How to Buy BP p.l.c. Stock in the UK – Complete Guide 2025

BP p.l.c. (NYSE: BP) is one of the world’s largest integrated oil and gas companies and a cornerstone of the UK energy sector. For UK investors looking to gain exposure to the energy market or add dividend-paying stocks to their portfolio, BP presents an interesting opportunity. This comprehensive guide will walk you through everything you need to know about investing in BP stock from the UK.

About BP p.l.c.

British Petroleum, commonly known as BP, is a multinational oil and gas company headquartered in London. Founded in 1909, BP has evolved into one of the world’s seven oil and gas “supermajors” with operations spanning exploration, production, refining, distribution, and marketing of oil and natural gas products worldwide.

The company has been increasingly focusing on renewable energy and carbon reduction initiatives as part of its strategy to become a net-zero company by 2050. This transition makes BP particularly relevant for UK investors interested in the energy sector’s evolution.

Current BP Stock Performance Analysis

As of the latest market data, BP stock is trading at $33.87 (approximately £27.10), representing a slight decline of 0.19% for the day. Here’s a detailed breakdown of BP’s current market position:

Metric	Value
Current Price	$33.87 (£27.10)
Market Capitalisation	$88.50B (£70.80B)
52-Week Range	$25.22 – $35.55
P/E Ratio	135.46
Monthly Performance	+0.64%
Sector	Energy – Oil & Gas Integrated

Key Performance Insights

BP’s current trading price of $33.87 positions it near the higher end of its 52-week range, suggesting relatively strong recent performance. The monthly gain of 0.64% indicates modest positive momentum, though the high P/E ratio of 135.46 suggests the stock may be trading at a premium compared to historical norms for energy companies.

With a market capitalisation of $88.50 billion, BP remains one of the largest energy companies globally, providing investors with exposure to a well-established player in the oil and gas sector.

Step-by-Step Guide: How to Buy BP Stock from the UK

Step 1: Choose a UK Broker

Select a regulated UK broker that offers access to US markets, as BP trades on the New York Stock Exchange (NYSE). Consider factors like fees, minimum deposits, and available account types.

Step 2: Open and Fund Your Account

Complete the broker’s application process, which typically includes identity verification and risk assessment. Fund your account using bank transfer, debit card, or other accepted methods.

Step 3: Research and Analysis

Conduct thorough research on BP’s financial performance, recent news, and market outlook. Many brokers provide research tools and analyst reports.

Step 4: Place Your Order

Search for “BP” or use the ticker symbol. Choose between market orders (immediate execution) or limit orders (specific price targets). Decide on the number of shares to purchase.

Step 5: Monitor Your Investment

Keep track of your BP holdings through your broker’s platform and stay updated on company news and sector developments.

Best UK Brokers for Buying BP Stock

Here are the top UK brokers for purchasing BP shares, each offering different advantages:

eToro

• Commission: 0% on stocks
• Minimum Deposit: £50
• Key Features: Social trading platform, copy trading functionality
• Best For: Beginners interested in social trading features

Trading 212

• Commission: 0% commission
• Minimum Deposit: £1
• Key Features: ISA accounts available, fractional shares
• Best For: Cost-conscious investors and those wanting ISA wrapper

Interactive Investor

• Commission: £3.99 per trade
• Minimum Deposit: No minimum
• Key Features: ISA and SIPP accounts available
• Best For: Serious investors wanting comprehensive pension options

Hargreaves Lansdown

• Commission: £11.95 per trade
• Minimum Deposit: No minimum
• Key Features: Extensive research tools, ISA and SIPP accounts
• Best For: Investors wanting premium research and analysis

AJ Bell

• Commission: £5-£9.95 per trade
• Minimum Deposit: £500
• Key Features: ISA and SIPP accounts, comprehensive research tools
• Best For: Long-term investors focused on retirement planning

Tax Implications for UK Investors

Individual Savings Account (ISA)

UK investors can hold BP shares within a Stocks and Shares ISA, providing tax-free growth and dividend income up to the annual ISA allowance of £20,000 (2024/25 tax year). This is often the most tax-efficient way to invest in BP for UK residents.

Capital Gains Tax

If holding BP shares outside an ISA or pension wrapper, gains above the annual Capital Gains Tax allowance (£6,000 for 2024/25) will be subject to CGT at 10% (basic rate) or 20% (higher rate) depending on your total taxable income.

Dividend Tax

BP dividends held outside ISAs are subject to dividend tax after the £500 annual dividend allowance (2024/25). Rates are 8.75% for basic rate taxpayers and 33.75% for higher rate taxpayers.

Currency Considerations

As BP trades in USD, UK investors face currency exchange risk. Some brokers offer currency hedging options, though these typically come with additional costs.

Investment Risks and Considerations

Sector-Specific Risks

• Oil Price Volatility: BP’s profitability is closely tied to global oil and gas prices
• Regulatory Changes: Environmental regulations and carbon pricing can impact operations
• Energy Transition: The shift towards renewable energy poses long-term challenges

Company-Specific Risks

• Operational Risks: Oil spills, accidents, and operational disruptions
• Geopolitical Exposure: Operations in politically unstable regions
• High P/E Ratio: Current valuation may limit upside potential

Market Risks

• Economic Downturns: Reduced energy demand during recessions
• Currency Risk: USD/GBP exchange rate fluctuations
• Interest Rate Sensitivity: Higher rates can impact dividend yields attractiveness

Investment Strategies for BP Stock

Dividend Income Strategy

BP has historically been a dividend-paying stock, making it attractive for income-focused investors. However, dividend payments can be volatile and were suspended during the 2020 oil price crash.

Value Investing Approach

Some investors view energy stocks like BP as undervalued compared to growth sectors, potentially offering value opportunities for patient investors.

ESG Considerations

BP’s commitment to net-zero emissions by 2050 may appeal to ESG-conscious investors, though the company’s current operations remain carbon-intensive.

Frequently Asked Questions

Can I buy BP stock with £100?

Yes, with brokers offering fractional shares like Trading 212, you can invest as little as £1 in BP stock. At the current price of approximately £27 per share, £100 would buy roughly 3.7 shares.

Does BP pay dividends to UK investors?

Yes, BP pays quarterly dividends to shareholders, including UK investors. Dividends are typically paid in USD but can be converted to GBP by your broker.

Is BP a good long-term investment?

This depends on your investment goals and risk tolerance. BP faces challenges from the energy transition but also opportunities in renewable energy and traditional oil/gas markets.

What’s the minimum amount needed to invest in BP?

This varies by broker. Trading 212 allows investments from £1, while others may require purchasing whole shares (approximately £27 each).

How often should I review my BP investment?

Regular quarterly reviews are recommended, coinciding with BP’s earnings releases. However, avoid making frequent changes based on short-term price movements.

Conclusion

Investing in BP stock from the UK offers exposure to one of the world’s largest energy companies with a long operational history. While the company faces challenges from the energy transition and oil price volatility, it also presents opportunities for dividend income and potential value appreciation.

UK investors have access to excellent broker options, from commission-free platforms like eToro and Trading 212 to full-service providers like Hargreaves Lansdown. Using ISA wrappers can provide significant tax advantages for UK residents.

Before investing, carefully consider your risk tolerance, investment timeline, and how BP fits into your overall portfolio strategy. The energy sector’s volatility requires patience and a long-term perspective.