First of all, if you’re brand new to investing – welcome! If you’re ready to take the next step and are looking for online trading platforms for beginners, then you’ll find this page useful!
What are trading platforms?
You can think of a trading platform as your investing hub. It’s a space that brokers provide to allow investors to buy and sell shares. It will also be where you can manage your entire investment portfolio and see an overview of your personal progress.
What type of trading is best for beginners?
If you’re brand new to investing, you may want to keep things simple. When you’re beginning your journey, it’s often best to look for long-term investments to buy and hold.
Short-term trading often comes with greater risks and greater losses. When you’re just starting out with investing, this may not be the best strategy and might scare you off before you’ve even found your feet!
What is required when opening a share dealing account in the UK?
Brokers will require personal details, such as National Insurance number, address, etc. You will also need to provide your bank details, to fund and withdraw from the account.
How many shares of stock should a beginner buy?
Firstly, at The Motley Fool, we believe that it’s wise to invest money for at least five years, since we’re long-term investors. This means that we continue to look for investment opportunities both when the stock market drops, as well as when it’s riding high.
When it comes to how many shares to buy in a company, well, that depends on many factors including the value of each share, since this differs dramatically across the spectrum: at the time of writing, a single share in Amazon would set an investor back almost £2.5k, while many other companies’ shares have valuations in pennies rather than pounds!
What should a beginner know about starting to invest with little money?
Whilst not a hard and fast rule, a good rule of thumb is to limit the commission charge to no more than 2.5% of the total investment, as this ought to help avoid racking up trading fees. Fortunately, few UK share dealing accounts suitable for beginners charge more than £12.50 commission for trading, so buying £500 worth of shares in a company would meet this suggestion.
Some online brokerages also allow buying fractional shares. Few beginner investors might have two and a half grand lying about and so might not be able to afford to buy a whole share in Amazon – but many trading apps now allow investors to purchase part of a share in companies.
What is the best trading platform for beginners in the UK?
The ‘best’ trading platform for beginners really depends on your personal needs and preferences. There is no one-size-fits-all here, so make sure you consider your needs as the main deciding factor.
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