The London Stock Exchange changed its name to the International Stock Exchange. Most people, however, still refer to it as the London Stock Exchange. If you live in the US and want to invest in London stock, keep in mind that London is on European time, so the London Stock Exchange opens at 3 or 4 in the morning and closes around lunchtime EST. Since much of the major activity is happening while you're still asleep, you'll want to hire a stockbroker living in London.
- Skill level:
Things you need
- London-based stockbroker
Look for a stockbroker who is a registered member of the London Stock Exchange. If you live in England, ask friends and colleagues for recommendations for a stockbroker. If you don't live in England, ask your local stockbroker for recommendations for an English stockbroker. Choose someone who resides in England and has a record of success in the UK market.
Educate yourself about the Financial Times Stock Exchange (FTSE) markets, which are the basic stock exchange markets that compose the London market. Read the financial section of the London newspapers. Research the FTSE markets online to learn about the FTSE 100 share index which lists the 100 largest UK registered companies, and the FTSE 250 which is made up of the next 250.
Consider investing in the Alternative Investment Market (AIM), the London Stock Exchange's market for smaller, newer companies. The AIM market has grown a lot since it started, but these stocks are still considered more risky as they are new and untested in the market. Start out with a small number of AIM investments, and see how they turn out.
Look into another investment option with British companies listing in the Exchange Traded Funds (ETF). Follow the performance of a particular sector of the market, for example the high tech or medical industry. Take less risk by investing in British EFTs because you are investing in the pooled funds for a sector of the market, rather than in an individual company.
Tips and warnings
- When choosing a stockbroker, look at all aspects of the package he offers you, including fees for individual stocks purchased, and if he requires a minimum purchase amount.
- All investments carry a certain risk, so consider why you are investing and what your short-term and long-term goals are.
- Finding a broker online is a risky venture since you don't know if their webpage is truthful or not.
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