How To Buy EV Stocks UK – Top 3 EV Stocks 2021

Fact Checked by Gary McFarlane

The electric vehicle sector has exploded over recent years, going from something of a novelty to being regarded as the future of transport. This dramatic switch-up comes as Electric Vehicle (EV) technology has improved greatly, making the vehicles far more consumer-friendly. While Elon Musk helmed company, Tesla, has long been the top-dog in the space, many other well-known vehicle brands like BMW, Peugeot, and Hyundai have thrown their hats in the ring with a range of EVs with the goal of dethroning the king. Due to this intense competition, it could be the perfect time to begin buying EV stocks while prices are low. Over the long-term EV companies are something of a sure bet due to the world wanting to move away from fossil fuels

If you want to capitalize on this competition and begin adding some of these companies to your portfolio, you’re in the right place! Throughout this guide, we’ll be discussing some of the best EV stocks you can purchase right now, the top EV brokers, and also exactly how you can buy electric vehicle stock today. 

#1 Broker to Buy EV Stocks UK – eToro

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How to Buy Electric Vehicle Stocks UK – Step by Step Guide 2021

If you’re looking for a quick explanation of exactly how to buy electric vehicle stock, then you’re in the right place. We appreciate that not everyone has the time to read an entire article, so if you’re in a rush this no-fluff guide will explain precisely how to buy EV stock right now. 

  • Step 1: Open an eToro account: If you want to buy EV stock, the first thing you’ll need to do is register with a reputable broker, like eToro. To do this, simply type “eToro.com” into your browser, press “Join Now”, and fill in the form. 
  • Step 2: Verify your Identity: eToro is a regulated broker. Although this has several security benefits for users, it also means that you’ll have to verify your account before you can trade. Luckily, the verification process only takes a couple of minutes to complete and all you’ll need to have at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).  
  • Step 3: Fund your account: As soon as your account has been verified, you’re only one step away from buying your first EV stock. The final prerequisite is funding your eToro account. To do this just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro accepts either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill) for deposits. 
  • Step 4: Buy Electric Vehicle Stocks: There we have it! All that’s left is to buy EV stock. Just type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you want to buy, and press “Open Trade’. You can monitor your investment from the portfolio section of your account.

Where to Buy Electric Vehicle Stocks UK – Top 3 Electric Vehicle Brokers

One of the most crucial steps to successfully buying EV stock is choosing the right broker. The reality is that everyone has different needs and therefore will prefer different brokers. However, to make the selection process easier for our readers, we’ve included detailed guides on the top three EV brokers so you can make up your own mind on which platform is right for you. 

1. eToro – All-Around Best Electric Vehicle Stock Broker UK

eToro is one of the best-known brokers in the world. They’ve been operating since 2007 and serve more than 20 million users. Their success can be attributed to the phenomenal trading experience offered to their users. Overall, it’s easy-to-use, powerful, and secure, meaning it ticks the three major boxes every investor looks out for when researching trading platforms. 

Security & Privacy

As you’d expect from one of the world’s largest brokers, eToro has excellent security. They protect users using three main techniques, regulation, encryption, and 2FA. Firstly, eToro is regulated by the SEC, along with a range of other authoritative bodies. Meaning customers can rest-assure that their data is being handled correctly and nothing strange is going on behind the scenes. Secondly, SSL encryption is used to obscure client data while it makes its way to the eToro central server, greatly reducing the chance of your information getting intercepted by a hacker. Lastly, eToro gives every user the option of enabling 2-factor authentication, which acts as the last line of defense in the event of a customer account getting breached. 

Features

In an effort to appeal to the general investor, eToro has included features useful to all experience levels. This results in a platform that is perfect for the everyday investor. Just about everyone will be happy to know that eToro offers a CopyPortfolio system that is designed to help users invest in a range of companies at once. It works in a similar fashion to an ETF, but rather than investing in an all-encompassing fund, it’s more akin to opening a tonne of positions with a single button. If you like plotting complex trading strategies, you’ll also be glad to know that eToro offers top-of-the-line charting tools to every user, meaning regardless of how complicated your strategy is, you shouldn’t have an issue employing it. On top of all this, eToro also has an educational platform called eToro academy which helps users brush up on their skills and make better-informed trading decisions. 

