And the winner is…

So the quest for a new online broker is complete.

As I embark on my new venture as the Amateur Investor, I want to be able to concentrate on investing and not be worrying about dealing commissions and other fees. I envisage I will be a regular trader, and regular trading usually means regular dealing commissions!

And I’ve now made my decision.

In a previous post I said that my short list was down to x-o.co.uk and The Share Centre.

For my first year as the Amateur Investor I’ve decided to take the plunge and make the “investment” in The Share Centre’s Premium Dealing option.

At a cost of £3,000 per annum, this immediately dents my capital. But I intend dealing a lot. I’ve done a rough calculation, and if I trade 8 times or more a week then my dealing commissions will be lower if I choose the Premium dealing option over their Frequent option:

Share Centre – Frequent Option

Annual admin fee – £12 (4 x quarterly fee of £3)
Dealing option fee – £96 (4 x quarterly fee of £24)
Annual dealing commissions – £3,120 (8 trades a week for 52 weeks @ £7.50 per trade)

Total = £12 + £96 + £3,120 = £3,228

Share Centre – Premium Option

Annual admin fee – £0 (4 x quarterly fee of £0)
Dealing option fee – £3,000 (£2,500 + VAT)
Annual dealing commissions – £0 (8 trades a week for 52 weeks @ £0.00 per trade)

Total = £0 + £3,000 + £0 = £3,000

So that’s it, decision made. On Monday I’m phoning The Share Centre to open a Premium dealing account.

It may be that at the end of my first year I decide to revert back to the Frequent Trader option, or even their Standard option – but for the first year I think the Premium option suits me best, and should save me money.

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