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How to Buy WPP Shares UK – With No Commission

Digital advertising is always in demand, and one company that is at the top of its game in this regard is WPP. Although the company took a hit in 2020, WPP is ready to bounce back during 2021 and represents an exciting investment opportunity for the longer term.

In this guide, we’ll discuss How to Buy WPP Shares in the UK, exploring all of the information you need to know about the company and showing you how to buy WPP shares without paying any commissions at all.

How to Buy WPP Shares in the UK – Step by Step Guide 2021

Looking for the quickest way to buy WPP shares? Look no further. By following the four steps below, you’ll be able to purchase shares in WPP in under ten minutes with FCA-regulated broker eToro – all without paying any commissions.

  • Step 1: Open an account with eToro – Navigate to eToro’s website and click ‘Join Now’. Provide a valid email address and choose a username and a password for your account.
  • Step 2: Upload ID – Verify your account by providing proof of ID (a copy of your passport or driver’s license) and proof of address (a copy of a bank statement or utility bill).
  • Step 3: Deposit – Fund your eToro account by depositing via credit/debit card, bank transfer, or e-wallet.
  • Step 4: Buy WPP Shares – Type ‘WPP’ into the search bar at the top of the screen and click ‘Trade’ next to the first option in the drop-down menu. Enter your desired investment amount on the following page and click ‘Open Trade’.

Step 1: Choose a Stock Broker

When you buy WPP shares in the UK, you must use a broker you can trust. In addition to this, it’s also wise to look for brokers that are low-cost and will not charge you any hidden fees. In the section below, we discuss two of our most highly recommended brokers to buy shares in 2021.

1. eToro – Overall Best Broker to Buy WPP Shares in the UK

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In our experience, eToro represents the best option when it comes to buying shares in the UK. This is because eToro has a fantastic reputation as a safe and reliable broker, which allows you to trade with confidence. This reputation is bolstered by regulation from top organisations such as the FCA and the FSCS. One of the best things about eToro is that they don’t charge any commissions when you place a trade. Some other brokers will charge 0.1% to 3% of your position size, which can add up if you are day trading. eToro does not charge these fees, meaning that if you were to invest £1000 in WPP, that is what you’d be charged – no additional commissions whatsoever.

buy wpp shares etoro

Aside from their excellent fee structure, eToro also offers a vast selection of assets to trade. They currently offer 2000 stocks to trade, along with a wide range of currency pairs, ETFs, commodities, and cryptocurrencies. You can even use eToro’s useful CopyTrader feature to automatically copy the trades of other eToro users, which provides an additional way to invest your capital.

etoro product selection

Finally, eToro also offers a CopyPortfolio feature, which allows you to invest in a professionally managed fund without having to pay a penny in management fees. There are many portfolios to choose from, including ones dedicated to cryptos and UK stocks. Through this CopyPortfolio feature, eToro makes it super easy to invest in a managed fund in a low-cost manner.

Pros

  • Buy WPP shares with no commissions
  • No stamp duty tax on UK shares
  • Over 2,400 global shares and 250 ETFs
  • No deposit or monthly account fees
  • Innovative CopyTrader feature
  • Regulated by the FCA
  • Invest in funds with CopyPortfolio feature

Cons

  • Small withdrawal and inactivity fees

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

2. Capital.com – Low-Cost Broker to Buy WPP Shares with Leverage

new capital.com logo

In addition to eToro, we’d also recommend checking out Capital.com. This broker has been around since 2016 and is regulated by the FCA and CySEC, which are two of the most reputable organisations around. Capital.com primarily focuses on CFD trading, which means that you’ll be investing in a specially made contract based on the stock’s price rather than owning the stock itself.

