How to Buy Standard Life Aberdeen Shares UK – With 0% Commission

Standard Life Aberdeen plc is the largest fund manager in the United Kingdom, with over £540 billion in assets under management. This company has a long and storied history of investing in a wide variety of assets, including shares, real estate, private markets, and more.

Yet despite the recent surge in global markets, Standard Life Aberdeen shares have been stuck in park since crashing in March. To be sure, the company’s share price has recovered from its spring lows, when the COVID-19 pandemic sent the London Stock Exchange tumbling. But Standard Life Aberdeen shares remain more than 50% below their price at the start of 2018.

So, is it a good idea to buy Standard Life Aberdeen shares right now? In this guide, we’ll cover everything you need to know about buying Standard Life Aberdeen shares and show you how to get started with a top online broker.

Step 1: Find a UK Stock Broker That Offers Standard Life Aberdeen Shares

Standard Life Aberdeen LogoStandard Life Aberdeen plc is part of the London Stock Exchange (LSE) and a constituent of the FTSE 100 index. As a result, it’s hard to find a UK broker that doesn’t let you trade shares of this company.

However, your choice of broker should be about more than just whether or not you can buy Standard Life Aberdeen shares. You also need to consider whether your broker charges account fees and commissions, which can eat into any profits from your investment. We only recommend 100% commission-free stock brokers with low trading spreads.

In addition, it’s important to consider whether you can buy shares outright, engage in CFD trading, or both. Long-term investors typically opt to buy shares since there are no rollovers or overnight fees involved. Short-term traders may prefer to buy Standard Life Aberdeen share CFDs since they can be traded with leverage and are highly liquid.

Finally, make sure to give any prospective broker’s trading platform a thorough test run before committing. It’s important to make sure that you’ll have access to user-friendly charting software, a mobile trading app, and news and research to help you trade.

With all that in mind, let’s take a closer look at two of our top recommended brokers you can use to buy Standard Life Aberdeen shares in the UK:

1. eToro – Buy Standard Life Aberdeen Shares with 0% Commission

etoro logoeToro offers 100% commission-free trading on more than 800 shares from the UK, US, and around the world. In addition, this online broker offers ETF trading on over 450 funds so that you can quickly build a diversified portfolio. One thing that’s especially unique about eToro is that you can choose between trading CFDs or buying Standard Life Aberdeen shares outright. So, it’s a great choice for both active traders and long-term investors.

eToro also stands out for the quality of its trading tools. This broker offers a very robust charting software with more than 100 technical indicators and drawing tools built-in. It also offers a market news feed and economic calendar so you can stay ahead of price movements. All of these tools are available through a web interface as well as through a mobile app.

Notably, eToro also supports social trading. You can interact with thousands of other UK traders to find out what stocks are trending or to gauge market sentiment around Standard Life Aberdeen shares. You can even take advantage of copy portfolios to mimic the positions of professional traders.

Pros:

  • 100% commission-free trading
  • 800+ shares available
  • Trade CFDs or buy shares outright
  • Supports ETF trading
  • Includes vibrant social trading network

Cons:

  • Small account withdrawal fee (£4)

75% of retail investor accounts lose money when trading CFDs

2. Plus500 – UK CFD Broker with Tight Spreads

Plus500 is a widely used and much-loved CFD broker that offers trading on more than 600 share CFDs and a handful of ETFs. All trades are 100% commission-free, and Plus500 offers some of the lowest CFD spreads we’ve seen from any UK broker. That makes it especially suitable for traders who want to keep all of their profits, instead of giving up a significant share to the brokerage.

This broker’s trading platform doesn’t have a huge number of tricks up its sleeve, but it covers the basics well. The charting interface is easy to get started with and offers around 90 technical studies. You also get access to an economic calendar, a news feed, and the occasional piece of analyst research.

One of our favourite things about Plus500 is that it comes with very advanced price alerts. You have a lot of flexibility in setting alerts, and they can be pushed to both the web trading interface and to the Plus500 mobile app. That makes it easy to trade on the go, especially compared to brokers that only offer alerts on your computer.

Pros:

  • Commission-free trading with low spreads
  • Hundreds of share CFDs available
  • 90+ technical indicators available
  • Flexible mobile price alerts
  • Economic calendar and news feed

Cons:

  • No custom indicators or social trading

80.5% of retail investors lose money trading CFDs at this site

Step 2: Research Standard Life Aberdeen Shares

Before you jump into buying shares of Standard Life Aberdeen, or if you’re considering similar shares like Legal and General, Eaton Vance or JP Morgan, it’s important to do your research on the company’s past performance, current valuation and future forecast.

Standard Life Aberdeen shares have been declining since before the coronavirus pandemic, so there’s more to this company’s story than just a single bad year. We’ll take a closer look at Standard Life Aberdeen shares to help you decide whether they’re a good buy today.

