Compare Online Share Dealing Services

Many companies raise capital by making a fixed number of shares in the company available for sale on the stock market and issue share certificates in return for their purchase. Each share offered will be of equal value and attract certain privileges, including voting rights and a share of the company's net profit (often paid in twice yearly dividend instalments, the proportion of which will be relative to the amount of shares you hold in the company). However, the actual monetary value of a share at a given point in time depends on the demand for the company's product and it is this variable which makes the purchase of shares a volatile investment.

In general, investing in shares over time is likely to produce higher returns than simply leaving funds in a savings account where they are unlikely to grow above inflation. It is however important to remember that with the potential for increased profits there is an associated risk of loss. Consequently, in order to counteract inevitable fluctuations in the stock market, share dealing should be seen as a medium to long term investment. Additionally, as your capital is at risk when you purchase shares, you should only invest money that you can afford to lose and ensure that you have other financial arrangements in place.

A stock broker acts as an intermediary between you and the stock market and carries out your instructions to buy and sell shares with the aim to deal at the best price possible. Execution only brokers simply follow your instructions to buy and sell shares without giving any financial advice. The majority of online brokers work on this basis and although this tends to be a cheaper way to invest it may not be suitable for someone who is completely new to share dealing. Advisory brokers advise on the purchase and sale of shares but leave the final decision up to you (this can be a good option for a novice investor). Whereas Discretionary brokers take complete control and deal on your behalf ? this tends to be the most expensive option and are best for those with larger portfolios.