Money: Energy Shares/ It's quick and easy when you know how
From stockbrokers to share shops, Stephen Spurdon offers a novice's guide to the best deals
Wednesday 12 June 1996
To carry out execution-only deals, ie where the share shopcarries out orders and offers no advice, there is a minimum charge of between pounds 10 and pounds 30. The lowest charges are often found at banks and building societies, with the Skipton being one of the cheapest at a minimum of pounds 9 for purchases.
Execution-only dealing by telephone is offered by the market leader, ShareLink, in two forms: the MarketMaster nominee account and the ShareLink Plus certificated dealing service. MarketMaster costs pounds 6 a quarter and includes a nominee service - where your share certificates are held by the broker - annual report and accounts, regular statements and a consolidated tax certificate. The minimum charge is pounds 10 on a sliding scale from 1 per cent for the first pounds 2,500 you invest. ShareLink Plus has a minimum charge of pounds 20 on a sliding scale starting at 1.5 per cent on the first pounds 2,500. With this service you keep your own share certificates.
Advisory services mean that deals through your stockbroker are based on their advice on the outlook for the stock and its suitability for you. Barclays Stockbrokers Advisory Service offers unlimited telephone access to an account handler for guidance. Commission starts at 1.35 per cent on the first pounds 10,000 plus a custody charge of pounds 1 per stock, with a minimum quarterly cost of pounds 25. For an extra pounds 30 a year you can have an annual review of your portfolio, or a half-yearly review for pounds 25.
Justin Urquhart-Stewart of Barclays Stockbrokers says they pay dividends immediately to clients' nominated bank accounts. Some brokers retain the dividends and pay them over quarterly. With discretionary portfolio management costs are a little higher and minimum investment levels usually start at around pounds 100,000. Annual fees will be around 0.75 per cent on a pounds 100,000 portfolio with a minimum charge of between pounds 250 and pounds 500 while dealing commissions will be on a sliding scale from around 1.5 to 0.1 per cent. Some private client brokers such as Gerrard Vivian Gray offer a fee-only service, where commission charged during the year is deducted from the annual fee.
A recent entrant into private client portfolio management is Premier Investment Management. It is unusual in offering a bespoke service to investors with sums starting at just pounds 50,000. The annual management fee is 1 per cent on the first pounds 500,000, with a minimum commission of pounds 35 on a scale of 1.5 per cent for the first pounds 15,000 and 0.5 per cent thereafter.
Another cost to bear in mind when dealing with stockbrokers is that all fees are subject to 17.5 per cent VAT and Stamp Duty is levied at 0.5 per cent on the value of all purchases.
Put your energy shares into a Personal Equity Plan (PEP) and you can enjoy tax free gains and income. You have two choices: a general PEP in which each adult can put up to pounds 6,000 a year, or a single company PEP into which each adult can invest an additional pounds 3,000 a year.
The stockbrokers Killik and Co offer an Unrestricted PEP, which has no initial or annual fees. Commission is on a sliding scale starting at 1.65 per cent for the first pounds 10,000 with a minimum commission of pounds 40 per deal. There is also a custody charge of pounds 7.50 for handling each dividend, plus pounds 15 a year if you use Killik's standard reporting service.
A third option is a corporate PEP. These are offered by many quoted companies, allowing you to invest directly in their stock only. These can be either single plans (up to pounds 3,000) or general ones (up to pounds 6,000). They can be attractive because of their low charging structure. Many are administered by a third party: for instance, Bradford & Bingley's single company/corporate PEPs have no initial charge and an annual management charge of 0.5 per cent, plus dealing charges of 0.25 per cent to buy or sell shares.
If you are planning to buy British Energy shares as a short-term bet, look carefully at the dealing arrangements offered by the various share shops. Some will not accept "sell" orders until you have your share certificates, but others, such as Wise Speake, will sell by phone immediately on allocation, but only for its own clients.
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
12 December 2014 06:17 PM
The sun is shining on people who struggle to heat their homes and it’s thanks to a sense of community
12 December 2014 06:23 PM
Struggling people need help, understanding and forbearance, not ill-thought-out pronouncements
12 December 2014 06:20 PM
You won’t find me bashing the banks for the sake of it, but sadly they’ve deserved all the criticism that’s been sent their way in recent years
12 December 2014 06:02 PM
Gillian Guy, chief executive of Citizens Advice: 'The injustice of shock bills for crime victims must end. The Government must stand up for consumers and cap bills from lost or stolen phones at £50'
12 December 2014 05:57 PM
Stirring the pot: the Indian Government’s reforms of labour rules offer hope of a brighter future for businesses
12 December 2014 05:53 PM
Knight of the road, look out: you’ve got a new rival
06 December 2014 12:00 AM
Simon Read: The Chancellor has stamped on an unfair tax. But will the delight of homebuyers mean misery for others?
06 December 2014 12:00 AM
Were you surprised by the sudden reform of the rules for stamp duty on property purchases? I certainly was. I've been calling for ages for a change in the tax to make it more fair – and, at a stroke, George Osborne did just that on Wednesday in his Autumn Statement.
29 November 2014 12:00 AM
21 November 2014 04:33 PM
With some people are weighing up whether they will be better off cashing in their final salary pension next spring, Samantha Downes asks the experts
21 November 2014 06:44 PM
Your children have it all, your partner gets nothing
21 November 2014 07:12 PM
Halfords is gearing up for Christmas
21 November 2014 06:54 PM
Fields of dreams: venture capital trusts help young companies to grow, potentially delivering big returns for investors
21 November 2014 06:32 PM
There are many reasons for people to turn to high-cost credit, but being turned down by their banks for a loan is one
21 November 2014 07:15 PM
The £150 incentive from Yorkshire and Clydesdale runs from now until 28 February next year, but you must use the official Current Account Switching Service (CASS) and close your existing account to qualify
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
Day In a Page
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens