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How to buy Royal Mail shares

Are you weighing up an investment in Royal Mail stock? It’s important to know the ins and outs of the stock market before you start investing in stocks and shares. Our guide to investing in Royal Mail shares offers an easy to digest introduction to the basics that should help you on your way to becoming a savvy investor. Follow the helpful hints below, then make your first trade. If you don’t feel you’re ready to start investing yet, read on.

Compare the best platforms to invest in Royal Mail shares

Buying Royal Mail stock is most easily done through an online broker. Our helpful investment guides will catalog the best brokers and explain the best investment methods for buying shares in Royal Mail.

IG Markets
Key Features
Low-cost UK shares Invest from just £5 per trade
Huge choice of investments - Invest in over 12,000 shares
Expert service provided
Min Deposit
$500
China
Start Trading View key features
Key Features
Low-cost UK shares Invest from just £5 per trade
Huge choice of investments - Invest in over 12,000 shares
Expert service provided
Key Stocks
Payment Methods
Credit Card, Debit Card, Bank Transfer, PayPal
The world-leading online trading and investments provider giving clients access to opportunities across thousands of financial markets through our intuitive platforms and apps.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Trade Royal Mail shares, right now

If you want to try and make money quickly, trading shares in Royal Mail could be a lucrative choice. When you trade shares, you’re buying and selling within a much shorter period of time, sometimes on the same day (day trading). We’ve reviewed a bunch of low-fee online brokers that will help you dive into trading shares.

101investing
Key Features
Winning Awards and 75+ stocks available
Full Education and cross-trading platform
No Fees or hidden charges
Min Deposit
$250
China
Start Trading View key features
Key Features
Winning Awards and 75+ stocks available
Full Education and cross-trading platform
No Fees or hidden charges
Payment Methods
Bank Wire, Credit Card, Skrill, Neteller
101investing opportunities on a global market. Explore the market back and forth as 101Investing stays by your side either way. Supporting any trading way you choose, we empower you with the 90+ tools to explore your best opportunities. User-friendly interface and customized profile are the most solid base for efficient and promising market performance on any chosen device.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
LonghornFX
Key Features
The broker offers access to a trusted MetaTrader trading system
Pricing is ensured to be completely transparent, also providing accuracy and speed
Trade a Wide Variety of Assets with Leverage up to 1:500
Min Deposit
$10
China
Start Trading View key features
Key Features
The broker offers access to a trusted MetaTrader trading system
Pricing is ensured to be completely transparent, also providing accuracy and speed
Trade a Wide Variety of Assets with Leverage up to 1:500
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.

How to buy Royal Mail shares in 7 simple steps

It’s important to have a plan before you buy a stock, so we’ve put together a seven-step approach to get you where you need to go. 

  1. Know the company. What is Royal Mail? How did it grow from a government-owned postal service into a publicly traded power player? Are Royal Mail’s fundamentals improving, or starting to weaken? Get to know as much as you can about the company, and you’ll have a better feel for the stock you want to buy.
  2. Learn the basics. How do you place a trade? What are some of the key terms associated with stock market investing? When should you buy? When should you sell? We answer these and many more questions with articles and how-to guides on this site.
  3. Share-dealing vs Trading. Share-dealing means buying shares of a company. You can make money in share-dealing by selling shares at a higher price than your buy price or from dividends (some companies issue dividends, but not all of them do). Trading shares is a shorter-term approach, and can include day trading. When day trading shares in Royal Mail, you’re focused on reading the stock’s chart, not worrying about the company’s future. 
  4. Set a budget. When you start investing, use a smaller budget, perhaps £1000. Royal Mail currently trades around £225 a share, so you can comfortably buy four shares with that budget. As you gain experience, you can grow the size of your investments.
  5. Choose a broker. There are scores of online brokers that can execute trades and help you buy Royal Mail shares. What sets the best brokers apart are a strong reputation, an easy-to-use platform, and low transaction fees.
  6. Evaluate the broad market. In a big uptrend for the stock market (‘bull market’), most stocks will rise. In a big downtrend (‘bear market’), most stocks will fall. Follow the broad market closely and be ready to cut bait if conditions become too rough.
  7. Make your first investment. You’ve done all your due diligence, learning how Royal Mail operates and getting to know the basics of investing. You’ve set your budget, picked an online broker that works for your needs, and verified that the stock market’s faring well. Log in to your online brokerage account, type in Royal Mail’s ticker symbol (RMG), make sure the stock is trading at a price you like, then click Buy. 

Ways to invest in Royal Mail – share-dealing vs trading

You can buy, sell, and trade shares in Royal Mail online using multiple different methods. Two of those methods are share-dealing and trading:

Share-dealing

Share-dealing refers to buying Royal Mail shares and holding them for a longer period of time, its a longer-term approach than trading shares in search of a quick profit.

