The banking sector in the United Kingdom has been through a lot of turbulence in recent years. One of the biggest names in UK banking is the Royal Bank of Scotland (RBS). The RBS share price UK pounds has been on a rollercoaster ride over the past few years. In this article, we take a look at the current state of RBS and how to invest in its shares.
The Royal Bank of Scotland is one of the oldest banks in the world. It was founded in 1727 and has its headquarters in Edinburgh, Scotland. RBS is a constituent of the FTSE 100 index and has a market capitalisation of £24.4 billion as of June 2020. The bank serves over 30 million customers across the United Kingdom and Ireland.
RBS has been through some tough times in recent years. The financial crisis of 2008 hit the bank hard and it had to be bailed out by the UK government to the tune of £45 billion. The share price of RBS fell to a low of £0.20 in 2009. Since then, the share price has recovered somewhat and is currently trading at around £3.50.
Despite its challenges, RBS remains a big player in UK banking and is worth considering as an investment option. In this article, we will discuss the current state of RBS and how to invest in its shares.
Table of Contents
More On Royal Bank Of Scotland
Since its conception over 200 years ago, The Royal Bank of Scotland has become one of the world’s leading financial services groups. Headquartered in Edinburgh, Scotland, RBS provides a comprehensive range of banking and insurance services to over 30 million customers in the United Kingdom and Ireland.
Despite its long and illustrious history, RBS has not been immune to the turbulence that has beset the banking sector in recent years. As with any other company, big or small, got hit with COVID-19’s impact on economies worldwide, resulting in lower interest rates and increased demand for government-backed loans.
Currently, with the UK inflation rate unexpectedly dipping to 9.9% recently, another policymaker has called for more economic stimulus to prevent the economy from stalling as the pandemic continues to rage.
This means that now could be a good time to invest in RBS shares. It presents a good opportunity for long-term investors to buy shares at a discount and benefit from RBS’s recovery in the years to come.
Can You Directly Buy RBS Share Price In the UK Today?
On 14 February 2020, it was announced that RBS Group was to be renamed NatWest Group. The change is effective from 1 July 2020, at which time shares will start trading under the new name and ticker symbol NWG on the London Stock Exchange.
So, if you are planning to buy RBS shares today, you will actually be buying NatWest Group shares. You can do this through a broker or stock trading platform. When choosing a broker, make sure to compare fees and commissions to find the best deal. Let’s discuss this further.
Where To Buy RBS Share In UK?
There are plenty of reasons to believe that the RBS share price is set to rise in 2020. In this article, we will take a look at some of those reasons and also how you can buy shares in Royal Bank of Scotland.
The UK economy is forecast to grow by 3.6% in 2023 according to the OECD. This would be the first time since 2007 that the economy has grown for four consecutive years. The main driver of this growth is expected to be consumer spending, which is being helped by high employment and wages growing at their fastest pace in nearly a decade.
The housing market is also forecast to continue to recover, with prices expected to rise by 8.3% next year. This will provide a boost to the economy as well as RBS’s mortgage business.
RBS is also benefiting from the ongoing recovery in the oil price. The bank has a large exposure to the oil and gas sector and the share price has risen sharply this year as the oil price has recovered from its lows.
Another factor that is likely to support the RBS share price is the bank’s strong capital position. RBS has one of the highest levels of capital in the UK banking sector and this gives it a competitive advantage over its rivals.
So, with all of these factors working in its favour, how can you buy shares in Royal Bank of Scotland?
1. Traditional Brokers
If you want to buy shares in RBS then you can do so through a traditional stockbroker. You will need to open an account with a broker and deposit some money. Once you have done this you will be able to place an order to buy RBS shares.
There are a number of different brokers that you can choose from and it is worth shopping around to get the best deal. Some brokers will charge a commission on each trade while others will offer share dealing for a monthly or annual fee.
2. Online Brokers
Another option is to use an online broker. These brokers allow you to trade shares online without the need to open an account. You will usually be able to trade for a lower commission than with a traditional broker.
This is the most popular way to buy shares nowadays. Apart from the lower costs, online brokers offer other advantages, such as the ability to trade 24 hours a day and access to a wider range of markets.
3. Share Dealing Accounts
If you want to invest in RBS but don’t want to pay commission, then you can open a share dealing account. These accounts give you access to the stock market without charging you a commission on each trade.
The main downside of these accounts is that they usually have a monthly or annual fee. However, if you are planning on making a lot of trades then this can still be cheaper than using a traditional broker.
4. P2P Investing
Another option for investing in RBS is to use a peer-to-peer lending platform. These platforms allow you to lend money to businesses and earn interest on your loan.
RBS is one of the largest borrowers on these platforms and this can be a good way to earn a return on your investment. The main downside is that there is more risk involved than with other investments.
