Low Cost Share Dealing, Cheapest, Internet, Online, UK

Internet share dealing has really taken off over the last 5 years as far as retail customers are concerned. Easy and low cost access to high speed internet connections has made the process of transacting shares over the internet much more efficient and user friendly.


Internet share dealing services are also fairly comprehensive analytical tools today which require fairly high speed connections to function on a timely basis.

Our tips for anyone looking to start an internet share dealing account:

a) Find an internet share dealing service which offers competitive transaction costs.
b) Value the quality of the intenet analytical tools the site offers. These really are important and we will consider these shortly.
c) Take a moment before even setting up the account to consider what your risk profile is likely to be with regards to internet share dealing. Corporate equity has a higher risk/return profile than bonds and savings account money deposit securities. We will also consider the steps you should go through to determine your personal risk profile regarding internet share dealing shortly.


Let’s discuss the importance of the analytical tools offered by internet share dealing services. But first let’s consider what analysis actually is. There are two broad categories of analysis to consider:

1) Fundamental analysis – This type of share dealing analysis involves examining the underlying fundamentals of the company as to determine the fair market value of the equity in question. This may involve considering earnings multiples of comparable listed companies so as to make an assessment as to whether the company you are looking at is relatively over or undervalued relative to other shares in the sector. It may also involve considering a discounted cash flow analysis if forecast growth rates in the various cash flow components are available either from press releases or industry reports.

2) Technical analysis – Technical analysts believe that stock prices follow a time series process that can be understood i.e. the stochastic process is not simply a random walk or random walk with drift. They consider the trend in share prices are mean reverting and are covariance stationary. Simply put, they think they can predict levels of internet share prices simply by looking at where the share price was at a previous point in time. Candle stick diagrams are an example of simplified technical analysis that anyone can perform.

Now the most important piece of advice we have regarding internet share dealing for the average new retail participant. Consider the RISKS. Do this by considering your ABILITY and WILLINGNESS to bear financial risk.

a) Consider how close you are to retirement and consequently if you were to lose a significant amount of money, how much time do you have to earn these funds back. This is an ability point.
b) People have different attitudes towards risk, so two people of the same age in identical financial situations will differ to a greater or lesser extent in the amount of risk they are willing to accept. Where do you fit in?
c) Do you have any near term cash requirements? You may need to fund a college education or pay off the remaining capital outstanding on your mortgage. Your internet share dealing practices must consider your cash flow requirements.