How to Buy Vodafone Shares UK – Invest in VOD with 0% Commission

Had you bought Vodafone shares back in 1988 – you would now be looking at gains of over 688%. Over the same period, the FTSE 100 has returned just 228%. However, Vodafone Group plc shares have been moving in the wrong direction in recent years – which is why you need to perform some research before making an investment.

Nevertheless – as a major UK company – buying Vodafone shares is easy. In fact, you can complete the process in a matter of minutes by using an FCA-regulated online broker.

In this guide, we’ll show you how to buy Vodafone shares online in the most convenient and cost-effective manner. We’ll also discuss the best share dealing platforms to complete the process with – alongside a brief overview of how the company has been affected by coronavirus over the last year, its share price and market capitalisation, and what the future holds for Vodafone.

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

Vodafone logo

Vodafone (VOD) shares are listed on the London Stock Exchange (LSE) so there are plenty of online trading platforms that allow you to make a purchase with ease. In particular, you should look for brokers that offer low fees and commissions, as well as support for your preferred payment method (debit/credit cards, for example).

If you don’t have time to find a suitable stock broker yourself, below you’ll find two top-rated platforms that allow you to trade or buy Vodafone shares commission-free.

1. eToro – Buy Vodafone Shares With Zero Commission

eToro is one of the most widely used online brokers. It is now home to over 13 million traders – many of whom are located in the UK. In particular, you might have come across the eToro brand while watching the Premier League or via a TV advert. The main selling point of this trusted broker is that eToro offers a 100% commission-free trading environment.

This is in stark contrast to traditional online brokers – which are known to charge in excess of £10 per trade. In the case of eToro, you’ll pay nothing to buy or sell Vodafone shares  – nor will you be subjected to any monthly or annual fees. eToro is also popular in the UK for the ease in which you can invest. For example, buying shares in Vodafone for the first time can be completed in less than 10 minutes.

This includes the process of opening an account, making a deposit, and completing the investment. Additionally, eToro offers lots in the way of trading education – such as guides, videos, and webinars. If you’re keen to buy and sell shares actively but have little to no experience – eToro offers a copy trading feature. By selecting the investor that you wish to follow, your portfolio will be mirrored – proportionate to the amount you feel comfortable investing.

We should also note that eToro allows you to buy Vodafone shares in a safe and secure manner. The platform holds three licenses – including the FCA. Your money is also safeguarded by the processions of the FSCS. If you want to use eToro to buy Vodafone shares right now – you will need to meet a $200 minimum deposit. You can, however, buy just $50 worth of stocks. Supported payment methods include a UK debit/credit card, e-wallets, and a bank transfer.

eToro offers over 1,700 shares from around the world, including any of the best shares to buy. In addition to shares, eToro offers a wide variety of other markets, including forex, commodities and cryptocurrencies.

Pros:

  • User-friendly online stock broker
  • Buy shares without paying any commission or share dealing charges
  • 1,700 + shares listed on UK and international markets
  • Buy shares or trade CFDs
  • Social and copy trading tools
  • Accepts PayPal
  • Mobile trading app
  • Holds an FCA licence

Cons:

  • Not suitable for advanced traders that like to perform technical analysis

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

2. Capital.com – Trade Vodafone Share CFDs With Zero Commission

Capital.com logo

Capital.com does not allow you to buy Vodafone shares in the traditional way. On the contrary, you will be trading stock CFDs. In simple terms, this allows you to speculate on the future price of Vodafone shares without you needing to become a stockholder. This is because the CFD will match the live share price of Vodafone like-for-like.

If you’re wondering why UK traders opt for CFDs – it’s because they offer a cost-effective way to access the market. After all, CFD brokers like Capital.com operate a 100% commission-free service across all of its financial markets. You will also find that spreads are super-tight when using Capital.com – and there are no fees to deposit or withdraw funds.

With that said, perhaps one of the best advantages of using Capital.com to trade Vodafone shares is that you will be able to apply leverage. As per ESMA regulations – you can apply leverage on stock CFDs up to 1:5. So, a £200 account balance would allow you to trade Vodafone shares at a stake of £1,000. We should also mention that Capital.com allows you to choose from a buy or sell order on all market. As such, by placing a sell order on Vodafone share CFDs, you are predicting that the price will fall.

If you like the sound of Capital.com – the platform allows you to trade online or via its mobile investment app. Either way, the platform has a very low minimum deposit policy in place at just £20. You can choose from a standard debit or credit card to do this, or an e-wallet like Skrill and Neteller. Alternatively, this FCA-regulated platform also allows you to transfer funds from your UK bank account – but this requires a minimum of £250 and can take several days.

