Online Share Dealing

This is simply a way to buy and sell shares, funds and other investments using a stock broker's website or an internet share dealing service from a bank, building society or financial adviser.  Online share dealing is generally far cheaper than using a traditional stock broker service.

Costs can be as cheap as £6 - £12 per trade, plus VAT. However, not all brokers charge a flat fee – some take a percentage of the amount invested – which could prove costly for major investors.  Do check what else you will be charged for. There is often an administration fee and some levy a quarterly or annual management fee.  Frequent traders or those who are investing large amounts will often be charged less, while those who rarely buy and sell investments may find there is an inactivity fee.

Also, since dividends are paid into your account with the broker, you will usually have a handling fee deducted before you receive them.  If you're investing in a tax-free stocks and shares Isa or self-invested personal pension (Sipp), check if there's a charge for this service too.

Other services

Investing can be a tricky business and the dealing service you choose can make a difference.

Before going ahead see what services it offers such as live prices, research on different funds and their major holdings and company reports and directors' dealings for stocks and shares.  The range of funds, bonds, ETFs, ETCs and other more complex investments on offer is also important if you intend to stray into more esoteric areas.

For those who don't want to make their own decisions, the broker may offer its own managed fund ranked according to the riskiness of the shares it holds. These are often named accordingly from cautious to adventurous. Most dealers will offer advice if you don't want to make your own investment decisions though you obviously have to pay for this.