PORTFOLIO SHARE BUILDING Vs DIRECT SHARE DEALING ?

[londoncool]

In UK there are many opportunities to buy shares on the LSE periodically through Share Building schemes. In the share building schemes you simply set up a direct debit of any particular amount to the stockbrokers account and indicate any stock you wish to be purchased on your behalf.The shares are bought on certain dates of the month and costs £1.50 per deal.After a certain period you would have built up a strong portfolio of Blue Chip stock of your choice. The stock investment account would be a nominee account held in your name and you would have the power to decide when to sell or buy. I currently use Halifax Bank Share Builders to build up my monthly portfolio (although I also use brokers directly for TESCO transactions). The Interactive Investor website are offering new subscribers free the chance to BUY UK stock for free till 30th June 2008 when they join their sharebuilders scheme. (see http://www.iii.co.uk/sharedealing/?type=portfolio&cp_c=jn3ph8)

The alternative would be to deal directly with a stock broker who allows you to buy and sell at any time of the day. You would be owning the shares directly (with the certificates being in your own name) with your funds held in a Crest account (similar to a CSCS a/c).The commission ranges from £7.50 to £15 per transaction.

Your experiences are welcome

[chicarica]

Hi Londoncool.
This is a real eye opener. I have been investing in UK shares and other markets through OEICs. Fidelity has a Funds Supermarket which allows you buy into a wide variety of funds at reduced cost. As one would expect, my emerging market funds are doing better than the UK ones.

I never ventured into direct sharedealing. This may be the time, now that the CC has struck, bringing down prices. I'm liking the look of the Halifax share builder. I no dey for CICO, so this is probably the way forward especially if one is in the business for long term growth.

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