Investing in shares is an opportunity to grow your capital. Invest in a share portfolio for long-term capital growth or take a short-term position based on technical analysis. Are you wondering how to buy shares? Buying shares online requires that you open a trading account and follow a few simple steps once, your account has been opened.
How to open a stocks and shares trading account
Basic requirements when investing in UK You must be a UK resident who is at least 18 years of age. What information do you need? An FSA requirement is that you'll need to provide your home address details, including your postcode, for the last 3 years. You'll also need to provide your telephone number (preferably a landline), an email address and your debit card information. I f you're planning to open an online shares ISA, you'll also need your national insurance number. Funding your account for trading stock You can purchase stock, but you'll need to fund your account with a minimum deposit by debit card, cheque or bank transfer. Some execution-only brokers accept more forms of deposit than others, so be sure to check before opening your account. Alternatively, you're able to deposit paper share certificates or transfer shares from a different broker. What happened after I have applied? Once you've submitted your application, you'll be provided with an account number so that you can log in. Your password, pin or pass code will be sent directly to your email address. Just follow the instructions in the email correspondence. If you're planning to start trading shares today, you'll need to deposit money into your account using your debit card.
How to trade stocks and shares in the UK
Making stock investments Unless you've already done your research, don't rush into buying penny shares right away. Read as much information as you can find on investment for beginners. You not only have to pay a fixed charge each time you place a trade, there's also a spread (difference between the buying and selling price provided by market makers). How to place a trade Execution-only brokers each have their own website with a totally different interface so, describing the process would be folly. However, the process is largely intuitive. If there's uncertainty, read the help guide. You can normally place trades 24 hours a day. If the market isn't live or your trade has been queued, you may be able to cancel your order.