How to buy Tesco shares (LSE: TSCO)

Buy Tesco shares in the UK commission-free

We reccommend eToro to buy Tesco shares in the UK. It’s a comprehensive trading app which allows you to trade and invest in thousands of stocks, currencies and funds and copy the trades of others. Investing is commission-free too.

Capital at risk if you invest.

Table of Contents

Tesco is one of the UK’s best-known companies, so how do you buy Tesco shares?

In this guide we show you how to buy Tesco shares in the UK. Tesco (LSE: TSCO) is a publicly listed company with its shares listed on the London Stock Exchange. 

We’ll take you through how to buy Tesco shares through a general investment account (GIA), an ISA, a SIPP and a LISA. We’ll also cover how to buy Tesco stock using fractional shares.

Table of Contents

What is Tesco?

Tesco is the UK’s largest retailer and one of the biggest retailers in the world. In 2023 it had annual revenue of £65.8bn

Founded in 1919, its global headquarters are in Welwyn Garden City and its shares are listed on the London Stock Exchange. Tesco is also a constituent of the FTSE100 index, which tracks the 100 largest publicly listed companies in the UK. 

As of April-24, Tesco has a market capitalisation (the total value of all of its shares added together) of around £20bn.

Tesco shares – 2023 financial info

Below are some key financial stats from Tesco’s 2023 financial statements that are useful to be aware of when considering buying Tesco shares:

Revene: £65.8bn
Operating profit: £1.5bn
Profit before tax: £1.0bn
Diluted Earnings Per Share (EPS): 10.08p
Dividend Per Share (DPS): 10.90p

How to buy Tesco shares

The steps to buy shares in Tesco are simple:

  1. Choose the best investment platform for you
  2. Open the right type of account with them based on your needs
  3. Search for Tesco (TSCO) on their platform and trade or buy Tesco shares

We recommend eToro as the best way to buy Tesco shares in the UK.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

Here’s what the trading screen in eToro’s app looks like:

How to buy Tesco shares on the eToro trade screen
Tesco shares on the eToro trade screen (29th April-24)

Hit ‘Trade’ and choose how many shares you want to buy and you’re ready to invest in Tesco with eToro.

This article has been reviewed by Alex, who is a Chartered Accountant and the founder of Generation Money. Alex is an experienced investor and spent more than a decade working in financial services, most recently as a Vice President at Barclays, so you’re in safe hands.

Buy Tesco shares in an investment account

If you want to set up an account and buy shares in Tesco quickly, then a general investment account (GIA), sometimes known as a trading account or just an investment account, is a great way to get started.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

You can have as many GIAs as you like – even with different providers. There are also no contribution or withdrawal limits or penalties.

But, you may have to pay income tax, dividend tax or capital gains tax on any gains or income received through a GIA. There are a number of allowances before you’d have to pay tax, but it will come down to your individual circumstances.

It should be noted, though, that dividend and capital gains allowances have been significantly reduced in recent years, making ISAs even more attractive options.

Sometimes a GIA is referred to as a dealing account, usually by the more traditional stockbrokers. 

If you’d prefer a traditional stockbroker with modern features and customer support over the phone, then we recommend Interactive Investor.

Interactive Investor

With over 400,000 customers, Interactive Investor is one of the largest investment platforms in the UK.

It has over 40,000 shares and investments to choose from, fees which get cheaper the more you invest and one free trade per month. Its customer service is top-rated, too.

How to buy Tesco shares in an ISA

An Individual Savings Account (ISA) is a government-approved product for saving and investing without paying tax. 

Through a Stocks and Shares ISA you can invest in shares, bonds and funds without paying income tax, dividend tax or capital gains tax on your investments.

Tax-wrappers like ISAs are becoming increasingly important for investors as the government has reduced the tax-free allowances on dividends and capital gains in recent years.

Whether you’re going to buy shares in Tesco or not, you should consider opening a Stocks and Shares ISA as a great, tax-efficient way of building an investment portfolio. You can contribute up to £20,000 a year into a Stocks and Shares ISA.

