Always remember that investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you want.

How to Buy Microsoft (MSFT) Shares in the UK

Updated On: Jun 3, 2024
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How to Buy Microsoft Shares UK

Contents:

If you’re considering expanding your investment portfolio by investing in the technology industry, Microsoft Corporation (MSFT) might be the perfect choice for you. But how do you buy Microsoft shares if you’re based in the UK? In this article, we’ll guide you through the process of buying Microsoft shares, providing insight into various investment methods and the best time to buy.

How to Buy Microsoft Shares in the UK

You can buy Microsoft shares in the UK from reputable stockbrokers, such as eToro, Freetrade, and AJ Bell. Depending on your budget, risk tolerance, and investment objectives, there are several other ways to buy Microsoft shares in the UK, including buying Microsoft shares through a fractional share provider, mutual fund or ETF, investment trust, and even contracts for difference (CFDs).

We’ll explore each method in turn below:

Featured Broker

eToro Logo

Invest in Microsoft ($MSFT) Shares With 0% Commission!

  • Start investing with as little as $100 (£80).
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Capital at risk. Other fees apply.

1. Buying Microsoft Shares Through a Broker

A common way to invest in Microsoft shares is through a broker. A broker is a financial institution that facilitates buying and selling stocks on the stock market. The UK offers a variety of brokers to choose from, including traditional full-service brokers and online discount brokers.

To buy Microsoft shares in the UK through a broker, you’ll need to:

  1. Create an account with a broker, such as eToro or AJ Bell. Creating an account with a stockbroker is a straightforward process. It usually involves signing up via an online portal, providing personal information, like your name and address, and verifying your identity. It is important to research various brokers and compare their fees, trading platforms, and customer support before investing. Some popular brokers for investors looking to buy Microsoft shares in the UK include eToro, AJ Bell, and Interactive Investor. Scroll down for a detailed review of each broker.

  2. Fund your account with GBP using your debit card or via bank transfer. Before you can buy Microsoft shares, you’ll need to deposit money into your brokerage account. This can typically be done through a bank transfer or debit/credit card payment.

  3. Complete a W-8BEN form for tax purposes. As a UK investor, you’ll need to complete a W-8BEN form, which allows you to claim a reduced rate of withholding tax on any US-sourced income, such as dividends from Microsoft shares. Microsoft currently pays dividends to shareholders on a quarterly basis.

  4. Choose a tax wrapper, such as an ISA or a SIPP. Depending on your investment goals and personal circumstances, you may want to consider using a tax wrapper like a Stocks and Shares ISA or SIPP to invest in Microsoft shares. These wrappers can help you save on taxes and maximise your investment returns.

  5. Research Microsoft and other stocks. Before buying any stock, including Microsoft stock, it is important to carry out thorough research. You’d want to consider factors such as market capitalisation, earnings reports, liquidity, technology and innovation, team, company performance and competition. More on these below.

  6. Buy Microsoft shares with GBP using the broker’s web or mobile app. Once your account is funded, you can place an order to buy Microsoft shares. This involves entering the name of the stock, Microsoft, or the ticker symbol, $MSFT, and specifying the number of shares you want to buy or the amount you want to invest.

  7. Monitor and adjust your investments. After you’ve bought Microsoft shares, you’ll want to monitor your investment and make any necessary adjustments. This could include setting up alerts for price changes or selling your shares if you need to free up cash.

Keep in mind that brokers typically charge a commission for each trade, which can vary depending on the broker and the size of the trade.

2. Buying Microsoft Shares Through a Fractional Share Provider

If you don’t have the funds to buy a full share of Microsoft or prefer to utilise pound-cost averaging by investing small amounts regularly, fractional share investing might be an ideal option.

Fractional shares allow you to own a portion of a share instead of a full share, making it more affordable and accessible for many investors. For instance, if Microsoft’s share price is £200 and you only have £40 to invest, you could use a fractional share provider to buy one-fifth of a share of Microsoft. Popular fractional share providers in the UK include platforms such as eToro and Freetrade.

The process of buying fractional shares of Microsoft in the UK is similar to buying full shares through a broker. Remember, the key difference is that you’ll be specifying the amount of money you want to invest or the percentage of a share you wish to own rather than the number of whole shares.

To buy fractional shares of Microsoft in the UK, follow these steps:

  1. Choose a fractional share provider: Explore different providers, comparing their fees, investment options, and customer service. Some popular fractional share providers for UK investors looking to buy Microsoft shares are eToro, Freetrade, and Moneybox. Scroll down for a detailed review of each fractional share provider.

  2. Open an account: As with full-share brokers, you’ll need to provide personal information, such as your name and address, and verify your identity to open an account.

  3. Complete a W-8BEN form: When buying fractional shares of a US-based company like Microsoft from the UK, you’ll likely be required to complete a W-8BEN form. This US tax form verifies your foreign status, helping ensure that the correct tax amount is withheld from any dividends you earn from your shares.

  4. Choose a tax wrapper: Depending on your financial situation and investment goals, consider using a tax wrapper like a Stocks and Shares ISA or SIPP when investing in Microsoft fractional shares.

  5. Fund your account: You can typically fund your account through a bank transfer or debit/credit card payment.

  6. Place an order: Specify the amount of money you want to invest or the percentage of a share you wish to own (e.g., £40 worth of Microsoft shares).

