How to buy shares in the UK

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The financial market is growing rapidly and from all spheres of life. You can see every country has its own stock market where people invest their money with the hope of garnering big returns. Do they get success? That’s absolutely subjective, but investment does give a sense of adrenaline rush. If you are staying in the United Kingdom or the UK and aspire to make better of your living, the best way you seek is to invest in a stock that deems fit in your budget or what you’ve discovered through hearsay. Below will see the detailed guide on How to buy shares in the UK

What is the share market?

The share market is not a mere ‘the buy and sell’ of stocks and warming your pockets with a handsome return of investment. That is a small purpose that has expansion and branches attached to it. You realise it when you grow experience dealing with various trading brokers like T1Markets, TradedWell, IGM FX, etc.

In simple words, a share market is a place or a market where equities or stocks or bonds from different companies are sold or bought on a stock exchange. The concept is similar across the world, and the UK walks the same side. When you buy shares of a company, you are helping that company to grow its business. And when several investors do that with you, the valuation of its stock increases. So it surges the valuation of your investment simultaneously.

The shares you purchase provide you with some ownership in the company. So, anyone who has the lion’s share can even interfere in the business prepositions.

If you want to buy stocks in the UK, you take refuge in the London Stock Exchange (LSE), which is profoundly the hub of one of the world’s best stocks. You can back your strategy and enter the market with its support and some funds.

Interestingly, a stock market or a share market is better equipped and organised than other financial markets. It is also triggered by the supply and demand perspective. More the demand, merrier is the prospects of a stock, and vice-versa.

How to buy shares in the UK?

If you are a UK citizen, buying and selling shares is the easy part of trading that you may find yourself in. First of all, you need to get yourself into a comfortable situation where the stock market may bring a change in your life. Some days may be good, some great, and some may not be so good.

Thus, the first preparation is on the psychological level you need to bring. If the transformation triggers smoothly, that’s the start in the share market. Share dealing may put you into several thoughts that you may not be prepared for. So, opening up yourself for every situation is the best way to kick start your journey to buy shares in the UK.

Working in the share market?

A share market creates a space for both buyers and sellers. Here, companies, individuals and governments can congregate and bid to buy and sell their individual securities. A stock market offers a platform to those who are interested in selling and buying equities at their given price. They can negotiate their prices and change it as it fits their requirements.

If any company is traded publicly, its shares float freely in the market, and anyone can buy and sell them at will, provided volumes are available there.

Beginner traders who buy and sell shares should know the timing when to invest. The stock market or the share market is all about getting the timing right. Realising trends may be the difference between losses and gains. Thus, share markets work on predictions of traders and primarily their sentiments.

Investing in shares means you are supporting a company and that company is liable to produce some benefits. However, it is not a promise, as there’s no contract signed. Unless and until you have significant numbers of shares of a company, you cannot force it to work according to your will.

Companies list their stocks in the market following the IPO (Initial Public Offering) method. That’s how a company transitions from private to public. It is considered one sober way of entering the share market and earning good money. If a company has a reputation in the market and renders excellent fundamentals, there are chances that people will want to invest in that through their trading account.

Sometimes, IPO’s may surprise you by offering amazing returns. However, there are times, when the market is bearish it may offer less than you invest. So, you must look into the timing objectively and movement of the market before investing through IPOs.

Why do people choose investment in stock markets?

There’s a perception that the share market is the easiest way to accumulate quick money, and that’s why people are seemingly interested in the market. But, of course, the biggest reason is the return on investment. However, it is more than that you find in mutual funds, SIPs, interest offered by banks and other investments. Also, one thing that goes into its favour is that the stock market is organised and well regulated by different governing bodies across the globe. Moreover, they are backed by physical properties and products.

Furthermore, tracking their growth and moderating them is simpler than in other financial markets. Therefore, people find stock markets the best source for making gains in the short term. Traders study the fundamentals of stocks that have great plans and projects in the pipeline and take a long-term perspective. However, researching such companies may take some time.

There’s a calculation that if people adhere to investing in the market on a long-term basis, they can double their money or at least earn somewhere between 7-10 percent yearly. So, someone investing USD 100,000 can earn around or more than USD 10,000 in a year through an investment, which is satisfying. Also, good stocks offer assured returns.

Experienced traders will always focus on the historical performance and back a stock based on that. However, there are lesser risks if anyone invests in the retrospective outcomes before investing in a company’s shares.

Some people in the United Kingdom think that their money will be devalued with time, and rightly so. The share market grows with inflation, and that’s the prospect that investors look at. Upon the investment in a good company, they can receive dividends and profits when the market surges.

One of the biggest causes is making money for retirement. The gains are bigger than any banking savings and other investments. It may offer tax-free returns which is, even more, the reason to invest some part of their income in the share market. Also, there may be some or complete exemptions to capital gains tax during investments in the stock market.

People want to trade in the share market to diversify their assets, which is a good idea and a way to invest in financial markets. Companies raise capital by allocating IPOs through share markets and use funds for expanding their projects and strategies in other streams.

