How to buy BP (BP) shares

BP is a British multi-national oil and gas giant. This page explains everything you need to know about BP, including the history of the company and its prospects for the future
By:  &  Prash Raval
Updated: Sep 13, 2022

Before you invest in a company, it is a good idea to understand its fundamentals and potential, and that’s why we have compiled this guide. Find out about the history of BP and what its investment prospects are.

Where to buy BP stock

Before you invest in a company, it is a good idea to understand its fundamentals and potential, and that’s why we have compiled this guide. Find out about the history of BP and what its investment prospects are.

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How to buy BP stock, a step-by-step guide

If you’re ready to invest in Tesla but not sure how to, you can follow our handy step-by-step guide below to get started.

Choose a broker and create an account

The easiest way to invest in BP is through an online brokerage platform. Brokers act as a middleman between you and the market. Using the top brokers, you’re able to buy and sell a wide range of assets including stocks. You can check out the comparison table above to find our expertly selected platforms.

When you’ve selected your broker you’ll need to create an account. This is a simple process which will involve having to enter your contact information and provide a form of identification. Once your account is verified you’ll be able to go ahead and deposit funds.

Decide how much to invest

When it comes to investing, budget is key. You should never invest more than you can comfortably afford to lose. It’s recommended that you spread your money across a range of investments and it’s not a good idea to put all of your funds into a single stock. BP is a long standing company and one of the largest in the world, so it’s considered a safer investment compared to newer start-ups, although you should still stick to your budget.

Research BP and its potential

Before you jump in and make your investment into BP, you’ll need to conduct research into it and the wider market. You can look at its financial reports where you’ll get an understanding of how well it is performing. You should also consider its competitors and the oil and gas sector before you decide how much to invest.

The oil industry can be quite volatile and companies operating in it usually move in tandem with the price of oil. As more and more people start moving to cleaner energy sources the oil industry is expected to slow down so you could take that into consideration when deciding how long you plan to invest for.

Place an order for BP stock

You’re now ready to place your first order for BP stock. Simply search for the ticker symbol BP when you’re logged into your brokerage account. Here you’ll find the latest information for the company. If you’re happy with its price you can enter the number of shares you want to purchase and click buy.

Execute your order

Your order will be executed immediately, unless you place it outside of market hours, in which case it will be executed when the market opens. Once it’s live, you can always check up on it in the open positions area of your account. Here you’ll be bale to make changes like buying more shares, or selling some.

Review your investment regularly

The stock market can move very quickly and there are a lot of factors that can impact the price of BP. Checking up on your investment at regular intervals is good practice, as you’ll be able to make changes and track how well it is doing. For added peace of mind, you may want to consider adding a stop loss to your open position. This way it will be closed out automatically if the market drops to a price level you have set in advance.

What is BP? And should I invest?

Founded in 1909 and headquartered in London, BP is a multinational oil and gas provider and is one of the world’s seven oil and gas supermajors. The company is vertically integrated, meaning it operates in all sectors of the oil and gas industry including exploration, production, refining, distribution, marketing, power generation, and even trading. Moreover, the company has ventured into several renewable energy interests like solar panels, wind farms and biofuel.

It has operations in around 80 countries internationally and is a large-cap stock on the LSE, FWB and NYSE. In addition, BP is part of the FTSE 100. This means it is largely a cyclical stock due to its close ties with broader market trends, and investors should keep this in mind. Invest in BP during a bull market and expect success, whereas anticipate the opposite in a bear market.

BP is a dividend paying company and investing in it is best suited to income seeking investors who are comfortable with slow growth. Investing in it could be a good idea, although there are a few things to consider. It lost a large amount of value during the coronavirus pandemic, which it has now recovered from. However, the outcome of the Russian invasion on Ukraine is still unknown and what impact it could have on the company.

How has the company performed in recent years?

It has had a lot of ups and downs and the past five years haven’t been particularly kind to it. This is likely because of increased pressure on oil and gas producers from environmentalists and the rise in popularity of electric vehicles. The company’s net income has been hit particularly hard in recent times, with volatile oil prices and uncertain global situation playing into that.

The coronavirus pandemic played a large role in BPs drop in price. During lockdowns significantly less people were driving and flying, which ultimately destroyed demand for oil. However, as the world slowly got back to normal in 2021, BP’s share price began to rise towards pre-pandemic levels.

In 2022 BP announced it was cutting ties with Russia following the invasion of Ukraine. BP was the largest foreign investor in Russia and sold its 19.75% stake in oil giant, Rosneft. While it’s unknown how the conflict will end, it’s been largely positive for the oil and gas sector.

Is it a good time to buy BP shares now?

It depends on your view of the oil market and BP’s fundamentals. A recovering market and a strong balance sheet could make BP appealing. In addition, the company is attempting to transition away from oil towards a hybrid energy business model that is more conducive with the new age of energy.

Renewable stocks have shown strength in recent years, and BP has highlighted this as an area with significant growth potential. It has now moved full-steam ahead, negotiating arrangements like a hydrogen production facility with Danish energy company Oersted, a green North Sea alliance with Royal Dutch Shell and Total, and even a strategic collaboration with Microsoft.

Some think BP is throwing a lot at the wall to see what sticks, while others see this as an exciting evolution of the company, meaning investing now could be prudent ahead of major growth into new sectors. To track the latest oil news and developments surrounding BP, view our most recent analysis below:

Amid Europe’s Russia ban, renewables mismatch could drive long-term instability in US gasoline prices
September 21, 2022
Winter is coming: European buyers shifting from natural gas to crude oil
August 19, 2022
Is oil turning ahead of the OPEC+ meeting?
July 30, 2022
What does the Fed’s interest rate hike mean for commodities prices?
June 16, 2022

Ways to invest in BP

  • Buy BP shares. The easiest way to invest in BP is through buying shares in it. This means you will own a piece of the company and your investment will rise and fall in line with the company’s performance.
  • Invest in BP ETFs. Exchange traded funds are another easy way to invest in BP. ETFs are traded on the stock market and you can buy shares in them. There are lots of ETFs that include BP and other companies in the oil and gas sector.
  • Invest in BP funds or trusts. Funds are similar to ETFs, although they are managed by a professional fund manager who buys and sells assets according to their expertise.
  • Trade BP. If you have a short term outlook on BP then trading is your best option. Its a good idea to learn how to read price charts and conduct technical analysis before trading, so that you’re able to profit from short term price movements.
  • Spread betting. Spread betting is a cost effective way to make short term trades on BPs stock price. When spread betting you can place bets on if you think BPs share price will rise or fall. One benefit of spread betting is you pay no tax on any profits.

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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Charlie Hancox
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Prash Raval
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