5. Buying RBS Shares Through an ISA or SIPP
If you are a UK resident, then you may be able to buy RBS shares through an ISA or SIPP. These are tax-free wrapper accounts that allow you to hold a range of investments.
If you are looking for a long-term investment, buying RBS shares through an ISA or SIPP can be a good option. You will not have to pay any capital gains tax on any profits that you make and your dividends will also be tax-free.
So, there are a number of different ways that you can buy shares in Royal Bank of Scotland. The best option for you will depend on your individual circumstances.
How to Buy RBS Share in The UK: A Step-by-step Guide
In this example, let’s say you will be investing through an online broker. Online brokers are the most simple yet effective way to buy shares. The first thing you need to do is create an account with an online broker.
Step 1: Research the company and the share price
It is very important that you know what you are buying. You would not want to buy a share of a company that is about to go bankrupt for example. A good place to start your research is on the company website itself.
Have a look at the financial reports to get an idea of how well the company is doing. It is also important to check the share price history to see if the shares have been volatile or not. You can find this information on websites, such as Yahoo Finance.
Step 2: Choose an online broker
Once you have done your research, it is time to choose an online broker. Make sure to choose a reputable one with low fees. Some brokers will also offer you other features such as a mobile app or the ability to trade other securities such as CFDs.
Step 3: Open and fund your account
The next step is to open your account with the broker. You will need to provide some personal information such as your name and address. You will also need to fund your account before you can start trading. This can be done by wire transfer or credit/debit card.
Step 4: Place your order
Now it is time to place your order. When you place an order, you will need to specify the following:
- The ticker symbol of the company (RBS in this case)
- The number of shares you want to buy
- The price you are willing to pay per share
- The type of order (market or limit)
A market order is an order to buy or sell shares at the best available price. A limit order is an order to buy or sell shares at a specific price. For example, you could place a limit order to buy 100 shares of RBS at £5 per share. This means that you will only buy the shares if they are available at £5 or less.
Step 5: Monitor your position
Once you have placed your order, all you need to do is wait for it to be executed. You can monitor your position in the “positions” or “portfolio” section of your broker platform. Congratulations, you are now a shareholder of RBS.
Step 6: Close in position and Withdraw your money
When you want to close your position, you simply place a sell order in the same way as you placed a buy order. Once your order is executed, the proceeds will be credited to your account. You can then withdraw the money from your account using the method of your choice, such as wire transfer or credit/debit card.
Best Share Dealing Platforms In The UK
|Share Dealing Accounts||Subscription Fee||Fund Management Charge||Dealing Fees||Spot Fees|
|FinecoBank Multi-Currency Trading||£0||0.25% - 0%||£2.95||£0|
|Hargreaves Lansdown||£0||0.45% - 0%||£11.95||£0|
|Interactive Investor||£9.99||Covered by subscription||£5.99||1.50%|
|IG Share Dealing Account||£0||N/A||£3 - £8||0.50%|
|Barclays Smart Investor||£4 minimum||0.20%||£6||1%|
FinecoBank Multi-Currency Trading Account
FinecoBank is one of the most popular online share dealing platforms in the UK. The company offers a multi-currency trading account that allows investors to trade shares in multiple currencies. FinecoBank also offers a range of other investment products including ETFs, bonds and mutual funds.
In addition to share dealing, FinecoBank also offers a range of banking services including a current account, savings account and credit card. The company is authorised and regulated by the Financial Conduct Authority (FCA).
Trading thousands of UK and foreign shares, bonds, exchange-traded funds (ETFs), funds, and more complicated products including contracts for difference (CFDs), currencies, futures, and options are all possible with Fineco. (Some of these riskier and more complicated investments may not be suitable for all investors, of course.)
You simply need to remember one password and PIN to trade numerous goods in local currencies using a single multi-currency account. You pay a flat trading cost regardless of order size.
At-a-glance stock screening is one of the features that let you select criteria to investigate various marketplaces.
- Subscription Fee: £0
- Fund Management Charge: 0.25% – 0%
- Dealing Fees: £2.95
- Spot Fees: £0
Hargreaves Lansdown is one of the UK’s largest and most well-known share dealing platforms. The company was founded in 1981 and now has over 1 million clients. Hargreaves Lansdown offers a range of investment products including shares, ETFs, mutual funds, bonds and more.
The company also offers a range of banking services including a current account, savings account, and credit card. Hargreaves Lansdown is authorised and regulated by the Financial Conduct Authority (FCA).
Hargreaves Lansdown has a strong reputation for customer service and offers a range of features to help investors make informed investment decisions. These features include an extensive research centre, regular market updates and a handy mobile app.
