Listen, real Kings & Queens own companies! That why I, as a mini-King have decided it's time to start investing in stocks and shares. A share is pretty much what it says on the tin, a share of a company. I'm an owner baby. So every time you buy a new iPhone, new pair of Nike trainers or jump in your BMW...you're paying me & I love it.
You can get paid as well, all you need to do is start investing in stocks and shares & i'm going to quickly show you how!
Is Investing in Stocks & Shares Easy?
Yes, investing in stocks & shares is 10x easier than most people think! I usually buy my stocks & shares online and you can to. You can do this using websites called trading platforms, they are pretty cheap & very easy to use.
Getting started is a two step process, first you’ve got to pick what platform you’re going to use to buy your shares from, i'll give you some of my recommendations in a little bit. Then you’ve just got to choose the investments you want to buy.
The way I think about buying investments is, "If I consume it, I should own it". So if you love your Apple iPhone and notice that everyone loves it as well, think about investing in Apple. Become an owner rather than just a consumer.
Keep in mind that making an investment is usually not free, but this is changing, the platform you use may charge you a small fee for each investment (trade) that you make.
Once you’ve picked your platform, make sure you opened up a Stocks & Shares ISA on the trading platform. With the £20,000 allowance the ISA gives you, you won’t have to pay tax on profits you make.
What Trading Platform Should You Use to Invest in Stocks and Shares?
Ahh there so many choices, but only a few good ones that you should use to make your first investment. The easiest way to decide is to think about what you want to invest in. I've grouped some recommendations by investment type below to make your life that little bit easier.
Investment & Trading Apps
These are mobile apps that make it soooooo easy to invest your money & they usually don't charge a fee. But...remember nothing is ever free, they usually add a small hidden fee to the price of the thing (asset) that you want to invest in. This one way that free investing apps make money.
My Recommendation: Freetrade: Stock trading (zero commission) & investment app
Traditional Trading Platforms – Shares, Bonds & Index Funds
These are traditional investment platforms that let you research & invest in the best shares, bonds and index funds.
My Recommendation: Hargreaves Lansdown
These allow you to invest in property, you can either invest in a share of a property or lend money towards buying a properly (a loan) & receive monthly interest payments.
My Recommendation: British Pearl
Robo-Investors are a really good choice for people new to investing. They make everything really simple. You just choose how much you would like to invest & how much risk you would like them to take, we’re talking low, medium or high. They then take care of the rest for you.
My Recommendation: Nutmeg
These companies allow you to loan your money to other people for a pretty good interest rates.
My Recommendation: RateSetter
Pretty much like peer-to peer lending, but this time you are lending your money to businesses!
My Recommendation: Funding Circle