How To Buy Apple Stock
Welcome to Trading Brokers step by step guide to buying Apple stock. Here you will find an easy to understand explanation of trading Apple stock. This includes how to buy Apple shares online, what you need to trade Apple stock and how to open a trading account with a stock broker so that you can buy Apple stock online today.
From iPad and Mac to iPhone and the watch series, Apple has a long list of highly-innovative products that command a huge following all over the world. Maybe you have heard of buying apple stock online or through a friend. Perhaps you are looking to trade and are curious about the different options available to you. Whether you are looking to speculate, invest or just learn more, this guide on how to buy apple shares can help you along your journey.
Overview of Apple
Founded 44 years ago, Apple manufactures and sells consumer electronics and computer software. It also offers an ever-growing array of online services and consistently ranks high in year-after-year brand reputation quotient. And that is for good reasons. The company has almost been single-handedly responsible for some of the most technological innovations that humanity has experienced in the last few decades, most especially in the consumer tech space.
From the ground-breaking Apple 1 that revolutionized personal computing to PowerBook (which later morphed into the MacBook), Apple has always been a leader amongst the pack. Then we had the iPhone and iOS that started the journey of putting the world into our mobile phones. Currently, more than $1.5 billion Apple devices are active all over the globe.
Apple product line-up
As earlier mentioned, Apple is into consumer hardware and software.
Apple’s line of hardware products includes:
- Apple Watch
- Apple TV
Apple has also released several operating systems designed for its hardware products. They include MacOS (for the MacBook and iMac); iOS (for the iPhone); watchOS (for the Apple Watch); tvOS (for Apple TV) and the recently-released; iPadOS (the new OS dedicated to the iPad).
Apparently, the company tailors most of its software to work specifically for the products in its ecosystem.
Investing in Apple
Apple’s stock debuted for public trading on December 12, 1980. It has since yielded over 125,000% returns! Obviously, investing in Apple has been quite rewarding. It was the first American company to reach the $1 trillion market capitalisation mark. Recently, it also broke the record when it hit $2 trillion in valuation. As of mid-October 2020, the stock’s YTD return was around 66.4%.
Investing in Apple stock is when you buy Apple shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Apple stock in order to try and make a profit when the Apple stock price increases in value.
Trading Apple stock
Trading Apple stock is when a trader speculates on the movement in the Apple stock price without actually owning the shares in Apple. Traders tend to buy and sell Apple stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Apple stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).
One of the most popular ways to trade Apple stock is via CFDs (contracts for differences). When trading Apple CFDs, you do not actually invest in Apple shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Apple stock price. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
A CFD trader can go short or long, set stop and limit losses and apply trading scenarios that align with their own personal objectives. Traders would open long (buy) positions, if they think the stock price of Apple will rise or short (sell) positions if they thought that the Apple stock price will fall. The difference in price between the entry and exit price is the traders realised profit or loss, excluding any broker commission and fees.
For example, if you think Apple shares are going to increase in price, you could buy a share CFD on the company. You will exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares increase in price and making a loss if they decrease in price.
On the contrary, if you think Apple shares are going to decrease in price, you could sell a share CFD on the company. You will still exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares decrease in price and making a loss if they increase in price.
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Apple investors can use futures trading to speculate on the price movement of Apple stock in order to try and make a profit. Traders would look to go long (buy) a futures contract if they believe the price will rise or short (sell) a futures contract if they believe the price will fall. The difference in price between the price at the start and expiry date of the futures contract is the profit or loss from the contract.
Apple spread betting
Spread betting is a financial derivative that enables traders to speculate on Apple stock falling or rising without taking ownership of the underlying asset. If the trader makes a correct prediction and the asset does move in that direction, they could make a profit, minus any broker fees. On the other hand, if the price moves against their prediction, they would incur a loss.
Financial spread betting is similar in ways to CFD trading except that you are betting a fixed amount per point on the Apple stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Apple options are financial instruments that are derivatives based on the value of Apple’s stock. Traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease. Option contracts come with an expiration date before which the holder needs to exercise their option to buy or sell an underlying asset at an agreed-upon price. The stated price on an option is known as the strike price.
Buyers can choose to exercise their calls and puts or not whereas sellers are obligated according to the buyer decision. Therefore, the sellers (writers) can be exposed to more risk than buyers whose losses can be limited to the premium paid for the contract in the instance they do not exercise the contract. On the other hand, sellers could lose more depending on the Apple market price.
Exchange Traded Funds (ETFs) enable traders to invest in a basket of securities that trade intraday like individual stocks on an exchange, and are typically designed to track the performance of an existing market or group of markets.
Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify an investment portfolio and create a mini-portfolio, or, for the active trader, they can be used to try and take advantage of price movements.
Apple is included in hundreds of ETF’s with billions of shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Apple, may consider ETFs.
Where to buy Apple stock?
Stock trades are processed via a stock exchange, where a stock broker represents each investor. The majority of investors will nowadays use an online stock broker to buy and sell stocks through a stock trading platform which will enable them to connect to the stock exchange. You can see a selection of our best stock brokers below with whom you can open an account to trade stocks online.
ASIC, BVI, CBI, FFAJ, FSA, FSCA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Why trade Apple stock?
