If you are a new investor, or looking to try your skills and begin in stock market trading you probably already are aware that share trading has historically been a decent sector to delve in if you are in it for the long term.
As with any form of investing there are fees as well as options available to the trader.
This is an article which will discuss the trading of shares on your own behalf with the use of phone advisory share dealing as well as some of the fees to be aware of.
Advisory share dealing typically involves the investor creating an account with the bank or stock broker.
The investor wants to be actively involved.
Most stockbroker firms will often make use of two types of this advisory share trading; one which is usually called advisory managed and the other advisory dealing.
Please note that at different banks and brokerage firms, these may be termed something else so it is best to find out, however, they will basically mean the same thing.
You should also be aware that advisory share trading is more expensive than that of the execution only methods.
Commonly the advisory managed by phone is when the investor wants to be in control and active in their dealings, they make their own decisions and take on their own risks pertaining to their portfolio.
They are usually assigned an advisor who will discuss with them their recommendations based upon their portfolio and investment goals.
The advisory dealing by phone is similar to the managed in which the investor will get the advice from their assigned advisor, however, the advisor can act on the investors behalf buying and selling shares.
One should be aware that there is a commission fee which will be charged by the stock broker.
Depending on the type of dealing you are doing (advisory or execution only).
It is best to fully understand the costs involved prior.
The share dealing brokerage firm may also have numerous other fees which you also want to check on.
These can be fees such as administrative fees, overdue accounts, and early withdrawal fees.
You must also ensure that you understand all taxes and levies which may be added onto the share trading costs up front.
Generally the stock brokerage firm will include this in your share deal costs.
Usually it is a 0.
5% stamp duty tax which is assessed to the value of purchase.