Here in this latest edition, I will give you a simple, suggestive guide on how to buy Tesco shares UK. Buying, trading and investing in Tesco stock is only part of the process, so you might find information on finding a suitable trading platform, things to consider, and selling shares useful as well.
Also consider: Best stocks and shares to buy now
Please be aware that this is only a suggestive guide and does not constitute nor amount to investment advice. Buying, trading and investing in any shares, including Tesco shares, is definitely risky and will put your capital at significant risk. Nothing is ever guaranteed.
- 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 “TSCO”.
- Research Tesco shares information. Your trading platform can show you the latest information for Tesco plc.
- Now buy your Tesco shares. Go ahead if you’re happy to buy Tesco Plc stock.
Tesco Plc (TSCO) Live share price
Below you can see Tesco plc share price live, subject to stock exchange times and data update frequency.
6 Simple Steps to Buying Tesco Stocks
Here is a simple and by no means comprehensive step-by-step guide on the possible process of buying Tesco stock.
Step One: Choosing the Best Trading Platform
One of the first steps you are likely to take if you are looking to buy Tesco stock is to choose the best trading platform for you and your needs. Trading platforms will give you access to browse the stock market as well as make trades.
There are now so many different platforms to choose from. Typically, platforms will either come as dedicated desktop services, trading apps, and online brokers. An online broker differs from the other options.
With so many platforms and brokerages to pick from, it can be very difficult to know which one is the best for you. Take some time to consider your options and look at the differences. Compare the platforms and brokerages to get an idea of what is available to you and which ones are suitable for your needs.
A key thing to remember is to select a trading platform or online brokerage that is properly regulated by an authoritative body such as the UK’s Financial Conduct Authority (FCA). The Financial Conduct Authority is responsible for the Financial Services Register, which you should be able to check via the official FCA website.
Step Two: Registering and Opening a New Trading Account
After choosing a suitable trading platform or online broker, the next natural step is to register for and open a new trading account. Trading accounts will let you buy and sell shares, as well as keep the shares you own in one place. But be aware that there is always a chance that investor accounts lose money.
Just like with platforms, there are now loads of account providers that offer these services. Be sure to do your research as well as browse all options that are available to you to make sure you are getting the best option for your needs. Account providers should also be authorised to operate by an official regulatory body such as the UK’s Financial Conduct Authority.
Opening an account is pretty straightforward and will typically only take a few moments to complete. The account provider will need some personal details to get things started.
This is likely to include a full name and address, complete with a National Insurance Number and bank account details. A new account may also need to be validated by verifying your identity. The account provider may ask you to provide official forms of identification as part of this process. Official forms of ID may include a passport or driver’s licence. However, the provider will make it clear on what they need from you to finish setting up a new account.
Step Three: Adding Funds
Now that you have a trading platform and a trading account, you will need to have some funds to buy Tesco shares. It is usually recommended that you only ever deposit the amount you intend on using to buy shares and no more. Funds that remain idle in an account are unlikely to accumulate interest.
Depositing funds into an account is quite simple. The platform or account provider should have a number of different payment methods to select from. These can vary, but options will typically consist of debit and credit card payments as well as a direct bank transfer. Other services such as eWallet payments via services including PayPal, Skrill, and Neteller may also be options, but this can depend on the platform or provider you use.
Be mindful that some platforms and account providers may ask their users to make a minimum deposit. They may also charge a depositing fee for every deposit. Be sure to check with them directly before you make any deposits.
Step Four: Search for the Tesco Stock Market Code on your Trading Platform
Now that you are set up with some funds, you can start thinking about looking into the specific shares you might be interested in buying. In this case, you might be interested in buying Tesco stock. Finding Tesco stock on your trading platform can be done very easily by navigating to the search bar and searching for Tesco plc.
Things are made even easier with the ‘ticker’ code system. According to the London Stock Exchange, the ticker code for Tesco plc is ‘TSCO’.
