TD Waterhouse launches new investment accounts

TD Waterhouse, one of the UK's leading execution only stock brokers, has launched two new accounts that can help customers build an investment portfolio of shares and/or funds through regular monthly payments at reduced commission costs.

The TD Waterhouse Regular Investment Account and Regular Investment ISA enable customers to purchase shares for only £1.50 commission per stock, or funds for no commission at all. Monthly investments can be made for as little as £25 (£50 for funds) with the ability to make additional lump sum payments at anytime. There are no maximum limits or tie-ins, giving customers complete flexibility to manage their payments to suit their budgets.

Tom Diavolitsis, Marketing & Business Development Director, TD Waterhouse, comments: "Share price fluctuations can be off-putting to some investors who may be unsure when to buy and sell shares and fund units, or unable to risk investing large amounts at a time. Choosing to invest a set amount each month can remove at least some of the worry because we make the purchase on our customer's behalf. This way we can group all of the orders and pass on the savings by reducing our commissions."

How do the accounts work?

Customers can choose to invest in up to 10 stocks and/or funds each month from the FTSE 350 shares index, any UK-listed Exchange Traded Fund (ETF) along with Unit Trusts and OEICs (Open Ended Investment Companies) - including the range of funds in the TD Waterhouse Funds Supermarket - where specially discounted Initial Sales Charges (ISCs) start from as low as 0%.

Monthly payments can be made by external direct debit or internal transfer from an existing

TD Waterhouse account. Stocks and funds are purchased on either the 1st or 3rd Wednesday of each month, depending on which is the closest date to when cleared funds have been received.

Investing on a monthly basis removes the worry of when to time purchases and can help iron out the ups and downs share price or fund movements. If prices are falling customers will get more shares or fund units for their money, and the reverse applies if prices are rising. Over the longer term the price paid will average out - this is known as ‘pound cost averaging'.

Tom Diavolitsis continues: "Pound cost averaging works well when making regular investments in something that can be as volatile as the stockmarket. It helps to reduce some of the risk associated with share price fluctuations and contribute towards a healthy investment portfolio over the longer term - however the benefits and savings do not just stop there!"

The Regular Investment ISA not only provides all the benefits of a tax-efficient ISA coupled with the ability to make regular monthly payments (up to a maximum of £7,200), as an added bonus no annual administration fee is charged on a Regular Investment ISA that has a balance of £3,600 or more (ISAs valued up to £3,599.99 will pay a fee of £30 plus VAT).

Tom Diavolitsis concludes: "The Regular Investment Account and Regular Investment ISA really do offer something for everybody. They provide a cost effective way for novice investors to kick start their investment portfolio without the worry of timing their purchases, while regular traders can build a longer-term portfolio to complement their daily trading activites."

Other key benefits include:

Both accounts can be managed online giving customers complete control on where their money is invested;

There is no Account Management Fee or no tie ins - payments can stop and start at any time;

Shares can be sold at anytime at standard commission rates (see table below for details);

Shares are held electronically - reducing the need for paperwork and certificates; and

All communications such as statements and contract notes will be made available online so customers can keep track of their portfolio.

Customers looking for more information should log onto tdwaterhouse.co.uk.