Share Dealing Accounts open new door to consumers

A new breed of investors has emerged after moving on from the days where trading stocks and shares was left to the wealthy individuals dressed in pinstripe suits and sporting red braces.

With the internet phenomenon opening up a world of possibilities, people can now access the stock market and access live feeds in real time.

Share dealing accounts are offered by a number of high street banks, giving investors a simple place to buy, sell and manage their stocks giving them complete control over their portfolio on a single domain from anywhere in the world.

It is standard practice to pay income tax on any returns you make from your investments. However, there is a way to avoid paying this levy on a least some of your investments - by incorporating  Individual Savings Account (ISA) allowance.

This ISA allowance is available to all UK savers, allowing them to invest up to £10,680 every year without having to pay tax on the returns. If you already have a cash ISA you will have to take this off your total allowance, but unlike cash ISAs you can invest the full amount into stocks and shares.

By adding to the pot each year, investors can build up a tax free haven, providing the opportunity to earn some serious profits, tax free.

Anyone considering investing money must be aware of the potential risks. While stocks and shares do offer returns that can be significantly higher than those offered on savings accounts, they can also fall in value depending on the success of the shares, so investors must be ready to lose money.

It is important to think carefully about the amount to invest, while always keeping the worst scenario at the back of your mind.

For those that don't quite feel confident enough to get out there and start trading stocks and shares and risking their money, it may be interesting to hear that some providers offer a 'dry run' service, similar to online fantasy sports games, allowing them to trade against real-time figures but using an imaginary balance.

This gives potential investors a taste of how the share dealing accounts work, while allowing them to get a feel for whether trading stocks and shares comes naturally, or if they need a bit of time to get to grips with it.

Once you feel comfortable with your performance, you can start trading for real and with a bit of luck make your investment grow.

By Sam Gooch