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How to Buy BP Shares UK

There has been growing interest in buying BP stock recently as BP’s share price has fluctuated considerably over the last several months. BP shares have a primary listing on the London Stock Exchange.

So, read my guide to find out how to buy BP shares UK.

Also consider: Best stocks and shares to buy now

How to Buy BP Shares

How to buy shares in BP (BP.L)

  1. Choose a trading platform. If you’re unsure which one to choose, see my guide to the best trading platforms UK.
  2. Open an account. You will need your national insurance number, personal ID and bank details.
  3. Enter payment details. Fund your new trading account via a debit card or bank transfer.
  4. Search for the stock code on your trading platform. Search for “BP.L”.
  5. Research BP shares information. Your trading platform can show you the latest information for BP.
  6. Now buy your BP shares. Go ahead if you’re happy to buy BP shares.

BP (BP.L) Live share price

The Fundamentals of BP: An Overview

BP is short for British Petroleum and is based in London, making it a UK company. BP also has offices all over the world, including in Asia, Europe and Australia. The oil and gas company predominantly operates from the United Kingdom.

BP’s primary listing is on the London Stock Exchange, with a secondary listing in Germany on the Frankfurt Stock Exchange. BP is recognisable by its ‘ticker’, which is very simply ‘BP’.

As of July 2020, Bernard Looney was appointed CEO of BP PLC. He has held an executive position with the company since 2010. In 2021, BP reported a net income of $8.49 billion.

What to Consider Before Buying BP Shares

Before jumping straight in head first to buy BP stock, there is a lot to consider. Buying any company’s stock will always be risky as there will always be fluctuations in share price and the value of stock.

There is always the possibility that trading BP stocks, or any other stock for that matter, can mean traders may lose money when trading.

Trading involves risk and has a lot of moving parts and complex instruments to keep things in working order. Purchasing and/or investing will always come at the individuals’ own risk.

Is it Worth Owning Stock?

Another thing to consider is whether or not it is worth owning stock. Before buying BP stock, you should first consider why you would like to buy shares and what it could mean for you.

Everyone looking to invest in BP will be looking for different things, such as to increase their capital or to claim dividends. Whatever the intention or investment objective, there will be different shares to invest in.

Check the Market

Before buying BP shares, it is worth checking the market and also inspecting the company’s earnings and records to see if it is a prudent investment.

Investing in BP shares and/or purchasing BP stock is high risk. Stocks are highly volatile and subject to change depending on the stock market.

It is worth checking BP’s share price and comparing it to other similar companies’ active market price to see where things might end up.

Checking the market before making any firm purchases of BP stock can help, but there is always the potential to lose money when trading.

Research BP Shares

This is obvious but do research BP shares before buying BP stock or investing in BP. This can mean visiting the company’s website to view investor information and by comparing the valuation of BP shares with other companies in the same industry.

Certain financial websites will have useful forecasts for which direction they expect prices to head in, usually over twelve months.

The forecasts created by other brokers are not always accurate, and they only ever provide an indication as to where the stock price may end up.

Recognise your Investment Objectives

It is important to remember and recognise your investment objectives to keep your goals on track. Setting out a plan will help bring to light what your financial and investment objective.

Where to Buy BP Shares

You can buy BP shares through most online trading platforms and investment apps, like eToro, Interactive Investor and Hargreaves Lansdown. In order to buy BP shares, you are required to set up an account with a regulated and legitimate brokerage.

The best place to buy BP shares is via an online investment app like eToro. eToro will charge fees for their services. This includes a £4 withdrawal fee. eToro operates on a 0% commission basis.

BP shares are actively traded and listed on the London Stock Exchange. The London Stock Exchange is available for trading between 08:00 and 16:30.

BP shares can also be found and traded via the German Frankfurt Stock Exchange.

Is BP a UK Stock?

BP is indeed a UK stock. It has a primary base at the London Stock Exchange and a secondary base at the German Frankfurt Stock Exchange.

BP stock can be found directly on the stock market by searching for its ticket (BP).

How to Purchase BP Shares (BP)

Find an Investment Platform

Choosing an investment platform is not always straightforward, and there are a number of things you may want to bear in mind when selecting one.

The first thing to watch out for is fees. Some platforms will charge fees for using their service to trade or buy stock. Platforms may charge for each trade.

