How to Buy Stocks? Guide Created By Top Strategist

How to Buy Stocks A Detailed Beginner's Guide

Want to understand how to buy stocks but don’t know where to start? Read this article till the end to get comprehensive information that will assist you in understanding the whole process of stock and share trading. 

You can buy shares in a variety of ways. To begin, you can invest directly by purchasing shares through an investing platform or a broker.

On the other hand, you may also buy through a financial adviser, who can advise you on where to invest your money according to your risk tolerance. Again, you can start with as low as £50 per month. 

To understand further, first, you’ll have to learn What is Stock Market and How it works? So, here’s your beginner’s guide to the Share market. 

What is a Stock Market? 

The stock market can be defined as a collection of exchanges where shares of publicly-held firms can be bought, sold, and issued. Such financial transactions are carried out on exchanges governed by a set of regulations.

Furthermore, the organic forces of supply and demand decide the pricing of stocks and shares on exchanges. Stock markets operate in major cities all around the world. The following are some of the major stock exchanges:

  • The New York Stock Exchange (NYSE) 
  • LSE (London Stock Exchange)
  • JPX (Japanese Exchange Group)

The stock market brings together many buyers and sellers of securities. As a result, stock markets allow both parties to negotiate the prices of shares. 

Because of the large number of stock market participants, one may frequently expect fair pricing and a high level of liquidity as market participants strive for the best price.

A stock market is a tightly managed and regulated market. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are the principal regulators in the United States.

How Does the Stock Market Work? 

In simple words, stock markets provide a safe and regulated environment in which market participants can confidently trade shares and other qualified financial instruments with little to no danger of losing money. 

The stock markets operate as primary and secondary markets, according to the guidelines set forth by the regulator. As a primary market, the stock market permits corporations to issue and sell shares to the general public for the first time through an initial public offering (IPO).

Through IPOs, companies can raise funds from investors to expand their operations. It simply implies that a corporation splits itself into a number of shares and sells a portion of those shares to the general public to raise funding.

For this, a company will require a marketplace where these shares can be sold to make this process easier. The stock market provides this marketplace. 

If all goes well, the Company will sell shares at a predetermined price and collect funding. As a result, investors will get company shares, which they may expect to keep for the term of their choice, hoping for a rise in share price and potential dividend payments. 

The stock market operates as a facilitator for this capital-raising process, receiving a fee from the firm and its financial partners in exchange for its services. 

How to Buy Stocks? 

Buying a stock is relatively easy when you understand the basics of market trends. For beginners living in the UK who don’t know how to get started, here’s a step-by-step process for How to Buy a Stock. 

Research the Market: 

The first step involved in buying a company’s stock is understanding the basics of the market and how it works? Stocks are probably one of the most popular financial tools since they represent a unit of ownership in a firm. 

The value of a company’s stock will grow and decrease in response to its performance. Better-than-expected profits will cause share prices to climb, while lower earnings will cause share prices to fall – but a company’s share price might change for a variety of reasons.

People invest in or trade stocks as it provides higher chances of profit. However, at its most basic level, you can buy shares to get exposure to economic development as well.

Determine the purpose of Buying: 

Before getting started, first determine the purpose of buying a stock, whether you’re buying it for TradingTrading or investing. Most people may co-relate both terms, but they have different meanings. 

  • Investing in Stocks:

Investing in stocks refers to acquiring direct ownership of a company’s equity. This will turn you into a shareholder, allowing you to vote and receive dividend payments if the firm chooses to do so. The majority of people will gain exposure to stocks through investing. 

  • Trading in Stocks: 

Trading in stocks refers to using derivatives such as spread bets and CFDs to speculate on a stock’s price fluctuations without taking direct ownership. 

Spread bets and CFDs are leveraged products, which means you won’t have to put up the entire amount of the trade. However, leverage can help you gain higher profits while also maximizing the chances of equivalent losses. 

Note: Whether you’re investing or trading in stocks, you’ll need to open a brokerage account in both cases. So, choosing a reliable broker is a must. 

If you’re searching for a good broker, ABInvesting is our top recommendation. Learn more about the broker below. 

Know about Risks associated with It: 

Whether you buy stock for TradingTrading or investing, the risks may vary depending on the nature. Because of the use of leverage, TradingTrading might be considered riskier than investing.

However, investing also carries risk, as there’s no assurance that your assets will increase in value over time. As a result, you may get less money than you invested.

