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What to consider when share dealing
Our share dealing service allows you to buy and sell stock market investments. These can be in the form of shares, funds, bonds, investment trusts as well as others.
Share dealing can be used for both long and short term investment strategies, but it's generally better for long-term investments of five years or more. Shares tend to offer better returns than savings accounts, however, share dealing can be risky, so it's important that you're aware of the risks involved.
As part of our commitment to helping you make an informed decision, here are some things to consider when you open a share dealing account.
- Does share dealing work for me?
- What commitment do I need to make?
- Are there any risks involved?
- What else should I think about before I commit?
Does share dealing work for me?
To make the most of share dealing you should be prepared to invest for the long-term. If you can only afford to tie up your money for the short-term – for example, for next year's holiday - then a savings account may be more appropriate. But you don't have to invest huge sums – for example, Halifax ShareBuilder allows you to invest from as little as £20 a month. By investing little and often over the long term you can even out the highs and lows of the stock market.
It's vital to consider how comfortable you are with risk. The value of shares and any income from them do rise and fall, depending on the market, so there's no guarantee you will get back what you put in. However, risk and reward tend to go hand-in-hand and the long-term expextation is that shares provide better returns than savings. We offer a TradePlan service that can help you limit risk and make the most of the rise and fall of share prices.
We offer a range of different accounts, so whether you're investing a lump sum, saving regularly, are new to share dealing or an old hand, we have an account to suit your needs.
What commitment do I need to make?
First, make sure you're able to tie up your money for long periods, as it may take time for your investment to grow. If you’re investing regularly in shares, you’ll need to maintain your payments. Before you decide to invest in the stock market, make sure you’re able to do this.
Please make sure you’re familiar with the terms and conditions before you invest. Some of our products involve minimum investment amounts and charges may apply for different share dealing services.
Finally, although our products don’t have tie-in periods, schemes like our Self Invested Personal Pension (SIPP) do involve tying up your money for the duration of your main pension. We’ll let you know of any long-term commitments before you make your choice.
Past performance is no guarantee of future success. The value of investments and income from them can go down as well as up. Also remember that the levels and bases of taxation can change and the value of any tax advantages will depend on your individual circumstances.
Some share dealing products involve a greater amount of risk than others. Please make sure you’re comfortable with the level of risk before you invest.
What else should I think about before I commit?
Most experts recommend not having all your eggs in one basket – this can help reduce risk. You may wish to consider other forms of investments and savings accounts. Even if you think share dealing is right for you, it might be worth keeping some money aside in a simple savings account for short-term needs or emergencies.
As part of our service, you can keep up-to-date with how your shares are doing, get the latest market news, and all the information you need to manage your account online.
Next Steps
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Find out more about Share Dealing. |
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If you'd like to discuss any other aspects of your finances, find out more about our in-branch Customer Review service. |