  7. Monitor your investment: It is important to keep an eye on your investment and make necessary adjustments, like setting up alerts for price changes or selling your shares if you need to free up cash.

Keep in mind that while most fractional share providers do not charge a commission for each trade, there can be other fees, such as FX fees, withdrawal fees, and platform fees. Always make sure you’re aware of these before you start investing.

3. Buying Microsoft Shares Through a Mutual Fund or ETF

Investing in Microsoft shares indirectly through a mutual fund or ETF can be a great way to diversify your portfolio while still gaining exposure to Microsoft. These funds pool money from multiple investors to purchase a variety of stocks or other assets, helping you achieve greater diversification.

To invest in Microsoft shares in the UK through a mutual fund or ETF, follow these steps:

  1. Choose a mutual fund or ETF: Research various mutual funds and ETFs that include Microsoft in their holdings. Some popular UK mutual funds and ETFs that invest in Microsoft include the L&G Global Technology Index Fund and the iShares NASDAQ 100 UCITS ETF (CNDX).

  2. Open an account: Select a platform that gives you access to the mutual fund or ETF you’ve chosen. The best online investment platforms for buying mutual funds and ETFs that invest in Microsoft shares in the UK are AJ Bell, Interactive Investor, and InvestEngine. Scroll down for a detailed review of each investment platform. You’ll need to provide some personal information and verify your identity to open an account.

  3. Choose a tax wrapper: Depending on your financial situation and investment goals, you may want to consider using a tax wrapper like a Stocks and Shares ISA or SIPP when investing in mutual funds or ETFs.

  4. Fund your account: Deposit money into your account through a bank transfer or debit/credit card payment.

  5. Place an order: Purchase shares of the chosen mutual fund or ETF, ensuring that you meet any minimum investment requirements set by the fund or ETF.

  6. Monitor your investment: Regularly review the performance of your investment and make adjustments as necessary.

  7. Understand the Risks: Investing in mutual funds or ETFs also comes with its own set of risks. The value of your investment can go down as well as up, and you may get back less than you originally invested. Also, while diversification can help spread risk, it does not ensure a profit or protect against loss.

  8. Regular Reviews and Rebalancing: Regularly review your investment portfolio. If the proportion of Microsoft shares in your portfolio becomes too large or too small due to price changes, you may want to rebalance your portfolio to maintain your desired allocation.

  9. Consider your Long-Term Goals: Always keep your long-term financial goals in mind. Mutual funds and ETFs are typically considered long-term investments. Ensure that your investment strategy aligns with your financial goals and risk tolerance.

  10. Tax Considerations: Be aware of the tax implications of your investments. Profits from selling shares in mutual funds or ETFs are subject to capital gains tax, and any dividends received may be subject to income tax. However, you can reduce these tax liabilities by investing through an ISA or pension.

Remember to consider the fees and charges associated with investing in mutual funds or ETFs. These could include management fees, transaction fees, and potential exit fees.

4. Buying Microsoft Shares Through CFDs

Contracts for difference (CFDs) offer you an opportunity to speculate on the price movement of Microsoft shares without owning the underlying asset. This implies you can potentially profit whether the price of Microsoft shares rises or falls, depending on whether you take a ‘long’ (buy) or ‘short’ (sell) position.

For example, if Microsoft shares are trading at £200 each, and you predict a price drop, you could ‘sell’ or ‘short’ 10 CFDs. If the share price decreases to £190, you could close your position, profiting from the declining market.

Keep in mind that CFDs are complex and high-risk financial products, so they may not be suitable for all investors.

To trade Microsoft shares in the UK using CFDs, follow these steps:

  1. Choose a CFD broker: Research different CFD providers and compare their fees, trading platforms, and customer support. Popular CFD providers for UK investors looking to invest in Microsoft share CFDs include eToro, XTB, and Pepperstone. Scroll down for a detailed review of each CFD provider.

  2. Open an account: As with other methods of buying Microsoft shares, you’ll need to provide personal information and verify your identity to open an account.

  3. Fund your account: Deposit funds into your account through a bank transfer, debit/credit card payment, or potentially other methods depending on the broker.

  4. Place an order: Choose whether to take a ‘long’ or ‘short’ position on Microsoft shares, specifying the number of CFDs you want to trade. Some brokers may also allow you to set stop-loss and take-profit levels to manage your risk.

  5. Monitor your position: Regularly review your open positions and consider closing them if the market moves against you or you achieve your profit target.

  6. Close Your Position: When you believe it’s the right time, close your CFD position to secure profits or minimise losses. In our short position example, if Microsoft’s share price falls to £190, you could close the position and profit from the difference (excluding any fees or charges). However, if the market moves against your prediction, you could face losses. Always use risk management tools like stop-loss orders to limit potential losses.

CFD trading involves significant risk and is not suitable for everyone. It is crucial to fully understand the risks involved before you start trading CFDs. Furthermore, it is worth noting that profits from CFD trading are subject to Capital Gains Tax in the UK, but losses can be used to offset gains.

As you can see, there are several ways to buy Microsoft shares in the UK, including directly buying full shares or fractional shares, investing indirectly through mutual funds or ETFs, or speculating on price movements through CFDs. Each method has its advantages and disadvantages, and the best one for you depends on your individual financial situation, investment goals, risk tolerance, and investing experience. Always do your research and consider seeking advice from a financial adviser before making investment decisions.