Pros:

  • Trading on hundreds of US and UK shares
  • Educational app for new traders
  • AI assistant identifies your weak points
  • Trade ideas generated daily
  • Excellent charting and analysis interface
  • 100% commission free trading

Cons:

  • Cannot build custom trading strategies

72.6% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Research Vodafone Shares

Whether you’re looking to invest in Vodafone shares or shares of similar companies like BT Group or Samsung, it’s always important to do your research before you make an investment decision.

In terms of volatility, Vodafone Group plc shares have gone through several peaks and troughs over since the firm went public in the late 1980s. The most concerning aspect of this particular stock is that it last hit its all-time in 2000. This doesn’t bode well for those that invested before the dot.com bubble. Nevertheless, this doesn’t really concern you if you are looking to invest in Vodafone for the very first time – as it’s only what happens next that matters.

Nevertheless, we are now going to delve into the many aspects that need to be considered before you buy Vodafone shares – starting with a brief overview of what the telecom company does, its past performance, the current valuation of its shares and more.

What is Vodafone Group plc?

UK-based Vodafone, ticker LON:VOD (ISIN GB00BH4HKS39), is a global telecommunications and broadband company that is active in over 41 countries. This includes the provision of active telephone network services in 24 nations. In particular, Vodafone Group plc is a stock market leader in the Asian, Africa, and Australian economies. Outside of its core network services, Vodafone also offers mobile money transfers, low-cost phones, and even a health-centric SMS facility.

Vodafone Share Price History & Market Cap

Vodafone (VOD) went public in 1986, albeit, this was under its former name Racal Electronics. It wasn’t until 1991 that the firm was rebranded to Vodafone. When the shares first went public, you would have paid in the region of 14p. Vodafone then went on a prolonged upward trajectory – subsequently hitting hits of over 460p in 2000.

This means that IPO investors were looking at 12-year gains in excess of 3,100%. Unfortunately, Vodafone shares then began to move in the wrong direction – with the stocks never regaining their prior peaks.

Vodafone share price 2020

Instead, Vodafone shares will cost you just 108p as of October 2020. The firm is, however, still a major constituent of the FTSE 100 – with a current market cap of over £28 billion. The surprise for stockholders is that the shares are down 36% in 2020.

Although this is the case with many sectors in the UK, Vodafone operates in a space that is somewhat immune to the health of the broader economy. After all, it offers core mobile network services that will always be in demand. In comparison, the FTSE 100 is around 23% YTD – meaning that Vodafone is performing much worse than the wider stock market.

Vodafone EPS & P/E Ratio

The current Vodafone EPS is -3.13 EUX,  with an EPS growth of -11%. The Vodafone p/e ratio is 22.2.

Vodafone Shares Dividend Information

Vodafone has historically been a good dividend payer – at least in terms of its trialling yield. Over the past 10 years, for example, this yield has averaged just over 5% annually. However, it is important to remember that the trialling dividend yield looks at the current share price of a company.

In other words, the reason that Vodafone shares have been so competitive in the dividend yield department is that its stock price continues to fall. As we noted above, VOD shares are 36% down in 2020 so far – meaning that an average yield of around 5% does little to counter these losses.

Vodafone Vantage Towers IPO

Earlier in 2020, Vodafone announced it’s planning to launch its mobile tower business, Vantage Towers, early next year, though there is no set date yet. The company will be listed on the Frankfurt Exchange and is a way for the company to capitalise on the growth of 5G technology. You can trade on the IPO either before or after the listing, depending on whether there is a grey market available.

Vodafone Egypt Sale

Vodafone is currently in talks with Saudi Telecom to sell its 55% in Vodafone Egypt. Vodafone has stated that due diligence has been ‘substantively completed’ and that the parties remain in talks with the aim of securing a deal within the near future.

Should I Buy Vodafone Shares?

Taking the above into account – Vodafone Group plc shares do not seem overly appealing at first glance. With that said, there is every chance that you can enter the market at a huge discount – if you believe that the stocks will eventually get back to pre-pandemic levels.

Let’s look at some of the factors that you should consider before you buy Vodafone shares.

Q1 2020 Earnings Report

At the time of writing, the most recent earnings report that we have to work from is that of Vodafone’s Q1 release. Largely, Vodafone performed below market expectations – with overall revenue dropping to €9.1bn. This represents a slight decline of 1.3%.

One of its worst-performing regions of the quarter was Italy – where sales fell 6.5%. Its UK market also saw declines, albeit, this stood at just under 2%. There were some positives from the results, with fixed-line sales increasing by 2.4% in Germany. However, Vodafone’s mobile revenue in the country dropped by 3%.

