Now even stock market falls have their good points with our monthly investment scheme, so you can enjoy the ups and downs. Deciding on the right time to invest in the stockmarket can be tricky. But investing on a regular, monthly basis can help you avoid that whole dilemma, and smooth out the short-term ups and downs in a process that is commonly referred to as 'pound-cost averaging'.
Selftrade's Regular Investment Service makes it easy, with access to a wide range of UK shares, Investment Trusts and ETFs in which you can invest monthly at the special low rate of £1.50 per purchase (sales are charged at the usual £12.50 per trade), as well as pre-selected Fund Packages.
More at our Regular Investment page >
Why invest monthly?
When you don't have lump sums available, or aren't sure about timing your investment purchases, investing regularly can help.
Averaging out the purchase cost of your investments over time helps smooth out the ups and downs of share and fund prices.
Example of pound cost averaging
Let's say you are investing £100 per month into shares in Company A. As the share price falls, you buy more shares; as it rises, you buy less shares, as shown in the chart below. Over the 12 month period you will have:
- invested c£1,200, including the monthly investment fee of £1.50 and stamp duty;
- bought 1,248 shares at an average cost per share of 93.90p, and
- seen the price range between a low of 87p and a high of 102p.
Investing on a regular monthly basis is also a good way to build up your investments over time. Remember, our service is 'execution-only' - we don't provide investment advice, so it is important that you keep an eye on the progress of the companies you invest in and change your selection if need be. Our market data section will help you by providing price charts, news and information relating to your investments: just click on the investment name in your account to go straight to that company's information page.
Of course, monthly investing won't be the right option for everyone - if you have a capital sum to invest, for instance, you should determine if it is better for you to do so in one go. If you are unsure about using this service, you should consult an independent financial adviser before taking further action.
Win a year's investment
Open a Dealing, ISA or SIPP account, set up a regular investment instruction and make a purchase by 29 December and we’ll enter you into a prize draw where you could win up to £100 of your regular investment matched each month for a year.
The offer Terms and Conditions
Terms for the Regular Investment competition
Your Regular Investments matched for a year
Five lucky winners will have their monthly investment via the Regular Investment Service matched up to £100 per month for the whole of 2009.
- All Selftrade customers aged 18 and over, who hold an account with Selftrade as at 28 December 2008 and who complete a Regular Investment purchase via their account between 27 November 2008 and 29 December 2008 will automatically be entered into the prize draw.
- One entry will be made per regular investment instruction. Each instruction via a joint account will qualify for one entry only.
- Five winners will be drawn at random on 5 January 2009 and will have their monthly investment, up to a maximum of £100 per month, matched from January 2009 to December 2009. Matched investment money will be used to purchase shares in the same stock as the customer's regular investment instruction. Where a winner has two or more regular investment instructions in place they will be invited to nominate their matched investment(s), up to the overall monthly maximum of £100.
- The winners will be notified by email / telephone to the email address and / or telephone number registered against their Selftrade account.
- The matched investment shall be made free of the regular investment service dealing fee and stamp duty.
- In the event that you change your Regular investment instruction(s) during the matching period, we will continue to match your total investment, up to the maximum of £100 per month. Where the total of your Regular Investment instructions exceeds £100 in any one month, winners may choose which investments are matched. Should you cancel your instruction(s) in any month such that no investment is made, no matching will take place.
- Selftrade's decision is final and no correspondence will be entered into.
- No cash alternative is available.
- Employees of Selftrade and its associates, partners and providers associated with the competition are not eligible to enter.
- This competition is organised by Talos Securities Limited, trading as Selftrade, of Boatman's House, 2 Selsdon Way, London E14 9LA. It is governed by the laws of England & Wales.
You are reminded, in all cases, that Selftrade provides an execution-only service and your decision to invest with Selftrade is made entirely at your discretion. We do not provide investment advice or manage investments. If you are unsure about the suitability of an investment, you should seek advice from an independent financial adviser.
You should also be aware that the price and value of investments and the income, if any, from them, can fluctuate and may fall against your interest. When selling investments, you may get back less than the funds that you have invested. Please ensure that you fully understand the risks involved.