We recommend Interactive Investor as the best Stocks and Shares ISA provider in the UK. It’s one of the largest investment platforms in the UK, has a huge range of investments and excellent customer support.

Interactive Investor

We recommend Interactive Investor as our number one Stocks and Shares ISA provider. It’s one of the largest investment platforms in the UK, has a huge range of investments and excellent customer support.

Read more about ISAs in our expert-written guides:

Buy Tesco shares in a SIPP

A self-invested personal pension (SIPP) is a brilliant, tax-efficient method of saving for your retirement with lots of investment options and control over how you invest.

Whether you already have a SIPP or want to open one, you may be thinking about adding Tesco shares to your pension portfolio. 

If you want to buy Tesco shares in a SIPP then we recommended AJ Bell as our number one SIPP provider:

AJ Bell

For its huge range of investments and low pricing, AJ Bell is our top pick for best SIPP. 

There are thousands of shares, funds, ETFs, investments trusts and bonds to choose from. Plus, 4 ready-made portfolios if you don’t want to pick your own investments.

AJ Bell is also known for its excellent customer service and it has a Trustpilot rating of 4.8.

Capital at risk if you invest.

For a full range of SIPP providers and to see more on why we ranked AJ Bell top, read our guide to the best SIPP providers. You can also read our guide to the cheapest SIPP.

Lifetime ISAs (often referred to as LISAs) are tax-free savings and investment accounts designed to be put towards your first home or for retirement. 

You have to be an adult aged 40 or under to open a Lifetime ISA. You’re able to contribute up to £4,000 a year, which also counts towards your overall ISA annual allowance of £20,000. 

The major benefit of a LISA is that the government gives you a 25% bonus on top of your contributions.

That can really add up over time so you should strongly consider opening a Lifetime ISA if you’re eligible. But, there are strict penalties for withdrawing money for any other reason than to buy a first home or for retirement.

We recommend Hargreaves Lansdown if you want to open a LISA.

Hargreaves Lansdown

Not all investment platforms offer a Lifetime ISA but Hargreaves Lansdown does and it’s one of the lowest cost out there.

There’s a huge range of investments, great customer support and no transfer or exit fees.

How to buy shares in Tesco using fractional shares

You don’t have to own a whole share in a company when investing anymore. You can instead buy a fractional share, which is a proportion of a single share.

Many of the best investment apps in the UK allow you to do this. It’s particularly useful for buying shares in companies with high share prices which can put them out of reach for new investors.

For example, you can buy 10% or 50% of a share instead of one whole share. This lowers the funds required to get exposure to high-priced shares, such as Microsoft shares or Apple shares

Currently, fractional shares are not available through ISA accounts – only via general investment accounts (GIAs).

Tesco’s share price has not been particularly high recently, hovering between £2.43 and £3.05 over the past year. But, if you don’t want to buy a whole share in Tesco you can still buy a proportion of a share instead.

At Generation Money, we recommend that no single share makes up more than 5% of your portfolio value – certainly not more than 10%.

Our preferred platform for buying fractional shares is eToro, and you can buy fractional Tesco shares in the UK on their platform.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

Buy Tesco shares in a Junior ISA

A Junior ISA is a tax-efficient savings and investment account for children, which can only be opened by a child’s parent or guardian. 

Once opened, anyone is able to contribute, such as grandparents, and there’s an annual limit of £9,000. All gains and income generated within a Junior ISA is free from income tax, dividend tax and capital gains tax. 

To buy Tesco (TSCO) shares in a Junior ISA, you’ll need to first open a Junior ISA account for your child. We rate Hargreaves Lansdown as the best Stocks and Shares Junior ISA.

Hargreaves Lansdown

The UK’s largest retail investment platform, Hargreaves Lansdown, is our top pick for the best Junior Stocks And Shares ISA.

It charges no account or dealing fees at all – including on US shares – and has the widest range of investment options, as well as great customer service.

