Share dealing accounts offer an easy way of keeping all of your trading activity in one place, allowing you to take control of your portfolio.
These accounts often give investors the opportunity to incorporate their Individual Savings Account (ISA) allowance, allowing them to invest up to £10,680 every year while paying no tax on the returns.
As the potential returns from stocks and shares can be significantly higher than those offered on savings accounts, the value of investments, together with the income they generate, can reduce as well as increase, so there is always the risk that you may not get back all of what you invested.
When we hear the words ‘stock market’ and ‘stocks and shares’, many of us conjure up a vision of city slickers sporting pinstripe suits, drinking expensive champagne and driving Ferraris.
So what has changed? Although the pinstripe suits have long since died out, trading is still very much alive and kicking. However, nowadays it’s not just wealthy individuals that can get a piece of the action, as the market is now open to anyone.
Share dealing accounts allow you to take your financial destiny into your own hands, so it is very important that the shares you choose are based on previous knowledge or an intuition, and in this game knowledge is power.
You will need to think carefully about how much you can afford to invest, keeping in mind the possibility of losing money.
Share dealing is not just about making a fast buck, so keep in mind that your investment may be better off in medium to long term investment plans. It is possible to take on short term investments, but these tend to be taken on by those with a better understanding of the stock market and greater experienced to back them up.