How to buy British American Tobacco (BATS) shares

By   |   Verified by Andrew Boyd   |   Updated 31st August 2022

  • Want to buy British American Tobacco shares?
  • What to look for when choosing a broker to buy online.
  • Learn what different order types are available.

British American Tobacco (LSE: BATS) is a British company that makes and sells cigarettes and other tobacco products. They own some of the world’s most popular brands in 180 countries including Lucky Strike, Kent, Rothmans, Pall Mall, and Dunhill. It is an FTSE 100 company.

Read on for our step-by-step guide to investing in British American Tobacco shares.

Unsure about what share dealer to use?

Where to buy British American Tobacco shares

eToro

On eToro's website

68% of retail CFD accounts lose money

eToro

Highlights

  • Trade and invest in top financial instruments, including a wide selection of stocks.
  • eToro is regulated by CySec, FCA and ASIC
  • Your funds are protected by industry-leading security protocols.
Freetrade

On Freetrade's website

Freetrade

Highlights

  • With fractional shares, you can start investing from only £2.
  • Choose from thousands of stocks from the London Stock Exchange, NYSE and NASDAQ.
  • Access to a wide range of ETFs and Investment trusts.
Fineco

On Fineco's website

Fineco

Highlights

  • Open an account and get £500 in trading commissions to use within 3 months.
  • Access 26 global markets and trade 20,000+ financial instruments worldwide.
  • Low fees and spreads, 0 commission and no markup on FTSE100, US and EU Shares CFDs, and no additional charges on stock prices, market spread only.
  • Trade anywhere and hold GBP, EUR, USD and 20+ currencies in a single account.
Hargreaves Lansdown

On Hargreaves Lansdown's website

Hargreaves Lansdown

Highlights

  • Offers easy-to-use trading platforms.
  • Invest across 20 international exchanges in shares, funds, bonds and investment trusts.
  • Dealing charges depend on how many trades you make each month.

Compare trading platforms on Finty. Research fees, commissions, tradable assets, markets, etc.

First time buying?

How to buy British American Tobacco shares

Step 1: Sign up with a share broker

British American Tobacco shares are listed on four stock markets: (LON: BATS), (NYSE: BTI), (JSE: BTI), and (KN: BAT). You'll need a broker with access to at least one of these stock markets in order to buy their shares.

Before deciding on a broker, there are a few key points to consider.

  • What is their commission on trades? Many are now commission-free, particularly for US shares.
  • What markets and tradable assets do they have available? Although you may be interested in buying BATS shares now, in future you may want to invest in commodities, ETFs, or something else.
  • Do they support fractional share investments? This option is very useful if you want to diversify your portfolio with more expensive stocks and you’re somewhat limited in terms of budget.
  • How much do they charge to convert currencies when buying on overseas markets? Although the broker may not charge a brokerage fee on trades, if you’re investing in shares listed overseas in a different currency, you’ll almost certainly be charged a fee. This can add up if you put on a substantial trade.
  • Do they have a mobile app? Ideally, a broker has native Android and iOS apps. Check the respective app store first for reviews.

Step 2: Fund your account

Once you’ve chosen a broker and registered your account, you’ll need to deposit funds in your account to begin investing.

You can fund your account in several ways. Bank transfers and debit cards are among the most common funding methods, although some brokers will also accept credit cards and PayPal.

Keep in mind that it can take time for funds to be cleared into your account before starting trading.

Step 3: Choose how much to invest

Keep in mind that the value of an investment in shares can go up or down, so you should only invest what you can afford. Avoid the temptation to over-extend yourself and risk getting into trouble with your finances.

You can invest periodically to reduce price volatility and take advantage of pound cost averaging over time.

Step 4: Decide between shares or an ETF

With their exposure to a basket of companies, ETFs (Exchange Traded Funds) are regarded by many as a less risky way to invest (although you can never remove the risk entirely).

Being less volatile, ETFs are a way to passively invest for those who would rather not — or haven’t got enough time to — make individual trading decisions.

Step 5: Spec up your order

You can use a market order if you want to buy British American Tobacco shares now and aren't too concerned about slippage (the difference between the quoted price and what you actually pay when the trade is processed).

Depending on your broker, it is typically possible to configure an order to be executed at a pre-defined price, which gives you more flexibility and the ability to plan out a trading strategy.

For those looking to build their position in a company, you could configure an order to buy more shares regularly (for example, once per month).

Step 6: Place your order

Once you have configured your order, submit it to buy your shares.

After you buy

What moves British American Tobacco's share price

As well as keeping an eye on the price of your shares, read any news stories that mention British American Tobacco and their competitors, particularly those of a controversial nature. Also, stay up to date with what is happening in the tobacco and vaping industries.

The price of tobacco company shares can be impacted by changes in regulations and changing attitudes towards smoking or vaping. While these changes may not manifest for some time, they are worth considering in terms of exposure to risk. How much spare cash people have to spend can also impact demand for their products.

You can compare British American Tobacco against their main competitors – Imperial Brands (LON: IMB), Altria (NYSE: MO), Japan Tobacco (TYO: 2914), and Philip Morris International (NYSE: PM) — for a better sense of their performance.

Disclaimer: We put our customer’s needs first. The views expressed in this article are those of the writer’s alone and do not constitute financial advice. Advertisers cannot influence editorial content. However, Finty and/or the writer may have a financial interest in the companies mentioned. Finty is committed to providing factual, honest, and accurate information that is compliant with governing laws and regulations. Do your own due diligence and seek professional advice before deciding to invest in one of the products mentioned. For more information, see Finty’s editorial guidelines and terms and conditions.