Likewise, there’s an alternative method for companies’ to draw money from the market known as SPAC (special purpose acquisition company). It’s comparatively a cost-effective and swift action that is conducive for buyers as well.

Buying shares: UK

For trading or buying and selling stocks in the United Kingdom, a trader has to follow a few steps:-

Learn about the share market:

Every share market has its own script of channelising depending on the policy of the state created by governments there. The United Kingdom has its own. Anyone who lives in the UK and trades in the financial market would know about it. However, anyone who’s an outsider and trying to settle in would require to learn about guidelines before trading. Also, someone who’s a beginner trader would need to know everything about the share market and how it formulates and procedure that one should while share dealing.

There are tools, analysis, accounts, different companies, and methods for trading. Without acknowledging the market or reading about it, the investment may go to waste. So, before you earn, it is better to learn.

Search for a broker

Now, you would require a piece of financial advice to buy or sell a share. Also, a platform and an account where you can trade shares online. That is not possible without searching for a decent broker or a brokerage firm. You need to check that by reading several reviews offered on the internet. Besides, it is better that you personalise brokers’ websites and spend some time before zeroing in on one. Read their features, characteristics and fees they charge from clients.

Also, ensure that they are regulated by regulatory bodies like the financial conduct authority (FCA). Moreover they must have registered in England or Britain. Moreover, see the license number and after confirming that the broker is genuine and offers the best individual circumstances, one must invest in the market. Furthermore, you should inquire regarding the registered office.

Check about the kind of trading platforms and trading account brokers are offering and what are the commissions or fees. See if you can connect it with a savings account or seek an independent audit if required.

When everything that you are looking forward to is available, create an account.

Live trading account

Once you’ve got to learn about the UK share market and found a broker, the next step is creating a live trading account. It will be the next step in the ladder before you start selling and buying shares. You can use various brokers and their trading accounts. For lesser experienced ones, there are different accounts like PrimeFin broker (regulated by the financial regulator) offers Silver Account, Gold Account and Platinum Account based on the experience of investors. People who are beginners can opt for the Silver Account, so on and so forth.

However, it is recommended that a person who has not traded ever, should visit the demo account and try all features, conditions, tools, and apply all strategies. You can buy your shares, sell your shares, use exchange-traded funds (ETF), check the share price and know about the cheapest way of trading. Moreover, demo accounts do not need to be authorised and regulated, they are there to help a trader accustom to the conditions of financial markets. Even a frequent trader can use a practice account and see upgrades in the market before investing money in a number of shares.

The share dealing account offers investment trusts. So, it must be picked wisely by traders. If you miss out on picking, you may get back less gains than anticipated.

Know about market trends

Knowing about the share market trends provides necessary information about the movement of stocks. One can read the past performance and see the past and current value of shares for determining the trend. Additionally, the economic situations, trade deficits and other factors can be helpful to you while you make money.

So, it is necessary you look at the market keenly and focus on other factors as well. For example, if a company is presenting losses in its quarterly or yearly results, there are chances its price will underperform and the valuation of shares will dip.

If you know about the trends of the share market, the risk gets negated by a lot as well as raise your profit quotient.

Pick up a trading strategy

Going trading in the UK stocks and shares market without a trading strategy will script losses. You do not require to pay stamp duty for creating plannings. So, do it unabashedly. You may sometimes fall as well after earning superb returns on your investments. But benefits will be much bigger if you create a strategy and stick to it in your thick and thin. Also, ensure you do not miss out on risk management terms and conditions while applying strategies.

Go long or short

A trader should know when to go long and short in the market. During the bearish market, shares are bound to fall for some time. So, it is time to short or sell your shares, if you are an intraday trader. However, you can also take delivery of those shares and hold them for a while before the bullish market hits, but that condition would require funds in your bank account, if you have them, go buy them.

Buying of shares is known as going long. You can hold shares as long s you wish. Meanwhile, it is a matter of predicting the market right through the prism of online brokers. Also, you should be aware of the short squeeze that you could witness while dealing in a wide range of stocks.

It is recommended to invest for at least some time before you draw your money out in the UK market.

Know when to close trade

When you kick start trading in the UK market, it is important for you to know when to stop or put up a break because excess trade can either bore you out or squeeze all your profits. So, you’ve got to decide the line and close the trade before the session ends. Some people lose money while not abiding by it.

Analyse and track

After you are done with the day’s trading, it is important to know what mistakes you committed during trading. So, track them down, right and analyse the stocks bought and sold by you in the day. That helps in creating fresh strategies for the other day. So, if you want to succeed in the stock market, it is better that you see all your past performances and give deep thinking.

Tracking the share market is useful as it helps in knowing how master investors traded. You can learn from their plannings and encapsulate in your ideas.


This was the in depth guide for beginners on How to Buy Shares in the UK. Trading in the UK market may not be as difficult if you get all your plannings in place and follow the terms of how to trade in the market. Moreover, if you know which brokers to select like T1Markets, 101investing, IGM FX, TradedWell, HFTrading etc., your share trading gets sorted in the United Kingdom shares market.


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