UK: Investing on the London Stock Exchange

The London Stock Exchange (LSE) is the UK's primary stock market and one of the world's oldest and largest. Here's how everyday investors access it.

The FTSE indices

• FTSE 100: the 100 largest companies listed in London — many are global, earning much of their revenue abroad.
• FTSE 250: the next 250, more focused on the domestic UK economy.
• FTSE All-Share: a broad measure of the whole market. You can invest in these cheaply via index funds and ETFs.

How to invest

1. Open an account — ideally a tax-free Stocks & Shares ISA or SIPP on an investment platform.
2. Choose investments — funds/ETFs for instant diversification, or individual shares if you understand the risks.
3. Invest regularly — a monthly amount via pound-cost averaging.

Don't forget global diversification

The UK is a small part of the world market. A global index fund spreads risk far wider than UK-only holdings — sensible even for UK investors. See diversification.

Costs and regulation

Compare platform fees and fund charges. UK platforms are regulated by the FCA, and eligible investments carry FSCS protection up to limits.

Key takeaway

Open a tax-efficient ISA or SIPP, favour low-cost global and UK index funds, and invest steadily. Access to the LSE is easy; diversification and low costs are what make it work.