Platforms may also charge fees for depositing funds into an account or for leaving an account idle or inactive. There are also some platforms, such as eToro, that will charge withdrawal fees.

More and more platforms are now offering low or 0% commission to remain competitive. For example, companies like Hargreaves Lansdown will charge a standard UK commission of around £11.95.

Purchase Shares

One of the most obvious ways to buy shares is to purchase them directly. This is where traders and investors buy shares outright through a brokerage or trading platform. They will then wait for those shares’ price to increase before selling them.

Buying shares is also ideal for traders who are interested in claiming dividends.

Investing in BP Shares with a Fund

There has been an uptake in investments made through funds. Investing in BP stock is different to a personal or individual investment.

Funds are essentially investments that are pooled together and managed by someone else, i.e. the Fund Manager. Funds are then used to invest across multiple sectors in a company.

As a huge company that features on the FTSE 100, BP has a lot of different sectors, specialists and trusts. Funds do typically incur more fees than other types of investment.

Also consider: Funds v.s Shares: Which is better?

Derivatives

Trading derivatives are highly complex instruments and bring with them a lot of high risk. Derivatives essentially present an opportunity to ‘bet’ on shares. The bet is placed on whether a share price falls or rises.

Trading derivatives typically come in two forms, Contracts for Difference (CFDs), which will be discussed later, and Spread Betting.

Spread Betting allows traders to wager a set or decided sum of money on points in a company’s stock price or share price. They bet on whether the points will fall or rise. Spread betting is very risky, though, as traders can lose money when trading just as easily as making money.

Ultimately, trading derivatives like Spread Betting and CFDs involves a lot of speculation on whether points will rise or fall. To rise in the number of points is to ‘go long’. To fall in the number of points is to ‘go short’.

There is a lot more to Spread Betting and trading derivatives, so it is best to conduct full and complete background research on the topic before committing to it.

Picking an Account

There are different types of investor accounts. These accounts can include GIAs (General Investment Accounts), ISAs (Stocks and Shares ISA), and SIPPs (Self Invested Personal Pensions).

General Investment Accounts (GIAs)

General Investment Accounts are quite typical. There is no limit to how much money can be deposited into a GIA, which differs from a Stocks and Shares ISA. As there is an annual cap of £20,000 for Stocks and Shares ISAs, a GIA can be good for those who have reached the maximum annual ISA allowance.

The downside is that GIAs will be taxed. This includes paying Capital Gains Tax if profits exceed the exempt amount of your CGT. This amount for 2022/23 is £12,300.

Stocks and Shares/Investment ISAs

Stocks and Shares ISAs, also known simply as Investment ISAs, are a far more tax-efficient way of investing. Instead of using an ISA to save cash, the ISA is used to invest by buying and selling shares.

The investment options for Stocks and Shares ISAs are quite broad. They can include bonds, trusts, individual company shares, and EFTs (Exchange Traded Funds).

The big strength for Stocks and Shares ISAs is that they are more tax-efficient. Investing through an ISA means protection from Capital Gains Tax and Income Tax.

Although there is a limit or annual allowance on how much money can be deposited into an ISA. At the moment, this annual allowance sits at £20,000 for the tax year 2022/23.

Self Invested Personal Pensions (SIPPs)

Investing in the long-term for retirement can also be an option. If this method appeals to you, then a Self Invested Personal Pension (SIPP) account could be a good choice.

This is a personal pension account that is very flexible. SIPPs give plenty of control over the money being invested. SIPPs are still somewhat tax-efficient but not as efficient as ISAs.

Contributions to a Self Invested Personal Pensions account will receive tax relief for the marginal income tax rate.

Opening an Account and Depositing Funds

The first step toward investing in BP stock is looking through suitable trading platforms and setting up an account. Be sure to find a regulated provider before making any firm commitments.

Once a stock brokerage has been found in the UK, you will then need to go ahead and create an account. To get trading, deposit funds into that new account.

To open a new account, you will need to provide some personal details. This will typically include a full name, date of birth, home address, email address, and NI number.

Brokers who are regulated by the FCA (Financial Conduct Authority) will need to collect further details to verify your identity. This adds a layer of regulatory protection. This could be a driver’s license, bank statement, or home bill with an address.

