The British American Tobacco company has existed for over a century and continues to grow due to its market-leading tobacco and cigarette brands. As a result, many investors are willing to be a part of this British multinational PLC company by looking for ways to buy British American Tobacco shares.
If you are one of the individuals looking to buy British American Tobacco shares, we have prepared this guide for you. Not only will you learn how to buy British American Tobacco shares, but you will also meet the best stock brokers in the UK to get you started. At the end of this guide, it will be easier for you to decide whether British American Tobacco shares are worth investing in.
In this guide
Top 3 Brokers for Buying British American Tobacco Shares
The British American Tobacco shares are listed in the London Stock Exchange under the ticker symbol BATS. To easily make a purchase, you need an online broker that will connect you to the exchange. Online brokers also allow you to trade the BAT shares off the exchange or as derivatives, whereby you don’t take ownership of the underlying asset. Instead, you simply speculate on their price movements.
Below are the top three brokers that we have thoroughly tested and reviewed. You can use them to buy British American tobacco shares, but you must choose the one meeting your trading or investment needs.
1. eToro
eToro is user-friendly, has customisable features and hosts excellent research and learning materials to support your activities. In addition, newbies can benefit from the broker’s copy and social trading platform that allows them to meet other traders, share ideas, and mirror positions with high-profit potential.
Signing up for a trading account at eToro is a straightforward procedure. With only a minimum deposit of $100, you will access the British American Tobacco shares and buy or trade them commission-free.
Unfortunately, eToro charges high spreads and accessing the copy trading platform is also relatively expensive. The broker requires a minimum deposit of $200 and $10 as the minimum amount per trade.
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.
✔Low minimum to fund an account and begin investing
- Many millions of satisfied and active customer spread across the entire world
- Make use of the millions of traders by using the copy and social trading features
- Now supports both online trading and investments to support a diverse portfolio that can withstand most market movements
- One of the most expensive brokers in the UK with high spread, fees and a high minimum deposit requirement after the initial deposit
- The focus on social trading means that “regular trading” features are somewhat limited
2. AvaTrade
AvaTrade has a minimum deposit requirement of £100 for you to trade the British American tobacco shares. Like eToro, AvaTrade is user-friendly and offers social and copy trading. Advanced traders will also enjoy the MT4 and MT5 platforms supported with quality research materials and features to maximise their potential.
Avatrade’s mobile App, AvaTradeGO, is also reliable and functions seamlessly, just like the web version. In fact, many traders globally have given it excellent reviews on Google Play, the App Store, and Trustpilot.
Unfortunately, you can’t buy the BAT shares as physical assets at AvaTrade since it only allows CFD trading. However, with the excellent tools to support your activities, AvaTrade is worth trying, so do not hesitate to do so using its demo account to get a feel of the platform.
✔ Quick deposits and withdrawals
- The AvaTradeGo trading app is one of the best trading apps in the UK, having won several prestigious awards
- One of the best brokers for copy trading as well as automated trading, helping you save time on analytic work
- The only online brokers in the UK that is licensed and regulated by the Central Bank of Ireland instead of the Financial Conduct Authority (FCA)
- Very limited selection of instruments (less than 2,000) to trade, which limits you and the opportunities that you can make use of
- Best for mobile trading and not a very good desktop broker due to limited functionality
3. IG Markets
One of the pioneer stock brokers that continues to excel in the industry is IG Markets. The broker is known to offer excellent trading platforms backed up with quality resources to boost your experience. These platforms include the L-2 Dealer, MT4, and ProRealTime.
Like eToro, trading the British American Tobacco shares at IG Markets is commission-free. However, you will incur high spreads, and the minimum deposit requirement is also £300.
The fact that the broker hosts plenty of trading tools may be confusing for newbies.Therefore, it is best to test it out first on its demo account before committing. Lastly, note that you should be an active trader to enjoy IG Markets since there is a monthly subscription fee if you do not trade more than three times within three months.
✔ Leading broker with low fees
- Almost 40 years of experience offering trading and investment services
- A pioneer in the online trading industry and one of the first brokers to offer an online platform
- Massive selection of assets that ensures that you always have something to trade on or invest in
- Not very suitable to new traders due to the number of instruments and the high minimum deposit requirement
- Only advanced trading tools that were designed for experienced traders
How to Buy BAT Shares With eToro
Feel free to choose any broker from our recommendations above to buy BAT shares. Remember to consider your needs when selecting so that you can find the best one for you. Although you may want to know how to buy the British American tobacco shares using all brokers mentioned above, the procedure is almost similar. That being said, let’s take a look at the procedures of how to buy British American Tobacco shares with eToro.
You need to access eToro’s website, whether through a desktop or mobile device. On this page, you will find links that will easily redirect you to eToro’s website, where you will sign up for a trading account.
The procedure for creating an account at eToro is pretty straightforward and will probably take you a few minutes to complete. You will start by providing your personal information, including name, phone number, email, physical address, source of income, date of birth, etc. Most importantly, you will create a username to use every time you log in to your trading account.
Since eToro allows margin trading, it offers a basic test to determine your leverage limit. This is also one way of protecting you, thus reducing the potential risks that come with margin trading. Additionally, you will fill a questionnaire to determine the best trading package for you.
To guarantee all traders’ account protection, eToro will require you to verify your identity and residential area. This is a standard procedure for all FCA regulated brokers and keeps away traders with fake identities. In this regard, you will upload an original copy of your identity card or passport. You will also share a recent utility bill or bank statement to verify your location or jurisdiction area.
