London Stock Exchange: FTSE 100 & Investing Guide

Par · Publié le

Founded in 1801, the stock market in London, also known as the London Stock Exchange or LSE, is one of the largest stock markets in Europe and the seventh largest in the world. With more than 2,000 listed companies acting as issuers of equity securities, the LSE is known as the most diversified exchange on the planet in terms of the location of its investors. Want to broaden your investment horizons and invest in UK stocks? Here is what you need to know.

Sommaire de la page Afficher

What Is the London Stock Exchange?

The London Stock Exchange (LSE) is a stock market located in London. It is one of the largest stock markets in Europe and the seventh largest in the world, offering the shares of many American and British companies. With more than 2,000 listed companies acting as equity issuers, the London Stock Exchange has a market capitalization of more than £5.2 billion.

Founded in 1801, the LSE is one of the oldest stock exchanges in the world. Today, it is part of the London Stock Exchange Group, which was born in 2007 from the merger of the London Stock Exchange, Borsa Italiana and the Milan stock exchange. Its flagship index is the famous FTSE (Financial Times Stock Exchange).

In the same region, we also dedicate a guide to Ireland.

Why Is the London Stock Exchange So Successful?

Here are the reasons behind the success of the LSE:

  • A large market capitalization, estimated at £3.88 trillion in 2025. The LSE lists the shares of more than 2,000 companies. Among these companies are Barclays, BP and GlaxoSmithKline
  • Trading volume in the City stands at 33 million transactions every second on average
  • The London Stock Exchange is the most diversified exchange in the world in terms of the location of its investors.

London Stock Exchange – The LSE Share Price

London Stock Exchange – Which Financial Markets Are Available on the LSE?

For any company that wants to join the LSE, several markets are available. Securities listed on the LSE can be traded on one of the following main divisions:

  • Alternative Investment Market (AIM), an alternative market of the LSE that allows smaller companies to issue securities under a regulatory system more flexible than the one that applies to the Main Market.
  • Main Market High Growth Segment, a market where high-growth mid-sized companies from the UK and Europe are listed.
  • Main Market Standard Segment, which is designed for more established companies that are not necessarily experiencing rapid growth.
  • Main Market Premium Segment, which carries the highest listing standards and includes companies that are part of the FTSE indices.

The LSE also brings together secondary markets, which include the trading of securities through covered warrants, bonds, ETFs, ETPs and more.

The Largest LSE Stocks

Here are the five largest stocks by market capitalization on the London stock market, including companies headquartered in Japan as well as in the United Kingdom:

  • Toyota Motor Corp, a car manufacturer from Japan. The group’s headquarters are located in the city of Toyota. In 2017, it was the world’s number 1 car manufacturer by financial performance, ahead of Volkswagen and Daimler.
  • Unilever PLC, a Dutch-British multinational whose head office is located in Rotterdam and London, ranks among the world’s leading suppliers of beauty and personal care products, home care products and food products.
  • Jardine Matheson Holdings LD, a diversified company based in Singapore
  • Royal Dutch Shell PLC, Shell is an Anglo-Dutch oil company, one of the largest multinational companies.
  • Astrazeneca PLC, United Kingdom, a major pharmaceutical company.

ETFs on the LSE

ETFs are the fastest growing type of investment in the world.
Exchange-traded funds (ETFs) give investors the opportunity to buy entire indices as easily as if they were buying a single share on the London Stock Exchange.
The first ETF was listed on the main market of the London Stock Exchange in April 2000.
The London Stock Exchange is Europe’s leading centre for ETFs, with more than 1,200 ETFs listed on its main market.

Stock Market Indices on the London Stock Exchange

A stock market index is a group of stocks used to assess a given sector. In general, a stock market index groups together the best performing stocks of an exchange.

Stock market indices serve to measure the performance of a market or a sector. Using these instruments is essential for portfolio management, especially for a beginner trader

Here are the main stock market indices quoted on the London Stock Exchange:

  • FTSE 100: by far the most widely used indicator of the London market. The FTSE 100 companies are the 100 largest by market capitalization listed on the London Stock Exchange
  • FTSE 250: which comprises the next 250 largest companies after the first 100 of the FTSE 100
  • FTSE SmallCap: small companies

The Best Time to Trade on the London Stock Exchange

Many traders may not realize it, but to profit from the LSE, it is best to choose the right time of day.

On the British market, the best time to trade is between 10 am and 11:30 am. We recommend avoiding the first 30 minutes after the market opens. During this window, the market is still very volatile because traders are still adjusting their positions based on overnight events.

LSE Trading Hours: Opening and Closing Times

Standard trading hours on the London Stock Exchange run from 8:30 am to 4:30 pm UK local time, open every day of the week, except weekends and all public holidays announced in advance by the Exchange.

  • 7:15 am to 8:30 am – Pre-Open – This is a preparation period for the trading day. Buy and sell orders are loaded into the computerized data processing systems. With all the buy and sell orders, the computer builds a roadmap for each stock. Thus, each stock has a price at its opening, which allows trading to start at exactly 8:30.
  • 8:30 am – Market Open – At the market open, the buy and sell orders from the pre-open session are pooled together to produce a single price. It is a price determined by computer. It is done in such a way that the largest possible number of pre-market orders can be executed. This price sets the opening price of the session.
  • 8:30 am to 4:30 pm – Trading Day – Quotation is now open for all products listed on the London financial marketplace. It is an opportunity to buy, sell or simply probe the market and observe trading volumes. The SETS is the London Stock Exchange’s main trading service, which offers an integrated supply of liquidity by market makers, in order to ensure guaranteed prices in both directions and continuous support with bid and ask prices throughout the trading day.
  • 4:30 pm until 4:35 pm – Pre-Close – This is another time window specific to the way financial markets operate. The pre-close is a buffer time window used to determine the last quoted price of the session. It is also used for the next day’s pre-market opening price. During the pre-close, orders are no longer executed. However, the order book collects the buy and sell prices requested by traders. And at 4:35 pm, the market closes with what is known as the closing fixing.
  • 4:35 pm, Close – The close takes place after 5 minutes of pre-close. At the end of this period, the market determines a median price across all buy and sell orders. This calculation groups disparate orders into one and the same price. Thus, the last quotation of the day is obtained for the stock in question. This calculation is the same as the one that determines the market’s opening price.

