How to buy Lloyds Bank (LLOY) shares

By   |   Verified by Andrew Boyd   |   Updated 9 Nov 2023

The Lloyds Banking Group (LON: LLOY) has been trading since 1765. Since then, this retail and commercial banking firm has traded successfully through wars, pandemics, recessions, and depressions.

After their acquisition of TSB and HBOS, Lloyds Banking Group became one of the UK's largest financial services providers. It is one of the largest constituents of the FTSE 100 Index.

Follow the step-by-step process outlined below if you want to buy shares in the Lloyds banking group.

Unsure about what share dealer to use?

Where to buy Lloyds Bank shares

eToro

On website

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eToro

Highlights

  • Trade and invest in top financial instruments, including a wide selection of stocks.
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  • Your funds are protected by industry-leading security protocols.
Hargreaves Lansdown

On 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.
Lightyear

On website

When you invest, your capital is at risk.

Lightyear

Highlights

  • With the launch of Vaults, you can earn interest rates of 5.21% APY on GBP, 3.83% APY on EUR, and 5.39% APY on USD, with a flat fee of 0.25% for all deposit sizes and no minimum or maximum limits.
  • Invest in over 3,000 international ETFs and stocks in the EU, UK, US, and more.
  • Simple and easy-to-understand pricing. Per order, Lightyear will charge 0.1% (up to $1 max) on US shares, £1 on UK shares, and €1 on EU shares.
  • Earn interest* on uninvested cash, USD (4.50%), EUR (3.25%), GBP (4.5%) p.a. gross.
  • No account-keeping fees.


*The interest rates are true as of 06.04.2024
* Finty will be paid a referral fee, including financial promotion if you open an account and deposit funds through some of the links on this page.


Pros

  • No withdrawal fees.
  • US Fractional Shares are available.
  • A low 0.35% foreign exchange fee.

Cons

  • Limited investment products.
Saxo Markets

On website

Saxo Markets

Highlights

  • It only takes five minutes to open your account online.
  • Get ultra-competitive spreads and commissions across all asset classes.
  • Get news, commentary and actionable trade ideas from their team of expert analysts.
Wombat Invest

On website

Wombat Invest

Highlights

  • Simple and straightforward investing app.
  • Allows you to invest in ETFs (Standard ISA or GIA) and Fractional Shares (GIA only).
  • Get a savings account and unlock 4.91 %AER (variable) paid daily.
  • Open an Individual Savings Account and invest up to £20,000 each year.



Disclaimer: When you invest, your capital is at risk.

Pepperstone

On website

80.9% of retail investor accounts lose money when trading CFDs

Pepperstone

Highlights

  • Trade gold, silver, oil, and more.
  • Enjoy industry-leading low spreads from 0.0 pips.
  • Regulated by ASIC, BaFin, CMA, CySEC, DFSA, FCA, and SCB.
Freetrade

On 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.

Compare UK investing platforms with Finty. Research fees, commissions, tradable assets, markets, etc.

First time buying?

How to buy Lloyds Bank shares

Step 1: Pick an online broker

There are a variety of online brokers you can choose from. One basic feature is a requirement if you want Lloyds shares: access to the London Stock Exchange. (The brokers listed on this page can all be used to buy Lloyds shares.)

Other features to consider when comparing brokers include their fee schedule (what commission they charge, currency conversion fee, inactivity fee, etc.) and whether you can use them to purchase fractional shares (so you can access some of the most expensive options later on).

If you're a new investor, look for a modern app you can install on your phone and trade with. The ability to set up a demo account could be very beneficial too.

Step 2: Deposit funds in your account

Once you've selected a broker to work with, you need to deposit funds in your account.

It is important to note that your funds could take some time to clear into your trading account. Using a debit or credit card (if available as an option) is usually the fastest option. A Faster Payments bank transfer is also a quick way to transfer funds.

Step 3: Decide on the amount you want to invest

You need to decide how much you'd like to invest while resisting the desire to invest more than you can afford. Be aware that share value fluctuates and may rise and fall in line with market trends, with no guarantee of being a profitable investment.

Step 4: Choose whether to purchase shares or invest in an ETF

Apart from buying their shares, you can also invest indirectly with an ETF that holds shares of Lloyds.

ETFs are a type of investment that holds shares of a group of companies. The ETF may have a specific theme, so that all the companies it holds are similar in some way, e.g., banking or fintech. Since ETFs hold shares in a number of companies, their risk profile is lower than investing in a single stock. However, their value can still move up and down with the market.

ETFs that have exposure to Lloyds shares include Dimensional International Value ETF (DFIV), Avantis International Equity ETF (AVDE), and First Trust Indxx Innovative Transaction & Process ETF (LEGR).

Step 5: Configure your order

The market order is the most basic form of order, requiring virtually no configuration whatsoever. After the order is submitted, the broker will complete the transaction at the next available market price.

A variety of other types of orders are also available. For example, most brokers will let you set up an order to run automatically once specific requirements are satisfied. There are a number of ways you can use them, for example, sell when the price rises to a certain level and take profit, or sell when the price drops to protect against losses.

Step 6: Place your order

All that’s left to do is to submit the order to make your investment.

After you buy

What moves Lloyds Bank's share price

What gets said about a company in the press can have both a positive and negative impact on the value of its shares. For this reason, it is important to monitor what is being said about Lloyds in the news.

It is also wise to read their company announcements and results and monitor employee job satisfaction.

Keep track of how other financial services and banking companies are performing. Doing so will alert you to other investment opportunities. Monitor companies like the NatWest Group (NWG), Barclays (LON: BARC), and Banco Santander (BME: SAN), all of which operate in the UK.

Emerging threats to Lloyds — and its share price — are varied and include large natural disasters, economic crises, the state of the housing market, their dividend, and new rivals in the banking industry borne out of the fintech sector.

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.