I am a UK resident looking for a stocks and shares brokerage for long-term value-investing.

I am currently working with limited money for investing so am saving until I can buy complete stocks using Freetrade. This is currently a slow process as there might be a month or two between stock acquisitions. Also, with the relatively (for the time being) small dividend payments I feel I am missing out on the compound growth that could be achieved with the ability to buy fractional shares.

I know there are companies providing this, along with automatic dividend reinvestment in other countries, M1 Finance being a perfect example in the USA.

Has anybody got advice, further reading or brokerage suggestions that would fill, or at least be a step towards, my criteria of -

  • Fractional Shares
  • Automatic Dividend Reinvestment
  • Open to UK residents
  • Low fee's

Obviously if anybody has any other information that might be useful that is appreciated also.


EDIT: I know ETF's might fulfill some of my criteria, I would just prefer to have active control over where my money is going, I am just seeking options.

  • Questions seeking product/service recommendations are off-topic. Sorry. – Chris W. Rea Nov 4 '19 at 21:03

What you're looking can be obtained in two manners.

Firstly, prefer stocks that have a low value. For example, with 2 EUR, you can buy 2 stocks having value 1 EUR, but zero stocks having value 10 EUR. However, don't let this put too much bias to your portfolio; the most important thing is good diversification and whether that means you have 10 EUR laying around in your cash is irrelevant. I'm just saying that you might want to avoid stocks having value around ~1000 EUR.

Secondly, if you absolutely must invest to high-value stocks, park your money to a mutual fund, preferably an index fund. You can gradually let your money accumulate in the mutual fund and then when you have enough to purchase a new share, withdraw the money and purchase the share.

True, by buying a mutual fund, you don't have full control over your investments. But if you have e.g. 10 000 EUR to invest, and one share costs 120 EUR, you can buy 83 shares for 9960 EUR and then you are left with 40 EUR additional money you can't invest into stocks (but can invest into a mutual fund). Is it really a problem that 9960 EUR of your portfolio is controlled by you and the 40 EUR is indexed?

|improve this answer|||||
  • The stocks that are fulfilling my purchasing criteria, one of which being a member of the dividend aristocrats for example, are all in the £100+ range. Which is about how much I can spare per month. I don’t need to have full control per say, Stable growth of my portfolio is absolutely the main priority. Using a fund as as you say seems to make a lot of sense, thanks for the advice. – Ashley Reid Nov 4 '19 at 22:03

Not the answer you're looking for? Browse other questions tagged or ask your own question.