There are two very different ways to get involved with BP. You can buy real shares (London Stock Exchange: BP.) through a UK share-dealing account or a stocks and shares ISA, which makes you a part-owner of the oil and gas major. Or you can trade a contract for difference (CFD) on Volity, which gives you price exposure to BP without owning the share. This guide covers both routes, the tax and the risks.
Key points
- BP plc trades on the London Stock Exchange under the ticker BP., is a FTSE 100 constituent, and is quoted in pence.
- To own real shares, open a share-dealing account or stocks and shares ISA with a UK-regulated broker, then place a buy order for BP.
- Holding BP inside a stocks and shares ISA keeps dividends and gains free of UK tax, within the £20,000 annual allowance.
- Volity offers CFD price exposure to BP, not ownership: no dividends and no vote, but you can go long or short with leverage.
- CFDs are leveraged and high risk: FCA and ESMA rules cap retail leverage on single shares at 5:1, and most retail CFD accounts lose money.
BP plc is a British energy company headquartered in London, with roots in the 1909 Anglo-Persian Oil Company (company history). It grew into one of the world’s oil and gas supermajors and sits in the FTSE 100. Its ordinary shares are listed on the London Stock Exchange under the ticker BP. and quoted in pence, with a nominal value of US$0.25 per share. It also lists in New York as an American Depositary Share (symbol BP), where one ADS equals six ordinary shares.
The pence convention trips people up. A BP share price shown as 400 means 400 pence, or £4.00 per share. As an oil major, BP tends to move with the price of oil and gas, especially Brent crude, plus its quarterly results and how investors read its spending plans. No one can reliably call where the price goes next, so treat forecasts with caution.
The most common way to invest in BP long term is to own the shares outright, through a share-dealing account or stocks and shares ISA opened with an FCA-regulated stockbroker. The steps are broadly the same wherever you go.
- Choose a UK share-dealing platform and compare its charges, fees and whether it offers an ISA. Our guide on how to choose a trading platform covers what to look at.
- Open the account, complete the identity checks, then fund it by bank transfer or debit card.
- Search for BP or the ticker BP., enter how much you want to buy, and review the live quote.
- Place the order. A market order fills at the current price; a limit order only fills at a price you set.
- Keep the contract note and your statements, which you will need at tax time.
When you buy UK shares electronically you usually pay Stamp Duty Reserve Tax of 0.5% of the trade value, which your platform normally collects. A dealing commission may also apply per order. Spreading your buying across several dates, an approach known as dollar-cost averaging, manages the timing risk of one large purchase. Once you own the shares you can receive dividends and vote at general meetings, and if income is your aim, our primer on dividend investing for beginners is a useful next read.
BP pays a quarterly dividend, declared in US cents per ordinary share and paid to UK holders in sterling, and it has run buybacks too. Amounts change every year, and the board reset its plans in early 2025 to invest more in oil and gas and less in low-carbon energy (a widely covered strategy reset), so check BP’s investor relations for the latest figures rather than an old headline.
Yes. BP is listed on a recognised stock exchange, so its shares are eligible to hold inside a stocks and shares ISA. That matters because dividends and capital gains inside an ISA are free of UK tax, and you can pay up to £20,000 into ISAs in the 2026 to 2027 tax year.
Outside an ISA, tax can apply. Dividends above the £500 annual dividend allowance are taxable at a rate that depends on your income tax band, and profits above the £3,000 capital gains tax allowance can be liable for capital gains tax when you sell. The 0.5% stamp tax on purchases applies whether or not the shares sit in an ISA. Money held with an FCA-authorised firm is generally protected by the Financial Services Compensation Scheme up to £85,000 if the firm fails.
How does the BP CFD route on Volity work?
Volity does not sell you real BP shares. It offers a contract for difference on BP., an agreement to exchange the difference in the price between opening and closing the position. You get price exposure to BP, not ownership, so you are not a shareholder, are not paid dividends and have no vote. In return it offers a few extras.
- You can go long if you expect the price to rise, or short if you expect it to fall.
- CFDs are leveraged, so you put down a margin deposit rather than the full value, which magnifies both gains and losses.
- Headline leverage on Volity runs up to 1:500, and it is product-dependent. Single-share CFDs are far more restricted: FCA and ESMA rules cap retail clients at 5:1 leverage on individual equities like BP, with negative balance protection so you cannot lose more than your account holds.
- You trade on the Volity MT platform, with a $0 account to open, a demo to practise on, the ability to invest from $1 and start trading from $1. Volity uses your own capital plus leverage, so there is no funded or prop-style account to chase.
Volity operates under CySEC licence 186/12 via UBK Markets. CFDs are complex and leveraged, so they suit experienced traders who are ready to lose money on them.
| Real BP shares | BP CFD on Volity | |
| Ownership | Yes, you are a shareholder | No, price exposure only |
| Dividends and voting | Yes | No shareholder dividend or vote |
| Direction | Long only, you gain if it rises | Long or short |
| Leverage | None, you pay the full value | Yes, capped at 5:1 for retail on single shares |
| Typical costs | Dealing commission plus 0.5% stamp tax | Spread and overnight financing on leveraged positions |
| Tax wrapper | Can sit in a stocks and shares ISA | Not an ISA investment |
| Best suited to | Long-term investors building a holding | Shorter-term traders taking a price view |
Real shares in an ISA suit a long-term holding, letting you collect dividends and pair BP with funds for balance (see ETF versus index fund). For a shorter-term view on the BP price, up or down, a CFD can do that, with the leverage risk attached.
What are the risks, and how do you start sensibly?
The FCA is blunt about products like this. High-risk investments, it says, are only suitable for people who understand the risks and are prepared to lose all the money they invest, and many are not covered by the compensation scheme. For CFDs specifically, regulators found that 74% to 89% of retail accounts typically lose money. BP also cut its dividend sharply in 2020 when the oil price collapsed, so income from the shares is never guaranteed, and leverage can turn a small adverse move into a large loss.
If you are new, decide your route first, keep positions small, and practise before committing real money. You can rehearse orders and leverage risk-free on a Volity demo account. This article is general information, not personal advice; if you are unsure whether BP shares or a CFD suit your circumstances, consider speaking to a regulated financial adviser.
Frequently asked questions
No. Volity offers CFD price exposure to BP (BP.), not real shares. A CFD lets you go long or short with leverage, but you do not own the share, receive a dividend or get a vote. To own actual BP shares, use a UK share-dealing account or stocks and shares ISA with a regulated broker.
Yes. BP is listed on the London Stock Exchange, so its shares qualify for a stocks and shares ISA. Dividends and gains inside the ISA are free of UK tax, within the £20,000 annual ISA allowance for the 2026 to 2027 tax year. The 0.5% stamp tax on purchases still applies inside an ISA.
Shares on the London Stock Exchange are usually quoted in pence rather than pounds, and BP is no exception. A quote of 400 means 400 pence, or £4.00 per share, even though the ordinary share has a nominal value of US$0.25. It is a UK market convention that does not change the value of your holding.
Is trading BP as a CFD risky?
Yes. CFDs are complex, leveraged products, and most retail accounts lose money on them. Regulators cap retail leverage on single shares at 5:1 and require negative balance protection, but you can still lose your whole deposit fast. Only trade with money you can afford to lose, and practise on a demo first.
