We all want to invest in a stock market with all the buzz going around the world, with share price of Nvidia, Apple, Tesla.
But with little amount of money that we have its very hard to invest without a proper guide, because most the profit that we get will be tax using capital gain tax when we withdraw the profits. This article is focus towards the UK investor because most of the UK investor are investing in real estate but not in the stock market.
Here is how you should invest on the UK stock market using STOCK ISA which allow you invest upto £20,000 per year without paying any taxes on profit, which is a no brainer for the average investor.
There are several brokers that we actually recommend which offer the best security for your funds using FSCS government funding upto £85,000 which is the same that you get from the LLoyds bank account or HSBC account. So its safe say that your funds are protected upto £85,000.
The First broker that we recommend is the TRADING 212
with them you won’t pay a penny in commission, there is no account fees and best of all fractional shares where you are allowed to buy Fractional Shares which means you can have fraction of a share of apple rather than buying it shares at $176, you can buy a fraction of it. for example if you want to buy APPLE share but you only got $50 you can buy 0.2840 of apple shares. Which is just amazing!! and you can sell those shares within the platform so you are never stuck.
If you ever stuck, just leave the funds on the account without investing you will earn a 5.2% AER per which is paid daily not like the Lloyds bank where your funds are stuck at least for 2 years to get that interest. ( compared with fixed deposit)
If you think you need a old school broker, here how its going to play out.
lets just compare Trading 212 with Interactive Brokers,
Commission: £3.99 per trade (UK and US trades cost £3.99 across all Stocks & Shares ISA and Trading Account plans.)
Account fee: This is maintenance fee of £4.99 to 19.99 per month
Fractional Shares: NO Chance, you need $176 to buy APPLE
So we believe there is a clear winner unless you want to start a investment fund you don’t really need Interactive Brokers.
At this point if you don’t like the sound of the Trading 212, need to different broker that offers the same and even better service that them but located in US we got you covered.
Which is Called Robinhood UK, not the story actual Broker from US which is very popular among younger investor.
Your funds are protected up to $2.25million US dollars by FDIC which is even better than UK banks which protect about £85,000 per person, per institution. Also you have to note the 5%AER on the deposited funds and the interest is being deposited monthly not like UK bank where you get your interest at the end of the locked period. Remember Funds you deposit to Robinhood is withdrawable not like the fixed deposit you get in UK Banks.
Within Robinhood you get to trade US stocks without any commission and fx fees which is just amazing for us. you have the access to more than 6000 world wide stocks which is accessible from your smart phone.
YOU can buy fractional shares on Apple, Tesla, Google, Microsoft, Nvidia, META (Facebook), Amazon, etc.
If we just compare Robinhood to IG, they have a £10 commission, you get 0% interest on cash, you don’t get 24/5 trading and you are left with 0.5% FX fees per trade which is a complete waste if you are still using IG you are CRAZY!!! because you are just burning money.
Get your account today and share this message, build your wealth with fractional shares today.
