How to Buy Stocks in the UK

You buy shares in the UK by opening an investment account with a platform, adding cash, and placing an order to buy. Most people hold their shares electronically through a platform rather than as a paper certificate, and opening an account usually takes only a few minutes. You can trade online or by telephone, and a flat online deal with Barclays Smart Investor costs £6.

• Your name, address and National Insurance number
• To pass an identity check
• An investment account with a platform, such as Barclays Smart Investor
• Enough cash in your account to cover the total cost of your purchase
• A Stocks and Shares ISA if you want your profits and income sheltered from UK tax

1. Decide you are comfortable with the risks of investing in shares. The value of investments can fall as well as rise, so you may get back less than you invest.
2. Choose an investment platform. Consider the protection and security of your account and the cost of trading shares.
3. Open an investment account. You will need to give details such as your name, address and National Insurance number, and pass an identity check. This only takes a few minutes.
4. If you hold old-style paper share certificates, convert them to nominee held shares by lodging them into an investment account.
5. Add cash to your account. If you are buying shares, make sure you have enough cash in the account to cover the total cost of your purchase.
6. Select the shares you want. Use the platform's research tools, or look at data and analysis in its Research Centre. Barclays publishes the most popular shares bought by Smart Investor customers during the previous week.
7. If you would rather leave share selection to the experts, consider investing in a fund instead. Funds let you invest in a wide range of shares, bonds and other assets without doing all the research and monitoring yourself. A tracker or index fund invests in all the companies across a market, returning the same performance.
8. Place your deal. Log on to your account and select the account you wish to trade in. Use the asset finder to search for the company by name, click on its name for details including the current price, then click buy and enter the amount you wish to buy.
9. Accept the price. If you instruct the platform online or call during market hours, it can usually place your order straightaway, get you the best price available from the market, and you will have 15 seconds to accept.
10. If no exact quote is available, or the stock market is closed, choose an at best order to deal at the best price as soon as possible, or a limit order setting a maximum or minimum price you are comfortable with. A limit order will be executed if the share price is within your limit within 30 days.
11. To sell, click on the name of the share you wish to trade or the sell button next to it. You will see the current market price and be asked how many shares, or what value of shares, you wish to sell. Any charges are deducted from the value of your sale.

• A share is a unit of ownership of a company. As a shareholder you own a piece of the business, are entitled to a share of the profits, and may have other rights such as voting on company issues.
• Share prices rise and fall in line with demand and the perceived value of the company. Shareholders may receive dividends, a portion of the profits, but these are not guaranteed.
• Barclays Smart Investor charges a flat rate of £6 for trading shares online. Check the costs and charges page for the full details before you trade.
• Holding shares in an Investment ISA is one of the most tax-efficient ways to invest. ISAs can hold cash, funds, and gilts and bonds, and all profits and income are sheltered from UK tax. You will not need to declare any gains or dividends on your tax return.
• Tax rules can change and their effects vary depending on your individual circumstances.
• If you are unsure where to invest, consider consulting a financial adviser for guidance.

Do I need a broker to buy shares? Most people hold their shares electronically on the platform rather than holding a paper share certificate.

How much does it cost to buy shares? With Barclays Smart Investor, online share dealing costs a flat £6 per deal.

Can I hold shares in an ISA? Yes. An Investment ISA can hold a wide range of investments including cash, funds, and gilts and bonds, and all profits and income are sheltered from UK tax.

What happens if the market is closed when I place an order? You have two options. You can give an at best instruction to deal at the best price available as soon as possible, or set a limit order with a maximum or minimum price you are comfortable with, which will be executed if the share price is within your limit within 30 days.

What if I already have paper share certificates? You can convert them to nominee held shares by lodging them into an investment account.