Invest in Tesco – Invest in Tesco Shares Today!

Fact Checked by Gary McFarlane

Tesco is a supermarket giant in Britain that has been around since the early 20th century. Many UK brokers provide access to the London Stock Exchange, where Tesco shares are listed, but you should tread with caution when choosing one to sign up with.

Today, we detail how to invest in Tesco. Furthermore, we offer a full review of the best brokers for the task and a guide on how to create an account to make an investment today.

#1 Stockbroker to Invest in Tesco – eToro

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How To Invest in Tesco – Choose a Stockbroker

You can invest in Tesco today by accessing the London Stock Exchange, referred to as the LSE. This particular stock is listed under the sticker TSCO. The best stock broker for the job will keep trading fees to a minimum and should be approved by the UK regulator – the FCA.

  • eToro – Overall Best Place to Invest in Tesco
  • Capital.com – Trade Tesco Shares in the UK at 0% Commission

You will find a quick sign-up guide below to invest in Tesco. After this, please find a full breakdown of the aforementioned stock brokers.

How to Invest in Tesco – A Quick Guide For 2021

For this 5 step guide detailing how to invest in Tesco, you will see that our team opted for top broker eToro. The regulatory body, the FCA, ensures the platform maintains high standards of care, and you can invest in Tesco from just $50 (around £36) without paying any commission.

  • Step 1: Open an Account with eToroYou can begin to create a portfolio with eToro by clicking ‘Join Now’ and completing the details needed to identify you. For instance, your first and last name, contact details, address, date of birth, and a few other snippets of who you are. You also need to enter a unique password and username that will be used to access your portfolio later.
  • Step 2: Upload Your ID – Scan or take a photo of your driving license or passport. You will also need a utility bill, that was issued to you at your address in recent months. This enables eToro to adhere to rules laid out by regulatory bodies. Organizations such as the FCA require stockbrokers to validate your identity with documentation.
  • Step 3: Deposit Funds – Before you are able to invest in Tesco shares, you will need to fund your newly created broker account. This platform is compatible with a multitude of deposit types, encompassing credit and debit card payments, PayPal, Skrill, online banking, and wire transfers. The lowest deposit amount is just $50, which equates to about £36.
  • Step 4: Search for Tesco – eToro lists thousands of markets, spanning six asset classes. As such, the fastest way to invest in Tesco is by locating it via the search function. Enter Tesco or TSCO, ensure you are clicking on the correct market, and verify by clicking ‘Trade’, to the right.
  • Step 5: Invest in Tesco – Next, an order box will pop up. Check this says ‘Buy TSCO’ at the top. Finally, consider how much you wish to allocate to Tesco shares before entering the amount in the box. Confirm your buy order by pressing ‘Open Trade’ if the UK stock market is open, or ‘Set Order’ if the LSE is closed.

Please note that the LSE stock market runs from 8 am and 4.30 pm GMT. If you are placing an order to invest in Tesco out of market hours, eToro will execute your position when the LSE reopens. Also, a reminder that this FCA-approved broker enables fractional stock investments from $50. As such, you don’t need hundreds in the bank to invest in multiple Tesco shares at eToro.

67% of retail investor accounts lose money when trading CFDs with this provider.

Where to Invest in Tesco  – Full Stockbroker Reviews

When you’ve grasped how to invest in Tesco shares, you will need to pay attention to where you will access the stock. As you know, Tesco is listed on the LSE. As such, you need to make sure the prospective stockbroker provides access to that specific market. You will also need to consider the cost to invest, the platform’s regulatory position, and many other aspects, which we talk about during this guide.

1. eToro – Overall Best Place to Invest in Tesco

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eToro is covered by numerous tier-1 financial regulators. This comprises the FCA (the UK), CySEC (Cyprus), and ASIC (Australia). As such, you have the peace of mind that comes with a regulated investing space. For instance, when you invest in Tesco, your funds are kept in a separate bank from the broker. It also complies with various rules and regulations designed to keep investors safe. You will not pay any commission to invest in Tesco shares here – which is a major bonus.