  • Pros: If you buy a strong stock at the right time, holding on for longer could result in big gains; share-dealing allows you to focus on the company’s fundamentals, rather than worrying about reading a stock chart.
  • Cons: Buying and holding a stock for a long time ties up your money for longer, so it’s not accessible to make other trades; if shares in Royal Mail start falling after you buy, you could see your investment shrivel up in a hurry, testing your ability to hold on.

CFD trading

A CFD is a contract for difference. It’s an investment derivative that enables you to speculate on the price movement of investment assets. Those assets include commodities, forex and, yes, shares in Royal Mail. When CFD trading, you buy a contract, but you don’t own the actual asset you’re trading.

  • Pros: You can trade with leverage, enabling you to put down just a percentage of the total trade value, with the CFD broker covering the rest. When trading with leverage, you can make more money than you would have if you’d only traded with only your own capital (assuming the stock goes up).
  • Cons: If the stock falls, a leveraged trade will have the opposite effect, producing a bigger loss. If you leave a leveraged CFD position open for more than a day, you’ll have to pay extra fees. CFD trading won’t grant you the voting rights and dividends that come with owning actual shares of certain companies.

Read our online guides, news, and courses to enhance your investing knowledge. If you’re ready to buy, click on the links above. 

How to buy, sell and trade Royal Mail shares for beginners

Here are some important things to know as you consider your investment:

Buying Royal Mail shares

You can buy Royal Mail shares quickly and simply through an online broker. Buying shares is typically done when you’re trying to hold a stock for a longer period of time. Log in to your online brokerage account, type in Royal Mail’s ticker symbol and click Buy. 

Selling shares

Selling Royal Mail shares can involve holding for as long as possible in an attempt to sell for the biggest possible profit, or selling as the market starts to crack, thereby protecting your money.

Trading shares

You can trade Royal Mail shares with a conventional online broker, or with a CFD broker. With a CFD broker, it’s important to know the risks that come with leveraged trading and the extra fees that CFD brokers charge.

Our top tips for investing in shares in Royal Mail

Let’s review five important points to remember:

  1. Know your budget. Don’t invest more than you can afford to lose. Start with a smaller bankroll, and you can always invest bigger sums as you become more experienced at investing.
  2. Choose the right approach. There are many investment options out there, from hyper-aggressive styles to more conservative ones. Find an investment strategy that suits your goals. 
  3. Don’t react to emotions. Follow a sound investing plan to avoid letting emotions take over. Without a plan, fear and greed can impair your judgment and cause you to make bad investment decisions.
  4. If market conditions change, change course. Be ready to sell if the market starts falling sharply. Keep the state of the market in mind when making investing decisions.
  5. Learn from your mistakes. Mistakes happen. What matters more is learning from your mistakes. Review your trades, figure out what went wrong, then try a different approach to achieve better results next time. 

Unsure which platforms to use?

Not sure where to go from here? That’s understandable. Consider these key investing elements:

  • Budget size. If you have a budget of £1000, keep things simple and just buy and hold a few shares in Royal Mail. If you have a bigger budget (e.g. more than £10,000), you can open up your playbook to include day trading, CFD trading, and other techniques.
  • Risk assessment. Riskier investment strategies aren’t advised until you have a better idea of what you’re doing. The same goes for more complicated investing strategies, such as selling shares of a stock short on the assumption that the price will fall. To protect your investment, consider a stop-loss order. Say you buy Royal Mail shares at £225 per share. You can then put in a stop-loss order at £202.50 per share. If shares in Royal Mail start to fall, you won’t lose more than 10% with a stop-loss order in place. 
  • Market conditions. In a bear market, defensive investment strategies such as buying bonds or commodities often prove resilient. If the market’s doing well, you can always buy Royal Mail shares.
  • Know your investing goals. If you’re trying to make money quickly, day trading could be a good bet. If you think a stock could be a long-term winner, buy and hold shares instead.
  • Follow emerging trends. It might seem strange to reflect on technological advances when discussing a 500-year-old postal service and courier company. But every industry evolves. Keep an eye on how Royal Mail evolves with those new technologies, since that could spark future growth.

What is Royal Mail?

Founded in 1516, Royal Mail is a UK-based postal service and courier company. After five centuries of ownership, the UK finally sold its stake in the company in 2015. Today Royal Mail employs 162,000 people, with revenue topping £10 billion as of year-end 2018. For more information on the company, including charts, live prices, analysis, and more, visit our Royal Mail stock price page.

Try our stock market courses for beginners

If you’re still not ready to invest, you can learn more by going through our easy-to-follow educational courses. The more you learn, the better your chances of making money by buying Royal Mail shares.

Latest Royal Mail news

By Harry Atkins
Harry joined us in 2019 to lead our Editorial Team. Drawing on more than a decade writing, editing and managing high-profile content for blue chip companies, Harry’s considerable experience in the finance sector encompasses work for high street and investment banks, insurance companies and trading platforms.
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