How to Invest in Lloyds – Invest in Lloyds Shares Today!
Lloyds is the biggest retail bank in the UK and multiple household names, including Halifax, are also owned by the group. To buy shares, you need a well-connected broker on your side to provide access to the London Stock Exchange.
Today, we reveal how to invest in Lloyds from the comfort of your home. Additionally, we review the best and safest places to access the market, and detail how to sign up and invest in Lloyds with a 0% commission stockbroker today!
#1 Stockbroker to Invest in Lloyds – eToro
How To Invest in Lloyds – Choose a Stockbroker
You need to select a stockbroker very carefully when you invest in Lloyds. This is because investing is fraught with risk as it is, so you need to ensure you do your homework. This includes checking out fees, regulation/licensing, deposit types, and much more.
To get the ball rolling, we’ve listed the best places to invest in Lloyds:
- eToro – Overall Best Place to Invest in Lloyds
- Capital.com – Trade Lloyds Shares in the UK at 0% Commission
- AvaTrade – Invest in Lloyds via Leveraged CFDs
You will find a complete review of each stockbroker further down.
How to Invest in Lloyds – A Quick Guide For 2021
When you have got to grips with how to invest in Lloyds, you will need to sign up with an online brokerage. Crucially, the platform must offer access to the LSE (London Stock Exchange). See a quick run-through next, using eToro as our guide.
We like eToro because the platform is regulated by the FCA and it allows you to invest in Lloyds at 0% commission and without paying any stamp duty tax.
- Step 1: Open an Account with eToro – Get started by heading to the eToro website and clicking ‘Join Now’. To create an account, enter a username and password that are both personal and memorable. You will also provide the broker with your name, mobile number, email address, and a few other details.
- Step 2: Upload Your ID – Stockbrokers with a license from the FCA are required to validate your identity. This process is called KYC and it must be finished to create an account that is fully operational. The procedure takes minutes at eToro. Upload a copy of your photo ID and a statement from your bank with a recent date. Attach them when prompted.
- Step 3: Deposit Funds – When you have completed the KYC process, you can make a deposit to invest in Lloyds shares. To add funds to your account at eToro, you can choose between a few e-wallets (inclusive of PayPal), or various credit and debit cards. eToro also accepts wire transfers.
- Step 4: Search for Lloyds – There are heaps of stocks and other markets listed at eToro. You will locate this market fastest by entering ‘Lloyds’ or ‘LLOY’ in the search box. When you see the correct listing, click ‘Trade’ to invest in Lloyds.
- Step 5: Invest in Lloyds – When you see a box that states ‘BUY LLOY.L’, you can place your order to buy Lloyds shares. Complete the order form, including the amount you would like to allocate to the stock. This can be as little as $50 as eToro facilitates fractional shares. Finally, press the ‘Open Trade’ button to confirm your investment.
If you place an order to invest in Lloyds before 8 am, or after 4.30 pm, the order box is going to say ‘Set Order’, instead of ‘Open Trade’. If this is the case, complete your purchase as normal. eToro will execute the buy order as soon as the LSE reopens for trading.
67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Invest in Lloyds – Full Stockbroker Reviews
If there is any concern over where you might invest in Lloyds, help is at hand. Our team has reviewed the best stock brokers with access to Lloyds shares. We whittled down the very best by studying key metrics, including; regulatory fees, markets, deposit methods, site navigation, tools, and more.
1. eToro – Overall Best Place to Invest in Lloyds
There are no concerns over the legitimacy of eToro. More than 20 million clients are registered at this brokerage and the FCA, CySEC, and ASIC regulate the trading platform. The company is also a member of the Financial Services Compensation Scheme (FSCS). The website is effortless to navigate and the search function is receptive, which makes finding assets and investing super-simple.
You can invest in Lloyds shares with a minimum of $50 at eToro, this is approximately £36. With low minimums, this broker is well-suited to newbie investors. You will find 2,589 stock markets here, as well as numerous cryptocurrencies, commodities, forex options, ETFs, and indices. Stocks and ETFs can be bought and sold with 0% commission. This leaves only the spread to pay, which is tight. Furthermore, the platform covers all stamp duty on UK stocks.
When funding your eToro account, there is a 0.5% fee added. This is charged to convert GBP to USD and only equates to £5 for every £1,000. Whilst some brokers require a first-time deposit of hundreds, the minimum here is also very reasonable, at $50. To invest in Lloyds, simply sign up, complete the KYC process, and choose a deposit method.