You will, however, be charged the spread, which is tight. To sign up, this regulated broker requires you to attach some personal documents, including a bank statement and photo ID. This is needed to finish the KYC process and should take minutes. The lowest deposit is also just $50. Moreover, the broker exchanges British pounds for US dollars for a low fee of 0.5%. To be clear, this fee is charged because the eToro trading site is denominated in US dollars.

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You will save 0.5% on stamp duty fees as eToro covers the cost. To fund your account, there are numerous accepted deposit methods. This includes wire transfers, debit and credit cards, and a few electronic payment options, inclusive of Neteller and PayPal. Moreover, this reputable stockbroker makes partaking in fractional stakes easy. You can invest as little as $50 (around £36) in Tesco shares. This can be achieved in a few clicks, with a simple buy order.

This is because the eToro platform is incredibly user-friendly, which makes placing trading orders fast and convenient for investors from all walks of life. Furthermore, as an account holder, you can take advantage of the broker’s in platform feature – Copy Trading. In layman’s terms, this entails carefully selecting a seasoned trader to invest in. Preferably someone who prefers trading stocks and has a good track record of gains.

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Let’s say you invest $2,000 in Copier123 and they decide to risk 40% of their trading capital on a TSCO buy order, and 10% on RMG.L. You now have $800 invested in Tesco and $200 allocated to Royal Mail shares. This is a hands-off approach to trading stocks, which may be useful for beginners. There are 2,500+ stocks from 17 local and international stock exchanges listed here, for those who want to create a diverse basket of shares.

Pros

  • 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

Cons

  • 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 Tesco Shares in the UK at 0% Commission

capital.com review

Capital.com lists thousands of assets from 18 regions around the world. You will be able to trade Tesco shares in the form of CFDs here. Most notably, this means you will not own any shares. The CFDs just track and reflect the value of the underlying TSCO stock. This also means that you can open a leveraged position, with more than you would otherwise have available as trading equity.

Let’s say you apply 1:5 leverage. If you were to allocate £100 of your own funds to Tesco share CFDs, this could be magnified to £500 by Capital.com. Furthermore, CFDs offer a level of flexibility. As such, if you have a feeling that Tesco stock will lose value, you can place a sell order. If you foresee a rise in the trading price of TSCO, create a buy order. Remember, if you are incorrect and have leveraged your position, any losses will be magnified.

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Capital.com stipulates a newbie-friendly minimum deposit of just £20, and there are plenty of options for funding your account. This includes e-wallets like Skrill and PayPal, as well as major debit and credit cards. If you don’t mind waiting to trade Tesco CFDs, you can choose a wire transfer. This method comes with a higher minimum deposit of £250 and could take up to 3 working days to show itself in your portfolio balance. Finally, Capital.com is licensed by the FCA.

Pros

  • 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

Cons

  • 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.

How to Invest in Tesco – Detailed & Explained in Full

If you have never signed up with a brokerage to access a stock exchange – follow the detailed guide that follows.

This 5-step sign-up references eToro. Largely because the platform is easy to use and is regulated by the FCA, as well as providing a safe environment. You can also invest in Tesco at 0% commission and without needing to pay any stamp duty.

Step 1: Open a Stockbroker Account

Opening an account is super convenient at this online brokerage. Start by visiting eToro in your chosen browser. You can get the ball rolling to open an account and invest in Tesco by clicking ‘Join Now’.

A box, like the one seen below, will materialize. When it does, complete the form by entering your full name, phone number, email – as well as your date of birth, home address, and nationality when prompted. You also need to fill in your choice of username and password, read and accept the terms and conditions, and click ‘Create Account’.

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In a bid to prevent financial crime, eToro is required to validate your ID. This is known as the KYC (Know Your Customer) process and can be completed by adding a copy of your government-approved ID, and an official letter showing your name, a recent date, and your full home address. For instance, a bank statement or a tax letter.

Note: You can leave the completion of the KYC process for a later date. However, bear in mind that your portfolio will be incomplete. In turn, this will prevent you from making a withdrawal, or larger deposits of over $2,250 (around £1,644).

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Deposit Investment Funds

To invest in Tesco shares with real money, you will have to make a deposit. eToro accepts more payment methods than most stock brokers. We found this to include credit and debits cards by Visa, Maestro, Mastercard, Visa Electron, and so forth. Alternatively, you can choose from the section of popular e-wallets, including PayPal.

