I think, it is best for me to open a general account, I have little capital to invest and I certainly wonāt earn 12k in a tax year. on the other hand, I have to admit that you have very good tax conditions for small investors in the UK.
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Hi Adam, I think you overcomplicate the question a bit. If you live in the UK (sounds like you do - you might have a job, NI number etc.) you should be able to open an ISA.
BUT we donāt know you and all your circumstances, so it would be best if instead of this helpful but anonymous bunch here, youād ask an accountant or tax expert. They might chat with you for free, itās a simple question for them.
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Hello, from what I read it concludes that the tax benefits of having an ISA and basic account in the case of profit up to 12k are the same, so there is probably no difference what account I will set up.
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Fair enough! Just note that allowance might change, although itās been going up in recent years.
Hopefully by the time you need it, FT will have Bed & ISA, and you can just press a button to request it.
Slightly tagging on an ISA query re tax incurrences. For dividends on US stock paid into the ISA, am I correct in saying this is considered foreign income subject to US withholding tax (so taxed at source) meaning each dividend payout by US company will have 15% deducted and the net received into ISA. 15% if have completed W8-BEN form with FT. Else full 30% deductible. That correct?
I just hope that the money transfers from Monzo come without a problem and I wonāt have to wait long to see them on the freetrade account.
Hi all,
Iām really trying to decide whether to open a Freetrade ISA for this year.
I currently have a Wealthify ISA with almost exactly the same invested in it as my current Freetrade account. The fees on that are 0.55%, which should work out lower than the Ā£3/month until my account trebles itās current size.
The Wealthify seems like a safer, more stable place to invest a large amount, but my Freetrade stocks have a potentially much higher rate of return (and of course risk too).
I may carry on simply topping up Freetrade whilst continuing my Wealthify ISA but I donāt want to miss the opportunity if I could get higher returns on Freetradeās ISA now.
Thanks if anyone has their advice to share. I know itās entirely personal choice and my decision alone to make, but it would be good to hear what other experienced investors would do in the same position.
All the best,
Will
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William, welcome to the forum. As you say, this is entirely your call. You know your circumstances the best.
The way Iād personally look at it, how will your ISA look in 3 years, or 5 yearsā time? If you do pound cost averaging, which has many benefits, it is fairly possible your portfolio triples in size in a timeframe that is not too long. If and when we return to a bull market, that time might arrive even sooner.
The beauty of flat fees is that your portfolio can be any size, and you will still pay the Ā£3 per month and not a percentage that scales with your portfolio size.
As far as I know, Wealthify is a robo-adviser, and you should be able to find the same ETFs on Freetrade that all robo-advisers are using.
If you are sensitive to the Ā£36 per annum, that is a legitimate concern, so do your research and make your own call. Best of luck.
Yes, Iām fairly leaning towards opening the Freetrade ISA and managing my own portfolio. Itās going well for me so far in basic. My returns have finally gotten back into the positive after this downturn! (Thanks Tesla!)
I could always leave the Wealthify plan there as a safe little nest egg anyway.
The question now for me is how do I go about liquidating my current shares and repurchasing any in an ISA? What with the market volatility as it is I donāt want to make the move and be hit with a sudden upswing in the market before I can purchase again. But then I suppose itās a matter of pacing it out and paying attention to whatās going on first.
Thanks,
Will
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I think FT supports ISA transfers. Worth asking on the customer service chat.
True!
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Opened an ISA recently. Anybody has any idea what is the interest rate? I canāt see this anywhere on their website. What am I missing?
You opened a Stocks and Shares ISA and you want to know what the interest rate is? Itās zero.
Youāre missing that you can now invest up to Ā£20k this tax year without paying CGT.
How is investing if youāre not getting anything back?
Newbie here, so Iām still learning
This is a do-it-yourself S&S ISA so you invest/purchase shares and hope they go up.
Check out
https://www.moneysavingexpert.com/savings/stocks-shares-isas/ for more info on stocks and shares ISAs
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This is a scary question to see on here.
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Dear @Daniela welcome and thank you for your bravery.
I feel your questions as my own. Half a dozen years ago.
- Regarding the interest rate.
Not all investments pay interest. Some do. Some donāt. In general terms things like savings accounts you may hold on your bank pay interest; treasury bills, bonds or guilts, which are fancy words for loans really, pay interest. And, in a nutshell, thatās pretty much it.
The Freetrade app allows you to invest in funds that pools peopleās money and buy bonds or equities (another fancy word: check online if you donāt know what it is; thereās no way Iām gonna tell you everything and risk saying things you already know).
Maybe your question comes from the fact that banks offer a Cash ISA that pays interest. Usually bellow the inflation rate. Hence a sure way to lose money. Freetrade offers a Stocks and Shares ISA. And that pays no interest.
With shares of a company we get our money back in different ways. Hereās some examples.
The company you buy shares in pays a dividend to the shareholders. How often do companies pay dividends? It depends on the company really. Some pay monthly. The vast majority pays either quarterly or bi-annually, and some pay dividends once a year. How can you find out? Look into the website of the company you own shares of. Usually comes in under Investor Relations. You can also check www.dividendmax.com or Archives - Sure Dividend (Iām not affiliated with any of these last two).
Another way shareholders may get their money back is through share buybacks.
Also, just by growing a company can give back to its shareholders by means of what is called capital appreciation, which is just a fancy way to say that the price of the shares went up, which in turn allows the shareholder to sell at a higher price than s/he bought and cash in the difference: buy for Ā£5 sell for Ā£6 or Ā£10 or Ā£23, you name it.
The following offers a great way for success:
And you can always check these guys. Just search by keyword
Hope this helps
PS:
This is the best place ever to post scary questions 
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Thanks @Raul for taking the time to answer @Danielaās question with patience and understanding - sums up the ethos behind the freetrade community nicely.
The things I would add/also want to be told is (not financial advice btw):
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Stocks are risky, there is no gaurantee you will make money, only an expectation.
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You must assure yourself you can stomach having your porfolio drop ~30% (ārisk toleranceā), near-enough overnight in some cases.
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You must be able to think of stocks as long term; Stocks donāt double your money overnight. It will likely take years, with many bumps along the way (volatility).
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Invest passively isnāt a bad shout if youāre new. This just means putting money into a so-called ātracker ETFā, e.g. Vanguard developed world; basically youāre buying a small piece of every business on the stock market, therefore capturing the average retuns (money made) but also reducing risk by ādiversificationā (not putting all your eggs in one basket).
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If and when you get well clued up, individual stocks may be something you can consider, but reading up beforehand is paramount.
We were all beginners once. The only stupid questions are the ones you donāt ask.
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