Where to Buy Microsoft Shares

We’ve compiled a list of the best places to buy Microsoft shares in the UK. These are platforms for buying, selling and managing UK and overseas stocks and shares, exchange-traded funds (ETFs), exchange-traded commodities (ETCs), investment trusts (ITs), contracts for difference (CFDs), foreign exchange (forex), and other trading products.

Please keep in mind that when you trade, your capital is at risk. The fees below are not exhaustive–other fees apply. ISA, pension, and tax rules also apply.

Here are the best places to buy Microsoft shares in the UK:

eToro - 0% Commission on real stocks; 4,500+ Instruments

eToro Logo
Annual Platform Fee
N/A
Dealing Fee
N/A
Regular Investor Fee
N/A
Instruments
4,500+
Stocks, ETFs, Stock CFDs, Index CFDs, ETF CFDs, Forex, and Commodities.

eToro is a multi-asset trading platform that offers both investing in stocks and cryptoassets, as well as trading CFDs. With eToro, UK traders have real-time access to thousands of stocks, ETFs, indices, commodities, forex, cryptocurrencies, and NFTs from top exchanges worldwide. Catering to beginners and expert traders, eToro provides an impressive range of fundamental and technical analysis tools, including market news, economic data, social media trends, news sentiment trends, and advanced charting tools. ProCharts, a professional-grade technical analysis tool available on eToro, allows users to compare charts from different financial instruments and time frames. eToro also offers risk management tools, such as Stop Loss, Take Profit, and Trailing Stop Loss, to help you better manage your positions and protect your investments. Stop Loss and Take Profit are not guaranteed.

For customers who prefer ready-made investment portfolios, eToro has over 40 fully allocated, balanced investment portfolios, focusing on market segments you can understand and relate to. Some of the portfolios include MetaverseLife, BigTech, GoldWorldWide, Vaccine-Med, BitcoinWorldWide, Diabetes-Med, Driverless, and GigEconomy. These portfolios are a grouping of several assets, such as stocks, cryptocurrencies, ETFs, and even people, bundled together based on a predetermined theme or strategy. eToro also offers Copy Trading, a unique feature that allows everyday investors to copy the trades or investments of top-performing traders on the eToro platform. Anyone can copy trades on eToro; likewise, anyone can give others access to copy their trades. If you are an expert trader approved to participate in eToro’s Popular Investor Program, where others copy your trades, you will be eligible to receive monthly earnings.

It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practise trading until you become confident. Trading on eToro occurs in USD, so a currency conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5 (£4), and the minimum withdrawal amount is US$30 (£24). For UK customers, eToro offers an eToro Money app that allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs.

Please note: Your capital is at risk. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Additionally, cryptoassets are high-risk investments, and you should not expect to be protected if something goes wrong. Tax on profits may apply. Copy Trading does not amount to investment advice. Other fees apply. For more information, visit eToro.

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Freetrade - Low cost; Commission-free trading; 6,500+ Instruments

Freetrade
Annual Platform Fee
£0
Dealing Fee
£0
(+0.99% FX fee on US stocks)
Regular Investor Fee
£0
Instruments
6,500+
Stocks, ETFs, and Investment Trusts.

Freetrade is a mobile trading app that gives you access to thousands of UK and overseas stocks, ETFs, REITs, and investment trusts covering different sectors and markets worldwide. The Freetrade app can be accessed on iOS, Android and desktop devices and offers a slick and easy-to-use user interface and experience. The app is a great choice for both beginners and experienced investors.

With Freetrade, you can invest in fractional shares of even the most expensive US shares with as little as £2. Depositing, trading and withdrawing on Freetrade are commission-free (other charges may apply). FX rates apply to US stocks at the spot rate + 0.99%. To get the most out of Freetrade, you can choose from three subscription plans. The Basic Plan costs £0.00 per month and allows you to open a General Investment Account (GIA) and trade commission-free. The Standard Plan costs £5.99 per month and allows you to open a Stocks and Shares ISA in addition to your GIA. With the Plus Plan at £11.99 a month, you get a Self-Invested Personal Pension (SIPP) and a Stocks and Shares ISA in addition to your GIA. Dealing on Freetrade is commission-free, irrespective of the subscription plan you choose. Freetrade’s suite of products includes a Stocks and Shares ISA, General Investment Account (GIA) and SIPP.

Special offer: Get a free share worth £10 when you join Freetrade and fund your account with at least £50.

Please note: When you invest, your capital is at risk. The value of your investments can go down as well as up, and you may get back less than you invest. ISA rules apply. SIPP eligibility and tax rules apply. Free share terms and conditions apply.

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Interactive Investor - One free trade per month; 40,000+ Instruments

Interactive Investor
Annual Platform Fee
£60 - £240
(£4.99 - £19.99/month)
Dealing Fee
£3.99
Regular Investor Fee
£0
Instruments
40,000+
Stocks, Bonds, Funds, ETFs, and Investment Trusts.

Earn up to 4.07% annual interest on uninvested cash

Interactive Investor is a subsidiary of wealth management giant Abrdn and the second-largest investment platform in the country. Also well known for its fixed monthly subscription fees (as opposed to annual percentage-based fees like most other investment platforms), Interactive Investor has been providing investment services and financial information to UK customers since 1995.

