How to Buy BT Shares UK in 2022

BT is a dominant force in the UK telecommunications, broadband, and subscription TV sectors. The company is listed on the London Stock Exchange and forms part of the FTSE 100 index of companies.

In this article, we explain the ins and outs of how you can buy BT shares today. We also discuss two of the popular online brokers selling BT shares, so that you can make an informed purchase within minutes.

Where to Buy BT Shares

With hundreds of online stock brokers giving you unfettered access to the London Stock Exchange, knowing which platform to sign up with can be challenging. This is why we have nailed a list of popular stock trading sites down to just two. Both platforms allow you to buy and trade BT shares at the click of a button, and you can easily deposit funds with a number of everyday payment methods.

Detailed provider overview

1. eToro

eToro is an online forex, Indices, futures, shares and stock, and Crypto CFD stock broker that gives you access to thousands of financial instruments. On top of BT stocks, the platform hosts more than 800 publicly-listed companies from a range of UK and international markets. This allows you to create a diversified portfolio of equities. eToro is perfectly suited to those of you that have never traded online before, as the sign-up process rarely takes more than a few minutes.

Upon uploading a copy of your ID, you can then deposit funds with a debit/credit card, bank account, or e-wallet. There are no fees to fund your account, although minimum deposits start at $200. When it comes to buying BT stocks at eToro, the broker does not charge any trading commissions. Instead, it's just the spread you need to look out for - which is the difference between the buy and sell price of BT stocks.

eToro also offers an interesting feature known as 'Copy Trading', which allows you to mirror the trades of other investors. This is a good way of targetting a passive income stream, as all of your stocks will be bought and sold on your behalf. In terms of safety, eToro is licensed by the FCA (UK), as well as ASIC (Australia) and CySEC (Cyprus).

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2. Plus500

Plus500 is a UK forex and CFD broker that gives you access to more than 2,000 publicly-listed companies, including that of BT. However, unlike eToro, where you will own the underlying stocks, Plus500 allows you to trade shares via CFDs. This means that you will be able to apply leverages of up to 5:1 when buying BT stock; a £200 balance would allow you to trade with £1,000.

Similarly, CFDs permit short-selling, which is perfect if you think the price of BT is likely to go down. Conversely, you won't benefit from the dividend payments that BT pays every six months when you trade CFDs. Nevertheless, Plus500 operates in a heavily regulated environment, which includes licenses with the FCA, CySEC, MAS, and ASIC. Its parent company is also listed on the London Stock Exchange, which adds an extra layer of security to your funds.

When it comes to trading, the broker does not charge any commission fees but makes money through the buy/ sell price spread. If you like the sound of Plus500, you can easily open an account via your desktop or mobile device in minutes, and deposit methods include a debit/credit card, bank account, or Paypal. You'll need to add at least $100 to get started, and all deposits and withdrawals are free.

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How to Buy BT Shares 

We are now going to show you the step-by-step process of buying BT shares with a regulated broker.

Step 1: Search for BT Shares

With thousands of financial instruments hosted on these platforms,  enter ‘BT GROUP’ in the search box at the top of the screen. Once BT loads up, click on the corresponding result.

Step 2: Click on ‘Trade’

Next, click on the ‘Trade’ button.

Step 3: Set-Up Order and Buy BT Shares

You will now be asked to place an order. As you are looking to buy BT stocks, make sure this is set as a ‘buy order’. If you want to short-sell BT shares, change this to a ‘sell order’.

The other metrics that you will need to enter are listed below:

• Amount: You don’t need to buy whole BT shares at eToro, so simply enter the amount that you want to invest in dollars. In our example, we are buying $100 worth of BT stock.
• Set Rate: If you’re happy to take the current market price of BT, leave the order box set as a ‘market order’. If you want to enter at a certain price, change this to a ‘limit order’ and enter the price that you want the trade executed at.
• Stop Loss: Enter the price that you want your order closed at if the markets go against you. Although not compulsory, this will mitigate your risks in the event BT stocks go down in value.
• Take Profit: Got a price target in mind? If so, set up a take-profit order. If its triggered, your profits will be locked-in automatically.

Finally, click on ‘Buy’ to complete your BT stock order.

Why Do People Invest in BT?

No Longer a Threat of Nationalization

In the build-up to the UK General Election of 2019, one of the main pledges of the Labour Party was to engage in a series of nationalization. Among a number of other large-scale businesses, this was also rumored to include BT. Fortunately for investors, Labour’s failure to obtain the keys to Downing Street means that the threat of nationalization is no longer on the table.

One of the Highest Dividend Yields on the FTSE

The company is still one of the most generous in this department, with recent dividends amounting to a yield of 10.8%. This is much higher than other companies in this sector and significantly more attractive than the annual FTSE dividend yield of 4.3%.

Market Leader in the UK Mobile and Internet Space

Although not by a considerable amount, BT still has the largest market share in the UK mobile and internet space. Regarding the former, this stands at 28%, with o2 next-in-line. And the former – BT holds a 26% lead in the internet space, with Sky just behind at 24%.

About BT Shares

Company and Stock history

BT is the largest supplier of consumer internet, mobile, and fixed-line telephone services in the UK. The company is listed on the London Stock Exchange and it’s £23 billion market capitalization ensures that it retains its place on the FTSE 100 index. BT now operates in over 180 countries, with more than 106,000 employees under its belt. In a time not so long ago, BT was involved exclusively in the fixed-line telephone space.

However, and fully in-line with the growth of mobile telecommunication, BT quickly diversified into other areas. On top of launching its own mobile network, the company is now the largest UK provider of home internet. The company first went public in 1991. For those old enough to remember, BT was one fo the first PLCs to target the retail client space. By this, we mean it engaged in a huge marketing campaign via newspaper and TV ads to convince everyday consumers to invest. Its subsequent IPO priced BT stocks at £1.10 per share.

The company then initiated a rights issue in 2001 on a 3-for-10 basis. This was well-received, with just under 90% of current shareholders deciding to buy more. BT shares hit an all-time high price of £10.05 in 1999. As of April 2020, you can buy BT stocks at £1.20 per share – which is just a fraction above its IPO listing. With that said, the company has previously engaged in a stock split – as well as the previously mentioned rights issue – so this should be taken into account.

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