How to Buy Ford Shares UK – with 0% Commission

Ford Motor Company has been trading on the New York Stock Exchange (NYSE) since the mid-1950s. Although the car manufacturer is worth just a fraction of its former glory, many investors in the UK believe that at current prices – Ford shares could represent a bargain purchase.

In this guide, we show you how to buy Ford shares online in the UK and discuss which brokers allow you to do this in a low-cost and burden-free way.

Step 1: Find a UK Stock Broker to Buy Ford Shares

buy ford shares ukIf you want to buy Ford shares online in the UK, you will first need to find a suitable broker.

Not only does the stock broker need to give you access to the NYSE, but it needs to offer reasonable fees and commissions.

To save you from countless hours of research, below you will find a small selection of the best UK stock brokers that allow you to buy shares in Ford.

1. eToro – Buy Ford Shares with 0% Commission

etoro logoeToro is our number one pick when it comes to buying Ford shares online. In fact, this popular UK broker not only gives you access to the best stocks from the UK and US markets but 14 additional exchanges. This includes everything from Germany and France to Hong Kong and Sweden.

Like all of its 2,400+ stocks, eToro allows you to buy Ford shares online in the UK without needing to pay any dealing fees. The provider does not charge any ongoing platform fees either and the spread on Ford shares average 0.20%.

This allows you to make a purchase without getting hammered by international FX fees. What we also like is that eToro allows you to invest just $50 into Ford. If you are planning to build a portfolio that consists of other assets. eToro also allows you to buy ETFs and cryptocurrencies. Again, this is commission-free.

Additionally, if you want to trade CFDs – such as those tied to gold, silver, oil, forex, or indices – eToro offers these markets with leverage. This varies from 1:5 to 1:30 – depending on the asset class. eToro is also a great option if you want to invest in stocks and other financial markets passively. This is because it offers a Copy Trading tool that allows you to mirror a verified investing pro.

In terms of the process requires to buy Ford shares on eToro, opening an account takes less than 10 minutes. You can instantly fund your account with a debit/credit card or e-wallet, meaning that you can buy Ford shares without delay. Finally, not only is eToro covered by the FSCS but it is also authorized and regulated by the FCA.

Pros

  • 0% commission broker
  • No stamp duty tax on UK shares
  • Over 2,400 global shares and 250 ETFs
  • CFD markets also offered
  • Social network with copy trading
  • Regulated by the FCA
  • FSCS partnered

Cons

  • Withdrawal and inactivity fees

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Fineco Bank – Affordable Share Dealing Platform

Fineco logo

The second option that you have at your disposal is Fineco Bank. The provider covers traditional assets like stocks and ETFs, as well as CFD trading markets. If you decide to buy Ford stocks from Fineco, you will pay a commission of $3.95 per slide.

This means that you pay the fee when you buy the shares and again when you sell them. Additionally, you will need to pay a 0.25% annual maintenance fee on the total value of your portfolio. If you decide to trade Ford shares via CFDs, Fineco Bank allows you to do this on a commission-free basis.

As we discussed in our eToro review, trading Ford CFDs at Fineco not only allows you to apply leverage but short-sell the stocks, too. Fineco Bank, although not commission-free on traditional shares, does stand out for the sheer size of its asset library. For example, it offers tens of thousands of stocks and ETFs across dozens of the UK and international exchanges.

You are only required to meet a £100 deposit at this platform – which comes with transaction fees. The main drawback is that you need to wait 1-2 working days for the funds to arrive, as the option deposit method is a bank account transfer. Nevertheless, Fineco Bank is regulated by the FCA, and by choosing this broker – you’ll be covered by the FSCS.

Pros

  • Charges just £2.95 per trade when buying and selling shares
  • Access to thousands of UK and international shares
  • Deposit funds with a UK bank account
  • Heavily regulated, including an FCA license
  • Suitable for both newbies and seasoned investors
  • Great research and educational department
  • Established way back in 1999
  • All personal data protected

Cons

  • 0.25% annual fee

Your money is at risk.

 

Step 2: Research Ford Shares

Like any investment that you are considering making, it’s important to perform some independent research before making a purchase. This is especially crucial in the current economic climate that is still dominated by the uncertainties of COVID-19.

With this in mind, below you will see a wealth of information about what to consider before you buy Ford shares online in the UK.

Ford Share Price History & Market Capitalisation

Listed on the NYSE in 1956, Ford is one of the oldest stocks in the US marketplace. Naturally, early backers of Ford as a public company were rewarded handsomely in the decades to follow. Over the course of its life as an NYSE constituent, Ford has executed 8 stock splits.

With that said, and based on adjusted prices for the aforementioned splits, Ford shares last peaked in 1999 at just over $90. Fast forward to early 2021, and the same shares are worth just over $10.

ford share price

This represents a rapid capitulation from its prior highs. This is large because Ford no longer enjoys the dominance of the US automobile space that it once had. Nevertheless, as a potential Ford investor, you should concentrate on what the future holds as opposed to fixating on its prior glory.

In more recent times, Ford shares have performed really well since their March 2020 lows of $3.96. With the shares breaching $12 each, in January 2021, this represents an increase of over 200% in just 10 months of trading. This has resulted in Ford increases its market capitalization to more than $42 billion.

