Understanding Share Dealing risk.

It's fair to say that investing in the stock market can be complicated. Stocks and shares by their very nature are risky. That’s why we want to make sure you know all the facts before you take the next step.

Is share dealing really right for you?

Share dealing is risky. To get the most out of the stock market you should really be thinking about investing long term.

If you can’t tie up your money for five or more years, a savings account is probably more appropriate for you.

On the other hand, the good thing about shares is you don’t need to invest a lot of money to begin building up your portfolio. You can invest from as little as £20 a month with a regular investment plan.

Understanding risk

All investments involve a degree of risk. The value of shares and any income you receive from them will rise and fall with the market. There’s no guarantee you’ll get back what you put in.

You also need to remember that past performance is no guarantee of future success. The levels of taxation can change, and any tax advantages will depend on your own situation. Some investments are riskier than others too. It’s important to consider what level of risk you’re comfortable with before you invest.

Having said that, risk and reward go hand-in-hand. Over the long term, shares could provide better returns than savings. We have Trading Tools to help you minimise your exposure to risk including our TradePlan service.

What else to think about?

Most experts will tell you not to keep all your eggs in one basket. This is good advice, it’ll help you to minimise your risk. Think about spreading your investments across a range of sectors and markets and using a mix of funds and shares.

Ready to start?

If you fully understand the risk involved and have decided to start trading you can compare our accounts to see which one could be right for you.

View our accounts