How To Buy GoodRX Stock
Welcome to Trading Brokers step by step guide to buying GoodRX stock. Here you will find an easy to understand explanation of trading GoodRX stock. This includes how to buy GoodRX shares online, what you need to trade GoodRX stock and how to open a trading account with a stock broker so that you can buy GoodRX stock online today.
Maybe you have heard of buying GoodRX 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 GoodRX stock can help you along your journey.
GoodRX is a healthcare company that operates a telemedicine platform, free website and mobile app for tracking the prices of prescription drugs. Should you buy its stock?
Overview of GoodRX
Healthcare costs in America are the highest globally, averagely coming at the rate of about $10 000 per citizen per annum. Of this amount, a sizeable 12% goes into prescription drugs alone, which comes at the rate of $1,200 per citizen.
Reports show that a tidy 18% of Americans cannot afford prescription drugs. Many die due to their inability to afford those drugs, while even many more are forced into bankruptcies. As a result, there is a need to significantly reduce the prices of these medications to forestall the above scenarios. While there are several possible approaches to solving this issue, one good one is the business solution; GoodRx does just that.
Founded in Santa Monica in 2011, GoodRx started as a platform tracking prescription drug prices across the US and providing free coupons for discounts on medications through a free website and mobile applications (both for Android and iOS). It tracks over 75,000 pharmacies, including major chains like Walgreens and CVS. All of these accept their coupons.
The company reportedly has at least 17 million unique visitors monthly and has helped Americans save tens of billions of dollars on prescription drugs. Some have even saved up to 80% on such medications.
“We’re trying to keep the mystery out of shopping for medicine and keep it super simple,” co-founder Dough Hirsch said. “There is no charge for the service and no signup. We find the best prices and put them before you.”
However, with its acquisition of HeyDoctor, which has been transformed into GoodRx Care, a comprehensive telehealth service, GoodRx has expanded to other healthcare technology areas, especially telemedicine.
The Business Side
With at least 17 million unique visitors, the company makes money by selling advertisements and referrals on its platforms. There is also a special monthly subscription service, GoodRx Gold, a discount card with even steeper discounts. Its core business of pharmacy-coupon aggregation is nearly free to the end-user.
What Moves GoodRx Stock Price
GoodRx listed on the NASDAQ in 4’Q 2020 under the ticker GDRX. In the longer term, many factors will affect the performance of its stock price, some of which are:
GoodRx is an impact-based business. And its work has earned it some recognition, including awards like inclusion in the Fortune 500 Change the World list. As such, GoodRx stands to gain a lot in the ever-continuous rise of impact investing; currently, over $3.7 trillion of capital has already been deployed into socially-responsible investments, a trend that does not seem to be abating anytime soon.
In just nine years, GoodRx has undergone massive expansion with several million regular users. It has also branched into the fast-growing field of telemedicine. GoodRx can still deploy its services in more areas such as healthcare appointment booking. Another is pharmacy consultation informatics.
Opportunities also abound for GoodRx to expand to other geographies.
Investing in GoodRX
Investing in GoodRX stock is when you buy GoodRX shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy GoodRX stock in order to try and make a profit when the GoodRX stock price increases in value.
Trading GoodRX stock
Trading GoodRX stock is when a trader speculates on the movement in the GoodRX stock price without actually owning the shares in GoodRX. Traders tend to buy and sell GoodRX stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell GoodRX 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 GoodRX stock is via CFDs (contracts for differences). When trading GoodRX CFDs, you do not actually invest in GoodRX shares, meaning you are not tied to them. You are only speculating on the rise or fall of the GoodRX 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 GoodRX will rise or short (sell) positions if they thought that the GoodRX 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 GoodRX 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 GoodRX 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. GoodRX investors can use futures trading to speculate on the price movement of GoodRX 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.
GoodRX spread betting
Spread betting is a financial derivative that enables traders to speculate on GoodRX 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 GoodRX stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
GoodRX options are financial instruments that are derivatives based on the value of GoodRX’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 GoodRX 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.
GoodRX is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside GoodRX, may consider ETFs.
Where to buy GoodRX 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, JFSA, FSCA, IIROC, ADGM FRSA
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 GoodRX 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 GoodRX stock with relative ease. The cost involved to get started makes trading GoodRX 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 GoodRX stock to try and earn profit from the variation in GoodRX’s stock price. When trading GoodRX CFDs you can speculate long and short on prices rising or falling without actually needing to invest in GoodRX 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 GoodRX’s stock for a more long-term hold.
Buying GoodRX 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 GoodRX, it is important you understand the dynamics that affect the GoodRX stock price.
How to trade GoodRX stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade GoodRX stock online. Here is a summary of the key steps:
1. Decide if trading GoodRX stock is for you
Trading GoodRX 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 GoodRX stock online.
2. Educate yourself
Before trading GoodRX 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 GoodRX 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 a GoodRX stock broker
In order to trade GoodRX 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 GoodRX
If you have made it this far then you may be ready to start trading GoodRX stock online! The next step is to research GoodRX 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 GoodRX 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 GoodRX stock
Once you feel ready to trade GoodRX stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on GoodRX, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of GoodRX trades for the long-term, whereas traders may buy and sell GoodRX stock on a daily basis.
Is trading GoodRX stock right for me?
Trading GoodRX 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 GoodRX 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 GoodRX 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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