How old do you have to be to invest in the london stock exchange?
December 16, 2008 3:46am CST
Im 16, i want to invest in some shares as i have saved £1000, how old do i need to be, and do you know any decent companies to use to buy my shares that can help me build a good portfolio. regards
16 Dec 08
You have to be 18 to own shares in the UK. It is normally a waste of money to pay other people to invest your shares for you. They will charge 5% typically and 80% of the managed funds fail to out-perform the Ft-SE. Your best bet when starting up is to buy tracker funds - choose an index - S&P 500 or FT-SE-100 and buy I-shares in that through your own self-select ISA. You can invest tax free up to £7200 (UK). You can manage it on line and there are low charges for buying and selling as well as low annual fees. Better than holding the share certificates yourself. Also the index will not go bust!When you have a lot more money and more experience you can invest in individual shares. Always remember that investing on the stock markets should only be with money you will not need for 5+ years as it can take a long time to make any real gains!