Options include debit/credit cards, comprising the likes of Mastercard, Visa, and Maestro. E-wallets are also supported as a deposit method, and this includes PayPal, Skrill, and Neteller. You could choose to fund your account using a bank transfer, however in this case you won’t be able to invest in Lloyds for 3 to 7 working days. You will find some useful features at eToro, which includes Copy Trading.
Copy Trading allows you to shorten the learning curve. Head over to the Copy Trading section of the eToro platform and you will see a plethora of seasoned traders to choose from. Make your decision based on preferred markets, location, gains, and more. To briefly explain how it works. Let’s say you invest $1,000 with StockMad123. If they risk 40% of their balance on LLOY and 5% on TSCO, you will have $400 allocated to Lloyds shares, and $50 to Tesco.
- Invest in stocks at 0% commission and ZERO stamp duty
- Minimum investment per stock investment is $50
- Supports debit/credit cards, e-wallets, and UK bank transfers
- Regulated by the FCA and covered by the FSCS
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
- Perhaps too basic for technical traders
- No support for MT4 or MT5
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade Lloyds Shares in the UK at 0% Commission
Capital.com stands out for its commission-free share CFDs. For those in the dark, this enables you to trade Lloyds in either direction. To further elaborate, CFDs mirror the value of the underlying shares. As such, you will not become a shareholder when you invest in Lloyds via CFDs. However, you can try to profit from both rising and falling prices by choosing between buy or sell orders.
A key benefit of buying and selling Lloyds CFDs is that you can leverage your position by as much as 1:5. Before magnifying your stock position five-fold, consider the risk of a losing trade. That is to say, you will amplify your losses and you stand to lose more than your account permits. There are thousands of CFD markets listed at Capital.com and all are offered with 0% commission, leaving you with only the spread to consider.
To get started and access Lloyds share CFDs, create an account, and complete the KYC procedure. Supported deposit methods cover most debit and credit card providers, a few e-wallets, and also wire transfers. You can fund your account with a minimum of £20. Unless you choose a wire transfer, in which case this rises to £250. The FCA regulates Capital.com, so you should be in safe hands with this CFD broker.
- Top-rated spread betting and CFD broker
- Licensed by the FCA
- £20 minimum deposit (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spreads and no fee on deposits or withdrawals
- Supports thousands of financial markets
- Convenient for newbies
- Experienced traders might consider the broker too basic
- £250 minimum deposit on bank transfers
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Invest in Lloyds via Leveraged CFDs
AvaTrade is the second CFD broker on our list of best places to access Lloyds shares. This platform will also allow you to leverage your trades by as much as 1:5 on Lloyds share CFD positions. As we said, exercise caution. You might instead think about doubling your stake with 1:2 leverage. Either way, educate yourself on how CFDs and leverage work before diving in. You will have access to Lloyds shares via MetaTrader 4/5 (MT4/5).
If you connect your AvaTrade account with MT4/5, you will have access to even more share CFDs. Not only that, but you can find your feet by using the free demo account on offer. The latter comes loaded with paper funds to practice trading risk-free. These third-party trading platforms also allow you to view Lloyds stock prices, as well as indicators and other trading data. To start purchasing Lloyds shares via CFDs, you will need to create a broker account.
Complete the KYC procedure and make a deposit to get started and trade Lloyds shares. The minimum required is £100, and compatible payment types are inclusive of debit and credit cards, and electronic wallets, including PayPal. Notably, AvaTrade facilitates share CFDs on a commission-free basis. As such, you will only be charged the spread, which is quite competitive.
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
How to Invest in Lloyds – Detailed & Explained in Full
Now, we are going to offer a more detailed walkthrough of how to create a stockbroker account and invest in Lloyds. Specifically, you will find an explanation of how to sign up with eToro.
This will allow you to access the LSE to invest in Lloyds via an FCA regulated space, crucially, without costing you a small fortune in fees. Largely because, as well as offering commission-free stocks, the broker absorbs all stamp duty charges!
Step 1: Open a Stockbroker Account
When you arrive at eToro, you will see a link to ‘Join Now’. When you see the sign-up box, you can begin to fill this in. As is standard when creating a new account, you should enter a personal username and password. You will use these as login details to access your investments later.
eToro will also need to know your email, phone number, and full name to allow you to invest in Lloyds shares. After accepting the terms and conditions and confirming (by clicking ‘Create Account’), you can enter your date of birth, address, and nationality.
