How do you buy shares?

GreenDoor · 18-07-2006 11:53pm #1

Could somebody fill me in. I havn't a clue how to get started but it's something I'm interested in doing.

Strokesfan · 19-07-2006 5:53pm

is that www.rabodirect.ie - bank something to do with investing in shares? not sure....

jdivision · 19-07-2006 6:11pm

You can do it in any AIB or Bank of Ireland branch or set up an online account with Davy Stockbrokers - I'm suggesting their online service cos recent survey suggested they have lowest commission on share purchases

joebhoy1916 · 19-07-2006 6:30pm

jdivision wrote:

You can do it in any AIB or Bank of Ireland branch es

What ever you do dont do that they cost a fare few pound when you want to buy or sell! The best one ive heard is sharewatch.ie there the cheapiest!

GreenDoor · 20-07-2006 12:31am

cheers to all:)

easyontheeye · 24-07-2006 7:51pm

www.sharewatch.com

shepthedog · 24-07-2006 10:21pm

This should be a sticky as its one of the most common questions ppl ask...

higster · 25-07-2006 10:10pm

Or use a US based on-line service...I set up one a number of years ago, from what I remember bit of a pain to set it up BUT there charges are absolutely feck all compared to Irish broakers...I use http://www.tdameritrade.com/welcome1.html

Sonderval · 25-07-2006 10:56pm

According to their website, Ameritrade don't allow accounts for Irish citizens

I've heard some dodgy things about sharewatch.com - late cheques, mis-quoted equity values and such.

Anyone else feel like suggesting a good American based e-trading service?

damnyanks · 26-07-2006 11:21am

Check out e-trade as well. They offer various different services and quite a big player!

Cyrus · 26-07-2006 11:23am

igindex is an alternative

like betting on share movements

easyontheeye · 26-07-2006 3:25pm

www.sharewatch.com its practically free, its regulated and its irish!

Cute Hoor · 26-07-2006 10:03pm

easyontheeye wrote:

www.sharewatch.com its practically free, its regulated and its irish!

Sharewatch isn't Irish, based in Glasgow, with a postal address in Dublin, where they collect & deliver post. They have targetted the Irish market

Cute Hoor · 26-07-2006 10:10pm

Sonderval wrote:

According to their website, Ameritrade don't allow accounts for Irish citizens

I've heard some dodgy things about sharewatch.com - late cheques, mis-quoted equity values and such.

Anyone else feel like suggesting a good American based e-trading service?

TDAmeritrade certainly have Irish clients, and if they don't accept Irish now then that's new, great broker, never had any problem with them.

No problem with late cheques from Sharewatch that I'm aware of, but their website is appalling imo, and you would certainly want to watch to ensure that transactions are completed accurately and that you receive any due dividends

joebhoy1916 · 26-07-2006 10:29pm

GreenDoor wrote:

Could somebody fill me in. I havn't a clue how to get started but it's something I'm interested in doing.

Do you know what share's your going to buy?

If so search around all the company's to see who will give you the best price!

For example go to www.sharewatch.ie and look up Irish share's Minmet (I think that's how it's spelt)

Then go to www.goodbody.ie and look up the same name there different prices!

Shop around to get price's and see how much they charge to buy and sell them I have a sharewatch information pack infront of me there the cheapest!

If you want to put money in to share's and just kinda leave them there for a few years then goodbody might be your best bet!

They only charge 26Euro per annum where as sharewatch is 60. Not much but it all adds up.

RainyDay · 26-07-2006 10:45pm

No disrespect to the OP, but if you don't have a clue how to get started, you need to do a bit more research before deciding that you will invest directly in shares. You need to understand the taxation of dividends and sale profits. You need to understand nominee accounts vs holding the shares directly. You need to understand how limit orders work when buying or selling. You need to understand the relationship between diversification and risk.

The details of how to buy & sell are the easy bit, but do the background research first.

RobM · 28-07-2006 12:16am

Try www.stocktrade.co.uk

Sonnenblumen · 28-07-2006 1:17am

Cute Hoor wrote:

Sharewatch isn't Irish, based in Glasgow, with a postal address in Dublin, where they collect & deliver post. They have targetted the Irish market

Bank Account for transfering funds to Sharewatch is based in Cork.

Sonnenblumen · 28-07-2006 1:28am

RainyDay wrote:

No disrespect to the OP, but if you don't have a clue how to get started, you need to do a bit more research before deciding that you will invest directly in shares. You need to understand the taxation of dividends and sale profits. You need to understand nominee accounts vs holding the shares directly. You need to understand how limit orders work when buying or selling. You need to understand the relationship between diversification and risk.