If you choose to invest with Interactive Investor, you will gain access to over 40,000 investment options, including UK and overseas shares, funds, investment trusts, and ETFs. This is the second-widest choice of UK and international investments offered by an investment platform in the UK. Interactive Investor allows you to build your portfolio in multiple ways depending on your investment goals, attitude to risk and personal preferences. Beginner investors or those who prefer ready-made investments can build their portfolios using Interactive Investor’s Quick-Start Funds, an easy way to start investing where you choose from six low-cost funds prepared by the team of experts at Interactive Investor. Advanced or more confident investors can choose from a wide range of funds and shares and build their portfolios themselves. Interactive Investor gives you access to 17 global stock exchanges, including exchanges in North America, Europe and Asia Pacific. These include markets such as the FTSE 100, FTSE 250, FTSE All-Share, S&P 500, NASDAQ, NYSE, Dow Jones and more. In addition to the above, Interactive Investor offers Japanese, Indian and Chinese shares in the form of American Depositary Receipts (ADRs).

Interactive Investor gives you a free trade every month, which you can use to buy or sell any investment. After that, trades usually cost £3.99. For those investing £50,000 or less, you can sign up for the cheapest plan (Investor Essentials), which costs only £4.99 a month but does not come with the monthly free trade. The platform also offers a free regular investing service that allows you to deposit as little as £25 a month towards your investments without paying a trading fee each time, irrespective of the plan you choose. Interactive Investor also has lots of expert ideas, research and insights, which can be helpful when selecting investments. Interactive Investor’s suite of products includes a Trading Account, Stocks and Shares ISA, SIPP and Junior ISA.

Capital at risk.

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AJ Bell - Low cost; Lots of research; 15,000+ Instruments

AJ Bell Logo
Annual Platform Fee
0.25%
(max £3.50 per month)
Dealing Fee (Online)
£5 - £3.50
Regular Investor Fee (Online)
£1.50 per deal
Instruments
15,000+
Stocks, Bonds, Funds, ETFs, Investment Trusts, and Warrants.

AJ Bell is one of the UK’s largest online investment platforms, and its mission is to make investing as easy as possible for anyone. The platform offers thousands of investment options for the DIY investor, including shares, funds, bonds, investment trusts, ETFs, ETCs, and warrants.

There are multiple ways to get started with AJ Bell, depending on your risk tolerance and investing savviness. Beginner investors or those who prefer to choose a ready-made investment portfolio can get a little, or a lot, of help from AJ Bell’s specialists by selecting one of the investment ideas on offer. Investment ideas are diversified ready-made baskets of investments that you can select based on your personal preference and attitude to risk. There are eight total investment ideas, each built by a specialist team, and you can pick the right one for you depending on whether you are seeking to simply grow your money over time or receive an income whilst still growing your money. Expert investors can take advantage of the stock and fund screeners and complex instruments available on AJ Bell and build their portfolios themselves.

AJ Bell charges an annual platform fee ranging from 0.25% to 0%, depending on the size of your portfolio. Dealing fees for buying and selling investments online are £1.50 for funds and £5 for shares (reducing to £3.50 if there were ten or more online share deals in the previous month). AJ Bell’s products include a Share Dealing Account, Stocks and Shares ISA, Junior Stocks and Shares ISA, Lifetime ISA, SIPP and Junior SIPP.

Capital at risk.

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InvestEngine - Low cost; 500+ Commission-free ETFs

InvestEngine Logo
Annual Platform Fee
0% - 0.25%
Dealing Fee
£0
Regular Investor Fee
£0
Instruments
500+
ETFs.

InvestEngine is a low-cost ETF investment platform that provides a choice of managed portfolios tailored to you and commission-free DIY investing to help you build long-term wealth. Users can invest in over 500 exchange-traded funds (ETFs) from leading global asset managers.

With InvestEngine, you can invest in two ways depending on your tolerance for risk and savviness as an investor: beginner investors or those who prefer a ready-made investment portfolio can select from one of the managed portfolios on offer, where the team of experts at InvestEngine will take care of the day-to-day investment decisions for you. These portfolios are a selection of ETFs based on your preferences and risk tolerance. Once you’ve selected one, you do not have to do anything else besides monitor the performance of your investments. Advanced or more confident investors can choose from 500+ commission-free ETFs and build their portfolios themselves. InvestEngine also offers fractional investing, which allows you to buy bits and pieces of an ETF with as little as £1. This enhances your ability to build a diversified portfolio even if you have a small amount of money to invest. With the DIY Portfolio, there are no platform fees. However, the managed portfolios attract a fee of 0.25% per year. All InvestEngine portfolios are free of set-up fees, dealing fees, ISA subscription fees or withdrawal fees.

InvestEngine stands out amongst its competitors as one of the cheapest trading platforms in the UK because it charges no platform or management fees on its DIY Portfolio and just 0.25% a year on its managed portfolio. You can also start investing with as little as £100. InvestEngine’s suite of products includes a Stocks and Shares ISA, Personal Account and Business Account.

Capital at risk.

