Shares come under Capital Gains Tax. Unless in an ISA, then they are exempt.
Just set up this account 10 minutes ago, look forward to trading.
One question I can seem to find the answer to though is, Do you charge any fees for dividend re- investments??
If I remember correctly, Dividends are paid to your freetrade balance so would be treated as a normal trade when invested.
Yes there’s no fee for this
Thanks, and I assume i can set up the dividends to automatically be re-invested?
Not yet but you can vote for that idea here -
Seen the link but how do I actually vote for this, would be a great advantage for someone like me with longer term investments.
Also, are there any costs to move my existing stock and shares isa to Freetrade
Click the vote button next to the title to vote for the idea
We don’t have a transfer process in place at the moment so you may incur charges if you sell your existing portfolio. Once you have, you can purchase it again for free using Freetrade though.
The taxman knows about Freetrade?! Damn it!
I know we can recieve dividends on this app but what about EPS payments? Will that appear in our accounts too?
What’s an EPS payment?
(Earnings per share) sometimes companies can give you some of their net profit as an extra payment.
I go on a website called tradingeconomics.com and it’ll show all the data on different companies. Some will give you EPS payments AND dividends.
EPS is simply =Net profit/Number of outstanding shares. It is applicable for every single profit making company (i.e. you will not see Tesla having any EPS). This in no shape or form represents the payment a company makes toward shareholders’ brokerage accounts. For example, Amazon’s EPS in the most recent quarter was $5.07 but there is no way any investors will get a penny out of it.
Therefore, the dividend yield is the only way for companies to give cash to investors.
Correct, assuming a company is profit-making, it will either have both EPS and dividend yield (Microsoft, Apple, McDonald’s, etc.), or just have EPS (Amazon, Netflix, Alibaba, etc.). The former list simply pays dividends, whereas the latter does not.
I see, I suppose it’s a added bonus if the company does become profitable. Will we recieve these into our accounts too?
All you will receive is the dividends, which are usually announced months before being paid. EPS is just an indicator to show you how much profit each of your shares has earned for a given period, does not affect any investors at all.
I see, thanks. I just signed up today. Im new to trading. I was going to use plus500 but I’ve heard bad things about that app so closed my account
Feel free to ask any further questions should they arise. This is what this topic is for. And hope you will have better experience with Freetrade!
Once I’ve got passed the queue, what other steps do I need to undertake? You have access no doubt, maybe you can tell me
Plus500 only do CFDs which are an entirely different thing to proper investment
This is a good read explaining them