Dealing in shares has some costs above and beyond the cost of the shares. Brokers have to make a crust, and they do this by charging commission. Frequent traders often pay lower commissions. The taxman likes to take his slice too, in the form of stamp duty. Investors also need to check the spread when they deal.
Wide spreads are bad news for investors, as they erode the profits from dealing in shares.
Accounts When you have bought shares, you will be issued with a share certificate. These accounts, run by stockbrokers, are becoming more popular with clubs as the shares you buy are automatically registered in the stockbroker's name, eliminating the need for you to set up a limited company. Nominee accounts have other benefits - paperwork and administration is reduced and dealing is usually easier and cheaper. The broker can also provide regular portfolio information and might also provide a share information service. Opening an account means depositing some money or shares up front, and going through a number of identity checks.