If you regularly trade stocks and shares, you may end up paying a fortune in fees. But find a frequent trader share dealing account and you cut this cost significantly.
With most share dealing services applying a charge every time you buy or sell an asset, it’s easy to rack up hundreds of pounds in fees if you trade on a regular basis.
However, the best share dealing accounts now offer a ‘frequent trader’ facility whereby they will offer discounts and other incentives to you if you trade often.
The advantages of frequent trader share dealing services
When you open a stock trading account, you generally have to pay a fixed fee each time you make a trade. This is typically around £12 - £20 depending on which service you use.
If you trade shares or other investments on a regular basis you can soon end up paying a small fortune in fees.
That’s why it can be worth considering the cheap share dealing account benefits offered by a ‘frequent trader’ service.
These services offer a significantly cheaper price per trade if you make more than a certain number of trades per month or per quarter.
To benefit, you typically have to be making 10-15 trades per quarter, although some services offer even lower fees if you make over 20-25 trades per month.
Finding the right frequent trader share dealing services
When you are looking for the best service for you, it’s important that you don’t simply look at the ‘frequent trader price’. You should also consider other criteria such as:
- Whether the company offers share dealing online and on mobile telephones. Many firms are now online stockbrokers making it even easier to trade regularly
- What the minimum number of trades it is to qualify for the lower ‘frequent trader’ price. Make sure you will make at least as many trades as is required to benefit from the lower rate
- Whether any additional fees are charged for each trade
- Whether you pay any annual fee to the dealing service
- Whether the company has a ‘virtual portfolio’ so you can simulate the performance of your investment holdings online
The best share dealing accounts share many of the above features as well as offering a competitive price for each trade that you make.