Deposit Funds

Enter the amount of money you want to fund your account with, starting from a minimum of $50. Confirm your choice and click ‘Next’ to progress to Step 3.

Step 3: Search for Tesco

At this stage, you have a new eToro account with available funds and can invest in Tesco. To find this specific market with as little fuss as possible, type ‘Tesco’ into the search facility.

eToro search Tesco shares

As you can see, you have to be careful to ensure you are selecting the right asset, as there will be a list of results. Once you have found Tesco, validate your choice by clicking ‘Trade’.

Step 4: Invest in Tesco

When you see an eToro order box emerge that says ‘BUY TSCO.L’, you can start to enter the required information to buy Tesco shares.

eToro buy Tesco shares

We are choosing to invest in Tesco by allocating $100. You can invest as much as you like, as long as it meets a minimum of $50. Add your chosen monetary amount and press ‘Open Trade’.

Note: eToro will add the Tesco shares to your account instantly unless the LSE exchange is closed. As we touched on at the start of this guide, you can place an order to invest in Tesco outside of 08:00 and 16:30 GMT. In this case, the broker will action your position when the LSE reopens.

Step 5: How to Sell Tesco Shares

Selling Tesco shares is easy at a brokerage like eToro, as your assets will be easily accessible on the platform. You will simply log in using the details you created in the first 4 steps of this walkthrough.

See a quick-fire guide to sell Tesco shares:

  • Sign in to your eToro account
  • Locate your purchased Tesco shares by entering your eToro portfolio
  • Click TSCO.L from within the listed markets to create an order
  • Place a sell order
  • Finally, you can cash out all of your Tesco shares, or just some of them, by entering the amount and confirming all

It’s as simple as that. eToro will credit your account accordingly and at the current share value. The hope is that you sell your Tesco investment for more than you initially bought the shares for.

Buy Tesco Shares – Best Place to Invest in Tesco

Tesco is a huge supermarket chain and is listed at most stockbrokers in the UK. However, there are certain things to consider before settling on a platform to invest in Tesco.

See a checklist of considerations before you make a final decision:

  • Is the platform be regulated by the FCA and does it list its license number?
  • How much will I be liable for in fees to invest in Tesco?
  • Can I easily place orders and navigate the stockbrokers’ platform?
  • What payment cards are accepted to invest in Tesco?

There will be a huge disparity between some of the brokers out there that provide access to the LSE marketplace. As such, it’s important to think about your priorities before you sign up to invest in Tesco. Going through this checklist should be a good starting point.

Is Tesco a Good Stock to Buy?

Prior to putting everything you’ve learned about how to invest in Tesco into practice – delve a little deeper. Take a look at the company, find out whether it offers shareholders a cash return, and investigate how it has performed historically.

As an investor, it’s crucial to investigate matters for yourself before injecting any funds into a new market. Taking this into consideration, you will see a little more about Tesco’s history below.

Tesco Stock Price History

The idea of Tesco was first introduced by Jack Cohen in 1919. Although, then it was merely a market stall in Hackney selling excess groceries. In 1924, Thomas Edward Stockwell sold Cohen a shipment of tea. By combining the three initials of T.E. Stockwell, and the first two letters of Cohen, the name Tesco was born.

Stores started popping up throughout the UK over the next two decades, and in 1947, Tesco was added to the LSE stock exchange. Between the years 1955 and 1960, Tesco invested in 500 new premises, and by 1968 the greengrocer had its own 40,000 square foot superstore. These days, Tesco is the most popular supermarket in Britain, and investors from around the world buy shares in the company on a daily basis.

Tesco stock Google

Let’s take a look at some historic price data, to help you decide whether you wish to invest in Tesco:

  • Tesco was listed on the LSE in 1947 at a price of 0.25p
  • On the 31st of January 2003, a whole share in Tesco was 210p
  • By 30th May 2007, Tesco shares had shot up to 562p
  • At the end of January 2021, Tesco was trading at 306p
  • On the 1st of October, 2021, Tesco shares were valued at 248p

Let’s imagine you were around to invest in Tesco shares in 1947. If you risked £1,000 on Tesco stocks when they were priced at 0.25p, this investment would have been worth almost £1 million by the start of October 2021!