The ticker can be used to find information about a company or business very quickly. This might be the current market price/current share price, market information, as well as links to buy and sell shares.
Step Five: Do Your Research on Tesco Stocks
The fifth step is one of the most crucial steps to take. It is important to do extensive background research before you make any steps and financial commitments to buying, trading or investing in a company’s stock.
The process of doing enough research can vary depending on the company, but it is likely to take up quite a bit of time. However, it can potentially make all the difference, and it will give you a much better idea of what you are getting into. As buying, trading or investing in shares is such an important decision and commitment to make, it is better to be as prepared and knowledgeable as possible.
It can help to keep in mind whether it is a good time to buy Tesco shares. Doing your research can help you reach an answer, and you can make a more informed decision about what to do next.
Share prices are always subject to change and will likely fluctuate. This can even happen during a single trading day between the usual trading hours. According to the London Stock Exchange, the usual trading hours are between 08:00 and 16:30 GMT.
The main thing to keep in mind when you are doing your research into a company like Tesco is to do enough to a point where you can feel comfortable. Try to be expansive in your research and work towards a goal.
In some cases, it might be beneficial to seek personal advice from a consultant or professional. They may be able to give you a better idea and understanding of the market, the company, as well as whether it is a good time to buy Tesco stock. This may cost additional fees.
Step Six: Are you Ready to Buy Tesco Shares?
If you have decided to follow the previous steps, you might now be in a position to think about whether you are ready to buy Tesco shares.
It is vital to keep in mind your current and ongoing financial situation and your investment objectives. Buying, trading and investing in any shares, including Tesco shares, is risky and will put your capital at great risk.
A Short History of Tesco
Tesco plc is perhaps one of the biggest and best-known supermarkets in the United Kingdom. Although Tesco is a British company with its headquarters based in Hertfordshire, it does operate on a global basis. It is considered to be one of the biggest retailers in the world. It exclusively operates in the UK, Ireland, Slovakia, Hungary, and the Czech Republic.
Tesco was first founded by Jack Cohen in 1919, where it had humble beginnings in Hackney, London. The actual Tesco branding did not emerge until 1924.
Essentially, Tesco is a UK grocery market. It operates supermarkets, hypermarkets, and convenience stores. The company also owns a number of brands. This includes F&F, Makro, and Premier stores.
Tesco also has a number of subdivisions. This includes Tesco Bank and Tesco Mobile. As a retailer, Tesco diversified and has branched out toward providing other services and products. This includes electronics, petrol, telecommunications, toys, furniture, and clothing.
Tesco plc is a public-listed company. It has a primary listing on the London Stock Exchange. According to the London Stock Exchange, the ticker for Tesco plc is TSCO. Tesco is also a component of the FTSE 100, an index of the top 100 companies listed on the London Stock Exchange to have the highest market capitalisation.
Here are a few things that I like to bear in mind before I make the decision to buy, trade or invest. You might also like to consider some of these before you buy, invest or trade Tesco stocks.
Researching Tesco Shares
One of the best things you might want to consider doing before you purchase shares in Tesco is to do a lot of background research into the company and what they are offering. It can be so easy to get carried away and to buy shares on an impulse without doing the requisite background research beforehand, but this can be very risky and dangerous.
Before making any financial commitments, it can be helpful to do deep, detailed and expansive research into a company’s stock as well as other potentially important pieces of information about the company itself. Making sure to do enough research can help you make a more informed decision about whether buying shares is a good option or not.
Doing enough research can sometimes take quite a while to do, but it can make all the difference. Give yourself enough time to compile enough information to browse through and then weigh up your options. Try to reach a decision about whether it is a good idea to buy Tesco shares.
Research can really vary in scope and details. It can be helpful to research Tesco plc’s past performance, current market price and stock prices, the Tesco company agenda, and the highest and lowest share price, and compare the information with similar companies that operate in the same industry. This is only a taste of the possible research avenues as there are plenty of other things to think about.