CFD trading is great as it allows you to speculate on a stock’s price quickly and easily. You can also use leverage when CFD trading, which will enable you to ‘boost’ your position size without having to deposit additional funds. Capital.com offers up to 1:20 leverage when trading stock CFDs – so if you invested £1000 in WPP, you could essentially increase your position size to £20,000 using leverage! Although this increases potential profits, it also increases potential losses, so be wary when using leverage.

buy wpp shares capital.com

Notably, Capital.com does not charge any commissions when placing a trade either. Instead, they use a spread-based structure, which is the difference between the buy and sell prices on an asset. This difference is the broker’s commission and can be smaller or larger depending on market conditions. Capital.com ensures this spread is as tight as possible, allowing you to save money.

Finally, Capital.com has a user-friendly platform that is available through the web or smartphone app. The app can be downloaded on both iOS and Android and allows you to trade on the go. Finally, Capital.com also has a host of educational materials that can help beginner traders learn the markets. By using this material, new investors can understand charts better and make more effective trading decisions.

Pros:

  • Educational material for beginner traders
  • No commissions when investing in WPP
  • Tight spreads
  • Up to 1:20 leverage offered when CFD trading
  • AI assistant identifies your weak points
  • Excellent charting and analysis interface
  • £20 minimum deposit


Cons:

  • Cannot build custom investment strategies
  • CFDs only

71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

Research WPP Shares

Equity trading is a risky business, so it's essential to do your due diligence before purchasing shares in a company. Areas such as how the company generates revenue, its historical share price, and whether it pays a dividend are things to consider when researching an investment.

In terms of WPP, we've done all the hard work for you – the sections below present some of the critical information regarding the company and its financials, allowing you to make an informed investment.

What is WPP?

wpp logo

WPP PLC is a communications and advertising company based in the United Kingdom. Currently, the world's largest advertising agency by revenue, WPP owns and operates various companies that partake in marketing, media, public relations, and market research activities. Some examples of companies that WPP own include Finsbury, Mindshare, Wavemaker, and Essence Global.

Interestingly, WPP actually started out as a company that created wire shopping baskets in 1971. However, former CEO Martin Sorrell purchased a stake in the company in 1985, and in the years that followed, he transformed it from a manufacturing firm into a marketing services company. WPP showcased incredible growth between 1990 and 2010, acquiring many smaller companies to create one big holding company under the WPP name.

At the time of writing, WPP has around 130,000 employees worldwide, operating in more than 100 countries. WPP is best known for the advertising agencies that it owns – these agencies operate by designing marketing plans for large businesses, handling marketing campaigns, and creating content. An article by Marketing Week noted that 84% of people expect brands to produce content these days – highlighting the importance of WPP’s businesses.

what do wpp do

Aside from advertising agencies, WPP also owns numerous PR companies. These companies handle the communications for large businesses and other entities, ensuring they make themselves come across in an appealing way to the public. Also, WPP owns various firms that conduct market research and provide consulting to businesses around the world. This sort of research is invaluable to companies operating in many sectors as it helps them create products that will sell and produce effective marketing campaigns.

WPP has a primary listing on the London Stock Exchange (LSE) and is one of the constituents of the FTSE 100 index. The company is also listed on the New York Stock Exchange (NYSE). At the time of writing, WPP has a market capitalisation of £11.68 billion. This makes them the 36th largest company in the UK by market cap.

WPP Share Price

Before you begin stock trading, it's important to look at the company's share price and past performance to determine whether it's a good investment or not. At the time of writing, the WPP share price is valued at 980.90p per share. This is around the same price it was in February 2020 – right before the WPP share price fell by 54% in response to the Coronavirus pandemic. Since then, the price has recovered well and has shown a solid and consistent bullish trend since March 2020.

Looking at recent years, the WPP share price reached an all-time high back in February 2017 when shares were valued at 1925p. Price has declined quite significantly since then. However, with the solid bullish trend we have seen over the past year, it is definitely a sign that the future looks positive.

