How To Buy Zoom Stock
Welcome to Trading Brokers step by step guide to buying Zoom stock. Here you will find an easy to understand explanation of trading Zoom stock. This includes how to buy Zoom shares online, what you need to trade Zoom stock and how to open a trading account with a stock broker so that you can buy Zoom stock online today.
Maybe you have heard of buying Zoom 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 Zoom stock can help you along your journey.
Overview of Zoom
Zoom Video Communications Inc. (ZM) is a communications technology company that offers conferencing services and video-first communication platform to users over the Internet. The San Jose, CA-based company’s video calling platform supports teleconferencing, distant learning, telecommuting and social connections. The company’s business strategy revolves around offering an easy-to-use service than rivals with more affordability.
The company was founded in April 2011 by Eric Yuan, who formerly worked as an engineer and senior executive at Cisco. Zoom initially struggled to find investors amid a strong perception that there is no room for more players in the videotelephony industry, which was already saturated at that time.
The company rolled out its software in 2013 and since then it has substantially grown, mainly due to its reliable and easy-to-use software. Zoom has more than 2,500 employees in the United States and worldwide.
Factors controlling Zoom growth
The coronavirus outbreak offered valuable opportunities to technology companies around the globe to help individuals and businesses to limit the effects of the pandemic by helping them operate alongside the new mobility restrictions imposed by the government and authorities worldwide.
Zoom was among the fortunate stocks that largely benefitted from the lockdowns imposed across different regions in the world. The company’s stock skyrocketed more than 500 percent following the pandemic, showing that people increasingly preferred Zoom’s services to connect with their office, family, and friends.
The company’s video calling software became a regular part of everyone’s life during the pandemic. From university professor to business personals, Zoom become widely famous for routine interaction.
Experts believe that Zoom is expected to grow even after the pandemic, as it is an effective way to connect with each other. The software has turned into an important business tool that somehow has made a long-lasting change in the way people use to interact in the past. Moreover, meeting through Zoom allows enterprises to save costs related to arrangement of actual physical meetings. Considering the aforesaid facts, it is expected that Zoom will continue to do well in future.
Innovation & expansion
Zoom has recently announced many exciting products and innovative features. For instance, its enhanced video calling now supports immersive scenes, which means all participants on a video conference can set same background image to bring uniformity during the call.
The company also unveiled OnZoom, which is an online event platform that can be used to host paid and free events such as webinars. Zoom has also improved its software development kits to support the integration of its customers apps with its communication capabilities.
Beside new features and improvements in the existing products, the company is now targeting a non-GAAP adjusted operating margin of about 25 percent for the longer-term, up from its previous guidance of around 20 percent, which means the company’s profit will increase in future.
Investing in Zoom
Investing in Zoom stock is when you buy Zoom shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Zoom stock in order to try and make a profit when the Zoom stock price increases in value.
Trading Zoom stock
Trading Zoom stock is when a trader speculates on the movement in the Zoom stock price without actually owning the shares in Zoom. Traders tend to buy and sell Zoom stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Zoom 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 Zoom stock is via CFDs (contracts for differences). When trading Zoom CFDs, you do not actually invest in Zoom shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Zoom 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 Zoom will rise or short (sell) positions if they thought that the Zoom 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 Zoom 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 Zoom 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. Zoom investors can use futures trading to speculate on the price movement of Zoom 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.
Zoom spread betting
Spread betting is a financial derivative that enables traders to speculate on Zoom 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 Zoom stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Zoom options are financial instruments that are derivatives based on the value of Zoom’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 Zoom 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.
Zoom is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Zoom, may consider ETFs.
Where to buy Zoom 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, FSA, SCB
Min $200 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Why trade Zoom 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 Zoom stock with relative ease. The cost involved to get started makes trading Zoom 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 Zoom stock to try and earn profit from the variation in Zoom’s stock price. When trading Zoom CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Zoom 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 Zoom’s stock for a more long-term hold.
Buying Zoom 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 Zoom, it is important you understand the dynamics that affect the Zoom stock price.
Factors that move the Zoom stock price
Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect the Zoom stock price. The majority of investors and analysts are optimistic about Zoom’s growth in the coming time. However, fierce competition in the internet communication industry could shatter those optimistic thoughts if rivals including tech giants Microsoft (MSFT) and Cisco Systems (CSCO) managed to capture Zoom’s market share with their respective communication apps.
How to trade Zoom stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Zoom stock online. Here is a summary of the key steps:
1. Decide if trading Zoom stock is for you
Trading Zoom 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 Zoom stock online.
2. Educate yourself
Before trading Zoom 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 Zoom 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 Zoom stock broker
In order to trade Zoom 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 Zoom
If you have made it this far then you may be ready to start trading Zoom stock online! The next step is to research Zoom 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 Zoom 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 Zoom stock
Once you feel ready to trade Zoom stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Zoom, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Zoom trades for the long-term, whereas traders may buy and sell Zoom stock on a daily basis.
Is trading Zoom stock right for me?
Trading Zoom 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 Zoom 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 Zoom 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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