Doing your own research can be beneficial, but you may benefit even more by reaching out to a consultant for investment advice. Getting investment advice from a professional or expert in the field can give you a better understanding and grip of things, but it can also cost a set fee. Financial consultants might be able to provide you with a better idea of what you might be getting into by buying Tesco shares.
Think About your Existing Investment Portfolio
If you are in the process of considering whether or not to buy Tesco stocks, you might want to think about how such a decision could impact your existing investment portfolio. This is sometimes an overlooked aspect of the process.
Considering how a new investment opportunity or share purchase is going to impact your existing investments can help you build a picture of what might happen in the future and whether it is a good decision to buy Tesco shares.
As the market is going to change and the Tesco share price is likely to fluctuate at any given time, there is always a chance of losing money rapidly. This can be a good reason why thinking about your existing portfolio of investments is important. If you are looking to invest in Tesco, think about how such a choice might be good or bad in both the short term and long term.
In addition to this, if you have yet to establish an existing portfolio of other investments, then you should think carefully about whether you are ready and prepared to take on the responsibility of properly managing a portfolio. Proper portfolio management is likely to take a lot of time, dedication, and commitment.
Investors are typically always active in managing their portfolios accordingly by staying up to date and on top of things. At the end of the day, you should be mindful of your own situation and whether you are capable of taking on this responsibility for yourself.
Consider your Financial Position and Investment Objectives
This is another aspect that many potential investors might forget. Before you make any firm financial decisions, it can be worth taking the time to consider your financial position and your investment objectives.
You can ask yourself: how much can I afford if I decide to invest in Tesco stock? What am I looking to achieve by investing in Tesco stock?
Try to be as realistic as possible and be honest with yourself about what you can afford. Investment opportunities can be considered as luxuries, so if other financial commitments restrict you, then they should be prioritised.
There is always a high chance that you might lose money when trading, and it is not a good idea to put your other financial commitments at significant risk. You should always be aware of your limits. Remember that buying shares, trading, and investing is going to put your capital at substantial risk, and there are never any guarantees.
Think about your investment strategy and draw up a plan of action to invest in Tesco. This can help you visualise what your aims are and what you might need to do in the immediate or far future.
There are a few things to do during the journey towards buying Tesco stock.
Choosing the Right Platform to Trade and Buy Tesco Stock
There are now loads of different platforms to choose from online. Trading platforms will vary in what they provide. They are typically desktop services, mobile apps, and online brokers. Each one can offer very different experiences from the next. Some platforms may offer a demo account where you can practice.
Some platforms may choose to specialise in a particular industry, sector or with a set share type. A top thing you might want to bear in mind is to choose a trading platform that is best suited to your needs.
Another crucial factor is to select a platform that is properly regulated and authorised by an official regulatory body. This might include the Financial Conduct Authority.
Platforms and online brokers may also charge some set fees for their services. Fees can vary in amount and type depending on your platform or broker of choice. Some fees might apply to withdrawals and deposits. Some platforms may charge an idle account fee or a subscription fee.
There are now plenty of platforms on the market that offer zero commission trading, such as eToro. Brokerages are more likely to charge commission for their services, but not all brokers are the same. However, be aware that some services that offer zero commission trading might charge fees elsewhere to make up the difference. Be sure to check with the platform directly.
Creating a New Trading Account
Creating a new trading account is another step in the journey toward buying Tesco shares. Accounts are very common and are pretty easy to set up. Accounts are usually needed to buy and sell shares.
As you search for a reputable and appropriate account provider, make sure that they are authorised by a regulatory body.
To set up a new trading account, you will likely need to provide some personal information. This can include a full name and address, complete with a National Insurance Number and bank details.
