Purchasing shares

LFC5Times

Im a college student in my last year and have over 2k sitting in my account doing nothing so am gona buy some Ryanair shares with it.
Wats the best way to buy them without avoiding mad charges and taxes etc etc ?

randomname2005

(Open to correction here but..) With shares you will be hit with stamp duty on both the purchase and selling transaction. If you are a final year student will you need access to the money soon, as these and trading transactions could seriously decrease any profit you make.

The financial regulator make a big chart of stock brokers and their charges a while back
http://www.ifsra.ie/data/cr_costsur_files/Stockbrokers%20Cost%20Survey%20-%20Issue%201.pdf
This does not include any of the online brokers but somebody more qualified will be able to fill you in on those!

R

Blackjack

You'll pay 1% stamp duty on the purchase of Irish shares (0.5% on UK shares), but not on the sale (Stamp only applies to the purchaser, not the seller). You can't avoid paying Stamp duty.
You'll pay 20% Capital gains on any profits over (I believe) 1270 Euros made in 1 year.
Why have you selected Ryanair, by the way?.

kmick

Look at http://www.quinn-life.com/ they have a number of funds that are doing well at the moment. The charges are much lower and I have seen growth of nearly 20% in 6 months since I started there. I do 50% Celtic Freeway and 50% Euro Freeway. You are not buyng shares directly you are buying Unit Funds I think (I am open to correction here).

LFC5Times

Yeh just looked at my tax book in college and saw that the first 1270 of capital gains is exempt from CGT.

Well i just have 2.5k sitting in my account for the last 3 years doing nothing and this time next year i plan on going away for a year,so when i come back from that(in 2 years time) i would like to know i have shares which i can cash in if needs be instead of tapping into that money when im travelling and stuck for money.

Blackjack - that 1% stamp duty goes to the Government so what roughly would the stockbroker charges be ?

Reason i picked Ryanair was that 3 of the big stockbrokers picked Ryanair in thier list of top 10/12 shares for the year and 1 of them mentioned it expects its share price to increase significantly over the next 2 years or so.


Also with a possible takeover for Aer Lingus that surely can only be good,also with tourism figures increasing all the time and with irish people constantly going away to their apartments in Spain/Portugal etc and even weekend trips away, i personally think it should be quite rosey for Ryanair.

A good few people i know have bought apartments abroad this year including our own family and we all end up booking out flights through Ryanair.

But obviously like all shares - it can go up or down and its a risk - and a risk im preprared to take.

And any plane crash could be catastrophic.

Well they are my reasons for picking Ryanair and im sure there are flaws in my decision and other factors to consider but sure il take the risk.

Blackjack

1% does go to the Govt in Stamp, the Stockbrokers charges depends on the Broker.

As regards Ryanair, they've been doing the same for years, so you need to factor in what the rest of the market already knows and has priced in.

Also, the takeover of AerLingus is very speculative - the European commission is due to rule on this is may, so if you are investing based on that it is a risky decision.

Have you checked out other opportunities?. You have 2 grand, if you see something with another capital growth opportunity, I would suggest giving it serious consideration, however if you go with Ryanair, you are limiting yourself as regards Capital Gain, as well as earnings (check the Price Earnings ratio).

Sonderval

I found the brokerage prices (comission) here in Ireland to be a right rip off, especially when highlighted against the wide range of US Brokers who charge in the $6-12 per transaction, which doesn't scale on the order size. However, since you intend to let your stocks sit and mature, this wouldn't be a huge problem.

http://www.goodbody.ie/products/costs.html#Charges

For example, Goodbody brokers (who operate the AIB Share Dealing Online service, if your with them) have a breakdown of prices. €32 per trade minimum is pretty harsh, IMO.