How To Buy Samsung Stock

How To Buy Samsung Stock

Welcome to Trading Brokers step by step guide to buying Samsung stock. Here you will find an easy to understand explanation of trading Samsung stock. This includes how to buy Samsung shares online, what you need to trade Samsung stock and how to open a trading account with a stock broker so that you can buy Samsung stock online today.

Maybe you have heard of buying Samsung 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 Samsung stock can help you along your journey.

Overview of Samsung

In 1938, Lee Byung-Chul founded Samsung as a trading company but quickly diversified it into various other businesses. By the mid-1970s, Samsung had already established its business in different fields, including securities, food processing, textiles, electronics, construction, etc. Samsung group is the largest South Korean multinational business conglomerate headquartered in Seoul, South Korea. The company holds different subsidiaries under its umbrella, some of which are mentioned below:

Samsung Electronics

The company is one of the largest producers of electronic components and mobile phones. The company’s products include LED and LCD panels, mobile phones, televisions, hard-drives, semiconductors, solid-state drives, cameras, speakers, printers, etc.

Samsung Heavy Industries

The company manufactures electric power systems, electric control systems, ships, wind power systems, offshore platforms, engineering & infrastructure, heavy equipment, fork lifters, cranes, excavators, etc. The company is one of the largest manufacturers of ships in the world.

Samsung Life Insurance

The company is the largest insurance service provider in South Korea. It offers life insurance, health insurance, and annuities.

Samsung Engineering

The company’s engineering services include LNG regasification, liquefaction, pipelines, cracking of Naptha, Propane, Ethane, hydrotreating, waste treatment, water treatment, sewage treatment, etc. The company is actively working on projects in Saudi Arabia, UAE, India, and many other countries.

Samsung Fire & Marine Insurance

The company offers automobile insurance, commercial insurance, long-term insurance, and enterprise risk management solutions.

Samsung SDS

The company provides IT services including enterprise resource planning, customer relationship management, data centers, cloud services, Internet of Things (IoT platforms), and various AI-based solutions.

Cheil Worldwide

The company offers marketing services like advertising, digital marketing, public relations, branding, etc. Microsoft, Adidas, Shell, General Motors, and other big companies are some of the major clients of Cheil Worldwide.

Samsung Group Stock

Samsung stock is only traded on the Korean Stock Exchange. Investors who don’t have access to the Korean Stock Exchange can get exposure to Samsung’s stock by purchasing ETFs or mutual funds that hold shares of Samsung Group or its subsidiary companies.

What moves the price of Samsung Group’s stock?

Samsung is a well-diversified conglomerate, which means that the company derives its revenues from various businesses, providing a cushion from volatility in its revenues and stock movements. However, this doesn’t imply that its stock price is not prone to volatility; its stock, like any other stock, reacts to market forces. Therefore, an investor must keep these factors in mind while investing or taking exposure to Samsung’s Stock.

Volatility in Samsung Electronics’ revenues

Samsung Electronics, a subsidiary of Samsung Group, contributes a major share to the group’s revenues. Therefore, any volatility in the revenue of Samsung Electronics can move the stock price. An increase in sales and revenue of Samsung Electronics can trigger an increase in the stock price of both Samsung Electronics, as well as Samsung Group. On the contrary, a reduction in sales/revenue of Samsung Electronics can dwindle the stock price.

Mergers, Acquisitions, New Investments and Divestments

Conglomerates like Samsung quite often make new investment and divestment decisions. As an investor, you must keep yourself up-to-date about any major developments related to new mergers, acquisitions, investments, and divestments. A new acquisition or investment by Samsung can toss its stock higher because of the expected rise in revenues and diversification, whereas a divestment sometimes can put downward pressure on the stock price.

Economic Conditions

Economic conditions affect every stock and company. Since Samsung operates worldwide, the global economic conditions can affect its revenues, which in turn impact Samsung Group’s share price. Healthy economic conditions generate business opportunities and result in higher revenues, pushing the stock prices and the stock market index upward and vice versa.

News & Statistics

The company has many subsidiaries, and many of them are listed on the Korean Stock Exchange. If you want to take exposure to any individual subsidiary instead of the group, you should study the news and statistics about the particular subsidiary and its industry. For example, an investor pondering to invest in Samsung Electronics should study the financial reports and analyse the statistics of the industry before investing in it.

Any positive news about the company or industry that can result in higher revenues for the subsidiary is likely to push the stock price of the subsidiary higher and vice versa.

Before investing in any company investors should focus on a range of factors. The above-mentioned factors can help investors to make an informed decision about investing in Samsung Group stock.

Investing in Samsung

Investing in Samsung stock is when you buy Samsung shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Samsung stock in order to try and make a profit when the Samsung stock price increases in value.

Trading Samsung stock

Trading Samsung stock is when a trader speculates on the movement in the Samsung stock price without actually owning the shares in Samsung. Traders tend to buy and sell Samsung stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.

You can buy and sell Samsung stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).

Samsung CFDs

One of the most popular ways to trade Samsung stock is via CFDs (contracts for differences). When trading Samsung CFDs, you do not actually invest in Samsung shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Samsung 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 Samsung will rise or short (sell) positions if they thought that the Samsung 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 Samsung 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 Samsung 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.

Samsung futures

Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Samsung investors can use futures trading to speculate on the price movement of Samsung 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.

Samsung spread betting

Spread betting is a financial derivative that enables traders to speculate on Samsung 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 Samsung stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.

Samsung options

Samsung options are financial instruments that are derivatives based on the value of Samsung’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 Samsung market price.

Samsung ETFs

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.

Samsung is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Samsung, may consider ETFs.

Where to buy Samsung 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.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA

Min $100 Deposit

2006

1:400

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2.

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

1974

1:200

Review Trade! Trade!
Terms & conditions apply
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3.

ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA

Min $200 Deposit

2010

1:30

Review Trade! Trade!
Terms & conditions apply
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.

ASIC, CySEC, IFSC, DFSA

Min $5 Deposit

2009

1:888

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5.

ASIC, CySEC, FSA, SCB

Min $200 Deposit

2007

1:500

Review Trade! Trade!
Terms & conditions apply
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why trade Samsung 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 Samsung stock with relative ease. The cost involved to get started makes trading Samsung 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 Samsung stock to try and earn profit from the variation in Samsung’s stock price. When trading Samsung CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Samsung 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 Samsung’s stock for a more long-term hold.

Buying Samsung 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 Samsung, it is important you understand the dynamics that affect the Samsung stock price.

How to trade Samsung stock online?

If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Samsung stock online. Here is a summary of the key steps:

1.     Decide if trading Samsung stock is for you

Trading Samsung 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 Samsung stock online.

2.     Educate yourself

Before trading Samsung 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 Samsung 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 Samsung stock broker

In order to trade Samsung 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 Samsung

If you have made it this far then you may be ready to start trading Samsung stock online! The next step is to research Samsung 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 Samsung 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 Samsung stock

Once you feel ready to trade Samsung stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Samsung, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Samsung trades for the long-term, whereas traders may buy and sell Samsung stock on a daily basis.

Is trading Samsung stock right for me?

Trading Samsung 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 Samsung 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 Samsung 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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