Making the best of the monthly trades

With a SIPP account a little money trickles in each month. With the cost of a regular trade being £10 a go its not worth buying less than around £700 or so worth of any share at a time, otherwise you are loosing too high a percentage on the transaction. For many shares there is a tax of 0.5% as well and my rule is keep below a 2% cost (you have to work with rules).

This is where the monthly ‘Regular Investments’ trading comes in handy. The Regular Investments setup allows preselection of a number of shares you wish to buy ‘regularly’ in smaller amounts for only £1 a trade. This means that you can top up on a number shares that look the best with a much lower minimum purchase quantity, so it’s a good way to apply that trickle in money economically against your best picks.

I assume the trading platforms are able to offer the lowered regular investments price on the basis that they can pool these transactions from multiple customers to reduce their transaction cost. I guess it also helps them to maintain a degree of predictable growth in their assets under management too.

Many shares are currently suffering from Brexit blight at the moment. There’s an expectation of the UK economy taking a dive, so share prices have dropped significantly over the last 6 weeks. Some of these are now looking underpriced on businesses that are not so likely to be significantly impacted by Brexit. So it is the time of the month to do a final review of the regular investment set up to see if I’m happy with my guess at the best selection of share to tuck away this month’s pension contribution into.

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