How to buy BP (BP) stock

By   |   Verified by Andrew Boyd   |   Updated 1st September 2022

  • Are you interested in buying stocks in a multinational oil and gas company?
  • BP is a good dividend stock, which is one of its biggest attractions for investors.
  • BP is scaling up investments in low carbon fuels and reducing emissions, in anticipation of its green energy future.

BP plc (NYSE: BP), previously known as British Petroleum, is a British multinational oil and gas company. It is one of the world's oil and gas "supermajors". Founded in 1909, it was listed on the London Stock Exchange in 1954 and is headquartered in London.

Read on for a complete guide on where and how to buy stocks in BP from the USA.

Company overview

Starting with oil, BP also has coal and mineral mining in its history, later also moving to gas, and from onshore to deepwater operations. Today BP is turning towards a new mix of energy sources with a goal to move into a lower carbon future and net-zero emissions. BP's transition to greener energy has taken place at a faster pace than its competitors, including Royal Dutch Shell and ExxonMobil. The company plans to cut oil production by around 40% in the next 10 years, selling oil assets and increasing investments in renewable energy. BP subsidiaries include Castrol, Aral, and BPX Production Company, among others.

Where to buy BP stock

eToro

On eToro's website

eToro

Highlights

  • Deposit $100 and get a $10 bonus.
  • Zero commissions for trading ETFs and stocks.
  • Start Fractional investing with as little as $10.
  • Practice investing with a $100k virtual eToro account.


Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

Public

On Public's website

Highlights

  • Buy any stock with any amount of money, commission-free. No matter the share price, you can own slices of stock with as little as $5.
  • Invest in popular ETFs from Vanguard, BlackRock and others by the slice, and do it without commission fees..
  • Investments made in Public are insured for up to $500,000.
Moomoo

On Moomoo's website

Highlights

  • Trade blue-chip stocks in US, HK and SG Markets.
  • Wide array of investment choices such as stocks, stock options, futures, ADRs, Exchange Traded Fund (ETFs) and REITs.
  • Manage your assets, portfolio and investments across multiple markets.

Still looking for a stock broker? Try our broker comparison and compare fees, tradable assets, and more.

Step 1: Select a broker

You can trade stocks listed on overseas markets with an online broker.

These are just a few of the things to consider when choosing a broker.

Trade without commissions

You can trade without commission on many trading platforms. This saves you a lot of money over the long term.

Fractional stocks

Brokers that offer fractional stocks allow you to purchase a part of the stock. This allows you to diversify your holdings more easily.

Intuitive trading

Trading stocks 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 stocks. It’s possible that your funds will take some time to clear before trading can be started.

Step 3: Set your budget

When buying stocks, you should only spend money you can afford to lose. Stocks are volatile. Fractional stocks allow you to start small.

Step 4: Invest via an ETF or in stocks

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

ETFs with exposure to BP include Avantis International Equity ETF (AVDE), Pacer Trendpilot International ETF (PTIN), and Pacer Global Cash Cows Dividend ETF (GCOW).

Step 5: Set up an order

You can choose from a variety of order types to customize when and how much of each stock should be purchased. These order types are widely available.

Market order

Market orders are executed at the current market rate for the stock. The price you get at order execution might not be the same as the one offered at the time the order was placed.

Limit order

A limit order is not like a market order. It's executed at your specified price – either a maximum buying price or a minimum selling price.

Stop limit

This type of order allows you to automatically buy or sell your stocks within a specified price range (e.g. a buying stop limit order for when the stock price rises above $100 – the 'stop' – and it can still be bought for less than $105 – the 'limit'). However, if the market is moving quickly against you, the order may not be executed if the price rises or falls past your limit price.

Stop loss

This allows you to determine the price at which to buy or sell, in order to limit your losses. It is often used to protect a trade against market volatility. You could, for example, set up a stop loss at $125 per stock. 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.

Step 7: Monitor your investment

When you buy stocks 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 stock price movements.

Track BP’s performance

BP is a dividend-paying company. Keep an eye on how BP performs as well as its stock price movements. As part of tracking performance, you want to monitor the company’s financial fundamentals to have confidence that it performs to your expectations.

The global energy landscape is undergoing major shifts. The COVID-19 pandemic and the economic crisis that followed resulted in unprecedented disruption to the global energy landscape. The move to a less carbon-intensive economy will also have huge ramifications, and present opportunities, to companies like BP.

Competition

BP’s key competitors include Shell (NYSE: RDS.A), Petrobras (NYSE: PBR), Chevron (NYSE: CVX), Saudi Aramco, ExxonMobil (NYSE: XOM), PetroChina, and Marathon Petroleum (NYSE: MPC).