The details of how to buy & sell are the easy bit, but do the background research first.

Not wishing to disagree but buying shares has as much to do with some luck and less than science, sure people have made careers out of how to and when to, but for modest punters it isn't all that difficult. Knowing the fundamentals is essential, but stuff like tax liabilities on profits/ offsetting losses against tax etc can be picked up easily enough.
But if you weant to creep before you crawl, you can begin with buying shares in any of the elading banks, pay good divis and almost a cert to gain some cap appreciation, but if you move out of the safety of the trad stocks it becomes a little more risk, a bit like gambling. Lots of tipsters but also lots of losers. Personally I'd never buy a share in a co that never made a profit/pays a divi. Otherws might scream at this.

The big players usually provide excellent and informative reports for shareholders use intermediaries eg Computershare etc to offer discounted share dealing services to investors.

Although the brokers such as Davy charge more for the share dealing, if you are a client you gain privileged access to market reports which are otherwise not available.

Sharewatch offer a very good service.:cool:

RainyDay · 29-07-2006 11:11pm

The ordinary punters who were clients of Morrogh brokers in Cork and held their shares in nominee accounts probably wish they had done just a little bit of research beforehand.

Redlancer · 17-08-2006 1:03pm

how do you buy shares without using the internet?

joebhoy1916 · 17-08-2006 1:55pm

Open an account with a share's company! Then you could buy them and sell them over the phone or internet or even there office

ainemolloy1 · 25-08-2006 3:55pm

Hello all,

I'm here to give my view on the US trading system of sharewatch.

It is possibly the worst involvment I have ever had with any company.
It took two months and countless e-mails and phone calls to set up the account. None of my phone calls were responded to. Nobody available to deal with my query, people in meetings etc.

The sharewatch website link / portal did not work, I rang the technical guy and he just gave me a gormless ' I dunno'

Figured out by myself how to access my account through their US partner who deals with the actual trading .

The account had been set up wrongly and was set up as a commodities account with no permission to trade stocks. Remember this company is called 'sharewatch'.

Rang the partner company in US (very helpful), who told me it was sharewatch problem.

Rang sharewatch to try to sort it out. Nobody in / available / not returning calls etc.

Now want to get my money back and close non working account and guess what? Nobody in / not available / not returning calls.

Easily the worst transaction / customer service I've ever had in my life.

Avoid like the plague!!!:eek:

Redlancer · 01-09-2006 2:08pm

could anybody give me the names of shares companies in Ireland

GP · 05-10-2006 3:08pm

Is E*Trade not for US residents only ?

I remember hearing about them oh at least 8 years ago so they've been around a while

Starting to look at the options too......

RainyDay · 07-10-2006 12:04am

GP wrote:

Is E*Trade not for US residents only ?
...

Nope - I'm an Irish resident and I've had an eTrade account for years.

woppi · 13-11-2006 3:04pm

RainyDay wrote:

Nope - I'm an Irish resident and I've had an eTrade account for years.

Same here. They have an office in UK for EMEA residents. See https://us.etrade.com/e/t/home/openanaccount.

For no bull (pardon pun) info on Irish broker options see report from Financial Regulator http://www.financialregulator.ie/data/cr_costsur_files/Stockbrokers%20Cost%20Survey%20-%20Issue%201.pdf

Colonel Sanders · 03-07-2007 2:25pm

whats the most cost efficient way to sell shares I own in certificate form (I take my bonuses in shares)? Will I have to use a broker and pay all the fees etc or is there a simpler/cheaper way?

Doug1234 · 21-07-2007 1:48am

Is there a different tax rate that applies to Irish v's International shares ?

RainyDay · 22-07-2007 11:01am

Doug1234 wrote:

Is there a different tax rate that applies to Irish v's International shares ?

In general, no. If you are tax-resident in Ireland, than Irish tax rates will apply to all your income, regardless of source.

Some countries (e.g. USA) will deduct local tax from dividend payments before you get them. Irish tax authorities will give you credit for these payments against your Irish tax.

Tiesto · 28-07-2007 10:51pm

ok well im serious about getting into investing myself.
Ive been following the stock markets for the last couple of years and a few months back, just started workin in a large investment bank..
My wealthy sister is willing to give me some money to start off with...
some my questions are as simple as this:

1/ costs associated with broker trading : Should I use an online broker or physical broker? Some recommendations please. What are davys and goodbody like?

