If you’re reading this, chances are you’re nearly ready to get started with a Stocks and Shares ISA.
You’ve done your research, put some money aside — and feel comfortable that investing is for you.
All you need now is the answer to one last (pretty important) question: how do I open a Stocks and Shares ISA?
Thankfully, with Wealthify, the process is simple.
As well as providing a step-by-step guide on how to open a Stocks and Shares ISA, this article also discusses other related topics — starting with some key considerations before opening one.
If you’re ready to open a Stocks and Shares ISA, you can jump ahead by clicking on the headings below:
Things to consider before opening a Stocks and Shares ISA
As with any big final decision, it’s important to make sure all boxes are ticked before you open a Stocks and Shares ISA.
Eligibility
First things first, you’ll need to make sure you’re a UK tax resident (this means you can enjoy the benefits of a Stocks and Shares ISA) aged 18 or over with a National Insurance number.
Personal Goals
Before you open a Stocks and Shares ISA, remember that investing is a long-term endeavour.
To ensure investing aligns with your personal goals, ask yourself the following questions (if you haven’t already):
- What’s my financial end goal with investing?
- Am I in a position where I won’t need access to the money I’m investing?
- Do I have the patience to ride out the stock market’s ups and downs?
The Provider
If you’re torn between who to open a Stocks and Shares ISA with, determining the following might help you decide:
- Whose fees are the cheapest?
- Who has the easier-to-use platform?
- Do they provide the option to transfer my Stocks and Shares ISA to another provider?
How to open a Stocks and Shares ISA
If you’ve done your research, weighed up all options, and checked you’re eligible; you’re now ready to open a Stocks and Shares ISA!
Below, we’re going to show you how to open a Stocks and Shares ISA with Wealthify, using our website.
Once you’ve completed your application, it usually takes up to two working days for your Wealthify Stocks and Shares ISA to be up, running, and trading.
Please note, however, that the process might be different with other providers.
Step 1: Choose Your Investment Style
Once you’ve made it to our Stocks and Shares ISA page and clicked ‘Start and ISA’, the first step involves choosing your initial investment amount.
At this point of the process, you’ll also be given the option to choose a monthly amount to contribute via Direct Debit or easy bank transfer. Contributing regularly is known as drip-feeding — and it’s a strategy that could help boost your Stocks and Shares ISA’s value over time.
Once you’ve chosen how much you want to invest, you then need to choose your investment style.
In simple terms, our investment styles are pre-built investment packages featuring a range of different assets — and attitudes to risk. At Wealthify, this is an important part of how to open a Stocks and Shares ISA, with our investment styles as follows:
Cautious: Minimising loss is the priority. Small movements up and down in Plan value are acceptable, with the aim of beating inflation.
Tentative: Limiting loss is important. Moderate movements up and down in Plan value are acceptable, with the aim of achieving reasonable growth.
Confident: Minimising losses is as important as making gains. Movements up and down in Plan value are acceptable, with the aim of achieving good growth.
Ambitious: Making gains is the priority. The risk of large losses and large movements up and down in Plan value are acceptable, with the aim of achieving high growth.
Adventurous: Maximising returns is the priority. The risk of substantial losses and substantial movements up and down in Plan value are acceptable, with the aim of achieving the highest growth possible.
If you ever want to change your investment style once you’ve opened your Wealthify Stocks and Shares ISA, please note that you’ll need to take our suitability quiz again (see Step 2 below).
Having settled on an investment style, you’ll then need to choose a Plan type: Original or Ethical.
Original Plans feature our classic blend of both UK and overseas investments.
Ethical Plans, however, contain a blend of environmentally and socially responsible investments — making them a good option if you’re looking to invest in line with your values.
Once you’ve chosen all the above, you’ll then be given a projected value of what your Stocks and Shares ISA could be worth over time (a figure that can be adjusted depending on your financial timeline).
Step 2: Suitability Quiz
If you don’t already have one, you’ll now need to set up your Wealthify account.
You’ll then be asked to take our suitability quiz — which is a requirement we must fulfill as part of our obligations with the Financial Conduct Authority.
These suitability questions also give us an insight into whether or not investing is right for you, based on your attitude to risk and current financial situation.
And, because of the risks involved with investing, they ultimately help us put your best interests first.
Step 3: Building Your Customised Stocks and Shares ISA Account
With the suitability quiz passed, our team of investment experts get to work on building your personalised Stocks and Shares ISA (based on the investment style and Plan type you chose).
More specifically, they start investing your money using a number of funds. Funds contain a collection of investments — and are a convenient, cost-effective way to invest.
Some of these funds contain shares, while others have bonds, property, and commodities. Having your money invested in different funds helps you spread your risk; this is known as diversification.
Step 4: Monitoring Your Performance
With your Stocks and Shares ISA open, it’s now time to sit back, relax, and let our team of investment experts take care of everything. As part of monitoring and managing your money, they might change your mix of funds every few months, depending on your investment style and how financial markets are doing.
This process is known as ‘rebalancing’, meaning we sell and buy investments to make sure your level of risk stays in line with your chosen investment style.
Without a rebalance every so often, market movements could see your Stocks and Shares ISA creep into an unintended risk level. Click the banner below to get started!
Transferring to a Stocks and Shares ISA
An ISA transfer lets you move money to a new provider — protecting its tax-free status in the process.
What’s more, you can transfer between the four different types of ISA: Cash; Stocks and Shares; Innovative Finance; and Lifetime.
Reasons for transferring might include cheaper fees, better returns, or an easier-to-manage experience.
If you’re wondering how to transfer Stocks and Shares ISAs to Wealthify, you’ll need to use an official transfer form to maintain your tax benefits. To learn more, head to our dedicated ISA transfer page.
For more information on how to open a Stocks and Shares ISA with Wealthify, please don’t hesitate to get in contact with our Customer Care Team, who’ll be more than happy to help!
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
The tax treatment depends on your individual circumstances and may be subject to change in the future.
Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing.