Ford EPS and P/E Ratio

As per its most recent earnings report of Q4 2020, Ford stocks are carrying an EPS of -0.07. This figure is negative to represent Ford’s Q4 2020 losses. As of late January 2021, the Ford P/E ratio stood at just over 55.

According to third-party commentators, the average P/E ratio of the US automobile industry is 16. Based on this, Ford shares could be heavily overvalued at current prices.

Ford Shares Dividend Information

Yes, Ford is a dividend stock, so as an investor you will be entitled to your share. Its most recent distribution amounted to $0.15 per share, which is the same dividend size since 2015.

Ford is also known to pay special dividends too, albeit, this is announced on a sporadic basis. With that said, whether or not Ford’s dividend policy is safe moving forward remains to be seen.

After all, management at Ford has since announced that tough decisions may have to be made in 2021.

Should I Buy Ford Shares?

Whether you’re considering buying shares in Ford or similar companies lIke Aston Martin and Tesla, it’s important to always do your research.

So now that we have explored the firm’s recent share price action and dividend policy, we are now going to dive a little deeper into whether or not Ford shares are a buy.

Partnership With Google

Perhaps the most exciting news for Ford shareholders in recent weeks is that the firm has formed a potentially lucrative partnership with Google.

The partnership – which is based on a 6-year deal, will see Google’s Android operating system powered into Ford cars. This is great news for shareholders, as it shows that management at Ford is keen to bring the age-old carmaker into the 21st century.

In particular, Google’s technology will function around cloud computing, AI, and machine learning. Not only will this revolutionize the ‘driving experience’, but it will allow Ford to drastically improve efficiency in its supply chain and production facilities.

Ford Shares are on an Upward Trajectory

Although you would expect a major carmaker to have suffered greatly as a result of wider lockdown measures, Ford shares have been in an upward trajectory since hitting lows of sub-$4 in March 2020.

In fact, with the shares since surpassing $12, those that bought the dip are now looking at gains of over 200%. Not bad for a company that is currently going through a major cost-reduction plan to reshape its finances.

In addition to this – and as noted earlier, management at Ford has resisted plans to cut or suspend its dividend payment. Although it remains to be seen if the firm will continue to meet its long-standing distribution policy, COVID-19 is yet to have its say on Ford dividends.

Impending One-Off Charges

Management at Ford recently announced that it is expecting a number of one-off charges – some of which are of significant size. For example, there is an expected $2.5 billion charge related to its closure of three manufacturing plants in Brazil.

Then there is a $1.5 billion expected charge related to its ever-growing pension fund. Additionally, there is an expected $610 million charge related to a major vehicle recall. This was due to a fault with airbags.

Although Ford has been transparent with these expected outgoings, they are heft charges nonetheless.

Step 3: Open an Account and Deposit Funds

If you’ve read through our sections on the fundamentals of Ford shares and wish to proceed with an investment, the next step is to open an account with your chosen broker.

The steps below will walk you through the process with the commission-free platform eToro.

eToro sign up

67% of retail investor accounts lose money when trading CFDs with this provider.

Once you click on the ‘Open Trade’ button, eToro will execute your Ford share purchase immediately.

Note: If you are buying Ford shares outside of NYSE trading hours, you’ll need to click on the ‘Set Order’ button. eToro will then complete your order when the markets reopen.

Ford Shares Buy or Sell?

On the one hand, it is true that Ford no longer dominates the US automobile industry. With the likes of Tesla now being preferred by investors, Ford shares are worth a fraction of prior highs. With that said, Ford has been performing extremely well in recent months, with the shares increasing by more than 200% since March 2020.

Additionally, exciting times could be in the making for Ford as per its recent partnership with Google. This has the potential to completely revolutionize the way US consumers view Ford and thus – bring the carmaker into the 21sgt century. As such, at current prices of just over $10 per share, Ford is arguably a bargain.

The Verdict?

Although Ford shares are listed in the US, making an investment from the UK could not be easier.

Best of all, there are now UK stock brokers like eToro that allow you to buy Ford shares without paying any dealing fees. This allows you to avoid paying a premium to access non-UK assets – which is something required at most UK trading platforms.

Simply click the link below to buy Ford shares commission-free in less than 10 minutes!

eToro – Buy Ford Shares With Zero Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

Are Ford shares a good buy?

Ford shares have increased by more than 200% since March 2020. This indicates that investor sentiment on the age-old carmaker is strong. With the firm recently announcing that Google will be supplying Ford with AI and machine learning technology, this is exciting news for shareholders.

Which stock exchange are Ford shares listed on?

Ford shares are listed on the New York Stock Exchange, where they have been since 1956.

What is the Ford P/E ratio?

At the time of writing, the P/E ratio of Ford is just over 55.

Does Ford offer dividends?

Yes, Ford has a long-standing track record of paying shares. Its most recent quarterly payment amounted to $0.15 per share. To date, management at Ford have resisted cutting or suspending dividends as per COVID-19.

How much is Ford valued at?

In early 2021 and based on a share price of just over $10, Ford carries a market valuation of over $42 billion.

Who is the Chief Executive Director of Ford?

Acquiring the position as recently as October 2020, Jim Farley is the current CEO of Ford. .

Can I invest in Ford shares via an ISA or SIPP?

Both ISAs and SIPPs allow you to invest in foreign shares. As such, you'll have no issues adding Ford shares to your tax-efficient portfolio.

Kane Pepi

About Kane Pepi PRO INVESTOR

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.

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