2/ Whats the best instrument to start off investing in? Funds/ ETFs/ Single shares?

thanks guys

donaghs · 31-07-2007 12:40pm

Can someone give a real life example of how you they have bought shares?
Possibly someone with expert knowledge could give a rundown on the various ways of buying shares, with as much detail as possible.

For example, I've equiring from friends about this for some time. The consensus was that the simplest way to do this was to arrange an appointment with my bank branch. When I phoned my branch they said I did not need to call in, but I could go to any branch. But I would need to fill in various forms for a broker, and would need photo id and proof of my address. The bank would act as an intermediary with the broker.

Tiesto · 31-07-2007 7:55pm

donaghs wrote:

Can someone give a real life example of how you they have bought shares?
Possibly someone with expert knowledge could give a rundown on the various ways of buying shares, with as much detail as possible.

For example, I've equiring from friends about this for some time. The consensus was that the simplest way to do this was to arrange an appointment with my bank branch. When I phoned my branch they said I did not need to call in, but I could go to any branch. But I would need to fill in various forms for a broker, and would need photo id and proof of my address. The bank would act as an intermediary with the broker.

Hi Donagh,
Im just getting into investments now so i wouldnt call this expert advise but i can tell you there is no need for the bank at all.
Like anything, the more intermediaries involved, the more expensive it will be.. Just go straight to the broker and setup an account with them.
Davy stockbrokers for example is one off the top of my head.

If this is your very first dip into investments, I think it would make more sense so look at funds rather than equities(stocks). I think
funds are a better way to ease yourself into investments because the risk isnt so great. Funds are made up not only of equities but also more secure investments such as government bonds, property investments (maybe not so secure afterall

)
Not only that, the fund is made up of investments from different countries, different industries...
Instead of you going straight to the broker and purchasing shares in a couple of stocks you probably dont know that much about and having all your eggs in the one basket......
Two popular companies offering funds are Rabodirect and Quinn.
The funds in rabodirect are 'actively' managed. Quinn funds are passively managed,
Definitions (from wikipedia

)

Active management (also called active investing) refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming a benchmark index.
Ideally, the manager exploits market inefficiencies by purchasing securities that are undervalued, and/or (less frequently), short selling securities that are overvalued. Depending on the goals of the specific investment portfolio or mutual fund, active management may also strive to achieve a goal of less volatility or risk than the benchmark index instead of, or in addition to, greater long-term return

Passive management is where the manager does not seek to outperform the benchmark index. Passive management (also called passive investing) is a financial strategy in which a fund manager makes as few portfolio decisions as possible, in order to minimize transaction costs, including the incidence of capital gains tax. One popular method is to mimic the performance of an externally specified index—called 'index funds'.

Ok im sure someone is gonna reply and correct everything I said, but hey thats my understanding so far...
no need to say thanks

Tiesto · 31-07-2007 7:55pm

donaghs wrote:

Can someone give a real life example of how you they have bought shares?
Possibly someone with expert knowledge could give a rundown on the various ways of buying shares, with as much detail as possible.

For example, I've equiring from friends about this for some time. The consensus was that the simplest way to do this was to arrange an appointment with my bank branch. When I phoned my branch they said I did not need to call in, but I could go to any branch. But I would need to fill in various forms for a broker, and would need photo id and proof of my address. The bank would act as an intermediary with the broker.

Hi Donagh,
Im just getting into investments now so i wouldnt call this expert advise but i can tell you there is no need for the bank at all.
Like anything, the more intermediaries involved, the more expensive it will be.. Just go straight to the broker and setup an account with them.
Davy stockbrokers for example is one off the top of my head.

If this is your very first dip into investments, I think it would make more sense so look at funds rather than equities(stocks). I think
funds are a better way to ease yourself into investments because the risk isnt so great. Funds are made up not only of equities but also more secure investments such as government bonds, property investments (maybe not so secure afterall

)
Not only that, the fund is made up of investments from different countries, different industries...
Instead of you going straight to the broker and purchasing shares in a couple of stocks you probably dont know that much about and having all your eggs in the one basket......

Ok im sure someone is gonna reply and correct everything I said, but hey thats my understanding so far...
no need to say thanks

seligehgit · 23-11-2007 11:17pm

Hi guys,
Looking for advice on the steps,costs associated with trading on line.No idea,any good books?Just got involved in an investment club.
Selig:)

portomar · 24-11-2007 6:36pm

research, research, research. this includes reading the business pages and websites (tradermike.net, uglychart.com, traderfeed.blogspot.com, cnbc.com) daily over a long enough period will have you right up to speed on whats happening. i picked up the base knowledge from places like this but there is certainly quicker ways, but keeping up to date is of paramount importance.

failsafe · 25-11-2007 11:57pm

Hi guys,

I can tell you how I buy stocks and shares if it's of help.