Standard Life Aberdeen Share Price History

Standard Life was first established as an independent insurance agency in 1825, and 100 years later re-established itself as a mutual assurance company. For most of the 20th century, Standard Life was a multi-purpose conglomerate. It had a health division, a banking unit, an insurance arm, and an investments division. However, after going public on the London Stock Exchange in 2006, the company began to sell off most of its non-investment divisions and increasingly acquired investment units from competitors.

In 2015, Standard Life pivoted decisively towards investing. The company announced that it was establishing its own wholly owned fund and financial advisory service. In 2017, Standard Life became Standard Life Aberdeen when it merged with rival Scottish financial services firm Aberdeen.

Standard Life’s share price reached an all-time high shortly before the merger with Aberdeen. Share cost 557 pence apiece in mid-2015 amid the shift to being a financial services company. Shares fell to a trough of 298 pence the following year, but recovered to as high as 500 pence in the wake of the merger agreement.Standard Life Aberdeen Price Chart Since the merger was completed though, Standard Life Aberdeen has faced difficult questions from investors and a gradual erosion of interest. The company announced that it was selling its foundational insurance business in 2018, and then later that same year announced that it was seeing enormous outflows from its investment funds.

The outflows continued unabated into 2019 – over the first half of the year, Standard Life Aberdeen saw clients pull nearly £16 billion out of its investment funds. At the beginning of 2020, the company’s shares were trading around 330 pence.

Investor sentiment soured even more with the global financial panic that set in at the outset of the coronavirus pandemic. Standard Life Aberdeen shares fell to just 210 pence in March. They recovered to 280 pence as the stock market recovered, but have since fallen again to just 240 pence per share.

Standard Life Aberdeen EPS, P/E Ratio & Market Capitalisation

Standard Life Aberdeen is one of the largest public companies in the UK and is part of the FTSE 100 index. The company has a market cap of £5.35 billion and controls more than £540 billion in client assets.

For 2019, Standard Life Aberdeen reported an earnings per share (EPS) of 19.3 pence and a price-to-earnings ratio of 29.94. This is somewhat expensive compared to the average price-to-earnings (p/e) ratio of 21.18 for the FTSE 100.

Standard Life Aberdeen Shares Dividend Information

Standard Life Aberdeen is generally considered a good dividend stock. The company has paid a dividend since 2006 (for Standard Life, prior to the merger) and it last raised its dividend in 2018. The dividend is currently paid twice per year, with the end-of-year dividend payout roughly double the interim payout.

The dividend yield has varied with Standard Life Aberdeen’s share price, but it has never fallen below 4.5%. At the current share price, the dividend yield is a whopping 9.0%.

Should I Buy Standard Life Aberdeen?

Standard Life Aberdeen’s woes have been made worse by the coronavirus pandemic, but they started long before the global shutdown and market crash. At the current discounted price, however, an increasing number of analysts and investors point out that this fund manager could be an undervalued stock.

So, should you buy Standard Life Aberdeen shares? We’ll dive into the bulls’ case for this company.

Impacts of Coronavirus on Standard Life Aberdeen

Standard Life Aberdeen buildingStandard Life Aberdeen had already been shedding share value before the coronavirus pandemic. However, when the markets crashed, so too did the value of Standard Life Aberdeen’s funds. At the same time, panicked clients pulled money out of the company’s funds, which dramatically cut back fund management fees.

As a result, Standard Life Aberdeen was hit hard by the pandemic. The share price dropped precipitously, from 325 pence to 177 pence at the bottom of the crash.

The company’s shares have recovered somewhat since March as sentiment around the global market and analysts’ future outlooks have improved. However, Standard Life Aberdeen remains somewhat subject to the market’s volatility and remaining uncertainty over the strength of the economic recovery. If the recovery fails to last, the company could see another drop in its funds’ values and consequently another share price decline.

Building Financial Strength

The coronavirus pandemic has served to mask a turnaround that’s been slowly underway at Standard Life Aberdeen. After reporting billions in client funds leaving in 2018 and 2019, the company managed to stem the tide of outflows to a significant degree in 2020 – even in the midst of the pandemic. In fact, the company is projecting a 17% jump in profit for 2021. That would put the forward price-to-earnings ratio under 20 at the current share price, which is downright cheap.

Ultimately, the company’s turnaround is based on its ability to perform. Nearly three-quarters of the company’s investments have outperformed market benchmarks. That’s a huge selling point for keeping current clients and attracting new ones, which bodes well for the company going forward. At the same time, new efficiency measures at Standard Life Aberdeen have helped cut operating expenses by 11%.

Intact Dividend

Another thing that’s noteworthy about Standard Life Aberdeen is that the company has kept its dividend unchanged and on track for this year. In the current market environment, that’s an enormous feat. Most of Standard Life Aberdeen’s competitors have slashed or suspended dividends to save cash. In contrast, Standard Life Aberdeen feels confident enough in its finances and cash flow to continue its payments to investors.