Payment Options for Deposits

Payment options for depositing funds into an account can vary between trading platforms. Typically, trading platforms will offer debit and credit card payments, along with eWallets such as PayPal, Neteller and Skrill. Direct bank transfers may also be an option.

How Much Should I Deposit?

Knowing how much to deposit into an account is sometimes overlooked. Often, it is better to deposit the amount you intend on investing, which means it will largely depend on the share price at a given time.

A trading app may charge fees for each deposit, so deciding the amount beforehand can save money.

How Do I Short or Sell BP Shares?

Selling your BP shares is just as important as buying BP stock. Selling BP stock will depend on the service, provider or platform being used.

To sell shares of BP, enter the ticker for BP and then enter the number of shares you wish to sell.

The BP share price will likely change on a regular basis, so selling BP shares may improve or worsen as the market price levels fluctuate. Selling shares can occur to make profits or cut losses.

Shorting a share may end up making profits for the original owner of those shares if the share price falls. This can be done by using CFDs and spread bets.

How Do I Invest in BP?

To invest in BP shares is to take on an ownership of a certain amount of stock. Investors will be able to indicate the amount of stock they wish to buy.

Once BP stock has been invested in, this should qualify the owner for dividends payments. In some cases, owners of stock may be presented with the chance to vote on important matters and decisions.

What you need to know about BP shares

BP shares are always changing with the market. The past performance of BP stock prices has witnessed dramatic shifts, and the stock is highly volatile.

Before investing in BP stock, it would be prudent to conduct some thorough background research into BP’s latest performance. If an investment in BP has already been made, then it is worth checking in on the company’s performance on a regular basis. This largely depends on the sector. Regularly checking in on the company’s performance could mean annually, quarterly, or even monthly.

Staying up to date on the latest developments with the company and keeping track of their performance on a regular basis will help inform you as to whether stocks should be sold or more should be purchased. It can also help you make speculative decisions and track where the market might be heading.

Aside from the actual company, additional factors outside the company can come into play, such as political decisions and what is going on around the world. This is very much applicable to the oil and gas industry, and world affairs will likely significantly impact the performance of a company like BP.

Are BP Share Prices Overvalued?

An overvalued share price happens when the value or price of the stock does not match up with the outlook of the company’s projected earnings and profits. You can determine whether a stock’s price is overvalued or even undervalued by looking at the PEG ratios.

How Do I Receive My BP Dividend?

Dividends payments are part of the shareholder perks and are paid every quarter. To receive any dividends from your BP shares, it will depend on the type of share, meaning a portfolio will have to be created that is heavily reliant on stocks that will pay dividends.

Investing in stocks that pay dividends is usually good for traders who want to receive steady instalments of money if the company makes any profits.

However, when buying shares with a company, the dividends on their stock is not always as it seems. In some instances, companies will increase their dividends if the company is facing a major issue, therefore offering what appears to be an enticing opportunity for investors.

Fractional BP shares will typically pay dividends in a matched proportion to the percentage of a share owned. For example, owning 60% of a BP share will mean that you receive the same percentage in dividends, 60%.

Can I Buy BP Shares in an ISA?

It is possible to invest in stocks through an Individual Savings Account (ISA). This type of account is a way of saving money and is a lot more tax-efficient. The main strength of Investment ISAs is that there are no additional income tax and no capital gains tax. Similarly, there is a Dividend Allowance.

These accounts are typically called Investment ISAs or Stocks and Shares ISAs. The government first introduced them to entice people to buy shares and start investing in the stock market. They differ from traditional cash ISA accounts as the money is being invested in stocks and does not just accumulate as savings.

Investing in the stock market using a Stocks and Shares ISA does have its limits. There is an annual allowance of up to £20,000, but any gains from an investment does not count in this cap.

Stocks and Shares ISAs are used for long-term investment opportunities and are treated as savings. There is still a lot of high risk with these ISAs as there is still a chance of losing money rapidly from poor investment decisions.

CFD BP Shares

CFDs are considered to be very complex instruments, and there is a lot of high risk attached to them. There is always the chance that losses may exceed the amount deposited with trading CFD stock, and as a result, traders can lose money when trading CFDs.

Therefore, it is critical that you understand the fundamentals and complexity of CFDs before making any commitments. Losses can be huge if trading CFDs goes wrong.

