In this guide, I will give you a quick rundown on some of the ways you can buy HSBC shares.
Buying, trading and investing in HSBC stock is simple and quick to do. Remember that this will put your capital at risk. This is only a suggestive guide and does not constitute investment advice.
Also consider: Best stocks and shares to buy now
- Choose a trading platform. If you’re unsure which one to choose, see my guide to the best trading platforms UK.
- Open an account. You will need your national insurance number, personal ID and bank details.
- Enter payment details. Fund your new trading account via a debit card or bank transfer.
- Search for the stock code on your trading platform. Search for “HSBC” or “HSBA” in your trading platform.
- Research HSBC shares information. Your trading platform can show you the latest information for HSBC Plc.
- Now buy your HSBC shares. Go ahead if you’re happy to buy HSBC shares.
HSBC Holdings Plc (HSBC) Live share price
Here I have highlighted a six-step guide on how to buy HSBC shares. The process is very quick, and there are only a few things you need to do in order to buy and sell shares online.
Step One: Choose a Trading Platform
If you are just starting out in the world of trading, you will want to choose a suitable trading platform. There are now plenty of platforms to pick from, so it is recommended that you take the time to browse around the options and compare different platforms.
Be sure to select a platform that is authorised and regulated by the Financial Conduct Authority. The FCA operates the Financial Services Register, where you can check whether or not a platform, brokerage or service is properly regulated.
Trading and investment platforms are likely to to charge fees for their services. This can include a deposit fee when you make any deposits into an account. Other fees such as commission may also apply, and this is typically found with brokerages.
Step Two: Register for and Open an Account
Now that you have selected a reputable trading platform that is authorised and regulated by the Financial Conduct Authority, it is now time to start the process of opening a trading account.
A platform will give you access to the shares, but an account is needed to buy and sell HSBC shares. Providers will likely have different steps in order to complete the account registration process, but there are some common steps used.
Opening a new account will usually require some personal data. This can be a full name and address, a National Insurance Number, and a form of identification such as a passport, diver’s license, or utility bill with proof of address. Some providers will take time to verify an account before you can get trading.
Step Three: Deposit Funds into the Account
Once the account has been set up and verified by the provider, you will need to deposit funds into that account in order to buy HSBC UK shares. Before you can deposit funds, it is likely that you will need to verify your identity.
Most investment platforms will let you use the standard payment methods such as a debit card payment or direct bank transfer. Most will also offer popular alternatives such as PayPal, Skrill, and Neteller. Payment options will vary between platforms and providers, so be aware that not all methods will be available to you.
Be sure to check whether the platform you are using has a minimum deposit amount, as there will be a requirement to meet this amount before it lets you buy and sell shares on their website.
Step Four: Search for the HSBC Stock Market Code on your Trading Platform
Now that your account is equipped with some funds, it is time to start looking for HSBC shares. To begin a purchase of HSBC stock, you will need to navigate to the trading dashboard and select HSBC. To do this, search for HSBC in the platform’s search bar.
This can be done even quicker by using the HSBC ticker in the search bar. The London Stock Exchange lists the HSBC ticker as HSBA. This ticker can be used to search for HSBC directly if you want to buy shares or sell shares. It can also be used to check the current share price or stock price.
Step Five: Conduct Extensive Research on HSBC
Before completing any share purchase or financial commitments, make sure you take steps to research HSBC shares and what it could mean for you. Please take a moment to ask whether it is the right time to buy HSBC shares.
The stock market is in constant flux and can change dramatically, meaning speculating or guessing what the future potential of a stock could be is extremely difficult. A stock price can change a lot in a single trading day between the trading hours. According to the LSE, a trading day is 08:00 until 16:30 GMT. Exchange rate fluctuations can also impact the value of a stock or an investment.
But conducting extensive research before buying shares can help you make an informed decision. It is important to check out the previous performance of HSBC shares. Look at how the share prices have changed over time.
Consider what the HSBC business plans are. Compare the share prices of HSBC with other companies and banks that operate in the same sector. Research HSBC’s previous net profits, and you can even check out forecasts from financial experts and professionals, although these are always speculative and not assurances.
If in doubt, you can seek out personal advice from an expert or professional in the field. Seeking independent advice can help you decide whether it is a good time to invest in HSBC.
Step Six: Ready to Buy HSBC Shares
Once all of the previous steps are complete, you should be in a position to buy shares in HSBC. Be aware of your financial objectives and your investment goals, and also be mindful of your personal finances before you make any commitments.
Buying, trading and investing in shares and stocks comes with high risk, and your capital will be put at risk.
A Brief History of HSBC Holdings plc
HSBC Holdings plc is best known for its banking and financial services in the UK. HSBC started out in British Hong Kong in the 19th century and has only recently become HSBC Holdings in London in 1991.
The HSBC headquarters is based in the famous Canary Wharf in London on 8 Canada Square. The current Group Chairman is Mark Tucker. The current Group Chief Executive (CEO) is Noel Quinn, who took on the position after succeeding John Flint in 2020.
HSBC Holdings offer a number of financial services and products. Most notably, they offer investment banking, banking commodities, investment management, risk management, mortgage loans, insurance, and credit cards.