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Moneybox - 0% Commission on US stocks; Good for beginners

Moneybox
Annual Platform Fee
0.45%
(+ £1/month subscription fee)
Dealing Fee
£0
(+ 0.45% FX fee on US Stocks)

Regular Investor Fee
£0
Instruments
Stocks, Funds, and ETFs.

Moneybox is a UK investment app that allows you to invest in a range of tracker funds, exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and US stocks. Moneybox offers two forms of investing depending on your investing savviness, investing strategy and attitude to risk. Beginner investors or those who prefer a ready-made portfolio can choose from the three ready-made portfolios on offer - Cautious (lower risk), Balanced (medium risk) and Adventurous (higher risk). Advanced or more confident investors can pick from the range of tracker funds, ETFs, ETCs and US stocks available and build their portfolios themselves.

The Moneybox app also empowers you to invest your spare change by rounding up your card transactions to the nearest pound and investing the difference on your behalf. For example, if you spend £2.30 on a snack, Moneybox will invest 70p for you. You can also instruct the app to make weekly or one-off deposits into your investment portfolio as it rounds up your spare change.

You can start investing with Moneybox with as little as £1. Moneybox offers commission-free trading on US stocks. However, fund management fees apply to other types of investments, ranging from 0.12% to 0.61% per annum. A currency conversion fee of 0.45% also applies to US stocks. Moneybox also charges an annual platform fee of 0.45% and a monthly subscription fee of £1 (you get the first three months free). Moneybox’s suite of products includes a Stocks and Shares ISA, Lifetime ISA, Junior ISA, Personal Pension, and General Investment Account.

Capital at risk.

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XTB - 0% Commission on real stocks and ETFs; 5,800+ Instruments

XTB logo
Annual Platform Fee
£0
Dealing Fee
£0
Regular Investor Fee
£0
Instruments
5,800+
Stocks, ETFs, Stock CFDs, Index CFDs, ETF CFDs, Forex, and Commodities.

Earn up to 4.75% annual interest on uninvested cash

XTB is a user-friendly, fully-customisable European trading platform renowned for its extensive CFD and forex trading offerings. XTB provides traders instant access to hundreds of global markets and over 5,800 instruments, including UK and overseas stocks and shares, ETFs, forex, indices, commodities, stock CFDs, and ETF CFDs.

XTB is good for beginners and even better for experts. Beginners can take advantage of XTB’s Passive Investment Plan, which is designed for long-term investing. This plan allows you to build a portfolio of ETFs, set up recurring deposits so you invest regularly while taking advantage of pound-cost averaging, and invest fractionally so you can afford even the most expensive ETFs with as little as £15. Expert or advanced traders and investors can take advantage of the in-house trading software, xStation. xStation by XTB is a powerful trading software available on iOS, Android, and desktop devices and is suitable for beginners and advanced traders. The xStation trading software provides comprehensive charting and risk management tools. With the built-in trading calculator, you can easily estimate costs, profits, or losses before opening a position, modify stop loss, and take profit orders directly on the chart or close all positions with a click of a button. XTB also provides an extensive library of educational materials, including videos, webinars, and courses suitable for beginners and experienced traders. When you sign up, you will have access to a dedicated account officer who will work with you to help you better understand your needs and how XTB operates.

It is free to open a trading account with XTB, and all users have access to a free demo account with £100,000 of virtual funds that you can use to practise trading and investing until you become confident enough to use real money. Deposits in GBP and EUR are free of charge, but withdrawals below £60 have a £12 processing fee. Real stock trading is commission-free for monthly turnover up to €100,000 (£85,000). Transactions above this limit will attract a commission of 0.2% (minimum €10 (£8.50). If you invest in foreign stocks and ETFs, a 0.5% currency conversion fee may apply. Stock and ETF CFD trading are also commission-free. Other fees apply. XTB does not offer an ISA or SIPP.

Please note: Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.

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Pepperstone - Low cost; Speedy execution; 1,200+ Instruments

Pepperstone logo
Annual Platform Fee
£0
Dealing Fee
From 0.10% (UK Stock CFDs)
From 0.6 pips (Forex)
Regular Investor Fee
£0
Instruments
1,200+
Stock CFDs, Index CFDs, ETF CFDs, Forex, and Commodities.

Pepperstone is a CFD and forex broker that allows you to trade a wide variety of instruments, including forex, indices, stocks, ETFs, commodities and other assets via contracts for difference (CFDs). The Pepperstone platform boasts low-cost spreads, fast execution speeds and access to over 1,200 trading instruments. The Pepperstone CFD trading accounts allow a minimum trading size of 0.01 lots and a maximum of 100 lots. Retail traders can access leverage up to 30:1 and over 60 currency pairs.

Pepperstone also allows scalping, expert advisors, hedging, and news trading. With Pepperstone, you can trade and enjoy the seamless creation of advanced trading strategies via some of the most popular and powerful trading software in the world, including TradingView, MetaTrader 4 (MT4), MetaTrader 5 (MT5), CTrader, DupliTrade (for social and copy trading), and Capitalise AI (for code-free trading automation). The Pepperstone platform is suitable for both beginners and advanced traders. It is especially suitable for professional traders who want to take advantage of higher leverage. Pepperstone also has a suite of educational materials to help traders at every level.