I use an internet stock broker called www.zecco.com, but friends/workmates use www.firstrade.com, www.etrade.com etc. and all are quite similar.

Zecco offer free trades (there is a monthly limit, although I've never hit it so I don't know what it is, after that it's $4.50 per buy/sell, which is a fairly good price).

To set up an account, it's roughly similar to setting up a bank account. Just click "sign up" and follow the steps. You'll need to fill out and sign two forms, and post them along with a photocopy of an id (passport).

When you've got an account set up, you can wire transfer some money accross. This is the only step where I've ever incurred a cost with buying shares. I used to only be able to do it online with AIB, and they charged €15 per transfer, and I used to transfer roughly €1k at a time so it wasn't bad. BOI now offer €1 transfers on 365online so I use them (because I have my current account with them)

Once the money arrives in my Zecco account (usually a week after it leaves my BOI account) it's as simple as picking the stock(s) I want to buy, typing in an amount of shares I would like and clicking buy.

These American online stock brokers generally only let you trade on the american stock exchanges, which is fine by me. If you want to buy shares on the ISEQ (although alot of the big Irish companies are traded on the NASDAQ etc too) you could use an Irish Stock broker, or the one built into aib online. These charge €25 per transaction, and because I have no overwhelming desire to buy from the Irish stock exchange, I'm sticking with my free zecco account!

I'd reccommend anyone who's considering it to take the plunge. It took me a year of procrastinating before I eventually got around to doing it and I wish I'd started sooner!

rubadub · 06-12-2007 4:50pm

Say a companies shares were worth €1, i.e. as "published" on say aertel or online.

I buy €10,000 worth and in 1 years time they are worth €2 "published",

If I cash them in how roughly much profit would I actually make?

I realise my €10,000 cannot get 10,000 shares in the first place. And with buying, taxes, exit fees, selling, annual fee, etc. How much have would I have actually have made on them?

Just want to get a feel for the figure to compare to say putting it in a bank, and how much you REALLY get stung for, like people I know who think you just buy a house, goes up in value 20k, sell it and you make 20k, when you could well have lost money.

portomar · 07-12-2007 3:18pm

rubadub wrote: »

Say a companies shares were worth €1, i.e. as "published" on say aertel or online.

I buy €10,000 worth and in 1 years time they are worth €2 "published",

If I cash them in how roughly much profit would I actually make?

I realise my €10,000 cannot get 10,000 shares in the first place. And with buying, taxes, exit fees, selling, annual fee, etc. How much have would I have actually have made on them?

Just want to get a feel for the figure to compare to say putting it in a bank, and how much you REALLY get stung for, like people I know who think you just buy a house, goes up in value 20k, sell it and you make 20k, when you could well have lost money.

ok rub, if lets say the price of shares you bought doubled and you sold you would make your profit minus transaction fees (€25 each way in and out, €50 in all if with aib as above) minus %20 of the PROFIT to CGT, so lets say you made a €10,000 profit, - 2 grand tax, 50 quid entry and exit = 7,950. needless to say %100 return would be stellar. average return would, over a medium term kick the banks interests ass though

no annual fees with shares, you get a dividend cheque, you're thinking of a fund with a management fee.

highly · 26-12-2007 5:32pm

phone the client support unit (you don't have to be a client, you can just make an enquiry) in davy or go to www.davy.ie and look at the FAQs on that site. the mim commission for their phone account is €100 and for online €25, or €15 depending on how frequently you trade. you can have a nominee account (which is not risky at all and has more benefits - and is diferrent to the type of CREST accounts morrough used) or get a share certificate.

you need to have an idea of what companies you want to invest in - the financials, construction companies, airlines, food companies etc - as they will not give any advice unless you're investing over €100k.

Newcarneeded · 01-01-2008 2:36pm

I have been looking at the AIB online share dealing pricing.

Under ancillary charges there is a fee of €13 to transfer shares out (charge per line of stock). Can anyone explain what this charge is? It is a minimum of €40.

If i wish to sell a €2,000 holding of Bank of ireland shares for example, do they charge me a 1.25% commission on the trade, minimum €32 and an additional €40 as it is a sale? Of is this "transfer" fee a fee if i wanted to transfer the shares out of my online account and get a share certificate or something similar?

what2do · 03-01-2008 1:00pm

Hi - the transfer charge would the cost of moving your shares to another brokers ie from Goodbodys to Davys. Per line is per different holdings of stock you have on your account

Prowetod · 09-01-2008 3:47pm

Hi, just a few questions about investing shares.

