How To Buy T-Mobile Stock
Welcome to Trading Brokers step by step guide to buying T-Mobile stock. Here you will find an easy to understand explanation of trading T-Mobile stock. This includes how to buy T-Mobile shares online, what you need to trade T-Mobile stock and how to open a trading account with a stock broker so that you can buy T-Mobile stock online today.
Maybe you have heard of buying T-Mobile 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 T-Mobile stock can help you along your journey.
The multinational mobile telecommunications company, T-Mobile, provides active services in Europe and the US. What are those factors that you should know about its stock?
Overview of T-Mobile
T-Mobile International is a multinational telecommunications conglomerate that provides mobile communications and broadband internet services to customers. Founded in 1990, the company is a subsidiary of Deutsche Telekom AG, the largest telecom provider in Europe.
T-Mobile International is headquartered in Bonn, Germany but has a strong presence in other parts of Europe and the United States.
T-Mobile Business in the US
T-Mobile, Inc. undertakes T-Mobile US operations with headquarters in Bellevue, Washington. The company is publicly listed on the NASDAQ. However, over half of its total shares are held by Deutsche Telekom and the SoftBank Group, while the public holds the rest.
Founded in 1994 in the US, the current T-Mobile US, Inc. started as VoiceStream Wireless PCS and only became T-Mobile USA, Inc. in 2001 when Deutsche Telekom AG acquired it. In 2013, T-Mobile and MetroPCS merged, retaining the T-Mobile brand and finally merged with Sprint Corporation in 2020.
What moves T-Mobile Stock?
Several factors will affect T-Mobile stock price in years to come. Some of them are discussed below.
The Merger and a Stronger Platform
In 2018, T-Mobile and Sprint announced a merger in an all-share deal, and the process was completed in 2020 with both rebranding’s done under the “T-Mobile” franchise.
The merger has transformed T-Mobile from an underdog to a significant stakeholder in the telecom business. It has become the second-largest telecom provider in the US with almost 100 million customers, undoing the domination posed by the duo of AT&T and Verizon.
Apart from these, there are other benefits of the merger, the most important of which is substantial cost savings for the new entity.
One other significant benefit of the merger is that the combined entity boasts the broadest 5G coverage in the US. It has twice as much coverage as the industry’s behemoth, AT&T and several times the coverage of Verizon. As a result, it can use price as a strategy to further consolidate its position in the 5G race.
The potentials for 5G are unlimited – from smart homes to automated factories and self-driving and more. So, industry leaders powering such transformations have got a lot to gain. T-Mobile is also, albeit slowly, expanding to other non-core telecom businesses. For instance, it launched TVision, a streaming service.
T-Mobile seems to have broken the virtual duopoly that existed in the US telecoms space. However, how much can it continue to grow? The US telecom business is a highly saturated one; there are seemingly no ‘new grounds’ or ‘unconquered territories’ to venture into. Any new customers the company will be getting will be gotten from other competitors, which is not always an effective way to grow.
Also, scaling will be difficult as it will require a huge cost outlay. The company has to look out for new revenue sources, an array where it appears to lag behind other giants.
The merger will create financial benefits through increased revenue and potential cost reductions. However, the new entity is laden with a lot of debt, a chunk of which it took out to finance the acquisition. To achieve the synergy that will make the merger fruitful, the company has to make a lot of investments. Borrowing to do that will increase the debt burden.
In the past, T-Mobile has used competitive pricing to gain market share. For instance, its “Uncarrier” service was quite popular with customers. However, it seemed quality was sacrificed for cheaper services, as there were several complaints about T-Mobile network speed and frequent unreliability.
Competitive pricing might not be an effective strategy, especially in the longer term, as customers look out for quality. Hence, the company will have to improve service offerings in this category.
Before Investing in T-Mobile
T-Mobile is a typical dividend-stock industry but with makings of a high-growth stock, especially in the mid-term. How well the company executes on its 5G can determine how true this assertion becomes. So, watch out.
Investing in T-Mobile
Investing in T-Mobile stock is when you buy T-Mobile shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy T-Mobile stock in order to try and make a profit when the T-Mobile stock price increases in value.
Trading T-Mobile stock
Trading T-Mobile stock is when a trader speculates on the movement in the T-Mobile stock price without actually owning the shares in T-Mobile. Traders tend to buy and sell T-Mobile stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell T-Mobile 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 T-Mobile stock is via CFDs (contracts for differences). When trading T-Mobile CFDs, you do not actually invest in T-Mobile shares, meaning you are not tied to them. You are only speculating on the rise or fall of the T-Mobile 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 T-Mobile will rise or short (sell) positions if they thought that the T-Mobile 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 T-Mobile 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 T-Mobile 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. T-Mobile investors can use futures trading to speculate on the price movement of T-Mobile 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.
T-Mobile spread betting
Spread betting is a financial derivative that enables traders to speculate on T-Mobile 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 T-Mobile stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
T-Mobile options are financial instruments that are derivatives based on the value of T-Mobile’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 T-Mobile 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.
T-Mobile is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside T-Mobile, may consider ETFs.
Where to buy T-Mobile 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, CySEC, IFSC, DFSA
Min $5 Deposit
ASIC, CySEC, FSA, SCB
Min $200 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
Why trade T-Mobile 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 T-Mobile stock with relative ease. The cost involved to get started makes trading T-Mobile 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 T-Mobile stock to try and earn profit from the variation in T-Mobile’s stock price. When trading T-Mobile CFDs you can speculate long and short on prices rising or falling without actually needing to invest in T-Mobile 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 T-Mobile’s stock for a more long-term hold.
Buying T-Mobile 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 T-Mobile, it is important you understand the dynamics that affect the T-Mobile stock price.
How to trade T-Mobile stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade T-Mobile stock online. Here is a summary of the key steps:
1. Decide if trading T-Mobile stock is for you
Trading T-Mobile 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 T-Mobile stock online.
2. Educate yourself
Before trading T-Mobile 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 T-Mobile 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 T-Mobile stock broker
In order to trade T-Mobile 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 T-Mobile
If you have made it this far then you may be ready to start trading T-Mobile stock online! The next step is to research T-Mobile 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 T-Mobile 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 T-Mobile stock
Once you feel ready to trade T-Mobile stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on T-Mobile, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of T-Mobile trades for the long-term, whereas traders may buy and sell T-Mobile stock on a daily basis.
Is trading T-Mobile stock right for me?
Trading T-Mobile 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 T-Mobile 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 T-Mobile 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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