: He had to pay the broker's £6.95 fee again to sell.
: He realized the "price" he saw was actually the "offer" price (what sellers wanted). The "bid" price (what he could sell it for right now) was slightly lower. This gap, the spread , meant he was technically "down" on his investment the moment he bought it. The Hidden Maintenance charges for buying and selling shares
Leo realized that while he made a good profit on the stock price itself, these layers of charges meant he had to be strategic about how often he traded to keep his returns from being "eaten" by fees. : He had to pay the broker's £6
Leo’s first lesson was that buying shares often comes with three immediate charges: This gap, the spread , meant he was
: Because his sale was over £10,000, a small £1.50 levy was charged for the Panel on Takeovers and Mergers .
A few months later, Leo noticed his cash balance had dropped slightly even though he hadn't traded. He discovered (or admin fees). Many providers, such as AJ Bell or Halifax , charge a small percentage (e.g., 0.25% to 0.45% ) or a flat monthly fee to look after the account. The Cost of Exit
: Finally, since his total profit for the year exceeded the £3,000 tax-free allowance, he had to set aside a portion of his gains for the HMRC .