- Subscription Fee: £0
- Fund Management Charge: 0.45% – 0%
- Dealing Fees: £11.95
- Spot Fees: £0
The share dealing platform offered by Interactive Investor is simple and easy to use, making it a fantastic option for both novice and more experienced investors.
The website gives users access to a wide range of investing options, including shares, funds, investment trusts, and ETFs from the UK and other countries (exchange-traded funds). Even the most recent IPOs (initial public offerings) will be announced by Interactive Investor as soon as they hit the market.
One of the platform’s most alluring features is undoubtedly its price structure, which substitutes a monthly subscription plan for the typical broker’s percentage-based portfolio management charge model.
This may turn out to be quite cost-effective for long-term investors, especially if the value of your portfolio (hopefully!) increases. Loss of principal is a danger of investing.
You may select from three different monthly membership levels with the Interactive Investor’s Share Dealing account, each of which starts at £9.99 per month. Your trading costs will ultimately depend on the plan you choose.
- Subscription Fee: £9.99
- Fund Management Charge: Covered by subscription
- Dealing Fees: £5.99
- Spot Fees: 1.50%
IG Share Dealing Account
IG is becoming a top option for traders all around the world. Active investors may take advantage of their share-dealing account’s low fees and a fantastic selection of options. The site offers a variety of features that are geared toward more seasoned investors. This platform offers shares and ETFs with low commissions and no monthly account fees.
This share-dealing account is available to UK residents only, and you must be 18 years or older to open an account. Like most brokerages, IG requires that you complete a suitability test before trading. This assessment covers your investment experience, goals, and risk tolerance.
- Subscription Fee: £0
- Fund Management Charge: N/A
- Dealing Fees: £3 – £8
- Spot Fees: 0.50%
Barclays Smart Investor
Barclays Smart Investor is an online investing service from one of the UK’s biggest banks. The service offers a wide range of investments including shares, ETFs, mutual funds, and more.
Barclays Smart Investor also offers a current account, savings account, and credit card. The company is authorised and regulated by the Financial Conduct Authority (FCA). One of the key selling points of Barclays Smart Investor is its low-cost dealing charges. Share dealing starts at just £4 per trade with no monthly account fees.
The Barclays Smart Investor website is clear and easy to use. The site also offers a handy mobile app that allows investors to trade on the go. What makes Barclays Smart Investor a great platform is that it’s backed by one of the UK’s biggest banks.
- Subscription Fee: £4 minimum
- Fund Management Charge: 0.20%
- Dealing Fees: £6
- Spot Fees: 1%
How To Choose The Best RBS Sharedealing Platform
There are many reasons why people choose to invest in Royal Bank of Scotland (RBS) shares. Some investors are looking for long-term growth potential, while others may be attracted by the bank’s current high dividend yield. Whatever your investment strategy, it’s important to choose the right RBS share dealing platform in order to get the most out of your investment.
Here are some things to consider when choosing an RBS share dealing platform:
- Cost: Make sure you compare the dealing commission and other fees charged by different platforms.
- Ease of use: The platform should be easy to use and provide all the information and tools you need to make informed investment decisions.
- Research: Look for a platform that provides access to extensive research on RBS shares and the wider UK banking sector.
- Customer support: Choose a platform with good customer support in case you have any questions or problems.
The best RBS share dealing platform for you will depend on your individual investment needs and objectives. However, by taking the time to compare different platforms and consider the factors listed above, you can be sure to find a platform that suits your requirements.
1. What is the RBS share price in UK?
Natwest Group PLC is currently trading below 275 GBX. This is a decrease of approximately 5 per cent from the previous close.
2. What is the RBS share price in UK today and what do analysts think?
Analysts at Goldman Sachs recently upgraded their rating on the stock from “sell” to “neutral,” with a 12-month price target of 185p. This suggests that there could be an upside potential of around 30% from the current level.
3. What is the RBS?
The Royal Bank of Scotland (RBS) is a large commercial bank in the United Kingdom. It is one of the oldest banks in the world and can trace its origins back to the founding of the Bank of Scotland in 1695. The RBS Group is headquartered in Edinburgh, Scotland, and it operates a wide range of banking services across personal, business, and corporate banking.
4. How do I invest in RBS shares?
If you are interested in investing in the Royal Bank of Scotland, you can do so by purchasing shares through a broker or online trading platform. However, RBS share dealing co UK is one of the best ways to make money from the stock market, and you should always remember that past performance is not indicative of future success.
5. What are the risks of investing in RBS shares?
Like any investment, there are risks involved when purchasing shares in the Royal Bank of Scotland. The share price may go down as well as up, and you may not get back the full amount invested if you sell your shares. You should always seek professional financial advice before making any investment decisions.