Regular Investing

Investing on a regular basis can be a good way of building up your investments. And when you want to do that, our Regular Investment Service makes it easy.

It's surprising how quickly your account could grow and you still retain control of where your money is invested. Start by simply choosing a fund or share for your regular investment. Then, if you want to change where your money is invested, just give us 2 days' notice before your next investment is due. So, for example, you could invest in Vodafone shares for a few months and then change your investment to invest in Tesco shares.

You simply print and complete the direct debit form and send to us, we will do the rest. Your regular investing amount is automatically deducted by direct debit from your bank account each month, making investing in the stock market easy.

Monthly investing can have the advantage of averaging out the cost of your investment (commonly referred to as 'Pound Cost Averaging'). Because you invest the same amount of money each month, when a share price goes down you buy more shares, and when it goes up you buy less. That way you don't have to worry about getting the timing of your purchases absolutely right - you effectively end up with a total number of shares bought at an average price over time.

Pound Cost Averaging - How it can work for you

Pound Cost Averaging works best with investments that change in value such as shares or funds. Because shares have historically increased in value over the long term your chances of gaining from your investment are increased. What's more, fluctuations in the market allow you to maximise your purchasing power.

As you will see from the example below, Pound Cost Averaging is a way of taking the edge off (but not removing) your exposure to market risk and specific investment risk and it is best suited to those who want to make regular investments into the market.

Pound Cost Averaging - examples

In a rising market, your regular investment buys you less shares for your money as the share price increases but the average price you pay per share will be lower.

Average share price in period (£9.50 divided by 3): £3.17

Average purchase price achieved by you (£300 divided by 110 shares): £2.73

In a falling market, your regular investment buys you more shares for your money as the share price drops and the average price you pay per share will be lower.

Average share price in period (£5.50 divided by 3): £1.83

Average purchase price achieved by you (£300 divided by 190 shares): £1.58

Our Regular Investment Service

Back in 1996, The Share Centre introduced one of the lowest-ever minimum commissions for buying shares: just £2.50. With our regular investing service we can offer a minimum commission that's even lower than that, starting at just £1.00!

This minimum commission of £1.00 or 0.5% is one of the lowest regular share dealing commissions available, so you can invest up to £200.00 per month for just a £1.00 dealing fee (plus stamp duty of 0.5%). For amounts above £200.00 per month the dealing commission is just 0.5%.

Whilst you only need a monthly investment of £10.00 to get started, please remember, purchase costs can make periodic small investments inefficient. You'll need to look at how much each transaction will cost, noting that some purchases through The Share Centre are free of dealing commission, for example our Preferred Funds.

When you invest in shares we have to issue you with a contract note. This sets out the details of the transaction, what you have bought, how many shares and what you paid for them, but to avoid inundating you with paper, we encourage you to receive this by e-mail where possible, otherwise we will send you one out in the post.

To receive contract notes by e-mail, simply sign-in to your account and go to the 'My Profile' tab, enter your e-mail address and then select contract notes by e-mail.

We will not issue a contract note for Fund purchases; for these we'll show them on your annual account statement, although you can see the individual details anytime through your online account.

Tell us where you want to invest each month, how much and when, and we'll do the rest.

We'll collect your money by direct debit from your bank (you can choose from 3 different dates), pay it into your account and then make your purchase. Remember, you can change your monthly instructions at anytime, but do please allow 2 working days before your next investment is due.

To get started, simply print and complete the direct debit form and send it to us. You can of course call our friendly Customer Service team on 01296 41 41 41 if you have any questions.