Beginner’s guide to share dealing

Here’s how you can get started on share dealing.

10:44 23 January 2013

Sharedealing is a form of investment where investors buy and sell shares from companies through the stock exchange market. Investors make money through dividends being given by the companies they invested in and by selling the shares they bought for higher amount of money when they bought them.

To get started, you need to get a share dealing account. Your options are execution-only, advisory service, and discretionary arrangement.

•    Discretionary arrangement is designed for big time investors with large funds. The service charge is typically very expensive but investors do not need to do anything other than wait for their money to come in.

•    Execution-only account is perfect for experienced traders who hire companies to implement all their instructions regarding the shares they hold. Most investors these days are using this kind of account.

•    Advisory service. This one is designed for novice investors. In here, the company you hire will provide you with advice as to what you’re going to buy and sell in order to make a profit. The same company will also be in charge of implementing your decisions.