New investor

by Jonas JG
(Cheshire)

Hi Mike,
I am looking to start investing in Dividends. I am looking at various brokers and have narrowed it down to HL, Robinhodd and Webull. Which do you recommend for a novice Uk investor looking at longterm investment?

Also which dividend yielding stocks would you recommend to start investing in, is 1-2000 pounds enough to start?

Finally if I'm adding 100 pounds a month to my investment in stocks, can I only buy stocks less than 100 pounds?

Thank you

Comments for New investor

Average Rating starstarstarstarstar

Click here to add your own comments

May 24, 2020
Rating
starstarstarstarstar 		Investing for beginners
by: Mike

Hi Jonas,

A range of questions there:

1) Of the brokers you've mentioned, I'm only familiar with HL. Clearly HL are not the cheapest but they do have a strong reputation and are so big that are likely to be closely scrutinized by the regulator. Broker safety is paramount and therefore, I would stick to well known brokers and possibly try to diversify amongst a few of these well known brokers if your portfolio starts to get very large.

2) We will not give individual stock tips. Why? Because we will get some right and some wrong and we're not in the business to give those tips. We have laid out our principals across the website but these can still go wrong. Therefore, we'd recommend a diversified group of cash generating assets that you can understand. If you don't have time or expertise then there is nothing wrong with investing in a low cost index tracker but the key is to keep doing it and not be put off by very large market fluctuations. The psychology of investing is very important and you need to have a very long time horizon and expect huge volatility in market levels.

3) Be careful with costs here. If you invest just £200 and it costs you £10 to buy the share, then you are eating up 5% straight away. My personal preference is to at least invest £1000 a time unless you can find a cheap way of doing smaller amounts. Sometimes, regular savers can offer investing for as little as £1 a month and if you can find something like that, then it is suitable to far smaller amounts. Funds can also be cheaper for smaller amounts and give you adequate diversity.

Mike

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask Mike a question.

Coping With a Stock Market Crash. 10 Tips to Save You a Fortune
BY MIKE ROBERTS

How to Value Stocks Using Discounted Cash Flow 
BY MIKE ROBERTS

Stockopedia - Just How Good is This Stock Research Tool?
BY WILLIAM JOHN

Mike - six-figure dividend earner

Got a BURNING dividend question for 6-figure dividend earner Mike Roberts?

What is it that you really want to know about investing?
Submit a query and Mike will write a page in response.

PLEASE NOTE - in accordance with our terms of use, responses are meant for education / interest only. We do not give specific financial advice.

[ ? ]

Author Information (optional)

To receive credit as the author, enter your information below.

(first or full name)

(e.g., City, State, Country)

Submit Your Contribution

  •  submission guidelines.


(You can preview and edit on the next page)

What Other Visitors Have Said

Click below to see contributions from other visitors to this page...

Retirement Calc dividend stocks 
If your retirement income is based on dividends and not selling stock, retirement calculators with sequence of returns built in would not model the income …

Click here to write your own.