Once this information has been provided, the account provider will typically have to verify your identity to finish setting up the account. Due to the sensitive nature of trading accounts, a new account will not usually be activated until a form of official identification is submitted. This could be a passport or driver’s licence. Check with the account provider directly to find out what forms of ID are accepted and to query how long the process will take.
Sell Tesco Shares
Selling Tesco shares is usually an eventuality for a lot of shareholders. Selling shares is just as complex and important as buying shares.
It can be quite difficult to know when the best time to sell is going to be. It does take a lot of research, dedication, experience, and general know-how.
The market and Tesco stock price is likely to change and fluctuate. This is why knowing when to sell shares can be very difficult and why it takes some experience and proper research to do.
Share owners might want to sell their shares for a number of reasons. This can be to minimise any losses or to make a profit. Do be aware that selling shares is just as risky as buying shares.
If you are looking to sell Tesco shares, then you should be able to do this directly through your chosen platform. It should be easy to navigate to the ‘sell shares’ option or tab on the platform and then select the number of shares you want to sell. Some share owners might want to sell off a fraction of their shares and then keep a set amount, so your platform should give you an option to indicate the number of shares you wish to sell.
If you are looking to both buy and sell Tesco shares, then you should be aware of fees attached. Most of the platforms and brokerages operate on a fee-charging basis, meaning they will require payments for the use of their services.
As more and more platforms are released, the amount they charge can really vary. Obviously, these companies want to stay as competitive as possible with each other, so they can offer different levels.
The type of fees that apply can also vary and will likely depend on the sort of platform or brokerage you decide to use. Some may charge a set monthly fee like a subscription-based service. Others may charge deposit fees that apply every time a deposit is made. And there can be some that might charge an idle account fee or inactivity fee where accounts that are not tended to will start to be charged additional fees.
A lot of platforms are now offering zero commission trading. This includes platforms such as eToro. Brokerages such as Hargreaves Lansdown are more likely to charge their customers commission for their services, but this is because they tend to offer a very different experience and a very different type of service when compared to desktop platforms or trading apps.
Whichever platform or brokerage you choose, their policy on fees and costs should be made clear to you. Be sure to check the full terms and conditions before you leap straight in.
Does Tesco Pay Dividends?
Tesco does make dividend payments to shareholders who own dividend-paying shares. Dividend payments are offered when the company’s board of directors makes the decision to release their profits to shareholders.
A company may end up paying dividends by offering a cash payment or even a chance to reinvest the dividends back into the company. Different companies have different policies and offerings for their shareholders, so it is best to clarify with them directly about the dividend opportunities they have.
A company’s dividend yield is a useful ratio that shows the amount that that company could pay out to their shareholders as dividends. The dividend yield is helpful for both current share owners as well as prospective buyers.
It can give a general idea of what they could potentially earn as dividend payments from a company if they decide to buy or invest. It is a good way for analysts to make estimates and assumptions about possible payouts to shareholders.
The dividend yield is calculated from the current share price. The total amount of annual dividends per share is divided by the price per share. The dividend yield can even be compared with the yields of other companies that operate in the same industry.
Gauging whether Tesco shares should be considered overvalued or undervalued is extremely difficult to determine. Knowing whether they are undervalued or overvalued can give investors an idea of whether the overall share price is worth it. The current share price of Tesco stock can be found on the London Stock Exchange.
The Price to Earnings Ratio, also known colloquially as the P/E Ratio, is a way that shareholders and potential investors can work out the relative value of a company’s shares. Figuring out the P/E Ratio is useful for measuring the current share price relative to the Earnings per Share (EPS).
The calculation for working out what the current P/E Ratio for Tesco shares would be is quite simple. The market value of each Tesco share is divided by the Earnings per Share (EPS).
Working out the EPS requires a different calculation. This can be done by taking the Tesco’s profits and dividing that number by the total number of shares that Tesco has outstanding.
The P/E Ratio is another statistic that can be compared with other companies in the same industry. This can help you get an idea of whether the ratio should be considered low or high.
