What’s on this page?
- 3 steps to start investing in stocks
- How to invest in stocks
- Why do you need a stockbroker?
- How do you open a stockbrokerage account?
- How does a stockbrokerage account work?
- How do you invest using our share dealing platform?
- What are the risks of investing in stocks?
- Learn more about the basics of stock investing
3 steps to start investing in stocks
To start investing in stocks, you’ll need an account with a stockbroker – like us. Our share dealing account enables you to buy and sell physical company shares.
To invest, you’ll place your orders with us, and we’ll execute them on your behalf. Dividends earned (if any) will be deposited straight into your share dealing account.
Open a share dealing account with us
Fund your account in minutes
Besides the joy of owning physical shares, another benefit of share dealing is that you can maximise your returns with a tax-efficient ISA wrapper. An ISA is an ‘Individual Savings Account’ that encourages you to save and invest. With it, you can invest up to £20,000 a year without paying tax on your capital gains, dividends or interest earned.2
How to invest in stocks
After opening an account with a stockbroker, you can use their trading platform to buy and sell shares and funds.
When investing, you have two main options: you can choose to purchase a specific number of shares in a company or fund, or you can decide on a fixed amount of money to invest.
For example, if a stock is trading at 50p per share, you could buy 100 shares for £50, or you could invest £250 to receive 500 shares. Keep in mind that these calculations don't include any associated fees, which vary by broker and should be factored into your investment decisions.
Take a look at the video below which shows how you can deal shares on our platform.
Why do you need a stockbroker?
The main reason why you need a stockbroker is to access shares listed on an exchange (eg the London Stock Exchange, or LSE). That’s because only registered brokers can access the exchange, place orders and execute deals.
A stockbroker can be seen as the middleman between buyers and sellers of shares. Brokers often have high-performing technologies available to them that enable investors to get exposure to a variety of stocks; charging a fee for their service.
You can invest in US shares commission-free1 with us, and in UK shares from as low as £3. To qualify for our best rates, place three or more deals a month.2
Share dealing costs
| Number of trades in previous calendar month* | ||
| 0-2 | 3+ | |
| US shares | £10 | £0 |
| UK shares | £8 | £3 |
| European shares3 | 0.1% | 0.1% |
| Australian shares3 | 0.1% | 0.1% |
How do you open a stockbrokerage account?
How you open a stockbrokerage account will depend on the broker you choose. With us, you can open a share dealing account in just a few minutes. Here’s how:
- Fill in an application form. We’ll verify your identity almost immediately
- Once open, you can deposit funds into your account
- You’re now ready to buy and sell shares
How does a stockbrokerage account work?
You can usually log in to your stockbrokerage platform to fund your account, buy and sell shares, place market orders, and view statements. Not all accounts work in the same way, but with us it works as follows:
When you have a share dealing account with us, you’ll use it to buy and sell shares on our platform, as long as the markets are open. Note that we offer out-of-hours share dealing, extending the time during which you can trade.
You can trade US shares commission-free and UK shares from just £3 commission,1 with a forex conversion fee of just 0.5%. Your shares – and their value – will be stored in your account.
You’ll be able to see the number of shares you own, as well as what they’re worth when you log in. If the value goes up or down in the stock market, this will reflect in your account, too.
Any dividends owing to you will also be paid into your share dealing account. So, any profits and losses, as well as earnings from dividends, will be kept here. You can reinvest these dividends – ie use the money to buy more shares, or you can withdraw it whenever you want, for free.
Our platform also offers content to power your investing journey, including real-time news from Reuters, expert analysis from our analysts, stock research from TipRanks and our economic calendar.
How do I fund my account?
You can fund your account – and withdraw these funds – quickly and easily, using a variety of methods. It's always free, unlike some brokers. Choose between using a debit or credit card, Apple Pay, or making a bank transfer. There’s no minimum deposit required when making a bank transfer, but all other methods require at least £250. You can deposit money whenever you’re ready.
If you want to withdraw money from your share dealing account, you can do so at any time, for free. We’ll pay the money to you via the same card or account you used to fund. Bank transfers may take up to three days to reflect, while card payments should reflect immediately.
How do you invest using our share dealing platform?
Log in to your account and go to our share dealing platform. From there, you can invest in thousands of popular shares, from exchanges across the world.
Simply search for your preferred stock, ETF or investment trust on our platform, open its chart and place your deal in the deal ticket. Watch the video below for more information on how to invest using our platform.
How much should I invest?
How much you should invest is completely up to you. There’s no minimum amount you’re required to invest with us, but there may be certain deposit requirements. You should only ever invest an amount that you’re willing to risk, as the markets could move against you.
