[JD6]

A friend mentioned that their 9 year old wants to invest £100 in the stock market. The difficulty is not to have this sum eaten up in fees. I imagine he would just buy one share type and hold it. Perhaps adding a little more cash as he gets it.

I don’t think it makes much sense as an investment at that level, as the dealing fee is likely to cost a year of market performance, but I think it’s more for experience than pure investment.

Anyone recommend a kids share account with no fees for keeping the account open, and low cost dealing charges?

[InquisitiveA]

Does the friend specifically want the 9 year old to buy a share / shares? Not some sort of collective investment?

I would suggest the friend looks into investment funds where the investment can be diversified into lots of different shares, and into Junior ISAs in which to hold the fund. You can open a Junior ISA with Hargreaves Lansdown with £100 for example (other providers are available).

[JD6]

Originally Posted by InquisitiveA

Does the friend specifically want the 9 year old to buy a share / shares? Not some sort of collective investment?

I would suggest the friend looks into investment funds where the investment can be diversified into lots of different shares, and into Junior ISAs in which to hold the fund. You can open a Junior ISA with Hargreaves Lansdown with £100 for example (other providers are available).

Not sure if he wants to pick a stock or would be happy with a fund. I suspect that he might prefer the excitement of one stock. I’ll take a look at HL, in particular their fee structure. Thanks.

[EvilDrPorkChop]

I use Halifax Share Dealing. No monthly fees, you just pay per trade. Fee of £12.95, and they do dealing days where this drops to £3.95. Not sure what age you have to be or whether they do a junior account but i've been very impressed with them over the years.

[inkiboo]

Junior Stocks and Shares ISA. We use Alliance Trust but many out there.

[JD6]

Originally Posted by inkiboo

Junior Stocks and Shares ISA. We use Alliance Trust but many out there.

If I have read their rules correctly, it seems to have a £40 a year charge for the Junior ISA account, which wouldn’t work for a child with £100 to invest. Seems to have a reasonable charge structure for larger accounts though. Thanks

[inkiboo]

Originally Posted by JD6

If I have read their rules correctly, it seems to have a £40 a year charge for the Junior ISA account, which wouldn’t work for a child with £100 to invest. Seems to have a reasonable charge structure for larger accounts though. Thanks

Let me go and double check what we are paying because I don't think there is a £40 to the two for our girls.

[JD6]

Originally Posted by inkiboo

Let me go and double check what we are paying because I don't think there is a £40 to the two for our girls.

It was page 4 of this which quotes £3.33pm (£40 a year) for a Junior ISA:

http://www.alliancetrustsavings.co.u...rges-guide.pdf

[Scoobyd]

Hargreaves Lansdown are pretty expensive as far as D2C platforms go. Consider the AJ Bell and Vanguard platforms for lower cost ways to invest. Though from memory their minimum contribution may be £500, not £100. As already mentioned I’d be going for a collective fund such as Vanguard Lifestrategy or similar rather than individual shares.

[JD6]

Originally Posted by Scoobyd

Hargreaves Lansdown are pretty expensive as far as D2C platforms go. Consider the AJ Bell and Vanguard platforms for lower cost ways to invest. Though from memory their minimum contribution may be £500, not £100. As already mentioned I’d be going for a collective fund such as Vanguard Lifestrategy or similar rather than individual shares.

In this particular situation - a child with £100 to invest, HL’s Junior ISA sounds pretty good value to me. 0.45% annual fee (45p a year at the start), and a £5.95 dealing fee. Clearly he is going to have to buy and hold long term to avoid the dealing fee taking away much of the value.

I agree that the sensible investment approach would be a fund. I can see why an individual stock might appeal more though.

[aquazi]

I just stick our kids money into a junior stocks and shares isa which i manage.

using XO.com (which is run by Jarvis) its only £5.95 (or something) per trade.....

Over 5 years for my sons FTSE250 tracker its on something like a 35% yield - even after that thing called Brexit!

[inkiboo]

Originally Posted by JD6

It was page 4 of this which quotes £3.33pm (£40 a year) for a Junior ISA:

http://www.alliancetrustsavings.co.u...rges-guide.pdf

Checked the account, we signed up in 2013 and the fees have been waived ever since.