How to Invest in Pearson Stock UK in 2022 – Complete Guide

Pearson PLC logo

Wondering how to invest in Pearson Shares? Then don’t worry as you are in the very right place as in this guide we will give you a detailed analysis of how you can invest in Pearson in the UK today. So, without further ado let’s get straight into today’s topic. 

The very best way to invest in Pearson is to buy its shares and the key to do so is to find a perfect trading platform. Below we have listed down a few trading platforms that you should consider for investing in Pearson. 

How to Invest in Pearson Stock UK - Complete Guide 2022.

In order to Buy Pearson Shares you need to follow these few steps below:

  • Step 1. Find the Best Trading Platforms that offers Pearson Shares at minimum fees.
  • Step 2. Explore Pearson Shares
  • Step 3. Open an account and deposit your funds.
  • Step 4. Purchase Pearson Shares.

Best Trading Platforms to Invest in Pearson Shares

There are thousands of trading platforms available in the market that allow you to buy Pearson Shares. But with so many scams around, you cannot trust every platform only on the basis that it has the asset you are looking for, there are a lot of other metrics including regulations, payment methods, deposits and withdrawals and many more that you should look into before choosing the platform that suits you better.

But looking for all the metrics in thousands of Platforms can be very time consuming and depressing. Therefore to save you your time and energy we have listed down the best trading platforms that you can trust blindly. 

eToro- World’s Finest Broker

eToro- logo

The very best trading platform that we recommend to you for investing in Pearson is eToro. This trading platform is a favourite among UK traders for a variety of reasons, however, the first reason is the safety of the clients. The platform is a low-cost broker and offers financial assets for investment including, Cryptocurrencies, Commodities, Indices, and Shares. It offers 800+ Shares globally.

eToro allows you to trade stocks that are listed on the London, New York and Tokyo exchanges. When talking about shares it offers a variety of options, including Pearson shares. On this platform you are allowed to apply the leverage of up to 1:5 and even you can buy assets traditionally.

How to Invest in Pearson Stock UK - Etoro trading Platform

This trading platform is a CFD trading platform that means, on this platform you don’t require to own the stock all you have to do here is to speculate the price movements. With that said, if you hold a stock position before the ex-dividend date, you will receive the dividend payment to your account on the payment date. 

eToro is also regulated by the FCA, ASIC and CySEC. Even the platform is accessible to US traders as it is also registered with FINRA. Except you will be required to pay a 0.5% fee on all your deposits and $5 on every withdrawal. It is the cheapest brokerage platform in the UK.

For beginners, eToro provides the copy trading feature. This feature allows you to copy ongoing trades of expert traders. You can also use the copy portfolio feature, which allows you to diversify your investment portfolio. Unlike other platforms, account creation on this platform is not time-consuming. It takes only a few minutes to create an account on eToro.

Once you are done with creating an account you are then required to fund it to start your trading journey. For the convenience of its user’s, it accepts various payment methods for making a deposit such as Debit/Credit Card, Bank account, e-wallet e.t.c.

How to Buy Pearson Shares UK January 2022 - Invest with 0% Fees Today

The fee attached to the platform is an inactivity fee of $5, which is understandable and also the spreads are relatively low. The platform also offers a mobile application for the convenience of its customers. This trading platform also offers 24/7 available customer support which other free trading platforms don’t offer.

Pros 

  • Beginner-friendly 
  • Regulated by  FCA, ASIC and CySEC 
  • Copy-trading and CopyPortfolio feature 
  • Offers a variety of financial assets 
  • Accepts debit/credit, bank account, e-wallet
  • Fractional trading 
  • Offers 800+ shares

Cons 

  • Not suitable for advanced learners

Capital.Com – Trade Pearson Shares with Leverage

Capital.Com- Trade Pearson Shares

Another trading platform that we offer for trading Pearson shares in the UK is Capital.Com. This trading platform is well suited for novice traders as it allows traders to get started with a minimum deposit of $20. Furthermore, the platform is compatible with all devices such as mobiles, PCs and so on.