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • $50 minimum deposit
  • Regulated
  • SSL encryption
  • CopyPortfolios
  • Charting tools
  • eToro academy
  • 2FA

Cons

  • Lack of MetaTrader support
  • Additional technical indicators would be nice

68% of retail investor accounts lose money when trading CFDs with this provider.

2. Robinhood – Best Electric Vehicle Stock Trading Platform for Beginners UK

Security & Privacy

Robinhood doesn’t skimp when it comes to security, which you’d expect from a world-renowned brokerage that servers more than 10 million users. Transactions on Robinhood require confirmation from multiple sources in a process called multisig, resulting in a far lower chance of a bad actor falsely validating a transaction. On top of all this, Robinhood is covered in the event of insolvency on securities balances up to $500k and cash balances of $250k. If you’ve got more than this in your Robinhood account, don’t fret, they also provide “excess of SIPC” insurance for balances up to $10 million. 

Features

If you’re new to the stock market then Robinhood might be the perfect place for you to invest. They’re almost solely focused on providing beginners with a good trading experience and have taken a number of steps to ensure nobody has difficulty buying stocks on the platform. From the get-go, the app’s interface is simple to understand and doesn’t have any features hidden from view. Despite their focus on beginners, Robinhood gives its users the ability to place limit orders, something that is fairly crucial if you want to have much success trading. Additionally, Robinhood offers a service called “Robinhood Gold” that grants users access to greater margins and “tier-2” market research, which could help investors make better-informed decisions. All said and done, if you’re a beginner Robinhood might be ideal for you. However, if you’re looking for a fully-featured platform you might be better served by a platform like eToro. 

Robinhood Fees

Fee Type Amount
Trading Fee 0%
Credit/Debit Card Fee 3.99%
Spread Fee Variable

 

Pros

  • Regulated
  • Multisig transactions
  • SIPC insurance
  • Excess of SIPC insurance
  • Limit orders

Cons

  • Overly basic for experienced investors
  • Robinhood gold is lackluster

68% of retail investor accounts lose money when trading CFDs with this provider.

3. TD Ameritrade – Alternative Electric Vehicle Stock Trading Platform UK

If you’re looking for a well-rounded brokerage that hasn’t cut any corners when it comes to its trading platform, TD Ameritrade might be the perfect fit for you. They’ve undergone several name changes since being founded in 1975 but have still managed to accumulate more than 11 million users. 

Security & Privacy

Security should always be at the forefront of a broker’s priorities; if a platform has poor security customers are likely to lose money. TD Ameritrade protects its users by adhering to regulations enforced by the SEC, ensuring the safe handling of client data. Another way they protect client data is by using 128-bit SSL encryption to render it useless to anyone other than them. If you’re unsure of how to protect yourself while online, TD Ameritrade has plenty of guides on exactly that. They’re mainly focused on spotting fraud and preventative security measures. 

Features

It’s apparent from the get-go that TD Ameritrade has taken the time to think about what features would be most useful to investors. They offer 24/7 phone support for most issues (something seldom seen, unfortunately) along with Monday – Friday support on technical problems. If you’re looking at investing in dividend-paying stocks then you’ll be happy to know that TD Ameritrade offers automatic dividend reinvestment, meaning you can essentially earn compounding interest on your investments. In addition to this, TD Ameritrade has a range of “thinkorswim” trading platforms that not only offer advanced trading capabilities but also claim to continually improve as traders provide feedback. All in all, TD Ameritrade is a great option for anyone wanting something with more meat on the bones than Robinhood but not likely the looks of eToro. 

