How to buy Rolls-Royce (RR) shares from the UK

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

  • Rolls-Royce’s performance in the commercial airline sector will depend on the loosening of travel restrictions and COVID-19 developments around the globe.
  • Some sub-segments in the power systems division even saw growth during the pandemic, helping the company stay resilient.
  • Rolls-Royce is well poised to benefit from its determination to achieve a net zero carbon future through working on more efficient power systems.

Rolls-Royce Holdings plc (LON: RR) is a British multinational aerospace and defence company. Originally famous for its luxury vehicles, today it is one of the world's leading engineering groups known for the design, manufacture and distribution of power systems for aviation, defence and other industries. Rolls-Royce Holdings was incorporated in February 2011 and owns Rolls-Royce, a company established in 1904. Rolls-Royce is headquartered in London.

The company is also listed on the Dusseldorf (RRU:DUS), Frankfurt (RRU:FRA), Munich (RRU:MUN), Stuttgart (RRU:STU) and German Composite (RR:DEU) stock exchanges. This is how you can buy their shares from the UK.

About the company

Rolls-Royce overview

Rolls-Royce’s three biggest markets are civil aerospace, defence aerospace and power systems. The power systems division supports the marine, industrial, power generation and defence sectors.

The company is leveraging its position as a global power group to help society transition to a low-carbon economy and is determined to play a role in creating a resilient, inclusive, net zero carbon future.

Rolls-Royce earns a significant portion of its revenues from manufacturing jet engines for commercial airlines, with nearly half (48.5%) of its staff serving that sector. Commercial airlines have been severely affected by the global travel restrictions. The opening up of international travel will improve the company's bottom line.

Unsure about what share dealer to use?

Where to buy Rolls-Royce shares

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First time buying?

How to buy Rolls-Royce shares

Step 1: Select a broker

You can trade shares listed on overseas markets with an online broker. You have many options in the UK. These are just a few of the things to consider when choosing a broker.

  • Access to the London market: Rolls-Royce are listed on London's stock exchange. Many of the stock trading apps are limited to either UK or US markets, so check which markets your broker has access to before opening an account.
  • Trade without commissions: You can trade without commission on many trading platforms in UK. This saves you a lot of money over the long-term.
  • Fractional shares: Brokers that offer fractional shares allow you to purchase a part of the share. This allows you to diversify your holdings more easily. Rolls Royce shares usually trade at over GBP 100 each, so fractional trading could be useful if you want to invest in this company.
  • Intuitive trading: Trading shares shouldn't be complicated. You should choose a broking platform that is easy to use and doesn't require a lot of learning.
  • Company analysis and research: A trading platform that has a strong research and analysis section can help you make informed decisions based on market updates, price history, quarterly earnings reports, etc. A few brokers offer analyst recommendations.

Step 2: Fund your trading account

You need to fund your account before you can buy shares. It’s possible that your funds will take some time to clear before you can start to trade.

Step 3: Set your budget

You should only invest money in shares if you can afford to lose it. Shares are volatile. Fractional shares allow you to start small.

Step 4: Invest via an ETF or in shares

An ETF (Exchange Traded Fund), while more diverse than stocks, is still safer than investing directly in an active stock.

JPMorgan BetaBuilders International Equity ETF (BBIN) and iShares Global Industrials ETF (EXI) are among a number of ETFs with exposure to Rolls-Royce stocks.

Step 5: Set up an order

You can choose from a variety of order types to customise when and how many of each share should be purchased. These order types are available in many countries.

Market order

Market orders are orders that may be bought or sold at the current market rate. The price you get on execution of your order might not be the same as the one offered at the time you placed the order.

Limit order

A limit order is not like a market order. It's executed at your specified price or less.

Stop limit

This type of order allows you to automatically sell your shares at a fixed price. However, if the market is moving quickly against you, the order may not be executed if the price falls past your limit price.

Stop loss

This allows you to determine the price at which to sell. This is often used to protect a trade against market volatility. You could, for example, set up a stop loss at GBP 95 per share. Your stop loss order will automatically be executed if the price drops below that level and your order will be filled at the next available market price.

Step 6: Place your order

After you have chosen a broker and decided what type of investment you want, you can place an order.

After you buy

What moves Rolls-Royce's share price

When you buy shares in a company, either to hold long term or to benefit from speculating on price fluctuations, you need to keep a track of the company’s performance and its share price movements.

Track Rolls-Royce’s performance

Keep watching the company’s performance and its stock fundamentals. You can do this by watching news stories and keeping an eye on company announcements.

Watch for developments in the business sectors Rolls-Royce operates in

Keep an eye on important developments in the civil aerospace, defence aerospace and power systems sectors.

Competition

Rolls Royce’s main competitors in the large jets sector are GE Aviation, Pratt & Whitney, and Safran.

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.