Keep in mind that verification can take upto three days, and eToro will send you an email once your trading account is fully activated.
Once your account is fully activated, you will be free to make a deposit and buy the BATS shares. eToro requires a minimum deposit of $100 to access the London Stock Exchange (LSE), where the company’s shares are listed.
Ensure you select the right amount of shares you can afford to buy. With eToro, you can also trade the shares as CFDs or indices whereby several stocks are combined in one investment. All in all, your choice should be based on how well you understand a trading method and the risks involved.
Tips on How to Choose the Best Stock Broker to Buy BAT Shares
The best stock broker to buy British American Tobacco shares in the UK is challenging to find. You need to thoroughly conduct your research and put various brokers through multiple tests to be confident in your choice. While this procedure can be overwhelming and time-consuming, below are the essential elements to guide you in your choice.
Safety is paramount, considering that you are trading using online brokers. For this reason, always go for a stock broker in the UK regulated by the Financial Conduct Authority (FCA). Such brokers guarantee the safety of your trading funds and offer the best conditions to give you a better experience. It is also legal to trade with licensed and regulated brokers, meaning you can easily take legal action against them in case of a conflict.
The British American Tobacco shares are currently valued at around £2,500 per share. Since most investors cannot afford to buy a single share, you need a broker that allows you to purchase the BAT shares as fractions. Such brokers should also enable you to trade the shares as CFDs, which involves leverage. Leverage trading will allow you to invest with more than your initial deposit, thereby maximising your chances of succeeding in trading BAT shares.
Always ensure that a stock broker’s platform makes you feel comfortable. This means checking the availability of research and learning materials. You can also test the platform through a demo account and see how fast it executes trades.
No stock broker allows trading of British American Tobacco free of charge. This means that you will either incur commissions, spreads, or both when trading the company’s shares. In this regard, consider a broker you can afford with no hidden charges. Additionally, do not forget to confirm non-trading charges, including minimum deposit, transaction costs, etc., since failure to do so may affect your budget in the long run.
Finding a broker with dedicated and responsive customer service should be of utmost interest to any trader in the UK. Since you are likely to encounter trading issues while trading the BAT stock, a dedicated support system will help you quickly manage any arising problems.
It is crucial that you choose a stock broker based on your trading interests. However, consider reviewing what other traders had to say concerning a broker before making a commitment. You can easily review user comments on Google Play, the App Store, and Trustpilot.
British American Tobacco Shares Price Today
The live chart below shows the accurate share price of the British American Tobacco stocks. You can also access historical data and other data points to assist in your analysis, hence making the best investment decisions.
About British American Tobacco (BAT)
British American Tobacco is a British multinational company that specialises in the manufacturing and selling of cigarettes, tobacco, and other nicotine products. Examples of BAT cigarette brands include Kent, Dunhill, Lucky Strike, Rothmans, and Pall Mall.
The company was established in 1902 due to a merger between the UK’s Imperial Tobacco Company and the US American Tobacco Company. Since then, British American Tobacco has continued to evolve and has become the largest tobacco selling company globally.
British American Tobacco’s long track record and excellent products have made it extend its services across over 180 countries in various continents. They include the US, Africa, Europe, Asia, among others. The company’s CEO, Jack Bowles, who took over in 2019, strives to satisfy every customer by implementing new strategies to transform the company.
BAT stocks are primarily listed on the London Stock Exchange, and it is a constituent of the FTSE 100 index. You can buy the shares as fractions, which is way affordable compared to purchasing a single share. Additionally, the company pays dividends of £53.90 per share to all shareholders. Its recent purchase of around 20% of Canadian-based company OrganiGram shows BAT’s growth potential, thus worth investing in.
For those intrigued by BAT stocks, delving into the potential of SPDR Industrials EFT and Marks and Spencer stock could offer additional investment prospects.
FAQs
Yes. British American Tobacco is publicly traded and listed on various exchanges, including London Stock Exchange. Therefore, to buy the company’s shares, you should find a broker with access to the right exchanges. Good examples of such brokers are listed in our guide above.
The easiest way to buy British American tobacco shares is through an online broker. Besides having the best broker, ensure you conduct a thorough analysis and choose the best trading method, whether buying the shares and taking ownership, trading them as CFDs or indices.
British American Tobacco was established due to a merger between Imperial Tobacco Company in the UK and American Tobacco Company in the US. BAT was founded by James Buchanan Duke, who was also the founder of the American Tobacco Company.
Yes. As mentioned earlier, British American Tobacco was established due to a merger between the Imperial Tobacco Company and the American Tobacco company.
Yes. British American Tobacco pays dividends of £53.90 per share to all its shareholders on a quarterly basis.
Conclusion
British American Tobacco is one of the world’s leading consumer goods companies. With its long track record and ability to manufacture quality cigarettes and other nicotine products, the company has shown it can be trusted by consumers globally. Additionally, BAT strategic moves indicate more growth potential over the coming years.
If you were hesitant about investing in British American Tobacco shares, we hope you now have a clear insight to make the best investment decision. In our opinion, BAT stocks are worth an investment, but you first have to understand the company and conduct a thorough market analysis before putting up your money.
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25,000 hours of testing 70+ brokers. Our recommended broker is Pepperstone.
Our recommended broker is Pepperstone.