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When you buy shares, you're buying a small piece of a company. If the company grows and becomes more valuable, your shares also become more valuable. So, essentially, when you buy shares in a company, you're betting that the company will become more valuable over time. To buy shares in the UK, you must first open a share dealing account. Once you've deposited cash in your account, you can buy the shares you want. After you've bought your shares, plan on holding them for at least 5 years.[1]

Part 1 of 3:
Opening a Share Dealing Account Download Article

  1. 1
    Compare popular online share dealing accounts. Most UK traders buy and sell their shares online. If you're just starting out, look for a trading platform that has the lowest fees, a platform interface that's intuitive and easy to navigate, and a broad offering of shares. Typically, you can look around the platform before you set up an account to see how you like it.[2]
    • has a comparison tool you can use to compare online share dealing accounts side by side. Go to to use it.
    • The most popular online platforms, such as IG, Interactive Investor, and Hargreaves Lansdown, typically have strong reputations and offer reliable services. By using one of these services, you may pay slightly higher fees. However, you can also be confident in the quality and versatility of the platform.
    • Online trading platforms are typically execute-only, which means they simply buy or sell shares according to your instructions without giving you any advice. However, many platforms have substantial resources, information, and tutorials available to help beginning investors.

    Tip: Some building societies and high street banks offer investment services. However, their fees will be significantly higher than online platforms. Additionally, while you may get more personalized attention, they're frequently trying to sell their own products.

  2. 2
    Complete an online application at the platform you've chosen. Once you've decided on a platform you want to use, navigate to the platform's home page and look for a button to register or open an account. Click the button and fill out the form.
    • You will have to provide basic identity information, including your full name, address, date of birth, and National Insurance Number. You'll also have to include contact information, such as your phone number and email address.
    • In addition to information about yourself, the application typically requires you to provide information about the bank account you'll use to fund your investment account.
  3. 3
    Activate and fund your account. Once your application is approved, you'll get an email from the platform with your account number and instructions on how to activate your account. Once you've chosen your username and password, you'll have the ability to transfer money from your bank account to your share dealing account.
    • A few online trading platforms require you to have a minimum amount of cash in your account at all times, and some require that your first funding transfer be at least a minimum amount. However, most of them don't have any required minimums.
    • Typically, you can fund your account by initiating an electronic funds transfer from your bank account or by using your debit card. If you use your debit card, the funds should show up in your share dealing account immediately.

Part 2 of 3:
Buying Shares Download Article

  1. 1
    Define your overall investment strategy. Risk plays a big role in your investment strategy. If you're investing for the long term, you generally want to minimize your risk. While this typically leads to decreased returns, you have time for your portfolio to build and grow. A higher rate of return in a shorter period of time typically comes with a much greater risk that you could lose your entire investment.[3]
    • You want to think also about how much you can afford to lose. Imagine the financial position you would be in if you suddenly lost everything you'd invested in shares. If you have other savings vehicles so that you would still be fine if that happened, you may be able to tolerate a higher degree of risk.
    • The Money Advice Service recommends completing a "money fact find" to help define your investment strategy. The organization has a template you can follow to conduct your own money fact find available for download at
    • An investment advisor or financial planner can also help you come up with the best investment strategy to achieve your financial goals.
  2. 2
    Research companies you think you want to invest in. Your online share dealing platform likely has extensive information on shares that are available for trade. Evaluate the company's past performance, recognizing that the company's past track record is not a prediction of future performance.[4]
    • The company's prospectus should be available on your share dealing platform. If not, you can typically download it from the company's corporate website. Read it carefully. It will give you a good idea of the company's stability and where the company is headed.
    • The company's corporate website, as well as news stories from reputable financial news media, can give you some insight into the company's stability. For example, if high-ranking executives, such as the CEO or the President of the company, have resigned or been fired, that may be a sign that the company is experiencing some upheaval.
    • Compare the company's performance to the performance of other companies in the same industry or sector. Look for companies that consistently outperform their competitors, even in down times.
  3. 3
    Balance your portfolio with shares from several companies. Only holding shares in a single company is a fairly risky investment strategy. Your entire investment depends on the rise or fall of that one company, and you could lose everything. However, if you buy shares in several different companies, you can spread out that risk.[5]
    • Ideally, you should also balance your portfolio with different types of investments, including government bonds and real estate. However, if you're focusing on buying shares, diversify the shares you buy across different sectors, markets, and company sizes.
    • Generally, smaller companies are more of a risk than larger, more well-established companies. At the same time, shares of larger companies are typically much more expensive. To balance your risk, put more of your money in larger companies than in smaller companies.

    Tip: If you're not confident you can balance your portfolio well on your own, your trading platform may have default portfolios you can try. Many platforms also allow you to create a virtual portfolio that you can use to practice balancing before you invest real money.

  4. 4
    Place your order for the shares you've decided to buy. Log into your account and navigate to the buy and sell page to purchase shares. Search for the stock that you want to buy using either the stock code or the name of the company, then set your order.
    • You can either order as many shares as you can buy with a set amount of pounds sterling, or you can specify the number of shares that you want to buy. If you're specifying the number of shares that you want to buy, you can also set the maximum amount you're willing to pay per share.
    • When you buy shares, you'll pay 0.5% Stamp Duty Reserve Tax (SDRT) on the transaction. Make sure you figure taxes into your budget, as well as any fees charged by the trading platform.[6]

Part 3 of 3:
Holding Shares Download Article

  1. 1
    Keep certificated shares if you want shareholder benefits. Many companies offer various perks, including discounted services or merchandise, to holders of certificated shares. You also have the right to vote on company decisions and receive annual reports from the company.[7]
    • When you buy certificated shares, your name will appear on the company's register of shareholders. The company's shareholder register is public information.
    • Most online trading platforms only offer nominee-based accounts. However, if you buy certificated shares you can typically transfer them to your online share trading account.

    Warning: If you hold certificated shares, you might not be able to transfer them to an ISA and hold them tax-free.

  2. 2
    Use a nominee account if you don't want to be on the company's share register. Most online trading platforms use nominee accounts, which allow you to buy and sell shares electronically. While you don't get any of the perks that might come with holding certificated shares, you also don't have to worry about playing an active part in the company's operations or being publicly listed as a shareholder.[8]
    • If you buy a stock that issues dividends and you have a nominee account, you would receive your dividends from the platform rather than directly from the company. Depending on your platform, you may have to pay a fee.
    • With a nominee account, you can buy and sell shares more quickly since the entire transaction is electronic.
  3. 3
    Apply for an Individual Savings Account (ISA) through your share dealing account. If you're new to investing, start out with a Stocks & Shares ISA. As of 2019, you can invest up to £20,000 tax-free through an ISA. Otherwise, you'll have to pay taxes when your shares increase in value. Most online trading platforms offer ISAs.[9]
    • Although it's best to hold your investments long-term, you can withdraw money from your ISA at any time without incurring any penalties.[10]
    • If you've already got an ISA but want to use another platform, you may be able to transfer your ISA to the platform you want to use. The platform will have information available that tells you how to transfer an existing ISA.

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      • If you want to buy shares, plan on investing for at least 5 years. This allows you to observe how the market moves and how the value of your shares changes over time.[11]


      • All investment carries risk and returns are never guaranteed. Educate yourself as much as you can before you buy shares in a company. Understand that no matter how well the company has performed in the past, there is always at least a slight risk that you could lose your entire investment.

      About This Article

      wikiHow Staff
      Co-authored by:
      9 votes - 100%
      Co-authors: 3
      Updated: July 11, 2020
      Views: 4,820

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