A post was split to a new message: Support queries
Afternoon! I’m buying my first few shares whilst I learn how the market works. I’ve been searching for an answer to this question but can’t find it anywhere!
I understand that when buying shares, I need to ‘spend’ more than the shares current price to cover any rises, but is there a general rule for how much this extra amount will be?
I’m trying to work out how I would know what 5 shares of a company would cost with the extra cost included? Is it a percentage of the current price or a fixed price?
The way I look at Basic Trades is what is the maximum I would be happy to pay for per/share, and then go from there. It’s worth using the guidance Freetrade for daily price changes, see
There is a small caveat, in that if you were to enter £3.55 expecting to buy 2 shares, you might find you get only 1 as the price has gone up. However, I’m sure in time Freetrade will provide some functionality to let you buy a fixed number of shares.
I tried doing this for a purchase earlier and input 1p above the current price, but it wouldn’t let me review my order.
The only way I could get it to let me continue was to add an extra 50p or so onto the price
It sounds like you need to include +0.5% for Stamp duty. Or it might be that “Instant order” is checked as this is the default.
Ah that may be it! I wasn’t factoring stamp duty!
You can only buy them while they are crowdfunding. Some companies do this several times, these are called rounds. Freetrade aren’t crowdfunding at the moment so you can’t invest in them but will be at some stage this year
Strongly recommend you read all the topics in the introductory wiki before you do anything else
Which crowdfunding companies have you invested in?
Thank you Emma for the breakdown much appreciated
I’d second reading that introductory wiki link from Emma, it explains lots of stuff.
If you are just starting with investing I’d recommend:
- Make sure you have some cash savings first at your bank (a few month’s salary)
- Invest in stocks for 5-50 years, anything below that use a cash savings account
- Invest regularly (monthly after pay day is good) only what you can afford
- Invest in something relatively low risk, and don’t check it too often
- Never invest in things with high fees, particularly % based fees (freetrade is good for this)
- Ignore the fluctuations of investments over days, weeks or months as much as you can.
- Don’t invest money which you might need in a few years.
- Also look at your pension contributions and consider upping them, esp. if you have employers contributions (these are also invested in stocks).
So on to your questions:
ISA vs GIA
Freetrade ISA vs normal Freetrade account - when starting it doesn’t really matter. When you get to around £10k, open the ISA, so perhaps just start with a normal free account for now to avoid the fee. ISAs are important later when you save lots of money to avoid tax on profits, but low profits are not taxed.
See this article on trackers - that’s a good place to start IMO as lower risk. Because of financial regulations against scammers/fraud, people shouldn’t give specific recommendations here, but here is a list of trackers, any would be fine IMO (you can find them under discover in the app):
- MSCI World - World companies
- S&P 500 - US companies
- FTSE 100 - UK big companies
Punt is just slang for a risky bet. When starting out, I’d start with low-risk. I’d avoid crowdfunding except perhaps some very small amounts for fun - if you can afford it it is worth the risk, if you don’t have lots of other savings it is not worth the risk. In terms of risk, I’d list things you can invest in from low risk to high as something like:
- Cash - only risk is inflation
- Index trackers (you won’t lose all your money but it can fluctuate wildly day to day)
- Individual stocks (you may lose all your money, though not likely in big stocks, fluctuates even more)
- AIM stocks (small stock market with small companies, you may well lose all or most of your money)
- Crowdfunding stocks (no way to sell for years (perhaps never), you may well lose all your money)
Crowdfunding is most risky and only a risk worth taking if you have lots of other savings IMO.
Great stuff @kenny - I’d also add that if your employer gives you the chance to participate in any Sharesave / Share Incentive Plan it’s usually a good deal on offer.
You are a star !!! The amount of information I am getting is priceless. I am grateful for time and effort. I am learning very fast
I have set up a direct debit into my free trade a/c
Will start today
Probably a dumb question but one that has puzzled me for a while. It’s about dividend. As far as I understand when cash dividend is paid the share price is adjusted down by the amount of dividend paid. So what this means (it seems to me anyway) is that you are gaining dividend in the form of cash but loosing out in terms of the share price. Assuming everything else being equal for a moment, is the net gain from the dividend payment netural?
I do understand that in many cases the ‘gap’ created by the dividend adjustment do close hence dividends would net gain.
This is far from being a dumb question. Quite the opposite.
A satisfactory answer implies having under consideration aspects like dividend yield or payout ratio, amongst many other things.
Here you can read about the effect of dividends on stock prices. Have fun
Some investors purchase shares just before the ex-dividend date and then sell them again right after the date of record – a tactic that can result in a tidy profit if it is done correctly.
I’ve tried this strategy in the past and it is fiendishly difficult !
A post was split to a new topic: Incorrect portfolio value after purchase?
Hi everyone……im new at all this & im totally lost on the whole thing……ive paid for some shares but thats the end of it all for me…do i have to sell them to make money or pay more money for them……ive not had any change in my account & im so confused…i just thought id have to buy stocks & just wait to recieve any earnings……i know u all will probably think im a bit daft but i dont understand all the big words to explain it all……i would appreciate any help with this topic…thank u…
Glad you know your limits.
Do you prefer to read or to watch videos?
As Alex said elsewhere:
"As Emma mentioned, we ask members of this community not to recommend investing in particular stocks & it’s impossible to predict what the price of a stock in any given week.
Having said that, this community is full of helpful advice about different ways to approach investing & people’s opinions about the prospects of various companies. There’s dedicated topics for several companies in the #investing-and-markets category & more general advice in #first-time-investing.
We’ve also created an Introductory wiki which includes all of the blog posts that we’ve published to help explain investing.
So you’re not on your own here, hopefully that will all help you decide which stocks to consider investing in & if you have any questions, please feel free to ask "
If you like to read short articles try investopedia.com/university/. They cover pretty much everything, and a bit more.
Do you prefer books? The Intelligent Investor, by Benjamin Graham, has received praise for decades.
There are many resources available.
If you end up feeling overwhelmed and start to believe you can’t do it on your own it’s ok. Like me and many others, you can always index and have results aligned with the top 20% of professional money managers without a sweat.
I’m new to actually investing, I just know a bit of terminology.
What kind of investments should I look into first?
This blog might help