Does Tesco Pay Dividends?

When you elect to invest in Tesco or any stock, you will probably be interested in whether the company pays dividends to shareholders. The answer is yes, Tesco does offer a frequent cash stream.

  • After an accounting scandal, Tesco ceased paying dividends in late 2014
  • By November 2017, Tesco was back on track and paid its first dividend in almost 3 years, which was 0.5p
  • Between mid-2018 and now in mid-October 2021, Tesco has paid regular dividends between 1p and 6.50p
  • The next dividend paid to Tesco shareholders is forecast to be 3.4p

Tesco usually declares dividends in October and pays out in November and July. When you invest in Tesco, you will also receive occasional special dividends. Notably, many people who invest in Tesco choose to adopt a strategy called ‘dividend reinvestment’.

This means you will save any payments received as a shareholder, and use the money to buy more stock. As previously mentioned, eToro facilitates fractional stock investments of just $50 and up.

Should I Invest in Tesco?

Whether or not you should invest in Tesco will depend on your own independent findings. Having said that, we have included some potential advantages of choosing to buy Tesco shares.

Tesco Price Growth

Considering Tesco is one of Britain’s top four supermarkets, it’s still relatively inexpensive to buy shares in the company. Many stock commentators believe that the trend of Tesco being a market leader is set to continue.

Below, you will see some real-world examples of Tesco’s growth, over its time on the LSE:

  • By the beginning of January 1997, Tesco shares had risen from the initial IPO by 58,504%, to 146p
  • Over a decade later, in late November 2007, TSCO had skyrocketed to 606p
  • By the 17th of October 2014, Tesco shares had fallen by over 63% to 221p
  • On January 3rd, 2020, Tesco was trading at 323p
  • By the end of the same year, on the 31st of December, 2020, TSCO shares were 293p each
  • At the time of writing, mid-October 2021, Tesco is valued at around 265p per share

This time, let’s say you had elected to learn how to invest in Tesco back in January 1997, placing a buy order on TSCO when it was valued at 146.51p. If you held onto your shares in the company and decided to cash out now (mid-October 2021), you would be looking at gains of over 81%. Had you cashed out in late November 2007 instead, this would have produced an impressive profit of around 315%.

The aforementioned example illustrates how you can easily make gains by correctly timing the markets when you invest in Tesco. Despite this, it’s very important to thoroughly explore information surrounding any investment, rather than putting money into a company based on the opinions of others.

Tesco is a Top-Tier British Retail Giant

As we mentioned, Tesco is one of the biggest supermarket chains in Britain. The supermarket has held onto its place as a market leader for many years, which should make the company a strong long-term investment.

  • The fact that the company has more than 40% of the UK supermarket share is a positive from an investor’s point of view
  • There is value in the popularity and widespread trust or loyalty in a company on the LSE
  • In recent years, Tesco invested £3.7 billion in order to buy the biggest grocery wholesale company in the UK, Booker
  • This enables Tesco to not only supply its own stores but also multiple restaurant chains and convenience shops

As Tesco continues to dominate its sector and expand, the retail giant shows no sign of slowing down. The firm is also one of the leaders of the e-commerce and home delivery sector, in terms of food. As such, when you invest in Tesco, you’re investing in a British institution that aims to dominate the grocery retail industry for years to come.

Tesco Shares remained Stable During COVID-19

As you may be aware, in addition to the LSE, Tesco is also featured on the FTSE 100 index. Interestingly, during the height of the world pandemic (COVID-19), which saw an economic crisis across many sectors, the FTSE fell in value – whereas, Tesco shares remained steady.

Tesco was also the first supermarket to launch an online grocery service. As such, during the lockdowns of 2020, many people turned to Tesco for home deliveries and the company experienced a surge in online orders.

eToro Tesco chart

Tesco remains one of the nations leading grocery delivery services. In fact, a recent six-month earning report illustrated that Tesco’s online revenues had increased by 2.5% from last year, not including VAT and fuel. Whilst that doesn’t sound like much, the company impressed market commentators with its margins.

