How to invest in the FTSE 100
Invest in the 100 largest UK companies listed on the London Stock Exchange.
Important information: Investing for 5+ years increases your chances of positive returns compared to cash savings. But, investments and any income they produce fall as well as rise in value, so you could get back less than you put in. You should understand what you’re investing in, specific risks, and make sure any investments you own are held as part of a diversified portfolio. You can learn about investing essentials before getting started. Tax rules can change, and benefits depend on your circumstances. If you’re not sure if an investment is right for you, please seek financial advice.
What is the FTSE 100?
The FTSE 100 is a stock market index that tracks the 100 largest companies listed on the London Stock Exchange (LSE). It was launched in 1984 by the Financial Times and the London Stock Exchange, which gave the index its full name: Financial Times Stock Exchange.
Investing in the FTSE 100 isn’t right for everyone. You should only invest if the investment's objectives are aligned with your own, and there’s a specific need for the type of investment being made. Investors should understand the specific risks before you invest, and make sure any new investment forms part of a diversified portfolio.
New to investing?
Once you've decided investing is right for you, here's how you can get started:
Open an account and add cash
You can choose from various account types, such as a Stocks and Shares ISA, a Self-Invested Personal Pension (SIPP), or a Fund and Share account. You can then add cash via bank transfer or debit card through our app or on our website.
Choose your investment
You can invest in the FTSE 100 by purchasing individual shares of companies within the index or by investing in a FTSE 100 index fund or exchange-traded fund (ETF). Funds can be a great way to get started in investing, as day-to-day investment decisions are taken care of by a professional fund manager.
3
Review your investments
After making your investment into the FTSE 100, you can monitor its performance through your account. Review your investment portfolio and adjust it as needed, depending on your goals and attitude to risk as these can change over time.
How to invest in the FTSE 100
Investing in the FTSE 100 can be a good way to gain exposure to some of the largest companies in the UK.
| FTSE 100 tracker funds | FTSE 100 shares and ETFs | |
|---|---|---|
| When can I buy and sell? | Trades can be placed online at any time, but confirmation is at the valuation point, which is once a day. The cut-off for same-day valuation is 9:00 AM. | The UK market is open from 8am to 4.30pm Monday to Friday. |
| Costs |
No HL dealing charge for funds. Fund managers charge a management charge which you'll need to factor into the cost. HL account charge of up to 0.45% per year on the value of investments. |
Online dealing charge between £5.95 and £11.95. HL account charge of up to 0.45% per year on the value of investments. Capped at £45 for ISAs and £200 for SIPPs. No account charge to hold shares or ETFs in a Fund and Share Account. ETFs have their own management charges. |
FTSE 100 tracker funds
- Trades can be placed online at any time, but confirmation is at the valuation point, which is once a day. The cut-off for same-day valuation is 9:00 AM.
- No HL dealing charge for funds.
- Fund managers charge a management charge which you'll need to factor into the cost.
- HL account charge of up to 0.45% per year on the value of investments. Learn more about charges
FTSE 100 shares and ETFs
- The UK market is open from 8am to 4.30pm Monday to Friday.
- Online dealing charge between £5.95 and £11.95.
- HL account charge of up to 0.45% per year on the value of investments. Capped at £45 for ISAs and £200 for SIPPs. No account charge to hold shares or ETFs in a Fund and Share Account.
- ETFs have their own management charges.Learn more about charges
How the FTSE 100 works
The FTSE 100 is a stock market index that tracks the 100 largest companies listed on the London Stock Exchange, ranked by market capitalisation. The index changes throughout the day as the companies' share prices rise and fall. To be included, companies must meet certain requirements, like having their main listing in the UK and enough trading activity.
The index updates in real time between 8:00am to 4:30pm, and its members are reviewed every three months. The FTSE 100 is often used as a snapshot of how major UK-listed companies are performing. Investors also use it as a benchmark to compare with other markets.
Top companies in the FTSE 100
Many FTSE 100 companies operate internationally. The index has a diverse range of sectors such as energy, industrial goods and services, healthcare, financial services, banks, tobacco, mining and food. In comparison to US stock markets, the FTSE 100 has fewer technology companies.
The top ten companies (by market capitalisation as of 11 June 2025):
| Company name | Sector |
|---|---|
| AstraZeneca | Healthcare |
| Shell | Energy |
| HSBC Holdings | Financials |
| Unilever | Consumer/Non-Cyclical |
| British American Tobacco | Consumer/Non-Cyclical |
| Rolls-Royce | Aerospace |
| RELX | Technology |
| GlaxoSmithKline | Healthcare |
| BP | Energy |
| London Stock Exchange Group | Financial |
Why invest in the FTSE 100 with HL?
Trusted by 1.9 million
Our clients trust us with over £155bn of their savings and investments.
Live share prices
Live share prices, research and insights.
Huge investment choice
Over 4,000 funds, UK and overseas shares, investment trusts, ETFs or gilts.
Award-winning app
Trade on the go.
UK-based helpdesk
Speak to our UK-based helpdesk if you have any questions.
Choose your investment account
To start investing in the FTSE 100 you’ll need to open an account, where you can buy, hold and sell investments. Our most popular investment accounts are the HL Stocks and Shares ISA and the HL Fund and Share Account.
*Tax rules for ISAs can change and their benefits depend on your circumstances.
Fund and Share Account
- Free to hold shares and ETFs, up to 0.45% to hold funds
- No investment limits but tax charges could apply
- Minimum £1 to open
Stocks and Shares ISA
- Invest up to £20,000 this tax year*
- Invest free from UK income and capital gains tax
- Open with £100 lump sum or £25 monthly Direct Debit