In terms of revenues, the Standard recently reported that WPP saw a 6.3% increase in revenues in Q1 2021. This growth was driven by economies reopening and businesses beginning to spend money again on marketing and content creation. In addition, WPP formed partnerships with JP Morgan, Salesforce, and Absolut, which look set to boost earnings going forward.

wpp price chart etoro

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

Digging into the numbers a little deeper, it’s always a good idea to look at a company’s earnings per share (EPS) and price-to-earnings ratio (P/E). These figures help us understand how profitable a company is and whether the WPP share price is valued correctly at present. EPS estimates are calculated by dividing the company’s profit by the number of shares it has outstanding. In WPP’s case, the firm’s EPS is noted as $0.44.

Although this may seem small, it actually represents an impressive return to form for the company. WPP's EPS for 2020 was $-15.61 – meaning they were losing a lot of money! The fact that EPS growth is now positive shows that WPP is now back on track to generating profits, which could mean good things for the WPP share price going forward.

The P/E ratio is calculated by dividing the company's share price by its EPS estimate. This gives us an idea of whether the company is undervalued or overvalued. In WPP's case, their P/E ratio is 0 as of the end of 2020 because the firm was unprofitable. Before that, WPP's P/E stood at 21.25 in 2019, which was more than double the firm's P/E ratio for 2017 and 2018. Although the P/E ratio for 2020 looks bad, it's better to think of it as an anomaly due to the pandemic's effect.

WPP Shares Dividends

One of the critical things to look out for if you are investing for income is whether a company pays a dividend to its shareholders. These dividends come from a company’s profits; some firms prefer to reward shareholders, whilst others will reinvest the money back into the business. In the case of WPP, it is the former, as they pay a healthy dividend to shareholders.

WPP typically makes two dividend payments each year – one in November and one in July. The most recent dividend payment occurred in November 2020 and was 10p per share. The next dividend is scheduled for July 2021 and is quoted at 14p per share. Notably, the ex-dividend date is not until the 10th of June – this means that if you were to buy WPP shares in the UK before this date, you'd be eligible to receive a dividend payment.

wpp dividend stats

In terms of dividend growth, WPP’s dividend has actually decreased in recent times – the company paid between 56.60p and 60p per share from 2016 to 2018. In 2019, the company only made one dividend payment of 22.70p per share, representing a steep decline. However, the 24p per share for this current financial year equates to a growth of 5.73%, which is a positive sign for the future.

Are WPP Shares a Good Buy?

One of the best share tips we can provide is to consider the information presented above before deciding whether to invest in WPP. However, in our opinion, we feel that WPP does represent a good buy opportunity as economies reopen and business gets back to normal.

In-Demand Services

Data gathered from Statista notes that digital ad spending in the UK is set to reach £17.34 billion in 2021 – its highest level to date. Furthermore, recent reports have estimated that total digital ad spending worldwide will reach $455.30 billion (around £313 billion) this year. The sheer scale of this industry means that many companies can benefit and generate substantial revenues – and WPP is well placed to be at the head of the pack.

WPP has acquired many companies specialising in digital advertising over the past decade, most recently acquiring DTI Digital, a Brazilian digital innovation, and software company. This shows how much emphasis they are placing on this industry going forward – and with the potential it has, it's clear to see why. Add into the mix the fact that consumer spending can be expected to rise due to lockdowns easing and vaccine rates increasing, and it's fair to say that ad spend will also grow as companies try to entice customers in. We feel that WPP is in a great position within the industry, which will serve them well going forward.

Solid Financials and Bullish Trend

Although 2020 prompted poor financial performance from WPP, it's wise to consider the external circumstances and look at the company's business model as a whole. Interestingly, WPP's annual report showed that they actually reduced net debt to £0.7 billion during 2020 – which is the company's lowest amount in the past sixteen years. Considering that most companies were taking on debt last year rather than reducing it, it shows how savvy WPP has been.

wpp financials

Furthermore, and as noted earlier, the WPP share price has shown a strong upward trend in the stock market over the past year and has almost recovered to pre-pandemic levels. However, if you would like to buy WPP shares in the UK and think you've missed the boat – not to worry. The share price is still way under the all-time highs of 2017, which means that if WPP continues heading in the right direction, then there is still a lot of returns to be made.

