Stock investment continues to be a profitable activity for individuals who understand how to go about it. This includes understanding the stock market and finding a reliable stock broker to maximise their profit potential. However, identifying the best stocks to buy in the UK is still challenging for many investors, especially with many dominating the market.
For the above reason, we decided to prepare this comprehensive guide that lists the best companies to buy shares in. Note that our professional analysts did thorough research on these stocks based on market caps, macroeconomic events, dividends, future growth prospects, etc.
Keep in mind that these are mere recommendations and are never a guarantee that you will profit from them. So, before making an investment, ensure you conduct thorough market research and analysis.
In this guide
Best Stocks to Buy in the UK
Top Three Stock Brokers to Buy the Best Stocks in the UK
Buying the best UK shares requires an online broker that is safe to use and supports you with all the necessary tools to maximise your chances of earning profits. However, with a gazillion brokers dominating the financial market, it is challenging to identify the best broker that is regulated by the Financial Conduct Authority (FCA) and has access to the exchanges where these stocks are listed.
Below, we have recommended the top three brokers to get you started. Remember that these brokers have varying features that make them unique and suitable for every trader. Therefore, ensure you compare them before making a choice.
eToro has a user-friendly trading platform with a modern design to keep you enjoying your trading activities. If you are a beginner, we highly recommend this broker since it hosts plenty of learning resources. Its demo account is also funded with £100,000 virtual funds to allow you to practice share trading and investment before trying your luck in the real markets.
Regarding research and market analysis tools, eToro also hosts enough to benefit both newbies and professional traders. Buying stocks with the broker is also commission-free, and you get to make a minimum deposit of only £50. In addition, eToro allows you to trade stocks as CFDs and indices. You can also explore other assets such as commodities, cryptocurrencies, forex, and ETFs.
Even though you get to buy UK shares commission-free, eToro charges a high spread. On top of that, you will incur a withdrawal fee and make a minimum deposit of £300 to access the copy trading platform.
2. IG Markets
IG Markets is one of the pioneer brokers in the UK and keeps on excelling due to its impeccable trading tools and services. For instance, the broker has an easy-to-use and customisable platform. Moreover, you will explore some of the top-notch trading tools to boost your experience and increase your profit potential.
Buying the best UK stocks with IG Markets allows you to use some of the best platforms, including the L-2 Dealer, MT4, and ProRealTime. Furthermore, you can meet, socialise, and share investment ideas with like-minded investors on the IG Community platform. There are also other securities to explore as well whenever you feel like trying something new.
Unfortunately, you will pay high investing fees to buy and trade the best UK stocks. IG Markets also has a high minimum deposit of £300 and charges a subscription fee for inactive traders.
3. CMC Markets
CMC Markets is another pioneer broker in the UK with excellent features to explore. Its popular NextGeneration platform is user-friendly with an intuitive design to make your investment activities more enjoyable. Alternatively, you can trade on the MT4 platform and explore advanced features to maximise your experience and potential.
Trading stocks in the UK using CMC Markets attracts low spreads, and there is no minimum deposit requirement. On top of that, you will benefit and enjoy plenty of learning and research resources.
Keep in mind that CMC Markets doesn’t have access to various exchanges where UK stocks are listed, meaning that you cannot purchase stocks and take physical ownership. Instead, individuals get to trade the asset as CFDs or spread betting.
Top 10 UK Stocks to Buy in 2022
Britvic is one of the pioneer British soft drinks manufacturers that has shown growth potential in recent years, especially after the appointment of the current CEO Simon Litherland. The company was founded in 1845 and has its shares listed in the London Stock exchange. What’s more, Britvic is a constituent of the FTSE 250 index. It also extends its operations in Ireland, Brazil and France to produce world-renowned brands that consumers love, including MiWadi, Teisseire, Robinsons and Maguary.
