Looking for a simple way to get started investing in the stock market? Buying shares of a company like BT could be the way to go. But successful stock investing requires patience, diligence, and research. We’ve produced this page, along with plenty more educational articles, to teach you how to easily buy BT shares. If you think you’re ready to start investing, follow our helpful links below. If not, keep reading.
Compare the best platforms to invest in BT Group shares
Ready to buy BT shares? Click on the links below to choose an online broker that fits your needs. Our helpful guides will introduce you to the best investment choices and explain how they work.
Trade BT shares, right now
Are you looking for an alternative to long-term investing that has the potential to deliver fast profits? Consider trading shares in BT instead of investing. When trading shares, you’re seeking shorter-term profits by buying and selling over a short timeframe. We’ve reviewed a wide variety of low-fee online brokers that are best suited to high-volume trading.
How to buy BT shares in 7 simple steps
Finding consistent success in the stock market takes work. If you want to buy BT shares, make sure you research the company and the stock’s history first. A savvy investor also analyses the state of the stock market as a whole. Once you’ve done the groundwork it’s time to choose the investment method you want to use.
If you’re new to investing you might want to limit the amount of capital you initially invest. As you gain experience, you can start to venture more money and try your hand at more complex forms of investments. Here’s a quick checklist to follow before investing in BT shares.
- Know the company. What is BT? What’s the company’s history? What’s led to its growth? Is BT’s revenue and profit growth accelerating, or decelerating? The more you know about the company, the better equipped you’ll be to make smart investment decisions when deciding to buy shares.
- Learn the basics. Including all the terms associated with buying stocks, such as bid price and ask price. You’ll also want to know the different ways you can invest in BT, such as share-dealing and trading.
- Share-dealing vs Trading. Share-dealing involves buying BT shares in a company. There are two ways you can make money from share-dealing: You can sell your shares at a higher price than when you bought them, or you can make money from dividends (if it’s a company that issues dividends to investors). Trading is a shorter-term approach than investing and can involve buying and selling BT shares on the same day (widely known as day trading). If you day trade shares in BT, you’re reading the stock’s chart rather than fixating on the company’s long-term future.
- Set a budget. When you first decide to buy BT shares, it’s a good idea to start with a smaller budget. Let’s say £1000. BT currently trades around £200 a share, so you can buy a handful of shares with a £1000 budget. As your experience grows, you may choose to get more aggressive with your investing strategy.
- Choose a broker. Many different brokers will enable you to buy and sell shares in BT, including plenty that won’t charge much to trade. Find a broker that offers an easy-to-use platform, a strong reputation and low fees.
- Evaluate market conditions. When the stock market rises for a long time (a ‘bull market’), most stocks will rise. When the stock market falls for a long time (a ‘bear market’), most stocks will fall. Follow the broader market trend. Don’t try to fight it.
- Make your first investment. You’ve learned how BT operates, and you understand how stock investing works. You’ve established a budget, found a broker you like and ensured that the stock market is in an uptrend. It’s time to buy. Log onto your online brokerage account, type in BT’s ticker symbol (BT), make sure the price BT is trading at isn’t too steep, then hit Buy. Within seconds, you’ll own BT shares.
Ways to invest in BT – share-dealing vs trading
There are a few options to buy, sell, and trade shares of BT online, depending on which investing strategy you like best. Here are some options:
Share-dealing entails buying BT shares. It’s a longer-term approach than trying to trade shares for a quick profit.
- Pros: You won’t need to master the art of chart-reading or technical analysis. If BT starts going up, holding for a longer period of time could lead to a big profit.
- Cons: You’ll be tying up your money for longer, instead of having it available to make more transactions. If BT starts falling right after you buy it, it could be emotionally tough to weather a major correction.
CFD means contract for difference. CFDs are investment derivatives that enable you to speculate on the price movement of an asset (e.g. forex, commodities, even shares in BT) without actually owning that asset.
- Pros: With a CFD, you only need to deposit a percentage of the total trade value, with the CFD broker providing the rest (this is called leveraged trading). If you’re trading with leverage you make a bigger profit than you would if you only used your own money. CFD trading doesn’t entail owning and storing commodities or currency, which can save you some hassle.
- Cons: Just as leveraged trading increases the size of your gain in the event that BT shares rise, it also raises the size of your loss if the stock falls.
