Buy and hold for long term

[Karamat]

Hi there just quick question i am about to buy shares i know which company's i am investing in.

I am investing for the first time don't want to make mistake by selecting wrong button if anyone can guide me when i am on the BUY AND SELL shares page simply what button should i use for buying and hold shares for long time? Thankyou

  

[Karamat]

6 hours ago, TrendFollower said:

@Karamat,

It is good that you know which companies shares you are about to invest in. 

It is also good that you are investing before you are trading. Do you have an investment plan and investment strategy? If not then I would strongly urge you to think about having one.

I do not use IG's shares account as my shares are held with Hargreaves Lansdown. However, I assume once you have bought (BUY), you simply do nothing. This would meaning you are holding the shares as long as you do not (SELL). There would be no 'button' for holding. You simply buy and then do not sell which is the equivalent of holding. 

Please do consider looking into and researching in regards to a 'Investment Plan' and 'Investment Strategy'.  

Have a look at the following from IG:

How to start investing: what are the best ways to invest money?

https://www.ig.com/uk/investments/news/investing/2019/06/19/how-to-start-investing--what-are-the-best-ways-to-invest-money-

Investment strategies: how to research shares

https://www.ig.com/uk/investments/education/2019/04/03/investment-strategies--how-to-research-shares

Hi, Thank you so much for your help and sending me links about investment plan and strategy you are really helpful

Thanks again.

 

[Kilroywosear]

On 19/04/2020 at 09:21, Karamat said:

Hi there just quick question i am about to buy shares i know which company's i am investing in.

I am investing for the first time don't want to make mistake by selecting wrong button if anyone can guide me when i am on the BUY AND SELL shares page simply what button should i use for buying and hold shares for long time? Thankyou

  

Hello 

I only just read this so may be you have this sorted. However when you use the trade option you are presented with BUY and SELL boxes which are actually select buttons. 

I am puzzled myself about some features on IG such as their coloured circles. It would be helpful if IG had a FAQ to solve these issues as it is in their interests that you trade. 

I would like to see wben forms being able to be completed online as IG know your details although you can only sign digitally. That's more of an issue with the US Securities oversight though. 

I have found customer support very helpful though. 

Any way don't worry about clicking the wrong box you will get a preview for you to double check your order. 

Then the order sits waiting either for your price to be accepted or an available agent. You can check this under the trades > options menu items. 

 

[Caseynotes]

3 minutes ago, Kilroywosear said:

I would like to see wben forms being able to be completed online as IG know your details although you can only sign digitally. That's more of an issue with the US Securities oversight though. 

Hi, the W8-BEN is available to be filled out online from your My IG web page > Settings > Trade US markets.

Which 'coloured circles' did you mean?

[JPoynton]

But if you are 'holding' open positions, don't you get hit with the Quarterly Fee (AUD$50 for me) which is a major consideration I wish that I had known about 😒

[Karamat]

11 hours ago, JPoynton said:

But if you are 'holding' open positions, don't you get hit with the Quarterly Fee (AUD$50 for me) which is a major consideration I wish that I had known about 😒

Yes you are right and that's about 27.55 euros for me its too much im also considering different options. I might not go with this option. 

[Fletch]

Bear in mind that the quarterly fee is waived if you make three trades during the quarter. 

[JPoynton]

9 hours ago, Fletch said:

Bear in mind that the quarterly fee is waived if you make three trades during the quarter. 

Which is fine ... but in the current economic climate, with many people off work due to Covid-19, 3 trades might not be feasible - I had hoped that IG may waive this condition until things improve ... but apparently not 

[JPoynton]

@CharlotteIG Can you advise if IG is considering any reduction in fees due to COVID-19

[Caseynotes]

9 hours ago, JPoynton said:

@CharlotteIG Can you advise if IG is considering any reduction in fees due to COVID-19

 

4 hours ago, TrendFollower said:

@JPoynton,

May I ask why you think IG would consider offering any reduction in fees due to COVID-19? I am not saying they should or should not. I am just intrigued. 

Trading or using IG's platform is a choice which is not forced upon the client/customer. If IG's clients/customers are struggling financially, have lost their jobs or their incomes have declined then they really should not be trading in my view unless they are 'experienced / professional / consistently profitable' traders. Those people would not necessarily require a reduction in fees.

Hi, @JPoynton, a perfectly reasonable question and no reason why you shouldn't ask.

[JPoynton]

2 hours ago, TrendFollower said:

@JPoynton,

...If IG's clients/customers are struggling financially, have lost their jobs or their incomes have declined then they really should not be trading ...

Precisely my point
- Due to a complete stop in income I was only able to make 2 trades for the 1st Qtr of this year - I am holding 3 x positions in ETFs that are long-term holds - so was hit with the $50 fee
- I have no doubt that currently I won't be adding these positions is this Qtr so will incur the fee again

I cannot see how you feel this is warranted - I am being charged for NOT trading which is what you are saying I should not be doing!

[dmedin]

16 hours ago, Fletch said:

Bear in mind that the quarterly fee is waived if you make three trades during the quarter. 

The whole point of buy and hold is that you do not trade frequently (for some people three times a quarter is frequent) - taking fees off you if you don't trade frequently isn't acceptable - one of the reasons why I don't use share dealing

 

Edited May 6, 2020 by dmedin

[Caseynotes]

10 minutes ago, TrendFollower said:

@JPoynton,

I did not state it was not a reasonable question, I was merely intrigued by your question. I also did not state that it should not be asked. If I have inferred that please do tell me where. 