1.Is there a minimum amount one has to invest?

2.Say I invested 1k in shares, 1 euro per share, then say the value went up to 2 euro, If I sold would I get all the 2000 - the brokers fees? Is there any other fees I should know about.

3. If I owned shares and wanted to sell them, would I have to wait until others wanted to buy the shares. Like does the process of selling shares take long?

4.Also is there an age limit to investing?

Any help is much appreciated

failsafe · 09-01-2008 4:28pm

1. Nope, but usually you have to buy one whole share in a company, so in theory the minimum amount would be the pice on one share in your desired company + broker fee.

2. That's pretty much it yeah. You could get charged a transfer fee, e.g. I invest in the US markets and AIB/BOI charge me about €15 to get my cash over there. All in all, in that situation, you should be able to walk away with over €1,900 (and then pay CGT, although i'm not too sure about how that works)

3. That's the "theory" of it, but in reality most transactions take split seconds to execute. I know my broker guarantees a transaction time of 4 seconds are less. The cash is then ready for me to withdraw/make another purchase at the start of the next business day.

4. 18 I presume, although i'm not 100% on that one.

Hope that helps!

Prowetod · 09-01-2008 6:33pm

Thanks failsafe.

Just a few more q's

What is the difference between Bid and Ask. Does one mean the cost price and the other the selling price

Bid 1.56
Bid Size 3,000
Ask 1.65
Ask Size 1,725

xebec · 10-01-2008 3:05pm

The Bid price is the maximum that somebody has made it known they are willing to buy for, the size is the number of shares they are willing to purchase at that price.

The Ask price is the minimum price that somebody is willing to sell for, and similarly the size is the number of shares.

The difference between the bid and the ask is known as the spread.

rubadub · 22-01-2008 1:20am

portomar wrote: »

ok rub, if lets say the price of shares you bought doubled and you sold you would make your profit minus transaction fees (€25 each way in and out, €50 in all if with aib as above) minus %20 of the PROFIT to CGT, so lets say you made a €10,000 profit, - 2 grand tax, 50 quid entry and exit = 7,950. needless to say %100 return would be stellar. average return would, over a medium term kick the banks interests ass though

no annual fees with shares, you get a dividend cheque, you're thinking of a fund with a management fee.

Cheers. i forgot I even posted here. Just back looking with the current share movements. I have some in AIB am unsure whether to sell or not. I thought there would be gov taxes too, no? I heard a mate saying something about buying and selling shares in a short enough time, so you didnt have to pay tax (or something like that)

I also do have a managment fund, they are nice and upfront about the actual value (if I walked into the bank I would walk out the €x after tax & fees)

Gautama · 27-01-2008 1:10am

I used to buy shares via a Goodbody Online account, but moved to ShareWatch when the former downgraded their service.
Haven't bought anything with ShareWatch (bear market and all that) so I don't really know what their service is like.

I do recall that the Goodbody service has a tutorial, which allows you try out how the online account works, without actually buying/selling any shares.
Give you a feel for how it all works.

portomar · 27-01-2008 12:19pm

i think there used to be stamp duty on buying shares but isnt anymore, cud be wrong on that one. In relation to cgt, or capital gains tax, you pay 20% of the profit on your buying and selling of the shares.you download the form from revenue and pay direct to them.if u are looking to make money buying and selling u could look into spreadbetting.try deltaindex.com for info.

runforcover · 29-03-2008 9:38pm

I'm new to this game but want to invest. I have been looking at INM over the last few months and am intrested in buying shares as i think they are now good value (+ I think D.O.B is a sherud fello and in 5/6 months prices will go up).I dont have much money (1K) but i want to start off low and build it up (hopefully).
According to RTE website the share price was €3+ in oct 07, €1.95 today and on way up.

My questions are
1-- if share price is 1.95 and i want 2 spend 1K, would i get 512 shares for the 1k , if so how much would the extras in buying shares come to.

2-- Would i have a physical share in the company (e.g. the only way i could lose my investment/stake in the company is if it were 2 go bust)

3-- What are the diffrent types of share you can buy, and could you give me a description of how they work , riskyness, profitability etc

could yous plz answer my Q's and if u are only able 2 ans 1Q i dont mind all thought and explinations are welcome
thanks
RUN

FA · 15-05-2008 9:41pm

It depends what shares and and what market you what to buy them on. Most of the large brokers Davy/Merrion/Goodbody will do it.

I trade through a sub broker - themortgagemakers.ie. served me well so far

How do you buy shares?

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