Basic Info About Trading In An ISA

[NewThought]

Hi Everyone,

At this time, I don't have an ISA for the current financial year, and I'd like some basic information about a trading ISA, please. I've seen some good starting information on the Money Saving Expert website (trading ISA link), but I have a few more questions:

* am I right in thinking that the way it works is that you put a few thousand pounds into an ISA trading account, and then you get a web screen that allows you to buy and sell shares?

* do UK ISAs allow purchase of ETFs (British and foreign), and foreign shares?

Thanks for any advice or links for further information!

 

[mb325]

Yes, you put a few thousand pounds in an ISA and then you get a web screen that lets you buy/sell shares.

Yes, ISAs allow purchase of ETFs. You are technically allowed to trade shares on any recognised exchange, but many providers limit it to UK exchanges, so you will have to pick the right provider if you do want to trade foreign shares. The same applies to ETFs but many of these products are UK-listed but track foreign stock markets etc. so this is another way to get exposure to foreign markets.

 

[NewThought]

Yes, you put a few thousand pounds in an ISA and then you get a web screen that lets you buy/sell shares.

Yes, ISAs allow purchase of ETFs. You are technically allowed to trade shares on any recognised exchange, but many providers limit it to UK exchanges, so you will have to pick the right provider if you do want to trade foreign shares. The same applies to ETFs but many of these products are UK-listed but track foreign stock markets etc. so this is another way to get exposure to foreign markets.

Thanks for your advice. The ISAs in the MoneySavingExpert link I gave only allow users to buy and sell funds. On the basis of your reply, I looked at MoneySupermarket, and found some ISAs that allow trading of shares (British and foreign) and ETFs - link.

 

[breakingbad1]

How are self select ISA's setup? Not in terms of creation but are there ones which are set up like a broker in presentation? The FTSE, NYSE, Nasdaq, full stock lists, etc. Market, limit orders there and then. I would prefer to use a bank than a broker but it would have to be setup broker style.

Edit-Ok I've read the above but please name a bank with self select low fees which is set up just like a typical stock broker app. UK based and approved preferably.

 

[1nvest]

How are self select ISA's setup? Not in terms of creation but are there ones which are set up like a broker in presentation? The FTSE, NYSE, Nasdaq, full stock lists, etc. Market, limit orders there and then. I would prefer to use a bank than a broker but it would have to be setup broker style.

Edit-Ok I've read the above but please name a bank with self select low fees which is set up just like a typical stock broker app. UK based and approved preferably.

Hi @breakingbad1 if you do your homework you'll find most of the high street banks within the UK will perform that function
Barclays, Lloyds, Natwest, Santander all do a stocks and shares ISA for example. most of them charge you well in excess of more traditional brokers however. I once had an account with Barclays and they charged £15 per transaction, and switched way back when to the most expensive Hargreaves Lansdown, and was still well better off
if cost per transaction isnt a consideration simply go on their websites. they are all as approved (and therefore carry the exact same risk) as the likes of Interactive investor, hargreaves, aj bell, investengine etc. Banks are no more safer than those just mentioned
I suspect range of funds or shares as well as cost per transaction being the primary considerations if it really is a bank you need