Step 3: Open an Account and Deposit Funds

If you want to buy Standard Life Aberdeen shares, the next step is to open a new brokerage account. We’ll show you how to get started with eToro and walk you through the process of buying shares. We recommend eToro because it offers 100% commission-free trading, a social network, and mobile trading.Click Join Now to open a new eToro account

Navigate to the eToro website and click ‘Join Now’ to open a new account. You’ll need to enter a new username and password for your account, then fill in details like your name, email address, and phone number.

eToro also requires you to verify your identity, in compliance with financial regulations from the UK government. You can complete this step online in just a few minutes. Simply upload a copy of your passport or driver’s license and a copy of a recent financial statement or utility bill.

Next, you need to deposit funds in your new trading account. eToro requires a minimum deposit of £140 and accepts a variety of popular payment methods, including:

  • Bank transfer
  • Debit or credit card
  • Neteller
  • Skrill

Step 4: Buy Standard Life Aberdeen Shares

Now you’re ready to buy Standard Life Aberdeen shares through eToro. Head to the broker’s dashboard and search ‘Standard Life Aberdeen.’ When the company appears in the results list, click ‘Trade’ to open a new order form.Search Standard Life Aberdeen eToro

The order form is what you will use to place your order for shares. Enter how much money you want to invest in Standard Life Aberdeen (eToro requires you to buy at least £40). Then you can add a stop loss or take profit level to your trade depending on your strategy and goals. If you are trading CFDs, eToro offers leverage of up to 5:1.

When your trade is ready, click ‘Open Position’ to buy Standard Life Aberdeen shares.

Standard Life Aberdeen Shares: Buy or Sell?

Standard Life Aberdeen isn’t without its warts. The company is still in the process of realigning its business fully around financial asset management, and it still has to recover from two years of massive client outflows.

However, there are reasons to be optimistic about this company. It’s proven that it can perform in the market, which should help bring in more clients and more money for its funds going forward. In addition, Standard Life Aberdeen has cut costs and boosted its bottom line even in the midst of the pandemic.

At the current share price, it seems as if the market has not yet taken notice of these improvements. Standard Life Aberdeen shares are priced to move, especially when you consider the high dividend yield. While it’s impossible to say what the future holds for this company, we think Standard Life Aberdeen shares are a buy.

The Verdict

Standard Life Aberdeen shares have shed a lot of their value over the past several years. While there’s no guarantee that this company will regain its former market capitalization, Standard Life Aberdeen remains a highly respected company with an enormous client and asset base. On top of that, the company has proven during the coronavirus pandemic that it is able to perform well even in an uncertain market.

Right now, many analysts and investors believe that Standard Life Aberdeen shares are undervalued. If the company’s own profit projections for next year turn out to be true, it’s entirely possible that the shares could see a quick upward correction. For investors willing to take a risk on this firm, Standard Life Aberdeen shares are a potentially strong buy.

Ready to buy Standard Life Aberdeen shares? Get started today with an eToro trading account!

eToro -Buy Standard Life Aberdeen Shares with 0% Commission

 

75% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What is Standard Life Aberdeen’s share ticker symbol?

Standard Life Aberdeen trades on the London Stock Exchange under the symbol ‘SLA.’

Who is the chief executive of Standard Life Aberdeen?

Stephen Bird is the CEO of Standard Life Aberdeen. Bird took over the leadership role in September 2020 from Keith Skeoch, who was CEO for the prior five years.

Where is Standard Life Aberdeen Headquartered?

Standard Life Aberdeen is headquartered in Edinburgh, Scotland. The company has offices throughout the UK and Europe, as well as in the US, Brazil, China, Australia, and India.

Does Standard Life Aberdeen still have an insurance business?

Standard Life Aberdeen sold off its insurance division in 2018 for £3.2 billion. It no longer has any business in the insurance industry.

Can I invest in Standard Life Aberdeen via an ISA or SIPP?

Yes, many popular ISA and SIPP plans in the UK allow you to invest in Standard Life Aberdeen. If you cannot invest in shares directly, you can also invest in mutual funds or investment trusts that contain Standard Life Aberdeen shares.

Who is the CEO of Standard LIfe Aberdeen?

Stephanie Bruce is the current Chief Executive of Standard Life Aberdeen.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Michael Graw

About Michael Graw

Michael Graw is a freelance journalist based in Bellingham, Washington. He covers finance, trading, and technology. His work has been published on numerous high-profile websites that cover the intersection of markets, global news, and emerging tech. In addition to covering financial markets, Michael’s work focuses on science, the environment, and global change. He holds a Ph.D. in Oceanography from Oregon State University and worked with environmental non-profits across the US to bridge the gap between scientific research and coastal communities. Michael’s science journalism has been featured in high-profile online publications such as Salon and Pacific Standard as well as numerous print magazines over the course of his six-year career as a writer. He has also won accolades as a photographer and videographer for his work covering communities on both coasts of the US. Michael has been a member of the LearnBonds team since March 2020.