It is entirely free to open an account with Pepperstone, and all registered users gain access to a free demo account, which you can use to practise CFD trading until you become confident. On Pepperstone, the spreads, which function as trading fees for CFD brokers, start at 0.6 pips for forex CFDs, 0.4 for index CFDs, 0.05 for commodity CFDs, and 0.10% per side for UK share CFDs. Pepperstone also charges a swap rate (overnight fee) for holding CFD positions overnight. Other fees apply. Pepperstone does not offer an ISA or SIPP.

Please note: When you invest, your capital is at risk. Between 74 and 89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and can afford to take the high risk of losing your money.

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Microsoft Share Price

As of June 2024, a single share of Microsoft Corporation (NASDAQ: MSFT) costs around $415 (£326). It is important to remember that this price is constantly changing due to a variety of factors, such as the company’s performance, market trends, and global events. Significantly, Microsoft’s ongoing expansion into cloud computing and AI technologies could notably affect the stock’s value in the future.

Investors can stay updated about Microsoft’s share price by monitoring the stock market or using financial news platforms. You can find Microsoft’s current share price and more detailed information about the company, including news, financials, and technical data, at any time on platforms like TradingView. Additionally, you can use the Microsoft stock history graph to see how it has performed over time.

It’s important to note that the share price of a company doesn’t necessarily reflect its value. A company may have a high share price, but if it lacks solid earnings or growth potential, the stock might not be a worthwhile investment.

Therefore, thorough research and analysis are critical before investing in any company’s stock, including Microsoft’s. For instance, consider Microsoft’s ongoing investment in expanding its Azure cloud services and its innovations in AI and machine learning. Furthermore, your personal investment goals, risk tolerance, and overall portfolio diversification should also play a role in your investment decisions.

Should I Buy Microsoft Stock?

The decision to buy Microsoft shares hinges on your confidence in the company’s financial health and its diverse range of services and products. As of June 2024, Microsoft holds a powerful position in the global tech market, with a market capitalisation exceeding $3.09 trillion.

Microsoft’s leading role in the software industry, its substantial investments in cloud computing, and its expansion into AI research are all factors that highlight its potential as a promising investment. However, thorough personal research and a clear understanding of your investment objectives are crucial before making a decision.

Let’s delve into why Microsoft might be an ideal addition to your portfolio:

  1. Software and Cloud Dominance: Microsoft, with its Intelligent Cloud segment and Productivity and Business Processes segment, is making waves in the industry. In 2022, the Intelligent Cloud segment, housing server products and cloud services like Azure, SQL Server, and Visual Studio, raked in over $75.25 billion in revenue. Azure sits comfortably behind Amazon Web Services in the cloud service market, holding a substantial 20% share. On the other hand, the Productivity and Business Processes segment, which includes offerings like Office 365 subscriptions and Microsoft Teams, pulled in $63.36 billion in the same year. As businesses gear up for further digital transformation, Microsoft’s robust cloud services and productivity tools place it in an enviable position for future growth.

  2. Artificial Intelligence and OpenAI Partnership: In 2019, Microsoft announced a strategic partnership with OpenAI, investing $1 billion. The goal of this partnership is to develop new technologies for Microsoft’s Azure cloud platform that utilises artificial intelligence and to create artificial general intelligence (AGI) that can perform tasks with the proficiency of a human. The advancements from this partnership could lead to significant innovations and provide Microsoft with a competitive edge in the AI industry. In 2023, Microsoft announced that it would be investing an additional $10 billion in OpenAI.

  3. ChatGPT: ChatGPT, a product of OpenAI’s research, is a large-scale, AI-powered language model capable of generating human-like text based on the input it receives. Microsoft’s exclusive licensing of GPT-3, the predecessor of ChatGPT, demonstrates its commitment to harnessing the power of AI. GPT-3 and its successors could be used to improve Microsoft’s existing products and services, like Cortana or customer service bots, or to develop entirely new offerings, creating additional streams of revenue.

  4. Diversification of Revenue Streams: Microsoft has successfully diversified its revenue streams across a range of segments, including productivity and business processes (Office, LinkedIn, Dynamics), intelligent cloud (Azure, server products, enterprise services), and more personal computing (Windows, Xbox, Surface, search advertising). This diversification reduces Microsoft’s reliance on any single product or service, making it more resilient to changes in market conditions.

  5. Strong Financial Performance and Dividends: Microsoft has consistently demonstrated strong financial performance. In fiscal 2022, the company reported revenue of $‪198.27 billion, an 18% increase from the previous year, and net income of $‪72.74 billion, up 19%. Additionally, Microsoft has a history of returning capital to shareholders through dividends and share repurchases, making it an attractive investment for income-focused investors.

  6. Investments in Future Technologies: Apart from AI, Microsoft has been investing in other future technologies, such as quantum computing and mixed reality. These investments could potentially lead to groundbreaking innovations that propel the company to new heights.

However, it is crucial to note that the tech industry is highly competitive and constantly evolving. Microsoft’s ability to innovate and keep pace with technological advancements will significantly impact its future profitability.

For your research, you can find data like the ones mentioned above on platforms such as TradingView.

Overall, Microsoft’s dominance in the software industry, significant investment in cloud services, venture into AI, and solid financials make it a compelling investment prospect for those seeking long-term growth and innovation. Nevertheless, as with any investment, it is crucial to weigh the risks and potential returns carefully before making a decision.