Additionally, Britvic got an exclusive license from Pepsi in 2020 to manufacture, market and sell its products, namely 7UP, Pepsi MAX, Mountain Dew, Lipton Ice Tea, and Rockstar Energy. This partnership has benefited the company and contributed significantly to its recent share price increase.
Boohoo is a fashion retail company located in Manchester, UK. It manufactures, markets, and sells clothes for persons between 16 and 45 years old within the UK and international markets. The company saw growth potential in 2021, and 2022 looks promising, especially now that it has acquired 13 brands in the Boohoo group.
Boohoo shares are listed on the Alternative Investment Market (AIM), which is London Stock Exchange’s sub-market. With the frequent implementation of new strategies, Boohoo keeps growing, indicating a bright future in years to come.
Aviva is a British insurance company established in 2000, and its shares are listed on the London Stock Exchange. Being the UK’s largest insurer, Aviva services goes beyond borders across Europe, Asia, New Zealand, Australia, etc.
Although Aviva experienced a reduction in share price in 2020, its performance started rising in 2021 due to significant changes in leadership and plans. The company also looks forward to experiencing some good gains in 2022 and the coming years if they continue implementing new strategies to improve its performance.
Read more in “How to Invest in Aviva Shares” guide.
BAE Systems is a British multinational aerospace, defence, and security company based in London, England. It delivers a wide range of products and services for naval forces, air, and land not only in the UK but also in the US and Sweden. Additionally, this company focuses on advanced electronics, IT solutions and support services. Its recent Systems Engineering and Integration Support Services contract with the US army that runs through till 2026 indicates growth potential. On top of that, you are guaranteed yearly dividend payments, which currently is £24 per share.
Read more in “How to Invest in BAE Systems” guide.
ITV plc is a London-based media company that has become popular not only in the UK but globally, including in Australia, Germany, France, Italy, and the Nordics. This company is the oldest and the largest in the UK, holding 13 of the 15 regional licenses. Besides being a constituent of the FTSE 100, ITV plc shares are listed on the London Stock Exchange. Recently ITV plc has been experiencing a steady growth in its revenue, indicating that the new strategies implemented will continue to benefit the company in the future.
AstraZeneca is a British-Swedish pharmaceutical and biotechnology company established in 1999. With the recent COVID-19 and Omicron outbreak, this company has been busy ensuring people stay healthy even after the pandemic. This has led to AstraZeneca partnering with various health organisations and expanding its services to multiple countries globally.
Like the above stocks, AstraZeneca’s shares are also listed on the London Stock Exchange, and it can be one of the best investments in 2022, considering its recent increased revenue.
Intermediate Capital Group
Intermediate Capital Group is also based in London and is considered a private equity investment firm. The company has a long track history, and its main focus is to provide flexible financing solutions to assist companies and develop and grow. The company plans to expand into other countries globally and has already diversified its business across real estate and investing in public credit markets. You can purchase its shares using a broker with access to the London Stock Exchange, where they are listed.
WPP shares have a primary listing on the London Stock Exchange, and the company is a constituent of the FTSE 100. Its secondary listing is on the New York Stock Exchange under the ticker WPP. WPP plc is a British multinational communications, technology, advertising, public relations and commerce holding firm servicing various countries worldwide. Its partnerships with social platforms will likely increase its global presence and share value. So, if you are looking for an affordable stock to buy, WPP is worth considering.
Wizz Air is an air carrier company established in 2003 in Budapest, Hungary and has its subsidiary in the UK. The company extends its services across various countries in Europe, North Africa and the Middle East. Wizz Air is one of the best stocks to buy in the UK, and by using online brokers, you have the opportunity to purchase fractional shares. Even though the 2020 pandemic caused Wizz Air to experience a huge setback, it has managed to bounce back with new strategies, including expanding its bases to other regions globally.
