Question
Is Jpjshare.com a reliable company for share dealing?Answer
I've not heard of this stock broker before, but on the surface Jpjshare.com offers a very competitive deal.
Online share trades are just £5.75 (undercutting x-o.co.uk by 20p!) and this falls to £4.75 if you place more than 15 trades in a month. An ISA wrapper is available free of charge and withdrawing money via BACS is free.
You can buy and sell shares traded on the London Stock Exchange, AiM and PLUS markets (the latter two are small company exchanges). Shares are held in a nominee account via CREST, not infallible (see my answer to this question) but pretty standard practice these days.
I've not used their services but have no reason to believe they'll be any better or worse than other online stock brokers, i.e. they should do what they say on the tin.
The directors include Tom Winnifrith, a well regarded journalist turned fund manager, and Brian Gould, who held senior positions at Merrill Lynch and AXA - so I think it's fair to say this is a serious business.
Perhaps the only potential issue for some customers is that the business is based and regulated in the Isle of Man, not the UK. This means they are regulated by the Isle of Man Financial Supervision Commission and not the FSA. This affects possible compensation payouts in the event that a bank used by the stock broker defaults or the stock broker themselves does something untoward (investor compensation never covers losses from bad/unlucky investment selection!).
Under the FSA Financial Services Compensation Scheme bank accounts are covered up to £85,000 per person per institution while investments are covered to £50,000.
Under the Isle of Man Depositers' Compensation Scheme bank accounts are covered up to £50,000 per person per institution (JPJ Share uses HSBC). However, the equivalent investment compensation scheme doesn't appear to cover non-fund investments, so it seems unlikely you'll be eligible for compensation in the unlikely event anything bad should happen.
All in all JPJ Share offers a good deal. But I'm not sure the slight saving over the cheapest FSA regulated stockbrokers are worth the lack of investor compensation protection.
Is Jpjshare.com a reliable company for share dealing?Answer
I've not heard of this stock broker before, but on the surface Jpjshare.com offers a very competitive deal.
Online share trades are just £5.75 (undercutting x-o.co.uk by 20p!) and this falls to £4.75 if you place more than 15 trades in a month. An ISA wrapper is available free of charge and withdrawing money via BACS is free.
You can buy and sell shares traded on the London Stock Exchange, AiM and PLUS markets (the latter two are small company exchanges). Shares are held in a nominee account via CREST, not infallible (see my answer to this question) but pretty standard practice these days.
I've not used their services but have no reason to believe they'll be any better or worse than other online stock brokers, i.e. they should do what they say on the tin.
The directors include Tom Winnifrith, a well regarded journalist turned fund manager, and Brian Gould, who held senior positions at Merrill Lynch and AXA - so I think it's fair to say this is a serious business.
Perhaps the only potential issue for some customers is that the business is based and regulated in the Isle of Man, not the UK. This means they are regulated by the Isle of Man Financial Supervision Commission and not the FSA. This affects possible compensation payouts in the event that a bank used by the stock broker defaults or the stock broker themselves does something untoward (investor compensation never covers losses from bad/unlucky investment selection!).
Under the FSA Financial Services Compensation Scheme bank accounts are covered up to £85,000 per person per institution while investments are covered to £50,000.
Under the Isle of Man Depositers' Compensation Scheme bank accounts are covered up to £50,000 per person per institution (JPJ Share uses HSBC). However, the equivalent investment compensation scheme doesn't appear to cover non-fund investments, so it seems unlikely you'll be eligible for compensation in the unlikely event anything bad should happen.
All in all JPJ Share offers a good deal. But I'm not sure the slight saving over the cheapest FSA regulated stockbrokers are worth the lack of investor compensation protection.
Read this Q and A at http://www.candidmoney.com/questions/question468.aspx
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