Find out how to manage your risk before investing in any shares.
Why invest in shares with us?
- Access extended hours on US shares: we offer out-of-hours share dealing on 80+ key US shares, when the normal market hours have ended
- Get started within minutes: you can open your share dealing account quickly and easily, and use a funding method that suits you
- Reach us 24 hours a day: get dedicated help and support from our team, from 8am on a Sunday to 10pm on a Friday
Other investment products
If you don’t want to invest in individual stocks, we also offer exchange trade funds (ETFs) and expertly managed Smart Portfolios.
Exchange traded funds
Invest in a basket of assets and themes, such as tech stocks or green energy, from a single position
Smart Portfolios
Have your investment portfolio tailored and managed by our experts, with fees from just 0.5%
What are the risks of investing in stocks?
There are different types of risks when investing in stocks. Some shares are riskier or more volatile than others. But one thing is certain – no matter the type of investment – there will always be a degree of risk involved.
Investment risk
This is the most general type of risk when you own shares. The price of the underlying asset can fluctuate based on supply and demand. This means the value of your investment can go down, and you could get back less than you put in. If you want to invest in stocks, consider how much you’re willing to risk before you place your deal.
Market risk
As the name suggests, this type of risk affects the entire market, and not specific stocks. So, even if you have a diverse portfolio of shares, you could be exposed to market risk. It can be linked to general economic turmoil, natural disasters, interest rate changes, etc.
Other risks
Some of the other risks to be aware of when investing include currency risk, liquidity risk and business risk. With currency risk, you’re at the mercy of the exchange rate between countries. Liquidity risk comes into play when there is low demand for (or supply of) a certain asset. Lastly, business risk is the risk that a company won’t generate a profit or stay afloat.
Note that this isn’t an exhaustive list– make sure you conduct thorough research on all possible risks before investing.
How to manage your risk when investing
Here are a few ways you can manage your risk when investing in stocks:
- Learn as much as you can about investing on IG Academy
- Create a trading plan
- Do technical and fundamental analysis
- Set stop orders to cap your losses
- Hedge your positions
Remember, while buying and owning shares can be risky, there are also possible rewards if the market moves in your favour.
Learn more about the basics of stock investing
- What is a stock?
- Why do companies issue shares?
- What is a stock exchange?
- What is the stock market?
- What are dividends?
- Why invest in stocks?
1. What is a stock?
It’s important to note that ‘stocks’ and ‘shares’ are related, but not entirely the same. A stock is a security that represents a collection of shares listed on an exchange. A share is a single unit of ownership.
Think about it this way – if Vodafone lists all its available shares on the LSE, it has listed its ‘stock’. Post-listing, the public can then invest in Vodafone shares.
Companies will issue shares for different reasons. Some may simply want to raise their public profile. Others might want to raise money to fund business expansion, pay debts, attract talent, or monetise its assets.
3. What is a stock exchange?
A stock exchange is a marketplace where financial instruments, like shares, are bought and sold. The LSE is a popular example of a stock exchange. For a company’s shares to be listed on a stock exchange, it has to go through an initial public offering (IPO).
A stock exchange’s opening hours will depend on where in the world it’s located. We offer extended hours on 80+ US shares, even when the market is closed.
4. What is the stock market?
The stock market is a slightly more abstract concept than a stock exchange, as it’s not a specific place. Rather, it represents every exchange, and the space where all buyers and sellers participate in the financial markets.
So, as an example, if you hear news terms like ‘stock market crash’, it means that practically all financial assets and markets are facing a serious downturn.
5. What are dividends?
Dividends are payments made to shareholders by the companies in which they’re invested. If a company makes a profit, and they choose to pay dividends, shareholders will receive a portion of the profit. Not all companies pay dividends.
You can reinvest your dividends – ie use the money to buy more shares in the company – or withdraw it as cash. With us, dividends received from your investments are paid directly into your share dealing account.
6. Why invest in stocks?
Many people choose to invest in stocks because it’s a way to own a portion of the brands you value. If you invest in shares, you can make a profit if you sell them for a higher price. You can also earn a passive income from dividends (if paid) and receive voting rights, enabling you to have a say in company matters.
When you invest in shares with us, you’ll get:
- Low dealing costs: from zero commission on US shares and £3 on UK shares,1 with a foreign exchange fee of just 0.5%
- A huge choice of investments: choose from 13,000+ shares, funds, and investment trusts
- Longer market hours: access more than 80 key US stocks outside of normal market times
Learn more about why people invest in shares