HSBC is a public listed company. Notably, it has a dual primary listing on the London Stock Exchange and the Hong Kong Stock Exchange. HSBC has secondary listings on both the Bermuda Stock Exchange and the New York Stock Exchange. HSBC is also a component of the FTSE 100 Index and the Hang Seng Index (HSI).
Now that you have an account, it would be unwise to jump straight into buying HSBC shares. Here are some things that I like to consider before I even think about buying or investing in new stock such as HSBC.
Research HSBC Holding Plc
One of the top things to consider before you buy or invest is to research the company first. This can mean consulting a professional or financial expert as well as doing your own research. Researching can help you make an informed decision and can help you in the long run.
It is always a challenge to predict what the future of a share might be. Forecasts are only ever speculative, and looking at previous performances of a company can help. Look at the previous company earnings and other important pieces of data.
Research is key to any prospective investment opportunities, and it can be worth seeking professional advice, although fees will apply.
Consider My Existing Portfolio and Other Investments
It is also worth thinking about how purchasing shares or investing in HSBC is going to impact your portfolio of existing investments. How is another investment in a company like HSBC going to affect your other investments?
If this is your first share purchase or investment and you have yet to establish a portfolio, think carefully about whether you are ready to take on that responsibility. Managing a portfolio can be tough and will need a lot of dedication.
Investment Objectives and Individual Circumstances
Come to terms with what you want to get out of buying HSBC shares. What are your investment objectives? What exactly do you want to get out of this investment?
Be honest with yourself and come to terms with how much you can spend on a buying or investing in shares. Be mindful of your individual circumstances and your current financial situation.
Bear in mind other financial commitments and be realistic about what you can afford. Investment opportunities are sometimes desirable, but they will put your capital at risk and can pose a threat to your personal finances.
The road to buying HSBC shares is short but has a number of important stops.
Opening an Account
Opening an account is a fundamental stop in buying HSBC shares. Investors will need an account to buy, sell and trade their shares.
Opening an account requires some personal information. This will usually be a full name, home address, National Insurance Number, and bank details.
Identity verification is also required in most cases. This can be done by supplying a passport, driver’s license or utility bill.
Finding the Right Platform
Finding the right platform for your trading purposes can be difficult. With so many platforms to choose from, it is worth taking some time to browse your options.
Different platforms may specialise in a certain sector or industry, or maybe even a particular type of share or stock. Some platforms will have different fees or a fixed fee system. A fixed fee can be a deposit fee or an idle account fee.
Platforms have started to move away from charging a commission. A lot of investment apps and desktop platforms now state that they charge little to no commission. But be aware that these platforms might charge extra fees elsewhere to make up the difference.
Knowing when to sell shares is just as important as knowing when or if to buy shares. Once you have purchased shares, it is likely that the owner of those shares will want to sell them at some point.
Selling shares is done ideally for a profit, although it can also be to reduce losses. Selling shares is much the same as buying them. Navigate to the ‘sell’ option on the platform or account and then choose how many shares to sell.
Does HSBC Pay Dividends?
Yes, HSBC pays dividends. HSBC is a share paying dividend, and they are paid out by the HSBC Holding Plc to their shareholders. Dividends can either take the form of a cash payment or, in some cases, the chance to reinvest in the company.
The amount of dividends paid out to shareholders is dictated by the CEO and company board members. Dividends are typically paid out on a quarterly basis, although some companies operate differently.
The dividend yield is the ratio that shows shareholders and investors the amount that a company might pay out in dividends to those who own dividend-paying shares. It is calculated relative to the stock price and is shown as a percentage.
To calculate the dividend yield, you take the annual dividends of each share and then divide it by the price per share. The yield is usually calculated by using the previous year’s finance report.
HSBC is now offering their own investment products called InvestDirect. This is HSBC’s own investment account that their customers can signup for.
What is HSBC InvestDirect?
HSBC InvestDirect is a sharedealing service that is provided by HSBC. HSBC lets their banking customers open a sharedealing account with them to view market data, invest, and buy and sell shares online.
An HSBC InvestDirect sharedealing account is run by the owner of the account, meaning that all investment decisions are done without advice from HSBC. Although HSBC does offer a series of advice options to their customers but can charge an additional fee for these services.
HSBC Investment Accounts
An HSBC investment account gives investors a choice between two types of account.
The first choice is an HSBC InvestDirect account. This allows customers to trade assets and UK equities. Account holders can pay for their shares via a settlement account.
The second choice is an HSBC InvestDirect Plus account. The Plus account gives customers extra benefits with no additional cost. A Plus account allows investors to trade US equities and assets on the New York Stock Exchange and NASDAQ, as well as other benefits.
What is Good About HSBC InvestDirect?
A good thing about HSBC InvestDirect is that customers of HSBC online banking can open an account and use it on the same service. All they need to do is open a separate InvestDirect or InvestDirect Plus account.
Another good thing is that HSBC InvestDirect lets customers open ISA accounts. ISA’s are a tax efficient way of generating savings. Be sure to check the full UK tax rules first, as these rules are subject to change at any time.
HSBC InvestDirect requires account holders to fund their own account directly to pay for their share purchases. If the account is linked to a nominated HSBC UK banking account, then the money will be automatically debited or credited to the InvestDirect account.