Cost-Cutting to Reduce Debt

As per its most recent earnings report, Vodafone’s net debt levels now stand at just over €42 billion. Much of this is related to its recent purchase Liberty Global. However, management at Vodafone has made its cost-cutting endeavours clear – with the impending 55% sale of its Egypt market share.

In addition to this, Vodafone is also planning to offload some of its European-based towers. Although this will raise some much-needed cash, these towers do provide a good source of income from competing networks.

Potential Discount at Current Prices

Based on October 2020 prices, Vodafone shares are trading at 108p. At the start of the year, the very same stocks would have cost you 147p. With this in mind, some would argue that you can now enter the market at a highly favourable price. After all, if Vodafone is able to get back to pre-pandemic levels, it would require an upswing in the region of 36%.

Step 3: Open an Account and Deposit Funds

If you want to buy Vodafone shares online right now – you will first need to go through a quick registration process with your chosen broker. We have decided to show you the process with eToro, not least because the FCA-licensed platform allows you to buy Vodafone shares commission-free.

eToro sign up

To open an account at eToro, head over to the provider’s website and look for the ‘Join Now’ button. You will then need to provide some personal information, such as:

  • Full name
  • Nationality
  • Date of birth
  • Home address
  • National insurance number
  • Contact details
  • Username and password

You will then be asked to upload a couple of verification documents – as per FCA regulations:

  • Valid passport or driver’s license
  • Bank account statement or utility bill (issued in the last 3 months)

Note: You can upload the above documents at a later date if you do not plan on depositing more than $2,250 right now. 

You will then need to make a deposit – ensuring that you meet a $200 minimum.

Support deposit methods include:

  • Debit/credit cards (instant)
  • Bank transfer (2-3 working days)
  • E-wallets (instant)

Step 4: Trade or Buy Vodafone Shares

By this point of the step-by-step walkthrough, you should have a fully-funded eToro account. Now it’s just a case of buying some Vodafone shares. Firstly, enter ‘Vodafone’ into the search box and click on the corresponding result.

buy Vodafone shares at eToro

Then, you’ll need to click on the ‘Trade’ button.

buy Vodafone shares at eToro

Finally, enter the amount (in USD) that you wish to invest in Vodafone. This can be any amount as long as it is more than $50 and will determine the number of shares you buy.

buy Vodafone shares at eToro

To complete your commission-free Vodafone share purchase – click on ‘Open Trade’. eToro will then execute your order at the next available price. If, however, you attempt to buy Vodafone shares outside of standard LSE hours, eToro will execute the trade when the markets reopen.

Vodafone Shares Buy or Sell?

The general consensus is that Vodafone isn’t a particularly strong buy at present. This is somewhat surprising, as mobile telecommunication companies are often viewed as staple stocks – meaning they offer a service that is relatively unaffected by the health of the economy.

However, Vodafone shares have not only been dragged down alongside the wider FTSE 100 – but the shares are down over 36% this year. On the other hand, you can enter the market at a discount if you think that recovery is more of a probability than a possibility, so this is another angle to consider.

The Verdict?

As a major FTSE constituent, buying Vodafone shares in the UK can be completed from the comfort of your home with ease. All that is required is an online share dealing account and an instant deposit method like a debit/credit card or e-wallet. By completing the investment process with FCA-regulated broker eToro – you won’t pay any commissions or monthly fees. In fact, eToro also waves the 0.5% stamp duty fee that you will pay with other brokers.

Simply click the link below to get started!

eToro – Buy Vodafone Shares With Zero Commission

 

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

FAQs

Are Vodafone shares a good buy?

Vodafone has been struggling in recent years - at least in terms of its ever-falling stock price. This does make Vodafone as an investment somewhat unattractive.

What stock exchange are Vodafone shares listed on?

Vodafone is listed on the London Stock Exchange it is a leading member of the FTSE 100 index.

Can you short Vodafone shares?

If like much of the wider market - you feel that Vodafone shares are likely to continue to fall, then you might want to consider short-selling the stocks via a CFD broker. You can do this commission-free with both eToro and Capital.com, albeit, keep an eye on overnight financing costs.

What price are Vodafone shares?

At the time of writing in October 2020 - Vodafone shares are hovering around the 105p-110p region.

How do you buy shares in Vodafone?

All you need to do is open an account with an FCA broker, meet the platform's minimum deposit amount and then select how many Vodafone shares you wish to buy.

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

Yes, most UK providers will allow you to invest in Vodafone via an ISA or SIPP account.

 

 

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.
Kane Pepi

About Kane Pepi

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.