Share Prices Royal Mail

This article will explain what is Share Prices Royal Mail, we will also answer questions like Can I buy Royal Mail Shares?

Can I buy Royal Mail Shares?

It is not interesting to buy Royal Mail Shares at the moment as (LSE: RMG) share price having declined by 50% in the last year alone, the stock may appear to be a high-risk investment. However, with it offering a low valuation and improving financial prospects, it could be worth buying alongside another FTSE 100 recovery share which released results on Thursday

How can I buy shares in Royal Mail?

There are many ways you can buy Royal Mail shares, but the easiest way to buy Royal Mail shares is through an online share dealing platforms.
  1. Firstly, You need to Choose a share dealing platform. …
  2. Secondly, you need to Open your account.
  3. Thirdly Confirm your payment details.
  4. Fourthly , Find the shares you want to buy.

To trade Royal Mail shares you can either use a traditional stock brokerage firm (such as IG) or you can use a CFD service, such as LCG We’ll explore the pros and cons of both approaches in a moment.

Currently, IG charge a minimum of £5* per trade for buying and selling shares online, while LCG take a fee from the spread for stocks such as RMG

Share Price
30-Day Change-13.72%
90-Day Change-20.17%
52-Week Low£206.00
52-Week High£560.20
Show me the top brokers I can trade Royal Mail shares (RMG) with

*For frequent traders or clients who place at least one CFD trade or Spread bet per month. Applies to UK shares only.

Pros & Cons of Trading Royal Mail shares (RMG) as a CFD

A CFD (or ‘contract for difference’) is a way of trading instruments like shares without having to own the shares. Here are some of the pros and cons of CFD trading compared to using a traditional stock brokerage.

Advantages:

  • The main advantage of a CFD broker is the leverage they offer their clients. This means that a trader would require a much smaller account sizes relative to the size of a trade in comparison to a traditional share dealing broker.At the current price of £225.44 per share, to buy 50Royal Mail shares with no leverage, it would cost a total of £11,272.00 £11,272. However, using leverage of 1:20, a trader would only require an account size of £626.22 £564 to place the trade with a CFD broker.
  • CFD brokers allow traders to go long or short, which means a trader could benefit from rising and falling markets.
  • CFD brokers usually do not charge a commission and instead have their fees included in the spread.
  • CFD brokers like AvaTrade that offer the MT4 platform, allow clients to use expert advisors to automate their trading strategies.
  • UK shares that are purchased as a CFD are not liable for the usual 0.5% stamp duty payable with a traditional share purchase (please note that tax laws can change and are subject to individual circumstances).
  • Unlike traditional brokerages that only offer stock trading, CFD brokers like LCG give access to a wide variety of instruments like stocks, commodities and currencies.

Cons:

  • As mentioned, leverage is a double-edged sword that can magnify both gains and losses. And as with all trading, traders are at the risk of the markets moving against them.
  • CFD brokers typically charge an overnight fee for holding a long position overnight. This is essentially the cost of borrowing the money from the broker to purchase the shares on margin. There would be no overnight fee if you closed the position on the same trading day. Therefore, this would only be a disadvantage if you are not a day trader or intraday trader.For example, LCG currently charge an overnight financing fee of 2.73% for individual equities. This means that for the example trade above, it would cost a trader £0.84 every day the position was open.

For further information on trading stocks as a CFD, visit out “trading stocks as a CFD page”. It is important to remember leverage can work both ways and magnify gains and losses.

*All information collected from https://www.lcg.com/uk/, see website for full terms and conditions. Your capital is at risk. Last updated on 20th March, 2017.

Royal Mail: Key Stats & Background Information

Royal Mail shares are currently priced at £225.44, after opening the day at £216.60. As of 22/05/2019, Royal Mail have 1,000 million shares available, bringing their market cap to £2,255 million.

This market cap makes Royal Mail the 86th largest stock on the FTSE 100 index by market capitalisation. In the past 30 days, the Royal Mail share price has decreased by -13.72%, from £261.30. In the past 90 days, it has ‘ ; decreased by -20.17%, from £282.40 to the current price of £225.44.

In terms of trading activity Royal Mail is the 3rd most actively traded stock in the FTSE100, with an average of 9,080,697 shares being traded per day.

Royal Mail had a profit after tax for the financial year ending 31/12/2001of £222 million, a decrease from £328 million for the financial year ending 31/12/2014, an overall -32% change in profit after tax.

Royal Mail was listed on the London Stock Exchange on October 15, 2013, and can be traded on Monday-Friday between 8am and 4.30pm GMT (UK time).

Royal Mail paid a dividend of 21.30p in 2016, an increase from 20.00p in 2015.

Top 10 FTSE 100 Companies by Trading Volume

Company Trading Volume
Lloyds Banking Group PLC 48,564,260
Vodafone Group plc 13,179,891
Royal Mail PLC 9,080,697
Hargreaves Lans down PLC 8,135,383
Barclays PLC 7,062,263
Marks and Spencer Group Plc 6,099,715
Glencore PLC 5,612,741
Babcock International Group PLC 5,065,413
BP plc 4,728,521
Legal & General Group Plc 4,680,032

Top 10 FTSE 100 Companies by Market Cap

Company Market Cap
Royal Dutch Shell Plc £234,574,796,465
Unilever plc £138,569,535,040
HSBC Holdings plc £133,133,889,667
BP plc £114,657,026,502
Diageo plc £79,898,032,876
GlaxoSmithKline plc £77,370,845,911
AstraZeneca plc £77,308,918,690
BRITISH AMERICAN TOBACCO PLC ADS Common Stock £68,836,193,752
Reckitt Benckiser Group Plc £45,287,177,680
Lloyds Banking Group PLC £42,457,331,616