The easiest way to buy shares is through a stockbroker. They will charge you a fee each time you buy or sell shares, but they do all the hard work. If you don’t want to pay fees, you can use an online share dealing service instead, although this can be more complicated and less secure than using a broker.
To buy shares, you will need to go through an intermediary. The intermediary is the person who buys and sells stocks on your behalf, charges a fee for this service, and keeps track of all your transactions. They can be a stockbroker, banks or online broker.
- Internet share dealing, where you buy and sell shares online, is the cheapest and easiest way to trade shares. If you’re a first-time investor or just want to buy a few stocks, this might be all you need.
- Share brokers offer the same services as banks but charge more for them because they don’t have any branches or other infrastructure costs. They’re good if you want a personal relationship with your broker and are willing to pay more for it.
- Banks offer similar services but aren’t as geared up for individual investors as share brokers or online dealers are (though some do specialise). They can sometimes push products from their own investment arms that aren’t necessarily in your best interests—talk to your bank before doing business with them so that you know exactly what’s on offer and what their fees are going to be.