This trading platform also offers a demo account feature so that its traders can have a seamless trading experience. This trading app is regulated by the FCA and CySEC and accepts payments from a variety of modes that are debit/credit cards, e-wallets, and bank transfers.

It also offers a variety of trading assets including indices, hard metals, cryptocurrencies, energies, ETFs and even DeFi coins so that you can have a well-diversified trading portfolio. Furthermore, it allows you to trade 2700 stocks listed globally, including stocks of commodity producers commission-free.

How to Invest in Pearson Stock UK - capital.com

The only thing that you should consider while choosing this trading platform is spreads as on this platform spreads are highly competitive on major blue-chip stocks. As the platform is a well known CFD trading platform, that means it allows you to apply leverage and as well as short selling. 

Pros 

  • Regulated platform 
  • 0% Commission 
  • Offers a variety of trading assets
  • Spread betting for UK clients
  • Beginners friendly
  • Offers minimum deposit of just $20 

Cons 

  • CFD only
  • Not suitable for advanced traders 

IG- Trade Pearson with CFD

IG- Trade Pearson Shares viaCFD

The other amazing platform that gives you access to Pearson Shares is IG. This trading platform was launched in 1974 and since then it is known as the most popular trading platform for CFD trading. This platform owns the North American Derivatives Exchanges (NADEX) and the DailyFX.com financial news and analytics website as well as it offers a variety of trading assets to diversify your trading platform.

In terms of Pearson Shares, this trading platform gives you access to a wide range of variety to select from via CFDs or Spread betting. And, the best part is that you can trade commission-free on this trading platform, it doesn’t matter which avenue you opt for. Hence, the platform is an ideal choice for targeting small margins. Furthermore, the spread betting option is highly attractive as all of your trading profits are tax-free in the UK.

Pearson shares - IG Platform

The platform is highly secured as it is regulated by FCA, which means you don’t have to worry about the safety and security of your funds. As we have already discussed, the platform offers a variety of assets to diversify your trading portfolio including forex, cryptocurrencies and many more.

In the case of forex, it gives you access to over 12,000 assets and allows you to apply the leverage of up to 1:200 on forex pairs like EUR/USD, EUR/JPY, and USD/JPY. That means with an account balance of just $300, you could potentially trade with $60,000. What attracts the traders most to this platform is that it gives access to over 80 currency pairs. 

This trading platform is highly compatible with the full range of MetaTrader4. The account creation on this trading platform is also super easy. However, you do need to pay an entry-level fee of £8. But the good thing is that if you trade regularly then this entry-level fee will be reduced to £3.

Once created an account you will be required to make a minimum deposit of $250 on this platform to initiate trading. This minimum deposit isn’t the fee of this platform but the working capital that is needed by the investors to start investing journey. 

Pros 

  • Well reputed UK Broker 
  • Offers more than 12,000 traditional assets
  • Offers leverage and short selling
  • Offers spread betting and CFD products
  • Offers educational tools 
  • Offers more than 80 pairs 

Cons

  • Do not offer ETFs or Stocks

FinecoBank- Best Trading Platform for Pearson Shares

Fineco Bank- Trading Platform for Pearson Shares

Finecobank is one of the platform that you may consider for investing in Pearson Shares. This amazing Platform is packed with all the amazing Platforms that make it a favourite among trades. This online broker is FCA regulated and is partnered with FSCS to safeguard the funds of its investors.

It is backed by an Italian bank that has been active since 1999. This platform gives you access to various asset classes, thousands of international stocks like amazon, facebook, alphabet(google), dozens of exchanges and markets including Pearson Shares. Though the platform doesn’t allow you to purchase shares Commission free, this platform is one of the cheapest Pearson trading platforms that allow you to pay just £2.95 per trade with a small annual platform fee of 0.25%.