TD Ameritrade Fees

Fee Type Fee Amount 
Commision Fee 0% (on US stocks)
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • 128-bit SSL encryption
  • Guides on online safety
  • Dividend reinvestment 
  • 24/7 phone support
  • Thinkorswim

Cons

  • Might be too complex for beginners
  • High mutual fund commissions

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy Electric Vehicle Stocks – Broker Price Comparison

If there’s one thing stock market investors hate, it’s brokers that charge exorbitant fees for basic actions. Unfortunately, this is far too common an occurrence in the investment space, which is why we’ve included this handy table comparing the fee structure of each of our top brokers. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares  $0 $0 $0
TD Ameritrade 0% (on US stocks) $0 $0 $0

 

Top 3 Best Electric Vehicle Stocks UK

Tesla (TSLA)

Tesla is by far the biggest name in the EV space as of current. They are a leading innovator in the industry and one of the largest companies in the world. Considering Tesla’s share price has increased by over 140% this year alone, it’s no surprise that so many investors are wanting to get their hands on a piece of the EV giant before prices continue to skyrocket. 

Advantages

As the largest EV company in the world, I’m sure not many people will be shocked that there are several benefits to buying Tesla stock. However, that doesn’t mean it’s not worth taking a deeper dive, so without further ado, here are some of the main advantages to buying Tesla stock. 

Innovation: It’s no secret that Tesla is one of the most innovative companies in the world. Outside of the EV space, they’re involved in several exciting industries like green energy and artificial intelligence. Because these industries are still very much in their infancy it’s hard to tell just how big they’ll become, but if anyone is going to bring them to the mainstream, it’ll be Tesla! Rapid Growth: When the first Tesla was released in 2006 it wasn’t particularly exciting. Its performance and range left a lot to be desired and when you consider the EV charging ecosystem of the period, drivers would likely struggle to use their vehicle regularly. Since that time, however, EVs have become far more mainstream, something that is clearly reflected in the share price as it jumped from just $4 in 2010 to over $1000 in 2021.  

Disadvantages

Even a company as prestigious as Tesla has some issues. So to help paint a better picture of what buying Tesla stock entails, here are some issues with the EV titan. 

Volatility: Although Tesla boasts some impressive stats when it comes to its earnings and share price, that doesn’t mean it’s always plain sailing. Elon Musk often causes dips in Tesla’s share price usually caused by his tweets and public appearances. While Tesla tends to recover from these dips, in the long run, it’s something to be aware of if you’re a short-term investor.

Competition: During the first few years of trade, Tesla had it pretty easy. There wasn’t a whole lot of competition in the EV space but over the past couple of years, things have changed drastically. Pretty much every mainstream vehicle company is vying for market share in the sector. This means that if Tesla fails to continue innovating, it could quickly be surpassed by another company dedicating more resources to R&D.

Rivian (RIVN)

Rivian is the second-largest vehicle manufacturing company in the US, beaten only by Tesla. The company only went public in late 2020 and is yet to ship more than 1000 vehicles making this valuation extremely interesting. It seems as though a lot of big names have faith in the automotive startup, so it could be a great time to buy Rivian stock before they ramp up production.

Advantages

If you’re upset that you didn’t buy Tesla stock when it was first released, Rivian could be your second chance. The company only went public in 2020 and is still very much in its startup phase, making it the perfect investment for anyone looking to get in on an EV company close to its release. 

Long-Term Prospects: Despite currently operating only a single factory, Rivian’s plans to expand are well underway. Meaning it could be an excellent time to invest before its expansion pushes share prices even higher than they’re currently valued. Currently, they have the capacity to produce around 150,000 cars each year, however, once their second factory is complete they should be able to produce an additional 200,000. On top of this, they aim to produce 1 million vehicles annually by 2030. If they’re able to increase production by more than 600% in just 9 years, there’s no telling where the share price could end up.

Partnerships: Oftentimes, partnerships can make or break a company. In Rivian’s case, their partnerships seem to be a big plus. E-commerce mogul, Amazon owns a 20% stake in the company and has ordered 100,000 electric delivery vehicles which could be huge for Rivian. If there’s one company that could help Rivian over the long term, we’d have to say Amazon is a pretty solid contender. 

