New with small amount

First Time Investing šŸ£
1

Hi all Iā€™ve signed up and bought some shares (Ā£100) worth. Iā€™m going to commit a 100 a month and plan in putting it in a fund.

Is this best method?

I know I need it in a isa when they open up on android. However the Ā£3 a month puts me off or this is about right with other providers for stocks and shares isa?

Thanks in advance

1 Like
2

Holding an isa with freetrade is less than half the price of other stock brokers :star_struck:

3

Thereā€™s no point having an ISA until you are making gains above the tax threshold

5 Likes
4

I wouldnā€™t be concerned with an ISA at the early stage, a basic account is free and saves you Ā£3. You wonā€™t hit your CGT or Dividend tax allowance in the early years, and later down the line when you do you can transfer into an isa. better to save the money then lose 3% per month of your investment.

Good luck with it!

5

You donā€™t have to use an ISA now or once theyā€™re available on Android.

Weā€™ve written a blog post about the benefits of ISAs, which will hopefully help you decide whether theyā€™re suitable for you. But feel free to ask if you have any more questions :smile:

1 Like
6

I wouldnā€™t worry about ISAs with a small account. But it depends on your circumstances, age, risk appetite, etc.

1 Like
7

I think what you are doing is fantastic.

Personally I wouldnā€™t worry about an ISA at this stage.

Hopefully you are putting some cash aside in savings as well as investments? You donā€™t want your investments to be your emergency fund!

I put some money into my investments each month and some into a cash savings account. Whenever the cash savings gets to high I sweep it into my investments as a mini bonus to myself.

Good luck and I hope you are successful!

2 Likes
8

With Ā£100 a month if you want to do ā€˜Ā£ cost averagingā€™ it might be smart to focus on stocks that you can ā€˜easilyā€™ top up if needed. Once you have more money to play with you could also look to invest into stocks that are more expensiveā€¦

1 Like
9

Welcome!

I have been using Freetrade for around 1 1/2 months. I went a bit crazy at the start as it was all new an exciting. Just be cautious with your decisions. I brought stock when i should have watched them for a few weeks.

Just have fun, in moderation :slight_smile:

1 Like
10

As others have pointed out, you donā€™t need an ISA right now. But Ā£3/month is expensive relative to some other platforms for small amounts invested. Platforms like Vanguard that charge a percentage of your holdings work out cheaper up until you have over Ā£20k invested.

Thatā€™s also right about the time you might consider switching to an ISA.

11

Thanks everyone much appreciated.

I do have cash savings as well this is from matched betting that I do that I have as surplus.

I will carry on then with basic for time beingā€¦

1 Like
12

With such small capital you may want to focus on ETFs