Sharesies Guide for Complete Beginners (Don't Forget This!)

Key Concepts:

Sharesies platform, investment accounts, funding accounts, buying shares, selling shares, order types (market order, limit order), portfolio diversification, auto-invest feature, fees (transaction fees, account fees), tax implications (FIF rules), investment risk, research tools, educational resources.

1. Introduction to Sharesies and Setting Up Your Account

The video introduces Sharesies as a platform designed to make investing accessible, particularly for beginners. It emphasizes the importance of understanding the platform before diving in. The first step is creating an account, which involves providing personal information and completing identity verification. A key point is the distinction between your Sharesies account (where your investments are held) and your funding account (your bank account linked for deposits and withdrawals).

2. Funding Your Sharesies Account

The video details how to fund your Sharesies account. You link your bank account and then transfer funds using a unique reference code provided by Sharesies. This reference code is crucial to ensure the funds are correctly credited to your account. The video stresses the importance of using the correct reference code to avoid delays or complications.

3. Buying Shares: Market Orders and Limit Orders

This section explains the process of buying shares on Sharesies. It covers two main order types:

• Market Order: This is the simplest type, where you buy shares at the current market price. The video cautions that the price can fluctuate slightly between the time you place the order and when it's executed.
• Limit Order: This allows you to specify the maximum price you're willing to pay for a share. The order will only be executed if the share price reaches or falls below your specified limit. This is useful for controlling the price you pay but may result in the order not being filled if the price doesn't reach your limit.

The video demonstrates how to place both types of orders on the Sharesies platform, highlighting the information displayed, such as the current price, available funds, and estimated cost.

4. Selling Shares

The process of selling shares is explained, mirroring the buying process. You select the shares you want to sell and choose either a market order (selling at the current market price) or a limit order (specifying the minimum price you're willing to accept). The video emphasizes the importance of considering the potential tax implications of selling shares, particularly capital gains tax.

5. Portfolio Diversification and Auto-Invest

The video stresses the importance of diversification to manage investment risk. It suggests spreading your investments across different companies, industries, and asset classes. Sharesies offers a feature called "Auto-Invest," which allows you to automatically invest a set amount of money into a pre-selected portfolio at regular intervals. This is presented as a convenient way to build a diversified portfolio over time. The video shows how to set up and customize an Auto-Invest plan.

6. Understanding Fees and Tax Implications

This section covers the fees associated with using Sharesies. These include:

• Transaction Fees: A small fee charged for buying and selling shares. The video mentions that these fees are generally low, making Sharesies accessible for small investors.
• Account Fees: Sharesies may charge account fees depending on the account type and balance.

The video also touches on the tax implications of investing, particularly the Foreign Investment Fund (FIF) rules, which apply to investments in foreign companies. It advises viewers to consult with a tax professional for personalized advice.

7. Research and Educational Resources

The video highlights the research tools available on the Sharesies platform, such as company profiles, financial data, and news articles. It also mentions the educational resources provided by Sharesies, including articles, videos, and webinars, designed to help investors learn more about investing. The video encourages viewers to utilize these resources to make informed investment decisions.

8. Investment Risk and Due Diligence

The video emphasizes that all investments involve risk, and there's no guarantee of returns. It stresses the importance of doing your own research and understanding the risks involved before investing in any company. The video advises viewers to only invest what they can afford to lose and to avoid making impulsive decisions based on emotions.

9. Notable Quotes and Significant Statements

• "Sharesies is designed to make investing accessible for everyone, regardless of their experience level."
• "Diversification is key to managing investment risk."
• "Always do your own research and understand the risks before investing."

10. Conclusion and Main Takeaways

The video concludes by reiterating that Sharesies is a user-friendly platform for beginners to start investing. However, it emphasizes the importance of understanding the platform, the fees, the tax implications, and the risks involved before investing. The main takeaways are to fund your account correctly, understand different order types, diversify your portfolio, utilize research tools, and always invest responsibly. The video encourages viewers to take advantage of Sharesies' educational resources to become more informed investors.