TUI Group is one of the leading tourism and travel companies operating on a global scale. The company is headquartered in Germany and offers clients the best holiday experience across over 180 countries.TUI comprises more than 400 hotels, luxury cruises, and five airlines, including TUI Airways, TUI fly Netherlands, TUI fly, TUI fly Nordic and TUI fly Belgium. Although 2020 and 2021 were among the darkest years for the company, its set plans for 2022 are promising and investing in it could pay off.
How to Buy the Best UK Stocks with eToro
It is crucial that you understand how to purchase the best shares in the UK using the brokers we recommend above. Remember that all the three brokers are monitored by the FCA, meaning that the processes for purchasing stocks in the UK are similar. That being said, below is how to buy the best UK stocks with eToro as an example.
You need to visit eToro’s website to complete the account registration process and access the best UK stocks to buy. Luckily, we have shared links on this page to give you quick access to the broker’s website. In addition, eToro has an amazing investment app that you can also download from Google Play and the App Store to help you manage your investments anytime.
To complete your investment account registration, eToro will request your personal details. These include full names, email, phone number, date of birth, current source of income, etc. You will also create a user and password to secure your trading account.
eToro usually selects the best trading or investment package for traders and investors based on their skill levels to give them the best experience. To do so, the broker offers a basic knowledge test to complete. What’s more, you will engage in a margin trading test, of which the outcome will determine a reasonable leverage limit for you.
It is a standard procedure for all FCA regulated brokers to verify the identities of all traders before they have their trading accounts fully activated. Since eToro is one of the FCA regulated brokers, you will share a copy of your ID, passport, or driver’s license to verify your identity. In addition, the broker will confirm your location by reviewing a copy of your recent bank statement or utility bill.
eToro will send you an email notification via email once your trading account is fully activated. At this point, you are free to make a deposit and access various exchanges that list the best companies to buy UK shares to complete your purchase. Note that eToro’s minimum deposit is £50, and there are no deposit fees.
As soon as eToro confirms your deposit, you will be given access to the exchanges where the best UK stocks are listed to complete your purchase. We advise you to conduct additional research on the company stocks we recommend in this guide before making a suitable choice. The best element about using eToro is that you can also trade UK stocks as CFDs and indices, thereby maximising your experience.
Tips on How to Choose the Best Broker to Buy UK Shares
Even though we believe that the above three brokers are the best for buying the best shares in the UK, you may find them unsuitable for your needs. In this case, you will have to research on your own to find a suitable broker. Below, we share some factors to consider in your research to make the process quicker and simpler.
There are many stock brokers in the UK, with some of them being unscrupulous looking for victims to scam. To ensure that your trading funds are safe, choose a broker that the FCA regulates. Such brokers also provide the best trading conditions to maximise your experience.
All traders and investors need to have a budget and stick to it to avoid overspending. Remember, stock investment can either bring you profits or losses. Therefore, invest with funds you are comfortable losing. This also means that you should use your budget to choose the best broker by comparing commissions or spreads, minimum deposits, inactivity fees, transaction costs, etc.
You need to be sure that you can entirely rely on a broker when choosing one. For instance, find a broker that supports you with all the necessary tools for research, market analysis, and skills development. The broker should also have a dedicated support service to contact whenever you need assistance handling trading challenges. What’s more, it should provide a demo account for testing it and practising stock investment, especially if its trading charges are high.
You should also rely on other traders’ opinions when choosing the best broker to buy UK stocks to find a suitable broker. With user comments, it’s easy to understand what to expect when using a specific broker and prepare to handle any challenges. Therefore, visit Google Play, the App Store, and Trustpilot for honest user comments and ratings.
Identifying the best shares to buy right now in the UK can be challenging, especially if you are a beginner. With our recommended top 10 stocks in the UK, you have an increased potential of profiting from share investment. However, keep in mind that investing in these UK stocks is not a sure-fire way to earn profits. Thorough research and market analysis will still be required. Therefore, identify your best UK stocks to buy, choose a suitable broker and good luck!