Applying for an account to trade physical
shares is easy and you don't need to have
had any previous trading experience.
Applying for an account with one of the more established
traditional stockbrokers is still likely to be a
paper based application process , whereas newer firms are choosing
to provide the option of online application forms. Clearly any
online application process is going to be faster than going the
postal route and the information required when completing both
of these forms are likely to be very similar.
Tip: If you need to
place a trade quickly opt for a company offering an online
application process as many of these firms will often be able to
get your account open within a couple of hours
Know your client
Most Stock Brokers employ the services of a third party credit
checking company like Experian or Equifax to try and positively
identify you when you are making your application. In some
circumstances this isn't possible so you may be asked to provide
copies of your passport, driving licence or recent utility bill in
order for the firm to successfully open your trading account.
Because you aren't trading leveraged products when dealing in
physical shares the amount of information required by the Stock
Broker is likely to be less than that required by a Derivative
Broker or Market Maker and the fact that you have never traded
before will not have a bearing on your ability to get an
account.
Regulation
That doesn't mean that the FSA takes this type of dealing any
less seriously than the other methods of trading, you can be
re-assured that the company you are trading with is being closely
monitored and regulated and that your money is kept in fully
segregated accounts.
No leverage but piece of mind
When trading shares through a broker the amount you deposit with
them will determine how much you can trade. As mentioned earlier
there is no leverage when trading physical shares so if you deposit
£5,000 you will be able to buy a maximum of £5,000 of stock and
your losses are limited to this amount. If the price of
the share you are trading goes to zero you lose the
£5,000 you have invested. Most stock brokers will accept payment by
debit card or bank transfer and in most cases it is possible to
open, fund and begin share trading within a
few hours.
Further resources on Share trading
Comparing brokers
Our comparison table below looks at a few of the criteria that
we believe are important to consider when choosing which stock
broker to use. If you would like us to find out any further
information about a broker listed here, or perhaps one that isn't,
please get in touch and we will be delighted to assist you.
Start comparingStock brokers
Thank you
We have emailed you these comparison results.
Closing this window in seconds...