ISA DIY
As a UK virgin share trader using an ISA (Individual Savings Account) as a trading umbrella makes a lot of sense as a good way to start your online trading journey.
A self-select ISA means you can invest in UK and international equities, collective funds such as unit trusts, investment trusts, corporate bond funds, OEICs (open-ended investment companies) and ETFs (exchange traded funds), gilts and cash, as well as warrants, covered warrants and CFDs (contracts for difference). Yes I know it sounds a handful but after a bit of jargon Googling you will have your head around it in no time. In fact I will explain what they are in a later post, once I find out myself.
Most online brokers offer ’self select’ trading ISA’s. This means that you can basically trade the money inside your self-select ISA without any capital gains tax liability or income tax on the profits. Very cool. From what I have read on various broker sites it is very easy to setup and trade using an ISA umbrella. Most broker sites have an ISA signup button on the homepage. And if you shop around you should be able to find one that has no ISA administration fees or inactivity fees.
m
M
Trading through an ISA saves not only capital gains but also income tax – great.
The question you have to ask is how much they charge for the ISA – most ISAs have FEES – annual and reoccurring fees and sometimes they have management fees and sometimes trading fees and sometimes put-the-kettle-on-and-lets-have-a-cuppa fees.
If they don’t charge an ISA fee how are they making their money? Most people buy shares in an ISA and let them sit there earning (they hope) a tax free income and capital gain and pay the fee.
The Trader
virgin trader Reply:
July 23rd, 2009 at 8:36 pm
The Trader,
Your absolutely right. All except one of the dozen or so I checked out today have some sort of hidden fees structure. In fact most have straight annual admin fees.
The only one I found which had no ISA administration fees or inactivity fees was http://www.iii.co.uk. They also make it very easy to transfer any existing share you may have across into your ISA trading account.
m
I love these stories! Keep making them!
Excellent review! After your review, I plan to use it.
http://www.avirgintrader.com – cool!!!!