Stocks and Shares ISA investing for Filipino UK nurses

There are a lot of investment options available in the United Kingdom for Filipino nurses. There are cash savings account, property, stocks, shares, cryptocurrencies, bonds, and pensions. The first step in investing is to know your goals, risk appetite, and how much are you willing to invest in a certain time frame. One of the tax efficient ways to invest money for the long term is through Stocks and Shares ISA.

Opening a Stocks and Shares ISA is like going to the grocery store (platform) to buy products (stocks or funds). You first need to choose which grocery store offers the best value for your money.

What is Stocks and Shares Individual Savings Account (ISA)?

Simply put, a Stocks and Shares ISA is an account where you can invest in the stock market without paying tax (income tax or capital gains tax). It let’s you save a maximum amount of £20,000 per tax year (from April 6 to April 5).

Who can open a Stocks and Shares ISA?

You must be:
*18 or over for Stocks and Shares ISA
*Have a valid BRP (Biometric Residence Permit)

What is the meaning of “tax-free” investment?

This means that if your investments grow, you don’t have to pay capital gains tax on your profits.

How to open an ISA?

 

• • Make sure you do your own research

• • When investing remember, your capital is at risk. Investments can fall and rise and you may get back less than you invested. Only invest what you’re willing to lose.

• • Choose the right platform for you.

• • You can get a Stocks and Shares ISA from banks, stockbrokers, or lending societies. Alternatively, you can open an ISA through a website or a ‘platform’. Contact your provider directly for more information about how to open an ISA with them.

Here are some of the platforms that you can start your own research before deciding to invest:

Vanguard
Pros:
Simple interface
Stocks and ETFs are free to trade
No minimum deposit required

Cons:
Basic and dated platform
Trading platform lacks educational tools for investors

Hargreaves Lansdown
Pros:
Easy to use website and mobile app
Has wide amount of trading selections
Great customer service
Safe, long track record

Cons:
High fees for Stocks and ETFs
Service is tailored toward more experienced investors

AJ Bell
Pros:
Easy to use trading platform
Ready made portfolios
Invest as little as £25 per month

Cons:
Few customers from Trustpilot said they are unresponsive to emails

Freetrade
Pros:
Free stock and ETF trading
No withdrawal fee
No annual account fee

Cons:
High currency conversion fee

As a rule if thumb, it is important to understand that investments can go up as well as down. Make sure to do your own research before investing your hard earned money.

More information about Individual Savings Accounts (ISA) can be found here: https://www.gov.uk/individual-savings-accounts 

DISCLAIMER: I am not a financial advisor and this is not a financial advice page.