How to Invest in Pearson Stock UK - FinecoBank

The only drawback to FinecoBank is that it doesn’t support cryptocurrencies or Copy Trading tools. It offers low investments and requires a small fee. This small fee applies to each global exchange you invest in. The minimum deposit amount on FinecoBank is £100. Since it offers you to go both long or short on your selected Pearson Shares, as well as offers you to apply the leverage of up to 1:5 if you are a UK retailer, the platform is a must to go with.

Pros 

  • Regulated by the FCA
  • Allow access to thousands of UK and international shares 
  • Allow depositing with UK bank account 
  • Beginner-friendly 
  • Offers great research and educational department 
  • Charges a small amount, £2.95 per trade when buying and selling shares. 
  • Offers a variety of stocks, including Pearson.

Cons 

  • Charges 0.25% annual fee
  • Doesn’t accept debit/ Credit cards for Withdrawals and deposits.

Pearson- An Overview 

Pearson PLC logo

Founded in 1844, Pearson PLC is a leading publishing and education company in the UK. At the advent, the company operated in the construction sector but later in the 1920s, it shifted its business model from construction to a publishing house. This shift in the business model has been very beneficial for the company as the brand became popular and in the 1950s it even managed to purchase the Financial Times and acquired a 50 per cent stake in The Economist.

Over the years Pearson created a variety of well-known brands such as Dorling Kindersley, Rough Guides, Edexcel, Penguin Books and many more. Then in 2019, along with publishing, Pearson added education to its business portfolio as Pearson launched its own private academic degree provider college in the United Kingdom. After gaining profit for years, it finally shifted its business model to Education only in 2015. That means, at present Education is the only business model, Pearson is focussing on.

It provides education and learning courseware for people in school, higher education and in professional areas. BTEC, Bug Club, Schoolnet, GradPoint are a few prominent education brands that are controlled by Pearson. And, since online learning becomes more prevalent Pearson has become more popular and has benefitted. 

Things to Consider before diving into investing in Pearson Shares. 

Before you buy shares of any company there are things that you should first consider. We always recommend traders first do some background research and only then make any final decision. There are a variety of things that you should consider such as how it has performed in the past, what are the future expectations, what have it paid to its shareholders and many more.

Pearson Share Price Chart

To put off the searching load from your shoulders we have listed below a few things that you should know before you jump into buying Pearson Shares.

  • The very first thing that you should consider while investing in something is its financials and share price. Pearson shares reached their all-time high in 2000 when it was trading at 2400p and got near to this level in 2015 when its share price was trading at 1514p. Since the turn of the year 2021, Pearson shares have represented an increase of just over 22% and have increased over 87% when compared to last year.
  • As per the data from Hargreaves Lansdown, Pearson PLC generated revenue of £3.39 billion in 2020, which caused net profits 2020 of £310 million, which is £44 million more than 2019. Pearson Shares among those few shares, who have remained in demand during the lockdown. 
  • Another thing that you should consider while investing in some shares is Dividends and you will be glad to know that Pearson shares provide dividends twice per year- an interim payment in September and a final payment 8n May. In September 2020, Pearson paid an interim dividend of 6.00p, with the final dividend payout of 13.50p per share, which means it paid a total dividend of 19.5p per share. 
  • Pearson’s global online learning business reported sales to grow by 25%, with the total revenues across the entire company rising by 5% and one’s everything goes back to normal and schools and universities reopen, Pearson’s shares will definitely rise, which means investing in Pearson shares right now is a good time as the shares are expected to reach higher levels. 

How to invest in Pearson Shares through a trading platform. 

Okay, so now that you have gained all the information on what are the best trading platforms to buy Pearson Shares, you would probably be wondering what procedure you need to follow on the trading platform. Don’t worry, as below we are listing down a step by step guide so that you get a crystal clear understanding of how it works. Here, we are taking eToro as an example to make you learn how to buy Pearson shares through a trading platform.

