Ways to invest in Royal MailCopy link to section
The most common way to do so is to sign up with a broker. There are lots of broker platforms out there and creating an account is simple, so you can be trading on the market in a matter of minutes.
Purchasing shares outright isn’t the only way to invest, however. You can trade something known as ‘contracts for difference’, where you don’t even have to own the shares, or invest in a fund so that someone else does the investing for you. Use the links below to learn more about each individual approach.
What is Royal Mail?Copy link to section
Royal Mail is the national postal service of the UK, with a history that stretches back nearly 500 years. Owned and operated by the British government as a public service for most of its history, Royal Mail staged its initial public offering on the London Stock Exchange in 2013.
Before you get started, think about taking our Stock Markets 101 course to learn more about the key principles of investing. Otherwise, keep reading this page to learn more about Royal Mail investing.
How to invest in Royal MailCopy link to section
Below is a list of ways to invest. Read through each one to improve your understanding of the options available to you, or click on the links to get more detailed information.
- Stock brokers. Purchasing Royal Mail shares through an online stock broker can usually be done in less than a minute, at a cost of just a few pounds per transaction. You can manage your entire portfolio from inside the broker account and many of them offer good quality trading apps as well so you can do so from anywhere.
- Mutual funds and trusts. Funds and trusts are managed portfolios that pool your money together with other investors and hand control over to a professional. The only difference between them is that funds have an unlimited number of investors – so you just add money to the pot – while trusts are limited so you have to buy your share in it from somebody else. Both publish the stocks they hold and their recent performance, so pick one that holds Royal Mail shares with a good track record.
- Service and Utilities ETFs. An exchange-traded fund is similar to a mutual fund except rather than being managed it tracks the performance of an entire market or index. It does so by owning all the stocks within it. A services or utilities ETF might hold Royal Mail shares, as would one that follows the London Stock Exchange. As with a mutual fund, investing in an ETF lets you limit risk by creating an instantly diverse portfolio.
- CFDs. A CFD (contract for difference) is an alternative to owning shares outright. With a CFD you can benefit from the changes in a share price without actually owning the stock, and they’re the preferred way to delve into the stock market for traders with a short term focus. A CFD also allows you to trade with leverage, which is when you borrow money from a broker to try to increase the size of your gains. It’s good to be aware of leverage, but you should steer clear of using it until you have much more experience.
- ISAs. An ISA is a tax-free savings account for UK residents that lets you earmark part of your income for investments. You can own Royal Mail shares from within the ISA and keep any gains you make on the stock away from the tax man – up to a limit of £20,000 per year in the UK.
Where can I buy Royal Mail shares now?Copy link to section
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Latest Royal Mail price analysisCopy link to section
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