This reputable stock broker complies with AML laws. To create a fully functional portfolio, with quick withdrawals and high deposits, you can finish the ID validation process we mentioned earlier. Attach a copy of a recently dated utility bill or bank statement with your address on it, along with your government-approved ID. This can be a passport or driving license.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Deposit Investment Funds
Financing your account to invest in Lloyds is straightforward at a user-friendly brokerage like eToro. You can select an electronic wallet from the likes of Skrill, PayPal, and Neteller. Alternatively, you might prefer to use a credit or debit card.
Wire transfers are also on the table, but you can wait up to 7 days for the money to clear before you can make a purchase. As such, you won’t have any means to buy Lloyds shares straight away if you opt for this method.
When you’ve chosen your preferred deposit type, and entered an amount to fund your account with, you can confirm everything. The funds will appear as available equity, which enables you to get the ball rolling to invest in Lloyds. Be mindful that there is a 0.5% conversion fee to pay, as your new account will be denominated in US dollars.
Step 3: Search for Lloyds
Use the handy search bar to locate Lloyds. Please note that, as you see below, there are two Lloyds markets listed at eToro. The ticker ‘LYG’ is listed on the New York Stock Exchange, whereas ‘LLOY.L’ can be found on the LSE, which is much more convenient for UK investors.
Not only that – but there are no stamp duty fees to pay because eToro covers the cost. To proceed, click ‘Trade’ to place an order to invest in Lloyds.
Step 4: Invest in Lloyds
As you see from the example below, at eToro, the trading order box will show the stock ticker at the top. In this case, you should see ‘BUY LLOY.L’. We are electing to invest $200 in Lloyds on the LSE. However, you can buy shares by allocating as little as $50 (around £36) if you like.
When you’ve entered the relevant information, you can click ‘Open Trade’ to instruct eToro to execute your order. As we touched on earlier, if this is outside of the LSE market trading hours, press ‘Set Order’ instead. This tells eToro that you want the order to buy Lloyds shares to be executed as soon as the UK marketplace reopens.
Note: The UK stock exchange is open from 8 am until 4.30 pm GMT, Monday to Friday.
Step 5: How to Sell Lloyds Shares
When you learn to invest in Lloyds, it’s also wise to be aware of how to cash out your investment. The most convenient way to sell your existing shares is via the platform from which you purchased them.
See a quick guide below on how to sell Lloyds shares, at top-rated stockbroker eToro:
- Sign in to eToro with your personal username and password
- View your investments by clicking ‘Portfolio’
- When you see ‘LLOY.L’, click it
- Place a sell order, enter the amount to cash out and confirm
- eToro will fund your account accordingly
Provided you finished the KYC process when signing up, meaning eToro validated your ID, you can withdraw the proceeds at this stage. Alternative options include; keeping the money as trading equity, within the safety of a regulated environment, or using it to invest in something else.
Buy Lloyds Shares – Best Place to Invest in Lloyds
When you have a clearer understanding of the fundamentals of how to invest in Lloyds, you can open and fund a stockbroker account to buy shares. This can be a minefield as some offer a better service than others.
See some tips below on how to find the best place to invest in Lloyds:
- Have a look around the stockbroker’s website – is the platform easy to get around, making finding shares to buy stress-free?
- See whether the platform holds a license from a tier-1 regulatory authority, such as the FCA
- Make sure you won’t be charged hefty share dealing fees on each and every transaction
- Check which deposit methods the broker will accept, to fund your account and make an investment
- Investigate the minimum amount of money you will be required to allocate to buy Lloyds shares
- Explore whether there are any trading tools available to invest in stocks
As we covered in our earlier review, eToro covers all bases. Getting around the platform is super-easy and the FCA, ASIC, and CySEC regulate the space. This stockbroker also covers stamp duty fees, which is a saving of 0.5%.
At eToro, you can fund your investing account using e-wallets, wire transfers, and credit/debit cards, with only a small FX fee of 0.5%. Furthermore, you can get started with a minimum deposit and investment of $50 (around £36).
Is Lloyds a Good Stock to Buy?
You should make your own mind up when it comes to deciding whether or not to buy shares.
To help you decide whether to invest in Lloyds, you can read over a brief company overview next – in terms of stock price history and dividends.