Tesco’s net debt decreased by as much as £2.3 billion, thanks to its retail cash flow increasing two-fold. Due to COVID-19, retail operating profits were also up 40%.

Ways to Invest in Tesco

Whilst educating yourself on how to invest in Tesco, you may have noticed there are multiple ways to buy shares.

See below for inspiration:

Invest in Tesco With Debit Card

If you would like to invest in Tesco with a debit card, you are best advised to view the fee table first. Some stockbrokers charge deposit fees. This can eat away at the funds you could have otherwise invested. eToro supports debit card deposits from all major providers.

Invest in Tesco With Debit Card Now

Invest in Tesco With Credit Card

Some stockbrokers will support credit card payments, but charge a hefty fee for using them to invest in Tesco. In contrast, eToro charges a very reasonable FX fee of 0.5%. The same goes for making a deposit using debit cards and any other method of payment. Furthermore, you will save 0.5% on stamp duty tax, as this is covered by eToro.

Invest in Tesco With Credit Card Now

Invest in Tesco With Paypal

eToro will let you fund your account to invest in Tesco using several e-wallets. This includes PayPal, Skrill, and Neteller and only comes with the aforementioned 0.5% fee attached. If you were to fund your account with £100, the broker would only take £0.50.

Invest in Tesco With Paypal Now

Risks of Investing in Tesco?

The biggest risk you will take by opting to invest in Tesco, or any other stock – is that you might lose your hard-earned money.

See some other risks below:

  • There is talk of Amazon’s new food delivery service shaking up the way we shop for groceries in Britain
  • Cheaper supermarkets like Aldi and Lidl have been battling with Tesco for a good few years now
  • The German discount retailer chains regularly beat Tesco in terms of low prices
  • In hard economic times, loyal Tesco shoppers could easily be swayed to the low-value competition

With all that said, there is no denying that after over a hundred years, there has been little sign of Tesco falling from grace. As such, it could be a good time to invest in Tesco. Tesco stock reached its highest ever value of 606.73p on 30th November 2007.

At this time, mid-October 2021, you can invest in Tesco shares for around 266p. There is no standout reason why this stock won’t rise once again. Most importantly, this allows you to enter the market at a major discount.

The Cost of Investing in Tesco?

Make no mistake, you can’t invest in Tesco for free. A stockbroker will provide you with access to the LSE exchange, so there will be fees to pay for the service.

We have listed common fees charged to buy Tesco shares below:

Brokerage Deposit Fees

A deposit fee is charged each time you add funds to your stockbroker account to invest in Tesco. The amount you will be liable for might be dependent on the method you opt for. For instance, in some cases, credit cards can come with higher fees. eToro charges a set fee of 0.5% across all supported payment methods.

Share Dealing Fees

Share dealing fees can soon add up when you invest in Tesco. Many brokers charge in excess of 1% on each and every transaction, and this should be settled within 30 days of the order.

See some real-world examples of share dealing fees you could pay when you elect to invest in Tesco:

  • Saxo Markets stipulates £8 for each deal
  • IG also charges £8 for every stock transaction
  • Hargreaves Lansdown charges a share dealing fee totaling a hefty £11.95
  • On the other end of the scale entirely is eToro. This broker absorbs UK stock fees, which means you pay 0% in share dealing charges

The fact that eToro covers all stamp duty fees represents a further saving of 0.5%.

How to Invest in Tesco – Conclusion

When you have a grasp on how to invest in Tesco, you will need to sign up with an online stockbroker. The platform you choose will determine how secure your funds and personal data are, and how much you pay to access the UK stock markets.

For instance, there are commissions, as well as deposit and stamp duty fees to consider. Not forgetting the regulatory status of the brokerage in question. After reviewing tons of stockbrokers, we found that eToro is the best place to invest in Tesco shares.

The broker does not charge any commissions and the 0.5% stamp duty tax is waivered. You can deposit and invest from as little as $50 here, which is around £36. eToro supports PayPal, Skrill, major credit/debit cards, and banking options such as wire transfers.

eToro – Best Broker to Invest in Tesco

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$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

FAQ

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.