buying shares directly - how to do it?

[Shaz]

I am sorry to have to ask this question.

I intend to buy €2k worth of shares. Can I spread this between 10 shares or will the stockbroker die laughing when he/she hears this?

How exactly do I purchase shares? Do I just say I have €2k to spend and I wish to purchase 1 share of BOI, 2 shares of CRH, etc? Do I have to mention at what price, etc?

If 1 share is €10 per unit, can I purchase just 1 unit or do I have to purchase a min of 1000 units?

Please help so that I don't feel like an idiot talking to the stockbroker.

Thanks.

 

[gonk]

I intend to buy €2k worth of shares. Can I spread this between 10 shares or will the stockbroker die laughing when he/she hears this?.

You can do this, but the stockbroker's commission will be very high as a proportion of your investment. For example, Sharewatch, which is one of the cheaper stockbrokers, would charge 0.3% subject to a minimum of €19.95 per transaction. Buying ten shares would be ten transactions, so it would cost you €199.50 in stockbroker's fees plus the stamp duty which is 1% on Irish shares. Don't forget also, these minimum commissions would eat up a similarly high proportion of your investment's value when it came time to sell.

For the sum of money you are talking about it would be more cost effective to invest in an equity-based fund, or possibly an exchange traded fund, such as the ISEQ 20 ETF, which would give you exposure to the top twenty shares on the Dublin exchange in a single investment.

How exactly do I purchase shares? Do I just say I have €2k to spend and I wish to purchase 1 share of BOI, 2 shares of CRH, etc? Do I have to mention at what price, etc?

You can ask the broker to buy at the best available price, or you can stipulate a maximum price you are willing to pay.

If 1 share is €10 per unit, can I purchase just 1 unit or do I have to purchase a min of 1000 units?

You can buy as few shares as you like, down to a single share, once again subject to the broker's minimum commission, which depending on the company could easily be more than the value of the share. People often do this, say if they want to be a registered shareholder with the right to harangue the board at a company's AGM. Some firms also offer discounts to shareholders, say retailers or travel companies, so that might be another reason to acquire a small shareholding.

 

[construct_06]

These charges sound like a rip off to me!

Is there any cheaper eay to buy/sell shares on the ISEQ?

Can u use a foreign stockbroker with cheaper charges maybe?

 

[ATracey]

Shaz,

You can do what you are suggesting about breaking your Investment up...you'd be crazy when you consider the rates...usually a minimum charge which makes it uneconomic...

Invest a little in your own education on Shares...in other words...buy and read a book..

The cheapest way to proceed is with an online account...there is usually a fixed charge......you can even buy Irish Shares through the States...

Check out Yahoo Money or Motley Fool....

This is a shark infested area...be careful.......learn a little..

I'd recommend an Investment Club if you want to learn....email me privately if you wish

 

[paulocon]

Anyone any experience of Campbell O' Connor in this respect?
Would you recommend for smaller purchases (2-5k)?

Also, I believe they offer Share Certificates which I believe are the best option for holding shares long term. I have been told they offer more security. Is this correct?

 

[windover]

I am sorry to have to ask this question.

I intend to buy €2k worth of shares. Can I spread this between 10 shares or will the stockbroker die laughing when he/she hears this?

How exactly do I purchase shares? Do I just say I have €2k to spend and I wish to purchase 1 share of BOI, 2 shares of CRH, etc? Do I have to mention at what price, etc?

If 1 share is €10 per unit, can I purchase just 1 unit or do I have to purchase a min of 1000 units?

Please help so that I don't feel like an idiot talking to the stockbroker.

Thanks.

 

[windover]

Why not open an online trading a/c in the US with somebody like ETrade and buy some shares online without incurring the stamp duty and enormous fees charged by brokers here . They are called ADRs which you can look up on Yahoo or other sites .This is how the stock of most foreign companies trade in the US stock markets . Look up ETrade @ www.etrade.com or others site to compare costs and see what their terms are . This will give you greater flexability to get in and out of a stock and add to your portfolio without the huge costs paid in this country .

 

[gonk]

Why not open an online trading a/c in the US with somebody like ETrade and buy some shares online without incurring the stamp duty and enormous fees charged by brokers here.

It is true that this would be cheaper, but even so would be costly as a proportion of the sum the OP has to invest. For example, Ameritrade, which is competitive, would charge a flat $9.95 per trade. For the OP's ten trades then, it would cost about €75 to buy at present exchange rates or 3.75% of their investment. Similar costs would be incurred on selling. I would remain strongly of the view that €2,000 is far too small a sum to invest directly in 10 shares, because the costs would be excessive. It would be better to choose a suitable unit-linked fund or ETF.

Alternatively, the sum could be invested in one or two shares, to limit costs, but at the risk of lower diversity.

 

[diarmuidc]

It would be better to choose a suitable unit-linked fund or ETF..

I agree, this is an ideal scenario for one ETF through Keytrade. The costs for keeping the account open with them is 0E per year and the cost of that trade will be 14E (Assuming you buy an ETF on the European markets) 0.75%

 

[Happy Girl]

For the sum of money you are talking about it would be more cost effective to invest in an equity-based fund, or possibly an exchange traded fund, such as the ISEQ 20 ETF, which would give you exposure to the top twenty shares on the Dublin exchange in a single investment.

I would be very interested in investing about 3k into an ISEQ 20ETF. What is my first move, where do I go. Would a stockbroker think me a complete muppet investing a small amount like that (although I do not consider 3k to be a small amount). Would it be much dearer buying through the banks (AIB/BofI/etc. rather than going to stockbrokers for an amount like this.

 

[ShaneMc]

Happy Girl - You should give campbell O'Connor a call. I deal with them a few times and have never had a problem. they never judge or laugh at some one who is trading small amounts.