Lloyds Stock Price History
When you are learning the ins and outs of how to invest in Lloyds, you should note that the bank is no longer merged with building society TSB. To briefly explain; Lloyds itself can be traced back to 1965. TSB, or Trustee Savings Bank, was established in 1810. In 1995, the two merged and the domestic bank was re-branded as ‘Lloyds TSB’. Following a takeover in 2013, the company changed its name to ‘Lloyds Banking Group’.
This brings us up to date. As such, when you look to buy Lloyds shares these days, you will be looking for the ticker LLOY, or LLOY.L. Shares can be found on the LSE. In 2013, the first shares of the Lloyds Banking Group were floated on the LSE at a price of 75p. Lloyds has not actioned any stock splits, so if you had bought 100 shares to begin with, you would still have the same now.
Today, Lloyds is trading at around 49p. However, by the time COVID-19 was declared a global pandemic, in early 2020, Lloyds stock fell dramatically – along with many other FTSE 100 markets. The difference is, Lloyds didn’t hit rock bottom like many others.
Instead, in late September 2020, Lloyds shares fell to a low of 23p. Still making your mind up about whether to invest in Lloyds? Despite its highs and lows, post-pandemic Lloyds is trading 113% higher than it was about this time last year. This shows great stock resilience. With that said, always carry out your own research before taking the risk.
Does Lloyds Pay Dividends?
Dividends can provide shareholders with a regular cash stream. As you are researching how to invest in Lloyds, you may be pleased to know that this company has recently reinstated dividends. A dividend is a payment that is distributed between shareholders. This is generally a cash payment (rather than stock) and the amount will be paid per share periodically.
See below a brief history of the company’s dividends, to give you an idea of what to expect when you invest in Lloyds:
- Between May 4th, 2005 and October 1st, 2008, Lloyds paid UK shareholders dividends twice a year. This ranged between 10.7p and 24.7p
- After this, dividends came to an end due to the HM Treasury recapitalization scheme
- Dividends were reinstated on May 19th, 2015, until September 13th, 2019. Cash payments ranged between 0.50p and 2.14p
- Following this, the impact of COVID-19 caused dividend payments to be temporarily halted
- On May 25th, 2021 dividends were reinstated by Lloyds – a payment of 0.57p was paid to shareholders (per share)
- The most recent dividend was 0.67p per share, which was paid on September 13th, 2021
Put simply, if you held 100 shares when the last dividends were paid, you would have received a cash payment of £67. As you can imagine, this is a great way to earn a passive income. Furthermore, many people invest in Lloyds and reinject their dividend payments to buy more shares.
Should I Invest in Lloyds?
Circumstances can shift almost constantly in stock trading, so you should conduct your own research before you purchase Lloyds shares. To give you the best start, you will see some information surrounding the Lloyds Banking Group below.
Lloyds Price Swings
When you invest in Lloyds or any stocks for that matter, price swings can be a worry. With that said, it can indicate the capabilities of a company. Plus, volatility can be taken advantage of. Historically, Lloyds stock has bounced back multiple times, despite its sharp fluctuations in value.
See some historic price fluctuations
- On April 4th, 1997, LLOY shares were trading at 243.95p
- By April 9th, 1998, shares had increased by 107.8% to 506.99p
- Over a decade later, on April 9th, 2009, Lloyds was trading at just 39.42p
- By February 21st, 2014, Lloyds has risen to 80.79p, illustrating a 105% increase
- Lloyds stock fell once more and by November 29th, 2019, a whole share was 61.15p
- On August 28th, 2020, Lloyds was trading at 28.35p
- Today, in mid-to-late October 2021, the share price is around 49p
As you can see from the above, Lloyds shares can be very volatile. This should yet again be another reminder that you should always consider the risks of investing before parting with any money.
Lloyds Shares Could be Too Cheap to Miss
Right now could be a great time to learn how to invest in Lloyds. Why? Because at the time of writing, you can buy Lloyds shares for 49p. As you can see from the above-mentioned price swings, in early April 1997, the Lloyds group was trading at 243.95p. Only a year later, shares had risen in value by 107.8%, to 506.99p.
All in all, Lloyds has a robust balance sheet and is priced at a high discount to the company’s underlying assets. As such, if you invest in Lloyds shares now you could benefit later when, or if, the company’s earnings recover from COVID-19.
Lloyds Owns Multiple Brands
Despite a rough few years, Lloyds shares are considered a buy, according to market commentators that is. Moreover, when you invest in Lloyds, you aren’t only buying shares in Britain’s biggest retail bank, but you are investing in a company that owns numerous other brands.