For more on Junior ISAs and why we rate HL as number one, read our full guide to the best Junior Stocks and Shares ISAs

How to buy Tesco shares in the UK

We’ve covered all of the main ways of how to buy Tesco shares in the UK. 

But, what happens when you open one of the account types we ran through above? You’ll need to complete a sign up form with your basic identity information for all account types.

It’s also likely that the investment platform will perform a ‘soft’ credit search of your credit record for ID purposes. Note that this won’t be visible to lenders during a ‘hard’ credit search and will not affect your credit record.

When opening a type of ISA or a SIPP, you will be asked to give additional details compared to a simple GIA. These may include your Unique Tax Reference number, if you have one, and your National Insurance number.

General investment accounts are usually opened within minutes, or sometimes hours. For ISAs and SIPPs it may take longer – up to several days – if further checks are required. 

Overall, though, the processes for opening investment accounts will be familiar to you if you’ve opened a bank account or money transfer account in the last couple of years.

Once opened, you can fund your account and you’re all set to buy Tesco shares. Different platforms will have different minimum deposits. eToro, for example, is $100 or around £80. Other providers can have much higher minimum deposits.

Should you buy Tesco shares?

If you’re reading about how to buy Tesco shares, you’re probably already thinking ‘should I buy Tesco shares?’.

We don’t give investment advice. It’s down to you to do your own research on Tesco stock and make your own investment decision.

However, here are some of the themes we think you should research when considering buying Tesco shares:

  • Tesco has a healthy dividend yield of 4.1% at the time of writing. If investing via an ISA, any dividend income would be would be free from dividend and income tax
  • Competition from discount rivals Aldi and Lidl who’ve been steadily growing their market share in the UK grocery industry
  • Increasing use of robotics in the grocery distribution and logistics side of the industry, with potential long term automation benefits
  • The recent sale and partnership agreement between Tesco and Barclays Bank which will offer consumer banking products leveraging Tesco’s vast customer database 

The investment platforms we’ve covered above all have tools and resources available to help you with your research and analysis. We suggest you make use of them – especially the tons of features that eToro provides.

All of the investment platforms in this guide are regulated by the Financial Conduct Authority (FCA) and are part of the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 of your money in the unlikely event that the platform goes out of business.

Note: to buy Tesco stock and to buy Tesco shares means essentially the same thing. Buying stock, or owning stock, tends to be more widely used in the USA than in the UK. 

Start investing

That covers how to buy Tesco shares in the UK. Let’s summarise.

First, decide which investment platform you want to use. Then decide which type of account you’d like to invest through (or you may already have an investment account).

Then, open the account with your chosen investment platform by completing the sign up forms and any ID checks. Once opened, you can fund your account and you’re ready to invest.

Finally, search for Tesco (ticker: TSCO) on your chosen investment platform, select how many shares you want to invest in and hit ‘buy’.

Here’s a final reminder of our top picks for each type of account:

You May Also Like

Disclaimer: This article should not be considered financial advice. We do not recommend that you buy Tesco shares, nor do we recommend that you do not buy Tesco shares. No view is held or given on the present or future value of any investment mentioned in this article or elsewhere on our site. You should do your own research and make your own investment decisions. Investments may rise or fall in value; your capital is at risk if you invest.

Any company information or statistics mentioned were correct at the date of publication but may have changed since then.

Buy Tesco shares in the UK

We reccommend eToro, it’s commission-free and has thousands of shares.
Capital at risk if you invest. FCA regulated and FSCS protected.

Generation Money Guarantee

At Generation Money our purpose is to help you make better financial decisions. All of our articles are independently written and/or edited by finance professionals and adhere to strict editorial guidelines. This post may contain links which, if clicked, could result in a payment to the site. These links never impact our editorial policy and all rankings and product recommendations remain unbiased. For more details, read how this site is financed.

Get £200 cashback with Interactive Investor

Get £200 cashback when opening and investing in a SIPP, or transferring a SIPP. Terms apply.

Capital at risk if you invest. Interactive Investor is regulated by the FCA and has FSCS protection.

Recent Articles