LSE Market Holidays

The public holidays during which the LSE is not available are as follows

  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Early May bank holiday
  • Spring bank holiday
  • Summer bank holiday
  • Christmas Day

London Stock Exchange Listing Requirements

To be listed on the London Stock Exchange, a company must meet the following rules:

  • « Main Market Premium »: companies in this category can be located anywhere. They must have a free float of at least 25% and 75% of the business must be supported by at least three years of revenue.
  • Standard Main Market companies can be located anywhere and must have a free float of at least 25%.
  • High Growth Segment Main Market companies must be located in the UK or Europe, have a free float of at least 10% and have posted compound annual growth of at least 20% over three years.
  • AIM companies can be located anywhere and must be supported by a financial services firm approved by the LSE to work with AIM companies.

Documents Required for Listing

Depending on the market, a company must wait for its listing to be validated after providing the following documents:

  • For the « Main Market Premium »: a prospectus and an eligibility letter filed with the FCA (Financial Conduct Authority), which is the independent financial regulatory body of the United Kingdom, and a listing sponsor.
  • For Standard Main Market companies: a prospectus filed with the FCA
  • For High Growth Segment Main Market companies: an exchange eligibility letter and a prospectus filed with the FCA
  • For AIM companies: an admission document and a statement of fitness from a nominated adviser

Top 10 Largest Stock Exchanges in the World

Here is the list of the 10 major stock exchanges around the world:

  • New York Stock Exchange, or NYSE
  • Nasdaq
  • London Stock Exchange, or LSE
  • Tokyo Stock Exchange, or TSE
  • Shanghai Stock Exchange, or SSE
  • Euronext Stock Exchange
  • Hong Kong Stock Exchange, or HKSE
  • Shenzhen Stock Exchange
  • Toronto Stock Exchange, or TSX
  • Frankfurt Stock Exchange

The largest stock exchanges concentrate a huge share of international financial flows and trading. The list above represents only 10 exchanges out of the 60 largest in the world. As you can see, the London Stock Exchange ranks near the top of the world standings.

London Stock Exchange: Its History

  • The London Stock Exchange was founded in 1801, when membership was by subscription. The shares on offer and the number of members grew from day to day. Then came the opening of exchange branches in cities such as Manchester and Liverpool.
  • During the 20th century, despite the two world wars, the London Stock Exchange grew. The exchange’s permanent headquarters were located in the Stock Exchange Tower until 2004, after being hit by a V2 rocket.
  • The FTSE 100 stock index was created in 1984 to measure the market. This index brings together the top 100 companies of the exchange and is still published to this day.
  • The British stock market was deregulated in 1986 by a major event known as the Big Bang. As a result, minimum commissions were abolished and electronic trading became permitted. Thanks to this, individual members were allowed to vote, and member firms could be owned by outside corporations.
  • This move also relocated the London Stock Exchange to Paternoster Square, to better meet its needs in terms of computer systems. Finally, the London market is focused on BTU.

Read also: Fixing Bourse

Stocks Listed on the London Stock Exchange

What Is the Best Broker for Trading the LSE?

With its very high volatility, the London Stock Exchange requires a broker that offers the lowest spread, or no spread at all. And since trading on a market always involves more risk, a perfect broker would be one that offers you the maximum support. The ideal broker for these needs is therefore Vantage FW.

What Is the Main Stock Market Index on the LSE?

The main stock market index on the LSE is the FTSE 100. As a stock market index, it gives an overview of the health of the London market. It is a benchmark. We can also count the FTSE 250 and the FTSE SmallCap.

How Do You Trade on the London Stock Exchange?

To trade on the London Stock Exchange, the trader needs to open an account. To do this, first choose your broker. We suggest Avatrade or Vantage FX. Then move on to the account opening step. Finally, place your orders on the LSE.

What Time Does the London Stock Exchange Open?

The LSE opens from 9:30 am local time and closes at 4:30 pm

This article is for educational purposes only and does not constitute investment advice. The investments mentioned carry a risk of loss of capital.

Forex, indices, matières premières et cryptos en CFD

Ouvrir un compte chez Vantage →
Photo of author
Cristina Balan
Fondatrice de BK SEO Marketing
Cristina Balan est la fondatrice de BK SEO Marketing, société éditrice des plateformes Edubourse.com et TraderFrancophone.fr. Elle compte 15 ans d'expérience dans le courtage en ligne, dont 10 ans à la tête d'équipes commerciales chez XTB et Admirals (XTB 2011–2016, Admirals 2016–2021). Diplômée de l'ESCP Europe, elle a réussi l'examen de certification professionnelle AMF (janvier 2012) et a réussi l'examen CFA Level I (CFA Institute, 2011). Elle conçoit et supervise les contenus et analyses destinés aux investisseurs, avec un objectif : une information fiable, structurée et accessible.