Risks of Investing in Microsoft:

While the benefits of investing in Microsoft are compelling, it is also crucial to remember the risks. These include competition in the tech industry, regulatory risks, dependence on key segments, and economic conditions. Let’s have a look at them in detail:

  1. Competition: The tech industry is highly competitive, with formidable players like Amazon, Google, and Apple. Microsoft faces intense competition in all its operating segments. For instance, in the cloud segment, Amazon Web Services and Google Cloud are key competitors. In the productivity software and operating systems segments, Google’s G Suite and Apple’s macOS and iOS are strong competitors. If Microsoft fails to innovate and keep up with the rapid changes in the tech landscape, it could potentially lose market share.

  2. Regulatory Risks: As a global tech company, Microsoft must navigate a complex web of regulations and laws across different jurisdictions. These include data privacy laws, antitrust regulations, and cybersecurity rules. Any changes in these regulations or failure to comply with them could result in legal issues, fines, or damage to the company’s reputation.

  3. Dependence on Key Segments: While Microsoft has diversified its operations, it still relies heavily on certain segments. For example, the Office suite of products and Windows are significant contributors to Microsoft’s revenue. Any disruption in these segments, whether due to competition, technological changes, or other factors, could potentially impact the company’s financial performance.

  4. Technological Changes and Innovations: The tech industry is characterised by rapid and constant changes and innovations. Companies that fail to keep pace with these changes can quickly become obsolete. Therefore, Microsoft’s success largely depends on its ability to anticipate and adapt to these changes, invest in R&D, and introduce new products and services.

  5. Economic Conditions: Microsoft’s performance is also influenced by global economic conditions. Economic downturns or uncertainties can lead to reduced spending on tech products and services, which could impact Microsoft’s revenue and profitability. Furthermore, since Microsoft operates globally, it’s exposed to risks associated with foreign currency exchange rates.

  6. Cybersecurity Risks: As a tech company, Microsoft is a potential target for cyberattacks, which could lead to data breaches, service disruptions, and significant financial and reputational damage. While the company invests heavily in security measures, the risk cannot be entirely eliminated.

Remember, it’s important to consider these potential risks alongside the potential benefits when making investment decisions. Conducting thorough research and understanding your personal risk tolerance is crucial.

Factors to Consider When Buying Microsoft Shares

When investing in Microsoft shares, various factors can influence the value of these shares. Here are some key considerations:

  1. Earnings Reports: Microsoft releases quarterly earnings reports that provide crucial insights into the company’s financial health. These reports can significantly impact the stock’s value, so staying updated on them is essential.

  2. Market Trends: The stock market is susceptible to fluctuations, and external factors such as economic conditions, geopolitical events, and industry trends can affect the value of Microsoft shares.

  3. Company Performance: Evaluating the company’s health and its potential for future growth is crucial. Microsoft continues to broaden its product portfolio and invest heavily in new ventures, such as cloud computing and artificial intelligence, indicating strong growth potential.

  4. Competition: Microsoft operates in a highly competitive industry, especially in areas like cloud services, operating systems, and productivity software. Monitoring competitors and assessing their potential impact on Microsoft’s growth is vital.

If you’re contemplating investing in Microsoft shares, here are some tips for evaluating the company’s health:

  1. Research the Company’s Financials: Review Microsoft’s earnings reports and financial statements to understand the company’s revenue, profit, and growth trends.

  2. Evaluate the Company’s Leadership: Microsoft’s CEO, Satya Nadella, has been instrumental in the company’s growth, especially in transitioning the company towards cloud-based services. The leadership team’s experience and track record should be considered when evaluating the company’s future growth potential.

  3. Analyse Industry Trends: Review the overall trends in the industries that Microsoft operates in, such as cloud computing, artificial intelligence, and software development, and consider how the company is positioned to capitalise on these trends.

  4. Keep an Eye on Competitors: Microsoft faces stiff competition from companies like Amazon (in cloud services), Google (in search, cloud services, and productivity software), and Apple (in operating systems and devices). Stay informed about these companies’ strategies and assess their potential impact on Microsoft’s growth.

The best places to find data on Microsoft include Microsoft’s investor relations website, news sites such as CNBC and Financial Times, and charting and trading websites such as TradingView and Investors Business Daily’s MarketSmith.

Cheapest Way to Buy Microsoft Stock

The cheapest way to buy Microsoft stock is through a commission-free fractional share broker such as eToro, Freetrade, or Moneybox. These brokers enable investors to purchase fractional shares of Microsoft stock, which can be more affordable than buying full shares. They are also commission-free, meaning you do not pay a trading fee each time you buy or sell a share.

Another cost-effective method to gain exposure to Microsoft’s stock is through mutual funds and exchange-traded funds (ETFs) that invest in the company. These funds usually have lower fees and expenses than actively-managed funds, making them a wise choice for investors looking to save on costs. For example, the iShares NASDAQ 100 UCITS ETF (CNDX) invests in Microsoft as well as other companies in the technology sector.

While contracts for difference (CFDs) may appear cheaper in terms of upfront costs, they can be more expensive in the long run due to high fees and leverage costs. As with any investment, it is crucial to consider the actual cost of investing in Microsoft shares, which will depend on factors such as the size of your investment, the frequency of your trades, and the fees and charges associated with different investment options. By carefully assessing your choices and searching for cost-effective strategies, you can maximise your returns while minimising your expenses.

