Which broker should I use to buy and sell shares?

Bradleyule · Dec 9, 2015

I am interested in buying and selling shares but cannot find a broker to do so. I am looking for one with an easy to understand platform as this will be my first time trading with real money, I will not be making lots of trades I am just going to build my portfolio and hold the shares for a few months a time, buying low selling high repeat.

I have looked at barclays and lloyds but they both have really bad share dealing reviews. I will only be starting out with a small capital.

Any input is appreciated, thanks.

timsk · Dec 9, 2015

Bradleyule said:
I am interested in buying and selling shares but cannot find a broker to do so. I am looking for one with an easy to understand platform as this will be my first time trading with real money, I will not be making lots of trades I am just going to build my portfolio and hold the shares for a few months a time, buying low selling high repeat.

I have looked at barclays and lloyds but they both have really bad share dealing reviews. I will only be starting out with a small capital.

Any input is appreciated, thanks.

Hi Bradleyule,
Would I be right in thinking that you want to trade U.K. equities (as opposed to U.S. ones)? If so, keep in mind that in addition to the commission fees you'll also be paying stamp duty. The minute you hit buy (to go long), you'll instantly be at a loss and price will have to move in your favour just to get to break even. There are always costs whatever market and instrument you trade of course - but trading U.K. equities can be at the pricier end of the spectrum. One way to reduce such expenses is to trade a derivative such as CFDs, as the costs may be less than trading actual shares. So, your choice of financial vehicle (i.e. shares, CFDs, spread betting etc.) will, to a greater or lesser extent, determine your choice of broker.

Once you're clear about your market (e.g. equities), instruments (e.g. FTSE 100 companies) and financial vehicle (e.g. shares or CFDs etc.), take a gander at this FAQ: Can You Recommend a Data Feed, Charting Software & Broker?
Tim.

Bradleyule · Dec 11, 2015

timsk said:
Hi Bradleyule,
Would I be right in thinking that you want to trade U.K. equities (as opposed to U.S. ones)? If so, keep in mind that in addition to the commission fees you'll also be paying stamp duty. The minute you hit buy (to go long), you'll instantly be at a loss and price will have to move in your favour just to get to break even. There are always costs whatever market and instrument you trade of course - but trading U.K. equities can be at the pricier end of the spectrum. One way to reduce such expenses is to trade a derivative such as CFDs, as the costs may be less than trading actual shares. So, your choice of financial vehicle (i.e. shares, CFDs, spread betting etc.) will, to a greater or lesser extent, determine your choice of broker.

Once you're clear about your market (e.g. equities), instruments (e.g. FTSE 100 companies) and financial vehicle (e.g. shares or CFDs etc.), take a gander at this FAQ: Can You Recommend a Data Feed, Charting Software & Broker?
Tim.

Thanks for the reply, for a demo account I am using Admiral Markets to trade Gold at the moment which is a CFD. Your answer about the stamp duty would explain why my positions always start of negative on my demo account.

timsk · Dec 11, 2015

Bradleyule said:
Thanks for the reply, for a demo account I am using Admiral Markets to trade Gold at the moment which is a CFD. Your answer about the stamp duty would explain why my positions always start of negative on my demo account.

There's no stamp duty payable on CFDs - or any other derivative product - only on actual U.K. shares. Aside from any movement against your position by price, the instant loss you see is probably just the spread.
Tim.

malaguti · Dec 11, 2015

Bradleyule said:
I am interested in buying and selling shares but cannot find a broker to do so. I am looking for one with an easy to understand platform as this will be my first time trading with real money, I will not be making lots of trades I am just going to build my portfolio and hold the shares for a few months a time, buying low selling high repeat.

I have looked at barclays and lloyds but they both have really bad share dealing reviews. I will only be starting out with a small capital.

Any input is appreciated, thanks.

I use a few and it does very much depend on what you think you are going to be trading. have a think about the sort of investments you might make. is it just shares in a company? or if you want to buy shares in an ETF so you can follow the movement in gold? is just UK, or do you want access to US?
how often you will be trading will also possibly determine your choice as some will have higher fees and add ons such as inactivity fees

have a think. Charles Stanley is one of my favourites at the moment as they offer everything and reasonable price wise. TD Direct I've heard really good things about.
really cheap no frills, have a look at Iweb (very limited range of products unfortunately)

theres loads..even IG have started their own share dealing but I wouldn't trust anything to do with IG.

Hope this helps

simbob · Dec 18, 2015

I like Sure Trader. I use only demo for now (as my learning is in the process), but I like the conditions from this broker and low fees.
So I surely will open little bit later a real account.

SlowlyButSurely · Jan 26, 2016

For the UK - Is the best way to buy stocks for a long term investment through an ISA?

If so which are good options? I have seen Charles Stanley mentioned but can people recommend others? Preferably one that is a solid broker that won't try to give advice etc and is suitable for a long term buy and hold (minimum 5 years).

Cheers

Which broker should I use to buy and sell shares?

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