Stocks and Shares
If you are thinking of trading in stocks and shares then you need to know a little more about how the process and the market works. In basic terms trading here involves buying stocks and shares in a company and then hanging on to them until you can sell them at an acceptable profit. This may mean buying and selling in hours or in years.
In order to trade in stocks and shares you will need the services of a broker who will buy and sell the shares on your behalf. There will be a fee payable for this service - in most cases you will pay whenever you make a trade. There are various ways you can do this, including:
- Working with a specific stockbroker who acts on your instructions either over the phone or online. The broker here will be able to give you specific advice when you need it.
- Joining an online broking service that allows you to manage your buying and selling yourself via a computer and which then carries out your instructions as you make them. Some brokerage sites will expect you to do your own research on what to buy and when to sell whilst others will also offer informational services on a general basis.
- Using a shares service run by another financial institution such as your high street bank. These services work in much the same way as online brokers.
- Investing in stock and shares via wrapper products such as ISAs. Here you can choose the types of stock and shares that will generally be traded or go for a general product.