How to buy Tesco (TSCO) shares

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

  • Want to buy Tesco shares for exposure to the retail and food sector?
  • Find out what to look for when deciding which online broker to use.
  • Learn how to open an account and place an order.

When Jack Cohen founded Tesco (LON: TSCO) in 1919, he had no idea how big his business would become. It is the UK’s biggest supermarket chain and has been for decades.

Their focus has always been on providing value for money with good quality food, clothing, and household goods for a low price. It is this approach that has endeared them to their customers, so much so that 20 million households in the UK have at least one Tesco Loyalty card.

Buying shares in Tesco is easy when you follow the steps outlined below.

Unsure about what share dealer to use?

Where to buy Tesco shares

eToro

On 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 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.
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.
Fineco

On 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.

Compare the top trading platforms with Finty. Research broker fees, commissions, tradable assets, markets, and commodities, etc.

First time buying?

How to buy Tesco shares

Step 1: Open an account with a trading platform

Tesco shares are traded on the London Stock Exchange. Whichever broker you choose must have access to this stock exchange to buy their shares. (Those brokers listed on this page do.)

Here are some things to think about before deciding on a broker.

  • What commission do they charge on trades?
  • Which assets and markets do they offer access to?
  • Can you buy fractional shares with them?
  • How much do they charge for currency conversion?
  • Do they have a good mobile app?
  • Is there a demo account available to try out?

Step 2: Deposit funds in your trading account

To invest in Tesco shares, you'll need cleared funds in your account. You can transfer funds to your account via a debit card or bank transfer. Depending on the broker, credit cards might be accepted, too, but they aren’t supported as widely (because of the risk of fraud).

Step 3: Decide how much to invest in Tesco

A lot of things can go wrong in the market, which is why you shouldn't invest any more than you could afford to lose.

If your budget for investing is limited, you can invest regularly over time. Doing so means you can build your position while reducing your exposure to price volatility.

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

ETFs (Exchange Traded Funds) are a kind of diversified investment. Since what the fund invests in is managed, they are more suited to passive investors.

Each ETF consists of shares in a basket of companies. An ETF may be themed such that they only invest in companies in the consumer staples or food and beverage sectors.

Tesco shares are included in many ETFs including iShares Core MSCI EAFE ETF (IEFA), Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU), Schwab International Equity ETF (SCHF), and JPMorgan BetaBuilders Europe ETF (BBEU).

Step 5: Set up your order

A market order requires practically no configuration whatsoever if you have the funds to cover your trade. Once executed, the broker will buy shares at the next available market price, which can be a little higher or lower than what was quoted due to market activity.

With most trading platforms, you can create an order to be executed automatically whenever the share price hits a target. You can use them to buy or sell shares. For example, you could configure an order to buy shares the next time Tesco’s share price falls to a level that interests you.

Step 6: Buy

Submit your order to buy shares in Tesco.

After you buy

What moves Tesco's share price

What is going on within the supermarket industry, technological advances, changes in consumer behaviour, and employee satisfaction all impact Tesco’s profit. So, it is wise to keep an eye on the news to notice these things and see what effect they are having. Also, be sure to read the company’s announcements and results statements.

Pay particular attention to how their competitors are performing too. Tracking their main competitors Sainsburys (LON: SBRY), Morrisons, ASDA, ALDI, and Lidl is especially important considering changing consumer behaviour.

German discount grocers are prominent threats to Tesco’s performance. However, Tesco’s online business has been a strong performer, helped by their near-ubiquitous delivery network.

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.