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 best online brokers selling BT shares, so that you can make an informed purchase within minutes.
Table of Contents
How to Buy BT Shares in 3 Quick Steps
Don’t have time to read our guide in full? Below you’ll see three quick steps that you need to follow to buy BT shares right now.
Step 1: Create a Trading Account
You'll want to choose a broker that gives you access to shares listed on the LSE.
Step 2: Deposit Funds
Deposit funds in a matter of seconds. Choose from a debit/credit card, e-wallet, or bank wire.
Step 3: Buy BT Stocks
Search for BT stocks, specify the number of shares you want to purchase, and click 'buy'.
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 our list of top-rated 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 – Best Stock Broker for Worldwide Customers
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).
- Catered to newbie traders
- 0% commission on ETFs and stocks
- Supports heaps of everyday payment methods
- Minimum withdrawal of $50
- High spreads
- MT4/5 not available
2. Plus500 – Trade BT Shares Via CFDs with Tight Spreads
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.
- Fast order execution
- No commissions
- Tight spreads
- Stocks only available via CFDs
- Its educational resources are sparse
How to Buy BT Shares from eToro
We are now going to show you the step-by-step process of buying BT shares with our top-rated broker – eToro. If you opt for Plus500 instead or any other broker for that matter, the process remains largely the same.
Step 1: Search for BT Shares
With thousands of financial instruments hosted at eToro, your best bet is to 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 Invest in BT?
Not sure whether an investment in BT is right for your long-term trading goals? Below we have listed some of the reasons why you might want to add the company to your wider stock portfolio.
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.
Huge Infrastructure Investment From UK Government
The UK government has made its plans clear on the future of telecommunication and broadband with big investments planned for the coming years. As the largest UK provider in this space, BT will be able to capitalize by offering its multi-million customer base faster, cheaper, and more efficient mobile and internet services.
One of the Highest Dividend Yields on the FTSE
For those of you looking to supplement capital gains with consistent dividend payments, look no further than BT. 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.
Should I Buy BT Shares?
Various analysts from within the investment space argue that BT stocks represent good value, especially at current prices. At just £1.20 per share, you have the chance to make an investment at a discounted figure. However, BT isn’t without its risks. For example, had Labour won the 2019 General Election, it was all-but-certain that BT would fall within the remit of its renationalization plans.
Moreover, although the UK government has announced plans to inject vast amounts of capital into broadband infrastructure – telecommunication providers have also been asked to contribute. As the largest supplier in the UK, this could be a considerable bill for BT to foot. On the flip side, the government has paved the way for a price increase to cover the anticipated costs.
All in all, it’s super important that you conduct your own research prior to making a decision. If you do decide to proceed, you’ll find our top-rated stockbroker listed below.
What all-time high share price does BT stocks have?
BT last hit its all-time high stock price in 1999, where its shares were valued at £10.05.
When did BT go public?
BT went public in 1991, where its IPO priced its shares at £1.10. The vast majority of investors came from the general public.
Does BT pay dividends?
It certainly does. In fact, BT offers some of the most generous dividends in the UK stock space. This amounted to just over 10.8% in is last distribution, which is huge. BT dividends are paid twice per year.
What is the minimum I can invest in BT shares?
BT shares are priced at just £1.20 at the time of writing, so buying whole shares shouldn't be an issue. However, brokers will still require a minimum investment amount. At eToro, this stands at $25.
What stock exchange are BT stocks listed on?
BT is listed on the London Stock Exchange, and it forms part of the FTSE 100.
What market share does BT have in the UK internet space?
BT is still the leader in the UK internet space, with a market share of 26%. Sky is just behind at 24%.
Has BT ever split its stocks?
To date, BT has engaged in one stock split - which it did in 2015 on a 2-for-1 basis.
Can I short BT stock?
Yes, you can short BT stocks by using a CFD broker.
When was BT founded?
BT was founded in 1969.