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Buy and sell shares without a broker

Tommy Ng

Member
Messages
580
Buy and sell shares without a broker.

Has anyone here done this before? I used to have an online account but i had to pay £25 every quarter. It is worth it if you have frequent transactions. It will not be worth it if you wanna buy a share and keep it for few decades.

Wonder if i can buy shares directly from a company and keep the certificate myself?

:confused:
 

kevgermany

ex Landrover Nut
Subscriber
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21,947
You can't trade public stocks without going through a broker. There are strict regulations about the brokers, registrations, guarantees and so on.

Private deals, such as a share in a friend's business are OK, but they should be done through a lawyer so that the contact is drawn up properly to avoid future problems.
 

Tommy Ng

Member
Messages
580
You can't trade public stocks without going through a broker. There are strict regulations about the brokers, registrations, guarantees and so on.

Private deals, such as a share in a friend's business are OK, but they should be done through a lawyer so that the contact is drawn up properly to avoid future problems.
Hi Kev

Thanks for the information.

It is OK for me to pay for charges during transactions, but not every quarter. I have another question here... say i buy a share and keep the certificate myself, how do i deal with dividend, split, or consolidation things like that ??
 

kevgermany

ex Landrover Nut
Subscriber
Messages
21,947
My knowledge of this is somewhat dated, but I started my career in the share registration computer systems of a bank. So I may be a little out of date in some areas, especially as I left the banking wold many years ago.

Traditionally shares/shareholders were handled by the company at its registered office, who would have a registration department. Many now employ firms of registrars to do the work for them. As a registered share holder your details are recorded in the company's share register and they write to you directly over al matters to do with your shareholding. Its obviously your responsibility to notify them of changes of address and to act on the letters from them. In the case of a split, you'd be issued with a new certificate, through the registrars. Same for purchases. For sales you have to deliver the original certificate to the broker.

What's tended to happen with online trading is that the brokers now own the shares on your behalf, keeping them in a nominee account (street name secuities in the US), not their personal account, so only their details appear in the company share register. You never own these shares, you merely have evidence that the brokers hold the shares for you. They then handle all the issues related to the shares. They then have to act on your behalf when voting, dealing with rights issues, splits etc. You need to check with individual brokers how they do this, and if there are costs involved.
 

Targa

Among the pigeons
Subscriber
Messages
8,890
I use saga for a nominee account, but you have to be over 50.
If you want any perks associated with the shares you usually have to hold them yourself certificated.
 

old git

Tremendous Bore
Messages
5,545
Tommy, please promise us you are not thinking of becoming an investment banker.
 
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