CFDs, or Contract for Difference, is a product that presents traders with the chance to trade in financial markets, such as Forex and stocks, without needing to actually own the assets. The upside to trading CFDs is that they can be good in the short run. Trading CFDs enables traders to speculate on BP share prices by selling short or buying long.

Trading CFDs is essentially all speculative, meaning traders do not have to own BP shares to venture on the share price of BP stock. It is very similar to traditional share trading, although, with a CFD trade, a trader will never own BP stock.

When a BP share is purchased through a brokerage, you will own a BP share. Trading CFDs basically creates an understanding/agreement between yourself and your broker that you have agreed to speculate on whether the price of BP stock will go down or up.

BP Stock and Your Portfolio

Before making any decisions to buy stock, it is important to consider how it will impact your existing portfolio and other investments. It might be worth contacting professionals or financial experts to seek independent advice.

Committing to buying a lot of BP stocks could run the risk of losing money rapidly if the performance of the company goes downhill, which it previously has. Additionally, putting all of your investment funds into buying just BP stocks will limit other investment opportunities.

It is reported that the best portfolios are diverse. They may have bonds, stocks, funds, and other assets.

It is also wise to get into a routine of constantly checking for updates on BP stock in a portfolio to see its performance and how it impacts other investments.

BP Trading and Stock Fees

Brokers will usually charge fees for their services. Fees and commission will vary depending on the brokerage or platform used to trade BP.

Some brokerages and platforms will charge different fees for different stocks and trades. For example, a brokerage may charge low fees for Forex trades but charge higher fees for CFDs.

Where To Find a Stock Broker in the UK

Finding a stock broker in the UK has become much easier thanks to the internet. One of the most reliable services to find a stock broker is via the official London Stock Exchange website with the ‘Find a Broker’ tool.

The London Stock Exchange broker finder service highlights that users can only use brokers for selling and buying shares. No provisions are given with regards to risk or the viability of an investment.

Apps and Platforms

Alternatively, there are now loads of investment apps and online platforms to choose from. Some of the best trading platforms include eToro, and Fineco to name a few.

How Much Does One BP Share Cost?

The cost of BP shares will change on a very regular basis. Information from the London Stock Exchange has indicated that the BP share price at close dated for July 6th 2022, was 368.75 GBX.

To show how much the BP share price levels change, the open price for BP stock on July 6th was 381.80 GBX, meaning the share price fell by -1.25%.

Quick facts about BP

  1. BP is a British oil and gas company with operations in over 70 countries.
  2. It is the fifth-largest company in the world by revenue.
  3. BP has a market capitalisation of over $100 billion.
  4. It is one of the six “supermajor” oil and gas companies.
  5. 5. BP is a major producer of oil and gas.
  6. It is one of the largest companies in the world by production.
  7. BP is one of the largest companies in the world by reserves.
  8. BP is one of the largest companies in the world by market value.
  9. BP is a major player in the global oil and gas industry.
  10. BP is a major contributor to the world’s economy.

How to buy BP shares UK FAQs

What are Stock Brokers?

Stock brokers are people who will purchase and sell shares and stocks for a client. The client can be an individual investing alone or could be for a larger company or organisation. Stock brokers will manage a portfolio for the client, and they are essentially the middle-man that works between the investor and the stock exchange.

There can be different types of stock brokers. Some will only buy shares or sell shares when instructed by a client. Not all brokers will give their clients personal advice, and some cannot. Others do offer personal advice, but this depends on some extra factors. And other stock brokers will take on and manage investment decisions for a client, meaning they invest in opportunities on their behalf. Stock brokers charge fees and commission for their services.

What is the Best Way to Invest in BP?

Investing in BP really depends on the individual and their financial ambitions. The future results of any stock, including BP stock, are never specific and always speculative. It is imperative that you consider your finances due to the high risk involved in investing.

The best way to invest depends on what you want to get out of it. This could be earning a passive and steady income through shares that provide dividends, in which case a fund might be best.

If there is a goal to make a profit, then purchasing BP stocks directly could be the best method. Alternatively, there is derivative trading, but this comes with an even higher risk.

Some people like to use a trading app, and others like to deal directly with stock brokers for their trades. Ultimately, the best way to invest is to first do a lot of background research and become comfortable with the stock and company you are interested in before making any concrete commitments.

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