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Getting help

You can invest in different ways, on your own or with help from a professional adviser.

Firms advising on or selling investments must be regulated by us, or be the agent of a regulated firm. Regulated firms and their advisers are placed on our Register and have to meet certain standards. Always make sure the firm you use is on our Register and is allowed to give financial advice before handing over your money. If they aren't regulated by us and things go wrong, you won't have access to complaints and compensation procedures. To find out if a firm is on our Register – see Check our Register.

How to buy investments

Buying individual shares

There are three main options:

  • Advisory – if you want help with your investments. The stockbroker will look at your individual circumstances and devise a strategy specifically to suit your needs, monitor your investments and make suggestions on buying and selling shares.
  • Discretionary – the stockbroker will buy and sell shares for you without asking for your approval first. This service is highly tailored and therefore costs more.
  • Execution only – the stockbroker will simply buy the shares for you at your request. They cannot legally offer you any advice on your decisions and to keep costs down usually operate over the phone or the internet.


Buying pooled investments

The main routes available are:

  • Financial adviser – if you want some help picking your investments. The financial adviser will look at your individual circumstances and recommend a pooled investment that is suitable for you. Some advisers will charge a fee for this advice, others will take commission from the fund group. Alternatively, you can ask a financial adviser to buy a specific pooled investment for you at your request (the same as execution-only for individual shares above).
  • Buying direct – from the insurance company or investment fund group if you know what fund you want to buy. You won’t necessarily save money because insurance companies and investment fund groups do not like to undercut financial advisers.
  • Fund supermarkets and wrap platforms – internet-based operations which offer a one-stop-shop for investors wanting to choose between pooled investments from a range of different companies. Some are available for buying investments direct, while others are only available through financial advisers.


Buying other investments

If you are a more experienced investor, you might want to buy other stock market- related investments, such as Exchange Traded Funds (ETFs), covered warrants, Contracts for Difference (CFDs) or you may want to spread bet. For more information on see the London Stock Exchange’s website – see Related links.

ETFs or covered warrants – you should be able to buy through a stockbroker. The costs of trading should be similar to what you pay for trading ordinary shares.

CFDs – can be bought through specialist CFD brokers.

Spread betting – you will have to go through a specialist broker – see Spreadbetting.

What information will you get?

This depends on the investment but generally you will get information about:

  • the services available and what they will cost you; and
  • the product you are buying.

You will also then receive an annual statement showing the performance of your investment and how much you have paid in charges.

The charges will vary from company to company, and investment to investment. You should be told what the level of charges will be before you buy the product, either by your adviser (if you have one), or the provider. The charges are used to pay the adviser commission and to cover admin costs and pay the fund manager.

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Top tips

  1. Make sure you understand what you are signing up to – especially the risks – and that it is right for you.
  2. Check out the impact of charges on your investment fund.
  3. Remember to check how your investments are performing regularly, say, once a year.
  4. Go for safer investments as you get closer to retirement if you are making your own investment decisions.
  5. Make the most of the tax breaks that are available.
  6. Make a note of what investments you have and keep track of them.
  7. Make sure you let the investment company know when you move house so they can keep track of you.