Online share dealing has become increasingly popular in recent years because it gives you the chance to quickly and cheaply deal in shares.
However, if you want to benefit from human contact then a telephone share dealing service may be a better option.
What's the difference?
Online share dealing accounts are generally set up for people who just want to quickly make transactions.
These tend to be execution only services in which people make their own decisions without any advice from a stock broker.
The increasing availability of information online means more people are comfortable making their own investment deals. However, many people would prefer a greater input from an expert.
If this is the case you could choose an advisory service in which a stock broker offers advice, but leaves the final investment decision up to you, or a full discretionary service.
This is suitable for larger portfolios or complete novices and involves a stock broker taking on the management of your portfolio for you.
Most online share dealing accounts will offer a complementary share dealing phone service. If this is the case you'll be able to find a dedicated share dealing phone number somewhere on the site.
However, the important thing to remember with these phone trading websites is that most will not be permitted to offer advice unless they are specifically permitted to do so by the FCA.
Making a phone trading comparison
In order to get the most out of a telephone share dealing service, you'll therefore need to check if the provider is permitted to provide advice on share dealing.
If so, you'll be able to speak on the phone to a stock broker, discuss investment decisions with them and receive the latest and up to the minute information on share prices.
Alternatively, if you know how and where you want to invest and simply want to trade over the telephone rather than online, finding the cheapest deal will be key.
What are the costs?
Commissions for telephone share dealing will vary depending on the provider, value of the trades, frequency of your trades and the markets you wish to deal in.
If you want to trade on the New York stock exchange, for example, you should check that the company will allow you to do this. This becomes even more important if you want to speculate on something a little more obscure.
The cost of a share dealing service will generally increase the more individual guidance you receive. Execution only accounts, unsurprisingly, are the cheapest with full discretionary accounts being much more expensive. However you choose to trade you should shop around to find the best deal.