- Black Horse
- Scottish Widow
- Bank of Scotland
- Lex Autolease
- and more
So what does this mean for Lloyds shares? Well, across all 12 Lloyds-owned brands, the company serves more than 25 million customers. Revenue comes from things like mortgage lending and loans. In 2020, Lloyds’ financial results illustrated a pre-tax profit of £1.2 billion. In early September 2021, referring to the first half of the year, Lloyds announced aggregated gains across the whole group of £2 billion, before tax.
Ways to Invest in Lloyds
Depending on the stockbroker you choose, there could be a multitude of ways to invest in Lloyds.
Take a look at the most common:
Invest in Lloyds With Debit Card
To invest in Lloyds using your debit card, double-check that the broker you are signing up with supports your payment provider, and this type of deposit method.
Invest in Lloyds With Credit Card
Some stockbrokers won’t accept credit cards, so if this is your only deposit option, make sure the platform is compatible with it. If the broker is able to support credit card deposits, also check what fees you will be liable for, as these can quickly stack up.
Invest in Lloyds With Paypal
Investing in Lloyds with PayPal is probably easier than you think. The issue can be finding a stockbroker that supports it. eToro is not only a multi-asset platform – but also supports all sorts of payment types. This includes electronic wallets like PayPal, Skrill, and Neteller.
eToro only charges 0.5% on all the above-listed deposits, which is really competitive. This is merely an FX fee to swap GBP for USD.
Risks of Investing in Lloyds?
The risks of investing in Lloyds, or any market, can be a worry to first-timers. Sure, volatility can be a concern, but it’s important to remember that if prices remain too steady, there will never be an opportunity to make notable profits.
Below, we’ve listed some risks you might face when investing in Lloyds, and how you can try to counteract them:
- To offset the risk of over-exposure, consider diversifying. eToro facilitates fractional shares, so you can easily create a diverse portfolio of stocks
- There is always the danger that fintech payment companies will disrupt consumer banking as we know it
- You can dilute this risk in two ways. First, keep an eye on the financial, market, and business news
- You could also research investing in fintech stocks, such as Square. Again, this way you won’t be exposed to a single market
Another way to keep risk to a minimum is to think carefully about how much you can afford to lose, and never allocate any more than that. eToro will let you buy Lloyds shares starting from $50, which is around £36.
The Cost of Investing in Lloyds?
There is a price to pay for entering the stock markets, whether local or international. As such, part of you researching how to invest in Lloyds should include what fees you will have to pay.
To help you out, we’ve listed some below.
Brokerage Deposit Fees
Deposit fees are fairly common. The amount charged usually hinges on the payment method and broker you choose. For instance, if a platform stipulates 2% on PayPal payments, you will instantly lose £20 from every £1,000 deposit in fees.
eToro is super-competitive when it comes to fees. No matter which deposit method you elect to use to invest in Lloyds, you will only need to pay £5 for every £1,000. This is because the broker charges 0.5% to transform British pound into US dollars (which is used to operate the site).
Share Dealing Fees
When looking for the best place to invest in Lloyds, you should know that share dealing fees vary. This is why it’s crucial you shop around before signing up.
Take a look at some fees charged by various brokers to buy and sell Lloyds shares:
- Investing in Lloyds at IG will set you back £8 per transaction
- You’ll pay £11.95 for the same deal at Hargreaves Lansdown
- eToro soaks up all share dealing fees for its clients – so you will pay nothing whatsoever
You will also save 0.5% on stamp duty fees when signing up at eToro to invest in Lloyds. Don’t forget, this stockbroker also allows you to buy shares in Lloyds with only the spread to pay, which is tight.
How to Invest in Lloyds – Conclusion
That concludes this guide on how to invest in Lloyds. Thorough research and learning about the company you want to buy shares in is really important. It’s also a wise move to enter the stock market with your eyes open to potential fees.
A large part of this will be decided by stockbrokers, so you should select one with care and consideration. eToro will allow you to invest in Lloyds with 0% commission and only the spread to pay. The FCA regulates the platform, amongst other bodies, which makes for a much safer trading environment.
The minimum deposit and investment are just $50 (around £36) which is super beginner-friendly. You can add funds to your account using everything from Paypal, to numerous credit and debit cards, and banking options.
eToro – Best Broker to Invest in Lloyds
How do you invest in Lloyds?
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