Trading the stock market has become a popular investment activity for many people, especially with the technology that we have these days making it more accessible than ever. There are a vast number of trading brokers, trading platforms and trading apps available for buying and selling Apple stock with relative ease. The cost involved to get started makes trading Apple stock accessible to traders of all experience levels from across the globe.
The availability of leverage has also contributed towards the increase in aspiring traders. Leverage allows traders to hold a position size greater than they would have been able to without it. E.g. An account balance of $1,000, could take a position size of $5,000 with 1:5 leverage. Whilst this can increase potential profits, it also greatly increases risk. It is therefore of the upmost importance that you have a clear understanding of the significant risks involved with online trading, especially when using leveraged positions.
The majority of traders would look to buy and sell Apple stock to try and earn profit from the variation in Apple’s stock price. When trading Apple CFDs you can speculate long and short on prices rising or falling without needing to invest in Apple shares. This can make it a more convenient trading method for anyone who has a trading account with an online broker. Alternatively, long term investors may purchase traditional shares in Apple’s stock for a more long-term hold.
Buying Apple stock can also be a way to diversify a trading portfolio and to hedge against shares in other stocks or investments in other asset classes such as forex, commodities, precious metals and cryptocurrencies.
However, before investing in Apple, it is important you understand the dynamics that affect the Apple stock price.
Factors that move the Apple stock price
Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect Apple’s stock price. We will look at some of the important factors that you need to consider if you are looking to invest in Apple stock.
Apple’s ability to keep innovating and introducing blockbuster products is by far its stock price’s most significant driver. The HomePod which the company introduced in 2017 is one of its best-selling devices. In fact, many consumers look forward to its yearly upgrades. The yearly iPhone Event – usually held in October – and the reception it garners, can also be a good indicator of sales and therefore stock price movement for the following year. Thus, you might want to keep tabs on it.
Generally, Apple faces much competition from many tech companies offering the same services. However, the stiffest seems to come from giants such as Google whose operating system, Android, directly competes with the iOS in the smartphone market. Also, in this market are Huawei and Samsung. Add to these its never-ending battle of domination with Microsoft.
Hence, it is important that you note that products and services introduced by those competitors can affect Apple’s margins and stock.
Although the iPhone is just one out of Apple’s many products, you may refer to it as “The Product.” This is because it single-handedly accounts for over 50% of sales. As a result, its sales do affect the company’s stock.
Being a giant, Apple is easily a target of regulators. However, two areas where it faces huge regulatory risks are anti-trust and competition. With the increasing regulatory scrutiny of the company from both the US and European Union, the future is a bit uncertain.
Whatever goes on in the economy also affects Apple. For example, the COVID-19 pandemic created further uncertainties around the stock, even though the resulting lockdowns boosted demand for its products and services. One more economic factor that can affect the stock – positively or otherwise – is a trade war between major world economies.
Overall, Apple is a reliable company with good fundamentals – a potential strong signal for a price rally. However, you should still pay attention to some other unpredictable factors detailed here that may come up along the way.
How to trade Apple stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Apple stock online. Here is a summary of the key steps:
1. Decide if trading Apple stock is for you
Trading Apple stock online carries an element of risk and can take more time than other forms of investing. You will need to research the company, manage your positions, follow market news and decide how to react to it. It is important to understand the risks and dedication that comes with trading Apple stock online.
2. Educate yourself
Before trading Apple stock, it is imperative to learn as much as possible about investing and trading online. Any mistake could prove to be costly. There is an abundance of free educational materials provided by many online brokers that can help you to improve your trading skills and knowledge.
Most brokerages will also provide a free demo trading account so that you can practice trading Apple stock online with virtual funds in order to familiarise yourself with the trading platforms and practice your trading strategies until you feel confident enough to open a real trading account.
3. Choose an Apple stock broker
In order to trade Apple stock online, you will need a broker account and trading platform to execute your trade positions through to the market. When choosing a broker, there are a few important things to consider such as regulation, commission fees, platforms, tools, education, funding options and customer support.
If you do not have the time to research brokers, you can see a list of our best brokers that we have already prepared to help traders. If you would like to know more, you can also view our detailed guide on how to choose a trading broker.
4. Research Apple
If you have made it this far then you may be ready to start trading Apple stock online! The next step is to research Apple to help increase your knowledge in the company. The best brokers should have this information conveniently displayed for you within their trading platform.
5. Have a trading plan
Some of the most important factors that can help determine Apple stock trading performance can be the trading plan and discipline. It is important to have a solid trading plan personalised to your own needs that includes the money management and trading strategy that you will use. Most experts and professional traders would try to not let negative emotions such as fear, anger and greed affect their trading strategy.
6. Buy and sell Apple stock
Once you feel ready to trade Apple stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Apple, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Apple trades for the long-term, whereas traders may buy and sell Apple stock on a daily basis.
Is trading Apple stock right for me?
Trading Apple stock is a popular choice for long-term investors and active traders. It can be suitable for scalping, day trading and swing trading. Traders who would usually trade forex, trade indices, trade commodities, trade cryptocurrency, may look to diversify their portfolio.
However, it is important to understand the significant risks involved with trading Apple stock online, especially when using leveraged positions. Most experts would suggest trading on a demo account with virtual funds to begin with.
This can be a useful way to familiarise yourself with how to trade Apple stock and using trading platforms whilst allowing you to practice your trading strategies until you feel confident and produce consistent results. Most stock brokers provide unlimited demo accounts free of charge.
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