The London Stock Exchange (LSE) is the main stock exchange in the United Kingdom and is the largest stock exchange in Europe. The main index on the LSE is the FTSE 100 which is the 100 largest stocks on the London Stock Exchange. Also on the LSE is the FTSE 250, which is the next 250 largest stocks on the exchange after that first 100.
Find out more about this major stock exchange and how you can invest in the London Stock Exchange.
How does the London Stock Exchange work?
The stock exchange started in 1698 and was originally called “The Course of the Exchange and Other Things”. It was simply a list of the price of stocks and commodities posted at a coffee shop. It was made more formal in the 1800s, with a set of rules and a fee to be part of it.
A company doesn’t need to be British to be included. It’s got stocks from over 60 countries worldwide.
Buy shares in specific companies. If there are specific companies that you’re interested in investing in then you can just invest in those. You can’t realistically invest in all of the companies on the LSE.
Open a share trading account. Once you’ve selected the broker or platform, you’ll need to open a trading account to start investing in LSE stocks.
Deposit funds. Before you start trading, you’ll need to deposit money into your investing account. Depending on your broker or platform, your funds may also need to be converted from pounds into a different currency, such as US dollars.
Buy LSE stocks.
How much does it cost to trade on the London Stock Exchange?
That depends on which trading platform you use. The good news is that, assuming you’re investing from the UK, you won’t incur a currency conversion fee (which you might if you were buying Netflix shares on the Nasdaq, in dollars, for example).
Here are some of the fees for some top providers. We’ve listed the standard commission for a trade and the best commission. The best commission can have some kind of condition, such as if you trade more than 10 times in the previous month or if you invest a certain amount. Check out the specific provider reviews to find out how to qualify for the best commission on offer with a provider.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Finder Score for trading platforms
To make comparing even easier we came up with the Finder Score. Costs, features, ease and range of investments across 30+ platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the platform – simple.
The London Stock Exchange is one of the largest in the world and is the largest in Europe. There are some major companies on it, like the high street bank HSBC, supermarket Sainsbury’s and pharmaceutical company AstraZeneca.
Zoe was a senior writer at Finder specialising in investment and banking, and during this time, she joined the Women in FinTech Powerlist 2022. She is currently a senior money writer at Be Clever With Your Cash. Zoe has a BA in English literature and a Diploma for Financial Advisers. She has several years of experience in writing about all things personal finance. Zoe has a particular love for spreadsheets, having also worked as a management accountant. In her spare time, you’ll find Zoe skating at her local ice rink. See full bio
Zoe's expertise
Zoe has written 163 Finder guides across topics including:
Find out how you can invest in Nasdaq and compare a range of leading brokers which can let you invest in US stocks cheaply and quickly.
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