How to buy NatWest (NWG) shares

• Looking to buy NatWest shares and get exxposure to the financial sector?
• Find out about the different trading options and how to buy shares.
• What to track in the banking sector to assess NatWest’s performance

NatWest (LON: NWG) is a major retail and commercial bank. It is one of the Big Four clearing banks and operates the Ulster Bank in Northern Ireland.

In addition to banking services, NatWest provides insurance, mortgages, savings products, and loans.

Ready to buy? Read on for a step-by-step guide to buying shares in NatWest.

Step 1: Open a share broker account

NatWest is listed on the London Stock Exchange. If you want to buy shares in the company, you'll need a broker with access to the LSE.

When evaluating your options, consider a broker's commission and foreign exchange fee, minimum deposit amount, as well as market access, tradable instruments (shares, funds, commodities, crypto, etc.), and whether they support fractional shares.

Demo accounts are available with some brokers, giving you an option to try them out before depositing funds.

Step 2: Fund your account

Before you can buy any shares with your trading account, you must have cleared funds available. Brokers generally all accept bank transfers and debit cards. Credit cards or PayPal may be accepted by some brokers.

Keep in mind that it may take some time before funds clear and you can trade with them.

Step 3: Set your investment budget

If you're thinking about investing in shares, be sure you're aware of the risks involved. Only invest what you can afford.

Step 4: Choose between shares or an ETF

ETFs (Exchange Traded Funds) are a sort of diversified investment with exposure to a variety of companies. Generally, an ETF will have a theme, such as only investing in companies listed on the same stock exchange or operating in the same industry. Being diversified across multiple companies and managed by professionals, an ETF is widely considered a less risky way of investing.

ETFs with exposure to NatWest include Dimensional International Value ETF (DFIV) and Avantis International Equity ETF (AVDE).

Step 5: Set up an order

A market order means your order will be fulfilled at the next available price. However, because there might be a substantial delay between placing an order and having it filled, it's advisable to utilise a limit order if you have a specific timeframe in mind.

If you have a target price in mind, most brokers will let you configure an order to automatically buy or sell once the price target has been hit. Alternatively, you may be able to set up a recurring order to buy shares periodically.

Step 6: Buy

With your order configured, submit it to buy your shares in NatWest.

Keep up to date with industry news, financial reports, and press releases from NatWest since these can move their price.

It is also worth doing the same for their main competitors: Lloyds Bank (LON: LLOY), Barclays (LON: BARC), and HSBC (LON: HSBA).

More recently, incumbent banking brands have been dealing with fierce competition from fintechs like Revolut and Starling Bank. These smaller and more nimble businesses have been taking market share in important demographics, posing a long-term threat to the Big Four.

Demand for banking services has a significant impact on the price of retail banking shares. Changes in regulations, such as those introduced after the Great Recession of 2007, and the overall state of the economy are factors that can weigh on their share price.