Is it Worth Buying One Share of Microsoft?

If you’re a new investor, you might be questioning whether it is worth buying one share of Microsoft. The answer to this question depends on your investment goals, risk tolerance, and overall financial situation.

On the one hand, owning a single share of Microsoft can be an excellent way to participate in the growth potential of one of the world’s leading technology companies. Additionally, Microsoft’s shares have historically performed well, and the company has a solid reputation for innovation and stability in the tech industry.

On the other hand, buying a single share of Microsoft may not be the most cost-effective way to invest in the stock market. The current market price for a single share of Microsoft may be too high for some investors, and you may be subject to high commissions and fees for a small investment.

If you’re interested in investing in Microsoft but don’t want to buy a full share, fractional shares or exchange-traded funds (ETFs) may be a better option. These investment vehicles enable you to invest in Microsoft with smaller amounts of money and may offer lower fees and expenses than individual shares.

Ultimately, whether purchasing one share of Microsoft is worth it depends on your investment goals and risk tolerance. It’s always a good idea to consult with a financial adviser and conduct thorough research before making any investment decisions.

What Happens if I Buy Microsoft Stock Today?

If you buy Microsoft stock today, you become a shareholder in the company and have the potential to benefit from its growth and profitability over time. As a shareholder, you will also have the right to vote on certain company matters and may receive dividends if the company chooses to distribute them.

Investing in the stock market always carries some risk, and the price of Microsoft’s shares can be influenced by various factors, including market conditions, company performance, and investor sentiment. This means that there is a risk of losing money if the share price falls.

However, if Microsoft continues to perform well and grow over time, your investment in the company may increase in value, providing a return on your investment. By carefully monitoring market conditions and staying up to date on the company’s performance, you can make informed decisions about when to buy and sell Microsoft stock and potentially maximise your returns over time.

For instance, keeping an eye on Microsoft’s advancements in AI, cloud computing, and its strategic partnerships like the one with OpenAI can give you insights into the company’s growth trajectory. Their acquisition of companies like LinkedIn and GitHub, and the success of their products, such as Azure and Office 365, are all indicators of the company’s strong performance.

Best Time to Buy Microsoft Stock

Figuring out the optimal time to buy Microsoft stock can be a complex task, given the multitude of factors that can influence its price. However, certain strategies can be employed to help you make well-informed investment decisions when contemplating the ideal time to purchase Microsoft stock.

Here are three approaches to help you determine the best time to buy Microsoft stock:

  1. Utilise pound-cost averaging: This strategy involves investing a fixed amount of money at regular intervals. This tactic can mitigate the impact of market volatility. By consistently investing, you purchase more shares when the stock price is low and fewer when the price is high, resulting in a lower average cost per share over time. For example, you could decide to invest £80 in Microsoft stock every month, regardless of the current stock price.

  2. Focus on long-term growth potential: Instead of trying to time the market, concentrate on Microsoft’s long-term growth potential. Thoroughly analyse its financial performance, market trends, and its capacity for innovation. For instance, if Microsoft is investing heavily in cloud computing or making significant advances in AI and machine learning (like its Azure AI), it might indicate a favourable time to invest. Additionally, keep an eye on critical announcements such as earnings reports or strategic initiatives by the company.

  1. Monitor market trends: Stay abreast of market trends to gain insights into the best time to invest in Microsoft stock. For example, if the technology sector is experiencing substantial growth or if Microsoft is gaining a competitive advantage in its diverse operations, it might be a favourable time to invest. Conversely, if there are challenges or headwinds in the tech industry, it might be wise to wait for a more opportune time.

Ultimately, the best time to buy Microsoft stock will depend on your individual financial goals and risk tolerance. By carefully evaluating your options and staying informed about market conditions, you can make informed decisions about when to invest in Microsoft stock and potentially enhance your long-term returns.

Whether you choose to utilise pound-cost averaging, focus on long-term growth potential, or adopt a different strategy, it is crucial to remain patient and stay committed to your investment approach.

What’s the Minimum Number of Microsoft Shares I Can Buy?

The minimum number of Microsoft shares you can buy depends on the brokerage platform you opt to use. Some brokers might necessitate the purchase of at least one full share, which, as of June 2024, could cost over £200.

However, certain brokers provide the option to buy fractional shares, allowing you to purchase a smaller portion of a share instead of a whole one. This opens up the opportunity for investors to own a piece of a company like Microsoft with less capital than would be needed to buy a full share. For instance, if Microsoft’s share price stands at £200 and you have £100 to invest, you could utilise a fractional share brokerage platform to acquire 0.5 shares of Microsoft. In this scenario, you’d own half of a Microsoft share, and your investment would be worth £100 based on the current share price.

Investing in fractional shares can be a handy strategy for those investors keen on owning shares in high-valued companies like Microsoft but might not possess the capital to acquire a full share. Nonetheless, it’s worth noting that certain brokers might impose fees for fractional share purchases or may only offer the option for specific stocks or ETFs. It’s crucial, therefore, to thoroughly research the fees and terms of any broker before deciding to use their platform for fractional share investing.

Examples of commission-free fractional share brokers in the UK are eToro, Freetrade, and Moneybox. All three platforms allow you to buy small fractions of Microsoft shares with as little as £10.

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