Is It Safe To Buy Shares Online From The UK?

An Introduction to Stocks and Shares: How We Reached This Point in Time

How far society has progressed in our lives is astounding. Could you imagine what our lives would be like if we didn't use our surroundings to make them easier, more joyful, more productive, and of a higher standard? We'd be living in tunnels and huts and running on constant survival instinct. We'd forage for food and battle over the simplest resources with spears and rocks.

Simply put, we are at one of the peak points of civilization and only stand to expand and progress further and further into the future. One of the most seminal features which has progressed into the twenty first century was the way we looked at money and barter. Money has progressed heavily into the modern age, with its earliest forms being in terms of trade and barter, then moving into gold coins, and later, paper money.

The stock market is one of the most important measures of money in the world today. It shows how the world's economy is doing and also shows who owns private companies. It is basically a group of people who buy and sell stocks, also called "shares," which represent ownership claims on businesses. These can be securities listed on a public stock exchange or stock that is only traded privately, like shareholdings of private corporations that are sold to investors through capital crowdfunding.

One of the places in which the market of stocks and stock trading is the most popular is in the United Kingdom. Many enter the realm of stocks and shares with little to no idea what it entails, and fail miserably because of this.

Within this article, the reader will be well equipped with the requisite ins and outs required to make it big in online stock trading within the UK, as well as outlining the safety aspects which make a major part of Stocks and trading. The main question behind this is essentially: Is the trader safe when trading online? Are they protected by Laws and Bodies? And when it comes to the actual act of trading, is it economically safe for one to put their money into stocks?

Buyer and Trader Protection

Taking a quick look at the legislative side of the world of stock market, when it comes to protection of stock brokers and buyers within the UK, there are two main protectors which one can essentially rely on, when trading within the stock market. The first one of these, is one of the main pieces of legislation surrounding finances and stocks, known as the Financial Services and Markets Act of 2000, which had been amended in 2019. This piece of legislation is essentially what stock brokers and buyers who partake in the stock market, both online and In-Person are bound by and is what protects them from potential scams and essentially regulates the market.

The Second, and most prevalent regulator and protector in regards to the stock market within the UK is the regulatory body known as the Financial Conduct Authority, which regulates the stock market, protecting UK stock brokers and essentially acting as an agent for the aforementioned Financial services And Markets Act.

The Financial Situation within the UK: Does it Bode Well for Stock Traders?

When it comes to the stock market, understanding when to acquire shares is nearly as important as the sorts of shares you purchase or the amount of money you invest in such shares. Numerous economists and stock market experts search for undervalued stocks and events that may depress the price of particular stocks. In spite of all the talk of a worldwide recession, it is possible to take advantage of the steadiness of the current UK stock market.

The Beginning of a Recession and How It Affects the UK

The UK Central Bank is currently predicting an economic downturn. However, the main index used by stock traders and investors, the FTSE 100, is taking a smaller blow than other indexes, for example the FTSE 250, which is currently down by just under 25%, whereas the FTSE 100 is only down by around 1.5%. Knowing this, one might take solace in the fact that, despite the tremendous influence on the global economy, the United Kingdom has one of the strongest and least affected markets. Among the reasons why the United Kingdom is now able to withstand this recession is the use of tax cuts to counteract increasing inflation.

The Cause For This Inflation and Economic Downturn

Where did this unexpectedly high inflation rate originate? The expansion of wars and conflicts that are occurring in many regions of the world at the present time is one of the current worldwide happenings that is contributing to a substantial economic downturn. The consumption of fossil fuels has led to a significant energy deficit, which is one of these worldwide events. This deficit has been created as a result of the occurrence of global warming. Due to it having a huge detrimental effect on economies around the world during its active years, the Pandemic was also one of the leading drivers to inflation.

What does the Future Hold?

Although it is currently capable of standing on its own two feet, one can see that the general consensus on the purchase of stocks and shares is one that is somewhat dangerous. This is despite the fact that it is currently able to stand on its own two feet.

To reiterate, the current stock market in the United Kingdom is still withstanding the storm, and it is doing so in a manner that is even superior to that of the majority of other countries. However, given the complexity and unpredictability of the stock market, only time can tell how this may alter in the future. It is unclear how much longer the economy of the UK will be able to maintain its current level of performance given the widespread belief that the recession will continue to deepen over the next few years.

The Fundamental Question: Is It Truly Safe?

Coming full circle, the topic at hand is this: in the present day and age, is it risky to trade on the stock market within the United Kingdom? Simply put, the current times are some of the most unpredictable that one has ever seen in relation to the stock market, and at the moment, all that one can do is make the most of the stability that we can now observe in the market, and hope that the recession doesn’t end up negatively affecting the market more than it already has.