I have shared live trades here on the IG Community and yes one was profitable and the other was a loss but share I did. I am not sure how many others have shared live trades on IG Community. 

I do not appreciate lies being spread as this can influence others on the IG Community. I am an investor first and trader second. My core foundation is as an investor. I supplement this with trading. 

Lies, no it's all on the forum for anyone to read. 

Early on you used to tell us about your commodity trading which was great fun until some spoil sport pointed out you clearly didn't understand how the platform worked and couldn't have been making any trades at all so that put a stop to that.

We remember well the 2 trades you shared live when at the end of December 2018 you jumped in FOMO no plan nothing just in time for price to suddenly reverse and you had to drag yourself out in a panic, great fun. An old trader read this and specifically joined the forum just to warn others not to ever do what you had just done, oh how we laughed. 

I think your main actions here though are of someone who perpetually makes formal complaints against other forum users. I lost count of the number of complaints you made against me to JamesIG and you've already made at least 2 that I know of to CharlotteIG and she's only been here a few months. 

Carry on.

[Fletch]

44 minutes ago, dmedin said:

The whole point of buy and hold is that you do not trade frequently (for some people three times a quarter is frequent) - taking fees off you if you don't trade frequently isn't acceptable - one of the reasons why I don't use share dealing

 

Whether you trade frequently or not as an investor depends largely on your strategy. It may be true that you don't trade frequently, but it 'aint necessarily true. I largely adopt a drip strategy to investment (and especially so at the moment). However, irrespective of that, you'll find pretty much all brokers will charge some form of admin fee on top of trade commissions. Others will charge an inactivity fee. Some brokers will even charge both (and considerably more than IG charge). I'm not against people asking for the fees to be reduced, but ultimately when it comes to fees, IG are already at the cheaper end of the market. As to whether or not fees should be charged if you are not trading - you can make that argument, but equally IG can argue that they are giving you an ongoing service by holding your shares and administering dividend payments.

[dmedin]

7 minutes ago, Fletch said:

IG are already at the cheaper end of the market

Yikes, they've all had it too easy for too long.  The computational/resource/administrative requirements of dealing with an individual's shares, even if they have thousands of them, is infinitesimal in the age of big data.

[Fletch]

1 minute ago, dmedin said:

Yikes, they've all had it too easy for too long.  The computational/resource/administrative requirements of dealing with an individual's shares, even if they have thousands of them, is infinitesimal in the age of big data.

Yeh, especially when you're not the one that's paying for it. 

[dmedin]

1 minute ago, Fletch said:

Yeh, especially when you're not the one that's paying for it. 

Lol no chance, it's literally pennies for gigabytes at scale.

£50 a year for admin charges tops, unless you're a 'big boy'.

[Fletch]

You think it's only about data? What is that data stored on? What does it cost to run? What does it cost to maintain? What does it cost to house securely? What does it cost to meet the regulations surrounding holding that data? What does it cost to employ people to answer queries relating to that data? The list goes on...

Yet, clearly, it can be done more cheaply as 'free' trading services wouldn't exist if it couldn't. But those services are usually only free if you trade within the set limitations. Any extras will come at a cost. Ultimately, you choose your model and you pay your price. The competition isn't currently strong enough to stop IG shrugging its cash-laden shoulders and telling you to go elsewhere if you think the grass is greener.

[dmedin]

21 minutes ago, Fletch said:

You think it's only about data? What is that data stored on? What does it cost to run? What does it cost to maintain? What does it cost to house securely? What does it cost to meet the regulations surrounding holding that data? What does it cost to employ people to answer queries relating to that data? The list goes on...

 

 

And it's my responsibility to feed and clothe all these fat-cat intermediaries, why? 

I don't even have the right to vote at AGMs and IG can force me to sell my shares.  So I don't really 'own' them.  Ripoff!

[Fletch]

Not really sure that the majority of people within that chain could in any way be described as 'fat cats', but irrespective, no it's not your responsibility. That's exactly it. If you don't like it, go find somewhere whose service level matches the price you are willing to pay for it. I would anticipate that's what everybody would (or should) do whenever they entrust their money with a broker.

[dmedin]

They do seem to be the cheapest according to this comparison: https://uk.stockbrokers.com/compare

£96 a year - going to cut into your tiny drip of dividends  

[dmedin]

1 minute ago, Fletch said:

Not really sure that the majority of people within that chain could in any way be described as 'fat cats',

 

 

Charging exorbitant fees is how people in the FS industry make their money, bub.

[Fletch]

13 minutes ago, dmedin said:

They do seem to be the cheapest according to this comparison: https://uk.stockbrokers.com/compare

£96 a year - going to cut into your tiny drip of dividends  

Unfortunately, I suspect a 'tiny drip' of dividends will be somewhat of an exaggeration this year. Covid 19 has been an excellent excuse for many (though not all) of the real 'fat cats' to wriggle out of paying anything back. As to being the cheapest, yes I already know - I reviewed providers before joining. IG probably makes the bulk of its money from failed CFD traders rather than share dealing accounts.

[CharlotteIG]

9 hours ago, JPoynton said:

@CharlotteIG Can you advise if IG is considering any reduction in fees due to COVID-19

@JPoynton 

thanks for your post. There have not been talks of reducing the fees however I have passed this on as feedback as someone else mentioned it before. Unfortunately, these aren't decisions I can make but if this is passed on my myself and the client facing team it will be discussed. 

If I hear of any news on this I will let you know. 

All the best