If you leave a leveraged CFD position open for more than a day, you’ll pay overnight fees. Some think CFD trading makes less sense when trading stocks, since you’ll lose the voting rights and potential dividends that can come with owning shares of certain companies.
The more you know, the better prepared you’ll be to make a smart decision when buying or trading BT stock. Read our guides and courses to increase your investing knowledge and increase your chances of making the right call. If you’re ready to get started, click on the above links.
How to buy, sell and trade BT shares for beginners
Keen to make BT your debut investment? Check out our tips for novice investors first:
Buying BT shares
This usually involves using an online broker. Buying BT shares is recommended for investors who want to hold the stock for longer. Log onto your online brokerage account, type in the ticker symbol of the stock you like, click Buy, and the shares will be yours.
When you sell BT shares your aim is to sell at a higher price to earn a profit. Exactly when you sell is up to you. You could hold for a long time, hoping to get the biggest profit possible. Or, if you see that your BT shares are already up a lot on the price you bought them at and the stock market is floundering, you might choose to get out while the going’s good and sell.
You can trade BT shares either through conventional transactions, or by using a CFD broker. If you choose a CFD broker, know the risks that come with leveraged trading, and factor in the extra fees that CFD brokers can charge.
Our top tips for investing in shares of BT
You now have a better idea of how to buy BT shares. Here are some more key points to remember.
- Know your budget. Make sure the amount you invest isn’t more than you can afford to lose. You don’t want to end up in debt as a result of irresponsible investing.
- Choose the right approach. Verify that the investment strategy you follow fits your investment goals, and your tolerance for risk.
- Stick to an investing plan, and don’t react to emotions. If you follow a sound plan, you’ll be more likely to succeed. Emotions such as fear and greed can lead to illogical and unsound decision making.
- If market conditions change, have a plan for how to deal with it. When the stock market rises or falls, you don’t need to sit idly by and accept your fate. Make decisions while keeping the state of the broad market in mind.
- Learn from your mistakes. Everyone makes mistakes when investing, be they beginners or expert investors. Review your mistakes. Figure out what went wrong and work out what you could have done differently to achieve a better result. You can apply those lessons in the future and improve your performance.
Unsure which platforms to use?
Not sure where to go from here? Don’t worry. Here’s a list of considerations to help you decide how to proceed:
- Budget size. If you have a budget of £1,000 or thereabouts, you might want to limit the number of trades you make. Keep things simple by buying just a few shares of BT to start with. If you have a larger budget (greater than £10,000, say), you have a greater number of logical options to work with, including day-trading, CFD trading, and other approaches.
- Risk assessment. The more you know, the better you’ll be able to handle risk. Also, more complex investing options can open up for you once you have a firmer grasp of the basics. For instance, you can choose to sell shares in BT short. When you sell shares of a stock short, you’re betting that their price will go down, not up. Alternatively, you might choose to buy shares then protect your investment. For instance, if you buy shares of BT at £200 per share, you can put in a stop-loss order at £180 per share. This means that if the stock starts falling, you won’t lose more than 10% of your investment.
- Market conditions. Let’s say that the stock market starts falling sharply. More defensive investment strategies, such as bonds or commodities, become sensible alternatives in such a scenario. On the other hand, if the market’s doing well, you can ride the wave and buy shares in BT.
- Know your investing goals. If you’re trying to make money quickly, you may prefer to pursue faster-moving investments, such as day-trading. If your timeframe is more like 10-20 years, you’re better off just buy shares and trusting that the strength of the company will continue to trend upwards.
- Keep track of emerging trends. Technology is always evolving, and with it comes exciting new investment opportunities. To succeed over the longer term, BT will need to adapt to changing trends or risk losing ground to its telecommunications competitors.
What is BT?
Based in London, BT is a multinational telecom giant. BT counts more than 100,000 employees on its payroll, and banked £23.7 billion in revenue in 2018. For more information on the company, including charts, live prices, analysis, and more, visit our BT stock price page.
Try some of our stock market courses for beginners
Still not quite ready to buy BT shares? We get it. Why not build your knowledge and confidence on our site by learning investment fundamentals with our easy-to-follow educational courses. Learning more about stock investing should help you feel better prepared to buy shares in BT, or any other corporation that looks promising.