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Which Broker to Use?

Are they actually able to do the trade for you? For example Selftrade vary their online limit and leave you with an expensive sell, or having to repeatedly sell at smaller values. They’ve even repeatedly lowered their limit every time I put in a buy order obviously in an effort to get me to phone through and charge me more. Volume on that stock that day was Zero so it wasn’t a crowded entry.
My advice to you would be:-

1. Don’t over trade.
2a. Use an established and recommended online broker.
2b. Using a reputable personal Broker will often get a better price and an easier exit/entry but may charge more. Worth it for higher value trades.

After all, you should only really be buying if you’re convinced they’ll go up for a variety of reasons. It takes practiced discipline to keep to that rule!

Trader Comment:

iWeb – don’t bother, anyone! In a fit of pique with Barclayshare, I opened online an account with iWeb. I was surprised then to discover that there was no demo account, and then, (somewhat belatedly, you may say) that there was no Level 2.

Fastrade – Bonjovi is good looking isn’t he – want £30per annum per corporate bond holding. They won’t pay anything towards my move. Pass.

Barclays don’t trade Corporate Bond/gilts/pibs s online and want £65 per trade, they are having a larf. They will pay £150 towards the move (estimated £400)

Hargreaves Lansdown – don’t allow online trading in Corp Bonds/Gilts/Pibs and want…hmm…was it £45 per trade. They will pay all my moving costs.

Both Fastrade (part of Charles Stanley) and Barclays charge an annual fee.

TD Waterhouse is ignored because their website is too horrible to contemplate. Doesn’t work with Firefox and finding data requires a degree in computer science.

The rules say that my shares should be safe if Selftrade bites the dust. That assumes there is no fraud and they are obeying the nominee rules. Who says they are?

There is £50k compensation if they aren’t or if they go bust while some shares haven’t settled. That’s hopeless.

There is £85k compensation if one of Selftrade’s banking providers goes bust. Can’t worry about that but I can worry about whether HL use same as Selftrade…in which case nothing is gained by moving. There is only one £85k paid out per provider that goes bust.

The overwhelming risk is fraud. If Selftrade get into trouble (transactions were down 37% last year, not particular to them but that’s the number), there is more likely to be some wrong-doing with how our shares/money held. They are part of SocGen…so don’t say it can’t happen.

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