Step1: Create an Account

The very first step to buying Pearson shares is to create an account on the official website of eToro. To do so you are required to fill in a registration form by entering in your basic details such as your name, phone number, e-mail address, and setting a strong password. After entering all of your details make sure to accept terms and conditions. 

eToro will ask you to verify your identity by uploading some of your documents, don’t worry as your documents are truly safe on this platform. However, you don’t need to undergo verification until you deposit more than $2,250 or you request a withdrawal. 

Step1 Create an account

Step 2: Fund your account 

Now that you have successfully registered on this platform you are now all set to fund your account by making a minimum deposit of £160. However, subsequent deposits only require a minimum of $50. This funding amount isn’t the fee of the robot but the working capital that is needed by the traders to execute trades.

eToro offers several payment methods for the convenience of its traders, you can choose whatever method you feel more comfortable with. The payment methods supported by eToro are Debit/Credit Card, PayPal, Skrill, Nettler, and Bank Transfer. 

Step 3: Make your purchase

Now that you have successfully registered and funded your trading account, you are now all set to buy Pearson Shares. To do so, all you are required to do is to enter ‘Pearson’ into the search engine at the top of the page and once entered click on the result that appears in front of you. Then click on the ‘Trade Button’, enter your desired amount and then click finally on ‘Open Trade’ to buy your Pearson Shares.

On this platform, you can buy or sell Pearson shares as long as your transaction involves a minimum of £40. You also have the privilege to apply Leverage and you can also set a stop loss or take profit level for your trade using the order form.

Pearson Shares- Analyze Fundamentally and Technically

Before you jump straight into buying Pearson shares you are first advised to analyse them Fundamentally and Technically.

To analyze the company and share fundamentally, you are required to evaluate its intrinsic value by considering the company’s overall economical, financial and management conditions. 

To analyse the company and share technically you are required to consider the company’s past prices and volumes instead of considering its intrinsic value. Technical analysis is done to identify current and future trends and patterns in the company’s share.

If you decide to buy a share then you must also consider how many shares you should buy. To help you out on this matter many trading platforms offer their users a share calculator. By using it you can calculate how many shares you should buy, well if your chosen Platform doesn’t offer this feature then you can calculate it on your own by using the formula: 

Total Amount Desired to Invest/Price Per Share

Below are the popular fundamental metrics that can be used to determine the value of Pearson Shares.

Pearson’s EPS 

EPS or earning per share tells how profitable Pearson can be. To calculate it all you need to do is to divide Pearson’s profit by the number of Pearson outstanding shares. 

Pearson P/E Ratio

P/E ratio or price to earnings ratio can be calculated by dividing Pearson’s share price by its earnings per share or EPS. 

The P/E ratio tells you how much you need to spend on  Pearson shares to make £1 in profit. Pearson’s shares trade at around 16x recent earnings. 

Pearson’s ROE

ROE or Return on equity can be calculated by dividing Pearson’s overall income by shareholder equity. This metric compares Pearson’s income against its shareholder’s equity. 

Conclusion 

I hope you got all the information you were looking for on how you can invest in Pearson and what it is. From all the depth in research, we have concluded that investing in Pearson right now is a good time. According to Growth Engineering, the online market is the only market that is expected to be valued at over $370 billion by 2026, which that means in the coming future, Pearson’s share prices will surge. So, if you are now all ready to start investing in Pearson right now we recommend you to do so through our most trusted broker eToro. 

FAQs

  1. What is Pearson? 

Pearson PLC is a UK based leading publishing and education company. It was founded way back in 1844 and since then has shifted its business model from construction to publishing to education. And, at present, the company is entirely focusing on the education sector only. 

  1. Which exchange is Pearson listed on? 

Pearson has a primary listing on the London Stock Exchange under the ticker ‘PSON’ and has a secondary listing on the New York Stock Exchange through American depositary receipts.

  1. What is the best way to buy Pearson Shares? 

The very best way to buy Pearson shares is through a trading platform. All the above-mentioned trading platforms are regulated and licensed, which means you do not need to worry about your funds and security on any of the trading platforms.