So before figuring out How to Buy a Stock, first learn about all the risks associated with it and make a sound decision. Additionally, you should also understand all the charges related to buying a stock. 

Opening an Account with Reliable Broker: 

When buying stocks, there are a lot of brokers available but choosing the right one is like winning half the battle. 

All brokers have various pricing structures, so selecting one that is best for you will depend on different criteria such as the size of your portfolio, the types of accounts you choose, how frequently you trade, and any other services you may want. 

If you want to enjoy commission-free TradingTrading, ABInvesting is the best choice. Being regulated by FCS, the broker is legit and operates in almost all countries, including the UK. 

The broker offers a user-friendly platform to both professional and beginner traders. You can also read our educational articles on the platform to better understand the stock market. 

Know about the Company’s market value: 

A company’s shares will have a specified price range before it goes public through an IPO, which the IPO underwriter frequently chooses. 

This range will be determined by the expected level of interest in the IPO, as well as the Company’s market standing, such as sales, products, and current popularity.

Changes in supply and demand for the shares cause swings in the share price after the IPO is completed. If supply exceeds demand, the stock price may decrease; if demand exceeds supply, the stock price may rise.

Choose a Stock: 

When selecting a stock, it’s critical to conduct your own due research on the firm. When evaluating a company’s financials and possible future share price performance, you should apply both fundamental and technical analysis. After that, choose a stock available on the broker’s platform. 

Choose your desired timeframe: 

When choosing a stock investment, timeframes are critical factors to keep in mind. The following are the distinctions between investing and TradingTrading:

  • Trading refers to short- to medium-term buying or selling, with traders holding positions for a few hours, days, or weeks — but it can be longer in rare situations.
  • Investing is mainly concerned with the long term, with investors purchasing and holding stocks for several weeks, months, or years.

Place your order: 

This is the point you’ve long been waiting for. Because share prices fluctuate, the price may change somewhat from the order preview. 

You’ll only have 15 seconds to accept a live quotation, so be sure the share price is one you’re comfortable with. When you first start investing, this countdown might be a little nerve-wracking, but you’ll grow used to it quickly.

How to Buy Stocks through ABInvesting? 

If you’re looking to buy stocks through ABInvesting, here are 3 simple steps to start with. 

Sign up for an account:

  • Open an Account: 

To open an account with ABInvesting, you’ll need to enter your name, email address, and password. After that, you will have to go through a verification process. 

  • Make a deposit:

After verification, now you can use your account for buying stocks. The next step is to fund your ABInvesting account. To fund your trading account, the broker offers various payment options such as bank transfers and various e-wallets. 

  • Purchase Stocks:

After making a deposit in your account, you can place an order. 


Buying a stock requires long hours of in-depth research about the Company’s market standing. However, having an overall knowledge, especially during a down market like this one, may make all the difference in your portfolio’s performance.

On the other hand, the procedure for buying shares in the United Kingdom has evolved significantly during the last decade. You no longer need to put your buy and sell orders over the phone with a typical stockbroker. 

Instead, choose a licensed online share trading platform, fund your account by making a bank transfer or card payment, and then select the Stocks you wish to purchase. We suggest ABInvesting because it offers no commission trading and a large pool of worldwide stocks.


What payment methods are used to buy stocks in the United Kingdom?

You normally have the option of paying with a debit/credit card or bank/wire transfer. Some brokers, such as ABInvesting, support several e-wallets. 

How can I invest in IPOs?

Some IPOs are available through top-tier brokers such as ABInvesting. Once you’ve met the requirements for an initial public offering, you’ll need to submit a request for shares in the IPO. 

You’ll be given a deadline to submit the order of your share once the IPO prices are set. You won’t know if you were able to purchase shares in the IPO until after your order has been executed.

What is the best advice to buy stocks for a beginner?

Beginners interested in buying stock should conduct a study and strive to gain a thorough grasp of the market, including the relevant industry as well as the history and future of individual companies.

How can I get started buying stock?

The first step is to open a trading account. You’ll have to provide them with some personal information so they can do the necessary background checks. You’ll also need to make a deposit and start placing orders for stocks.

How to Buy Stocks in the United Kingdom?

Open a stock trading account with a broker and deposit funds into it. You’ll need to submit some personal information, such as your bank account number. Then you’ll be ready to purchase and sell stocks.