What is your value to Freetrade?

Freetrade Chat šŸ”„
22

If you earn less than Ā£2000 in dividends and Ā£10000 in capital gains per year you pay 0p tax.

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23

Very true, but Iā€™m in this for the long haul - I donā€™t want the bother, in a few years time, of selling thousands of pounds worth of shares from my basic account so that I can transfer it to a S&S ISA.

I thought I might as well do it now, while I only has a couple of thousand pound invested. I can live with paying Ā£36 a year for the privilege.

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24

or losing. Stock goes from Ā£2.20 to Ā£2.10 and you buy inā€¦then over time you wait until it goes above Ā£2.20 again but it just keeps dropping like Kier Group

If itā€™s literally Ā£2k then youā€™re paying 1.8% in fees which is massive

25

Ditto, years ago I never really understood the hype about ISAs - partly through only being exposed to cash ISAs. How do you get rich from saving tax on 20,000 per year (if you can even afford that)?

I now realise itā€™s the compounding thatā€™s also protected. If your 20,000 multi-bags like a Shopify or an Ocado, then you could cash out and have Ā£100,000 in your ISA tax-free to reinvest within the same wrapper.

This is why my LISA is full of risky AIM stocks - Ā£4000 a year wonā€™t get me a house even with bonus but a 10-bagger would cover the losses and vastly expand the wrapper.

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26

Remember Ā£1 is ludicrously cheap. I think the next cheapest in the UK is about Ā£5-6. It takes more than Ā£1 of your time to work out which stock to pick. And a lot depends on how much your stake is. This micro-investing is all very well, but if you have Ā£50 in your portfolio, and you do really really well, you might make a tenner in year.

Having said that, itā€™s a good way to start. Losing even pennies makes you think ā€˜why, what did I do wrongā€™

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27

UK CGT allowance is Ā£12,000 actually (for 2019/20, was Ā£11,700 last year)

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28

And donā€™t forget the rates have been cut to just 10% and 20% all hail the Tories!!!

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29

Since I am willing to invest long term, I am actually willing to risk it with investment ISA so if I made a huge profit, I donā€™t need to worry about the tax. Ā£3 a month is reasonable and I never pay an extra Ā£1 for instant buy, not worth it to me.

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30

Not if you just invest in the same diversified ETFs all the time. Maybe if you sell 20% of failing stocks every month