It is always going to be a real challenge to know whether Tesco shares are good to buy. The Tesco share price is always subject to change and, just like with any shares, has the potential to fluctuate at any given time. There is no ‘ideal time’ to buy Tesco shares as they can always change.
Knowing whether Tesco shares are good to buy can come down to a number of different factors. One key factor is based on your own individual circumstances.
I have already highlighted in this article that you should try to think carefully about your investment objectives and your financial means. Everyone is going to have very different ideas of what they want to get out of an investment opportunity, and everyone is also going to be in a different financial position on what they can and cannot afford.
This is but another reason why it can be worth taking the time to consider your personal situation. You should think carefully about what you are aiming to get out of buying Tesco stocks. Consider the information and drive your research on a personal level.
This is another area where consulting a professional or financial expert can come in handy. They might be able to advise you on whether buying Tesco shares is a good move for you personally.
Share Price Volatility
When you are doing your research into Tesco stocks, it can be useful to view the average share price volatility rating. An average volatility rating can be very telling about whether the price of a company’s stock is more likely to decrease in value or increase in value over a given period. It can normally be the case that share prices that have a higher volatility rating are more likely to fluctuate and are therefore considered to be more risky.
Outlets have reported that the Tesco share price volatility rating is slightly less than the average rating according to the London Stock Exchange. Just like with the P/E Ratio, the Tesco volatility rating can be compared with other companies in the same industry to then see what the general average is.
Trading Contracts for Difference, more commonly known as trading CFDs, is a form of derivative trading and are complex financial instruments. Traders and investors speculate on the stock market and the share price of a particular company.
When trading CFDs, investors and traders speculate on whether the share price is going to increase (rise) or decrease (fall).
They do this by never actually taking ownership of the underlying assets. To trade Tesco stock CFDs, investors and traders will need to have access to an investment platform that offers CFD trading. Be aware that CFD trading is exceptionally risky, and there is a lot of potential to lose money when trading CFDs.
Spread betting is another form of trading derivatives and is quite similar to trading CFDs. In spread betting, investors and traders will never take actual ownership of the underlying asset. Instead, traders and investors bet on whether the actual price of the asset is going to increase or decrease.
Spread betting is also incredibly risky. The potential to lose money when taking part in spread betting is very high, but the amount of potential profits is also relatively big.
Spread betting is not a way of making a long term investment. They should be treated as short term. They are not long term investments because investors and traders never take actual ownership of the share, stock or asset.
Derivatives Trading is Highly Risky
Derivatives trading, such as trading CFDs and Spread Betting, can be incredibly risky. Prior to exploring these potential strategies, an important aspect to remember is to recognise the dangers attributed with derivatives trading.
It has been reported that a majority of retail investor accounts lose money when they delve into the world of derivatives trading. They are considered to be complex financial instruments.
If you are unsure if derivatives trading is right for you or whether you feel prepared enough to take on such a challenge, it can be worth seeking independent advice from a professional that has experience with trading CFDs and spread betting. Be aware that derivatives trading such as this may not be the right option for you, and it can be critical for you to consider your options before making any commitments.
How Can I Invest in Tesco?
It is pretty essential to understand that deciding to invest in Tesco stock is really going to come down to your own personal circumstances. You should try to think back to your investment goals and consider how much you are looking to invest.
You should be aware that long term and short term investments are different options. It can be worth coming to terms with which option suits you best. If you can afford to invest in Tesco shares, then a long-term option could be the best option.
Other long term investment options could include investing in funds or in fractional shares. These options can be preferable for a lot of investors who are not able to afford to buy shares outright.
The previously mentioned derivatives are normally considered to be short-term opportunities. Again, derivatives trading is very risky, so it is important to consider all your options and whether you are ready to take on responsibility for those risks.
Are Tesco Shares Currently Available on eToro?
Is Tesco a Public Listed Company?
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.