compounding machine
Small regular amounts left for a long time can do crazy things.
The concern I'd have with individual shares is if you get it wrong or panic when you lose money it might put you off investing.
There's a lot to be said for the low cost Vanguard funds they're just not very glamorous.
bhstewie said:
hstewie said: So here's the bit where I sound like I'm patronising you but if I could go back to my 16 year old self and if the Internet existed I'd be suggesting read up on compound interest
Have a look at this.
How to build a compounding machine
Small regular amounts left for a long time can do crazy things.
The concern I'd have with individual shares is if you get it wrong or panic when you lose money it might put you off investing.
There's a lot to be said for the low cost Vanguard funds they're just not very glamorous.
This is good advice. Another good resource is 'The Monevator' website.Have a look at this.
How to build a compounding machine
Small regular amounts left for a long time can do crazy things.
The concern I'd have with individual shares is if you get it wrong or panic when you lose money it might put you off investing.
There's a lot to be said for the low cost Vanguard funds they're just not very glamorous.
The beauty of vanguard funds is that they're generally low cost. If you invest small amounts into individual shares then transaction costs can take a massive chunk as a percentage of your investment. Vanguard do a low cost JISA.
Other essential reading is the 'cheap fireworks in Manchester' thread on here. It will give you an insight into the world of get rich quick scammers and what to avoid.
And whatever you do avoid videos and tips like this https://twitter.com/i/status/1350875874481025032 which is frankly terrifying.
If i could turn back the clock to 16 my first investment would be a book called 'The millionaire teacher'.
ILikeCake said:
This is good advice. Another good resource is 'The Monevator' website.
The beauty of vanguard funds is that they're generally low cost. If you invest small amounts into individual shares then transaction costs can take a massive chunk as a percentage of your investment. Vanguard do a low cost JISA.
Other essential reading is the 'cheap fireworks in Manchester' thread on here. It will give you an insight into the world of get rich quick scammers and what to avoid.
And whatever you do avoid videos and tips like this https://twitter.com/i/status/1350875874481025032 which is frankly terrifying.
If i could turn back the clock to 16 my first investment would be a book called 'The millionaire teacher'.
That video is crazy! "I see a stock going up and I buy it and thats how I make money" The beauty of vanguard funds is that they're generally low cost. If you invest small amounts into individual shares then transaction costs can take a massive chunk as a percentage of your investment. Vanguard do a low cost JISA.
Other essential reading is the 'cheap fireworks in Manchester' thread on here. It will give you an insight into the world of get rich quick scammers and what to avoid.
And whatever you do avoid videos and tips like this https://twitter.com/i/status/1350875874481025032 which is frankly terrifying.
If i could turn back the clock to 16 my first investment would be a book called 'The millionaire teacher'.
Vanguard Life Strategy funds seem like one of the best options I've seen, only downside is the monthly payment minimum is quite high compared to others.
Will have a read of that thread and heard of that book before, will have a look now, thank you!
bhstewie said:
hstewie said: So here's the bit where I sound like I'm patronising you but if I could go back to my 16 year old self and if the Internet existed I'd be suggesting read up on compound interest
Have a look at this.
How to build a compounding machine
Small regular amounts left for a long time can do crazy things.
The concern I'd have with individual shares is if you get it wrong or panic when you lose money it might put you off investing.
There's a lot to be said for the low cost Vanguard funds they're just not very glamorous.
Why are they not very glamorous? The returns seem decent over the last few years for some of their life strategy funds.Have a look at this.
How to build a compounding machine
Small regular amounts left for a long time can do crazy things.
The concern I'd have with individual shares is if you get it wrong or panic when you lose money it might put you off investing.
There's a lot to be said for the low cost Vanguard funds they're just not very glamorous.
Compound interest is certainly very powerful, thats the main reason I am looking to start early with small amounts like you said, to grow a big amount in a few years time
Fair play my man, I like your style. I started dabbling at around 13/14 through my uncle, he taught me how the markets work.
Have you messed around with dummy money accounts just to get a feel for it? If so have you done any good?
You need an adult to set up the account, fund it with your own cash with no borrowing or leveraging and then give you the access details. Not actually legit but I’m guessing we are not talking major ££££ at this stage and if I were an adult in your family I would be prepared to do it to aid your education in this field going forward.
Best wishes with it
Have you messed around with dummy money accounts just to get a feel for it? If so have you done any good?
You need an adult to set up the account, fund it with your own cash with no borrowing or leveraging and then give you the access details. Not actually legit but I’m guessing we are not talking major ££££ at this stage and if I were an adult in your family I would be prepared to do it to aid your education in this field going forward.
Best wishes with it
jonamv8 said:
Fair play my man, I like your style. I started dabbling at around 13/14 through my uncle, he taught me how the markets work.
Have you messed around with dummy money accounts just to get a feel for it? If so have you done any good?
You need an adult to set up the account, fund it with your own cash with no borrowing or leveraging and then give you the access details. Not actually legit but I’m guessing we are not talking major ££££ at this stage and if I were an adult in your family I would be prepared to do it to aid your education in this field going forward.
Best wishes with it
Thank you mate!Have you messed around with dummy money accounts just to get a feel for it? If so have you done any good?
You need an adult to set up the account, fund it with your own cash with no borrowing or leveraging and then give you the access details. Not actually legit but I’m guessing we are not talking major ££££ at this stage and if I were an adult in your family I would be prepared to do it to aid your education in this field going forward.
Best wishes with it
I played around with the practice account on trading 212 and made about £120 with £500 in about a month, so not bad but I guess the emotions don't really factor in when you know you can't lose money.
Thats definitely the way I would want to go, although no body is prepared to set it up under their name haha. Not the end of the world to wait 2 years I guess, just wanted to know what my options are at the moment. Appreciate it
smc14 said:
Why are they not very glamorous? The returns seem decent over the last few years for some of their life strategy funds.
Compound interest is certainly very powerful, thats the main reason I am looking to start early with small amounts like you said, to grow a big amount in a few years time
Because putting £500 (or whatever) into a world tracker every month and leaving it can be considered boring.Compound interest is certainly very powerful, thats the main reason I am looking to start early with small amounts like you said, to grow a big amount in a few years time
You can do the same thing with "active" funds where a fund manager chooses what shares to buy for the fund.
Fundsmith is a well known example of this but there are literally thousands of funds.
Keep in mind it costs to buy and sell individual shares and you also have stamp duty (a government tax) each time you buy.
Maybe have a few quid in trading212 or somewhere similar if you want to try trading with real money but I think if you want to build up your long term wealth I think funds are a really sensible low cost way to do it.
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