Disadvantages

Every investment has risks and Rivian is no different. Despite having some powerful partners, Rivian is yet to fulfill the vast majority of its preorders, meaning we could see a large price decrease if they fail to deliver. 

Overvalued: Despite only being public for a short while, Rivian currently has a market cap of $135 billion, making it larger than both Ford ($78B) and GM ($90.5B). While this may seem impressive on paper, considering Rivian is yet to ship more than 1000 vehicles, it could be a sign that the stock is severely overvalued. 

General Motors (GM)

One of the largest and most well-known auto manufactures in the world, GM has been on a quest to increase their EV lineup as of recently. GM aims to massively expand its position in the EV market by 2025, meaning it could be a great time to get a piece of the company before its share price takes off. 

Advantages

Expansion: General Motors (GM) is betting big on electric vehicles. Despite huge success with iconic vehicle brands like Buick, Cadillac, and Chevrolet they have pledged to solely produce electric vehicles by 2030. Combine this with plans to release more than 30 vehicles at all price points by 2025 and it becomes apparent just how much GM believes EVs are the future of transport. 

Growth: After GM’s share price being somewhat stagnant for the past few years, their announcement that they plan on moving into the EV sector has boosted their value. If this is anything to go buy, we could certainly see GM increase in value as their tread further into the EV market.  

Disadvantages

No matter how well-known a company is or how many brands it owns, issues will always present themselves if you dig deep enough. Here are a few key disadvantages to buying GM stock. 

Safety Issues: Unfortunately for GM, its first dip into the EV market was far from a success. They released their first EV under the Chevrolet brand but were forced to issue a recall on two separate occasions over fire hazard fears. This is certainly not an ideal start for their venture into the EV sector, but hopefully, they’re able to get these issues in check before ramping up production.

Chip Shortage: The global chip shortage has affected just about every industry in one way or another. In the EV industry, manufacturers need chips to power key aspects of their vehicles. GM has announced that they’re unable to acquire these chips as of current, slowing their expansion into the space. 

How to Buy Electric Vehicle Stocks with eToro

When you’re using a new platform, buying EV stock can be a confusing task. Oftentimes, brokers will overwhelm you by throwing tonnes of jargon in your direction making it difficult to figure out what you need to do in order to buy a stock. To prevent that from happening to our readers, we’ve included this detailed guide that explains exactly how to buy EV stock with eToro. 

Step 1: Open an account with eToro

The first thing that you need to do when buying EV stock is register with a trusted broker. This can be an arduous task but it can be made easier by using top-rated broker eToro. Simply type “eToro.com” into your browser, press “Join Now” and fill in the form. 

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

Step 2: Verify your account

Once you’ve created your eToro account, you’ll need to verify it. This is because eToro is a regulated broker and has to comply with rules outlined by the SEC. Luckily, the process is quick and easy, the only documents you’ll need to have at hand are a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 

Step 3: Fund your account

Now that your eToro account has been funded, you’ve only got one more step left before you can buy EV stock! Just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. If you’re wondering what payment methods eToro supports, you can deposit using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Buy Electric Vehicle Stocks!

Now that your eToro account has been funded, you’re ready to buy EV stock! Just type the name of the asset you’d like to purchase into eToro’s search bar, press “Trade” enter the number of shares you want to buy, and press “Open Trade” You’ll be able to monitor your investment in real-time from the portfolio section of your account.

Conclusion

The electric vehicle market is already huge and it’s only growing. Many fossil-fuel-based vehicle manufactures are already dipping their toes in the space. Leaving many believing all vehicles will be electric in the near future it could be the perfect time to start adding EV stocks to your portfolio. If you’re looking to buy EV stocks and take advantage of this emerging market, then you’ll need to equip yourself with a top-rated broker. If you’re unsure on which broker is right for you, we recommend eToro as it’s powerful, easy-to-use, and secure. Overall, eToro is the perfect broker for anyone but especially beginners wanting to buy EV stock. 

eToro – Best Broker to Buy EV Stocks UK

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$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.