Minimum consideration

[Vxross]

Hi all,

 

Sorry for the newbie question - i’ve tried buying £50 shares in a particular company, only to get a message saying it’s below the minimum consideration of £90 or something?

 

What does this mean please?

 

Any help would be much appreciated!

 

Ross

[JamesIG]

Hi - so there are minimum levels which you can invest. What specifically are you looking at trading on and via which account type?

 

For example if this is a stockbroking deal then you'd be looking at a minimum of £8 to buy (and then £8 to sell) so therefore at a total cost of £16, you'd need a £50 investment to increase by at least 32% to even break even. The restrictions are there to stop this happening. 

 

 

[rimmy2000]

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JamesIG wrote:

Hi - so there are minimum levels which you can invest. What specifically are you looking at trading on and via which account type?

 

For example if this is a stockbroking deal then you'd be looking at a minimum of £8 to buy (and then £8 to sell) so therefore at a total cost of £16, you'd need a £50 investment to increase by at least 32% to even break even. The restrictions are there to stop this happening. 

 

 

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^ this. For £50 I'd struggle to make the case. I don't see that as economical, unless it is some kind of monthly regular order. Its probably worth you sharing the stock you are interested in. £50 stake will have you struggling to sell with any viable or meaningful gain.

[Guest Jas]

Same problem here???.  

[Guest waddellb]

On 13/12/2017 at 15:17, JamesIG said:

Hi - so there are minimum levels which you can invest. What specifically are you looking at trading on and via which account type?

 

For example if this is a stockbroking deal then you'd be looking at a minimum of £8 to buy (and then £8 to sell) so therefore at a total cost of £16, you'd need a £50 investment to increase by at least 32% to even break even. The restrictions are there to stop this happening. 

 

 

This makes sense but for myself, a regular trader, looking to learn and build up my overall portfolio, I’ve qualified for zero commission on US stocks due to my trading frequency and still have a £90 minimum consideration.