Open an Account & Buy Shares

If you’re looking to buy WPP shares, you’ll need to create an account with a reputable broker to make the purchase. In our opinion, eToro represents the best option when it comes to brokers in the UK as they are FCA-regulated and do not charge commissions when buying shares. So, the section below will walk you through how to buy WPP shares in the UK with eToro – all in under ten minutes.

Step 1: Create an eToro Account

Head over to eToro's homepage and click the 'Join Now' button. On the screen that follows, enter your email address and choose a username and password. Alternatively, you can use eToro's app to sign up, one of the best investment apps available on the market.

etoro sign up

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

Step 2: Verify your Identity

To comply with the FCA's security guidelines, eToro requires new users to verify their accounts. To do this, simply upload proof of ID (a copy of your driver's license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, eToro will verify them, which usually takes minutes.

Step 3: Fund your eToro Account

When you fund your account for the first time, eToro requires a minimum deposit of $200. The good news is that this minimum deposit amount drops to $50 (around £35) for each subsequent deposit. In terms of deposit methods, eToro accepts the following options:

  • Credit card
  • Debit card
  • Bank transfer
  • Neteller
  • PayPal
  • Klarna
  • Trustly
  • Skrill

Step 4: Search for WPP shares

Click into the search bar at the top of the screen and type in 'WPP'. Click the first option in the drop-down menu and then click 'Trade' on the following screen.

etoro buy wpp shares uk

Step 5: Buy WPP shares in the UK

In the order box that appears on your screen, enter the amount you’d like to invest in WPP – eToro requires a minimum investment of $50, which is around £35. After this, decide if you want a stop loss or leverage, and then click ‘Open Trade’.

etoro invest in wpp shares

And that’s it! You’re officially an investor in WPP – without paying any commissions or transaction fees!

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

WPP Shares Buy or Sell?

To wrap up, can WPP shares be considered a buy or a sell opportunity. We are firmly in the former camp, as we feel WPP is well suited for the type of business environment we can expect to see going forward. With savvy acquisitions in the digital advertising space, WPP ensures they establish themselves as the major player within the sector – helping them get the lion's share of revenues.

As mentioned, their share price showcases consistent bullish momentum on the daily and weekly charts and shows no signs of stopping. However, the price is still way below the levels it has previously reached. When you buy WPP shares in the UK, it can be thought of as value investing over the long term rather than an investment for short-term gain.

wpp buy or sell

WPP's debt levels are historically low, which puts them in good stead going forward. Also, looking at its history, they are constantly innovating and acquiring new businesses to operate under their umbrella. This innovation ensures they do not get left behind like other companies, allowing them to continue increasing market share.

Overall, WPP is definitely a solid addition to your equity portfolio if you are looking for a long term investment. WPP shares are extremely unlikely to rocket 20-30% in one day like some high volatility growth stocks do, so if this is something you're after, then another investment might be better suited. However, with a solid and reliable dividend, combined with positive prospects going forward, we feel WPP is a good buy opportunity for 2021 and beyond.

How to Buy WPP Shares UK – Conclusion

As this guide has shown, WPP's services are well suited to the type of business environment shown in the modern era, which is excellent news for revenues and profits over the longer term. As consumer spending rises, so too does advertising – meaning WPP is well-placed to benefit. If the company can keep margins tight and debt low, it could mean great things for the share price going forward.

If you’re looking to buy WPP shares today, you can do so with eToro. We recommend eToro because they offer commission-free trading on WPP (plus thousands of more companies) and also allow you to invest from as little as $50, which is around £35. In addition to this, eToro’s sign-up process is super easy, and they do not charge any deposit fees or monthly account fees.

eToro – Buy WPP Shares With 0% Commission

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

FAQs

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About Connor Brooke PRO INVESTOR

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.

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