How to Invest in Stocks Online in 2022
- Sign Up: Head over to eToro.com and click on Join Now. Enter your details and choose login credentials.
- Verify Your Account: As part of the KYC process upload proof of ID and address.
- Deposit Your Funds: Deposit a minimum of $10 via e-wallets, credit/debit cards, or bank transfers.
- Buy Stocks: Search for your desired stocks and tap ‘Trade Now’.
Where to Invest in Stocks – Top Brokers Reviewed
If you’re looking for how to invest in stocks online, you’d be glad to know that several top platforms help you do that. Generally, your best options are:
- eToro: The Best Platform to Invest in Stocks
- Webull: Great for All Types of Investors
1. eToro: The Best Platform to Invest in Stocks
eToro is regulated by several top-tier financial agencies – including CySEC, FCA, and ASIC. This popular stockbroker is user-friendly, supports copy trading and a wide range of payment methods.
Pros
- Zero-commission stock trading
- Great social trading features
- Beginner-friendly user interface
- Impressive customer support
Cons
- eToro charges an inactivity fee
68% of retail investor accounts lose money when trading CFDs with this provider.
2. Webull: Great for All Types of Investors
Webull is a regulated, versatile exchange that is gaining popularity. Based in New York, the platform is registered with the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).
The primary benefit of Webull is that the platform doesn’t have a minimum balance. This means that if you want to invest in penny stocks or you don’t have so much money, Webull still accommodates your needs. The firm has an impressive catalog of stocks to choose from.
Pros
- Good for beginners to use
- No minimum balance
- Fees are very competitive
Cons
- Slow customer support
Your capital is at risk.
How to Invest in Stocks – Beginners Tutorial
eToro is the best platform for how to invest in stocks for beginners. Here’s how to buy shares with low fees in 2022.
1. Sign Up
The first step involves visiting the eToro website and tapping on “Join Now”. Enter your username and email, verify your details.
2. Verify Your Identity
Next, you have to complete your identity verification by uploading proof of identity and address.
3. Deposit Your Funds
eToro allows you to deposit a minimum of $10 via credit/debit cards, e-wallets, and bank transfers.
68% of retail investor accounts lose money when trading CFDs with this provider.
Go to the search bar and type in your desired stock. Click on “Open Trade.” Enter your investment, and click on “Trade”.
The Basics of Investing in Stocks
Here are some basics of stock investment for beginners:
1. Build a diversified portfolio
One of the most important things you should do is diversify your portfolio. This way, you can protect yourself in the event of a downturn. You can decide to invest in dividend stocks and choose from a basket of many dividend stocks. Or, you can diversify across multiple stocks in the same industry.
2. Be prepared for downturns
No investor ever wants to go through a downturn. However, downturns are a part of the market, and losses occur from time to time. As long as you diversify, you should be able to weather the effects of downturns. However, you also need to have the right mindset when these downturns come.
3. Be committed to your portfolio
When you have a portfolio of assets, you have companies you’re committed to. Try to ignore any short-term noise and focus on the long game as much as possible.
The best investors in the world are the ones who recognize the value and invest in it. They’ll all tell you that building wealth doesn’t happen overnight.
68% of retail investor accounts lose money when trading CFDs with this provider.
How to Choose Which Stocks to Invest In
If you are investing in the stock market, you need to know how to recognize a valuable asset.
1. Do your homework
When you trade stocks, research is important. You want to find a good stock with good value, especially if you plan to hold for a while.
Review the company’s fundament to know its viability and growth potential. Examine their revenues, profits, and the opportunities in their field. Companies with positive earnings growth tend to be high-value picks.
2. Understand the debt-to-equity ratio
All companies have debt. As an investor, you can use debt to examine a company’s financial health. Watch out for companies with high debt when compared to their equity.
To do this, simply divide the company’s total; liabilities by the amount of shareholder equity. A good number should be 0.3 or less if you have a low-risk tolerance. However, you can also examine the industry’s debt-to-equity ratio to see where the company stands.
3. Examine the price-to-earnings ratio
Another metric to consider is the price-to-earnings (or P/E/) ratio. This shows how well a company’s stock price reflects in its earnings. To find it, just divide the company’s share price by its annual earnings per share.
A company with a lower P/E ratio isn’t as valued as high as one with a higher P/E ratio. Determine whether the stock truly deserves this lower valuation or if the market is undervaluing the stock, then make a decision.
68% of retail investor accounts lose money when trading CFDs with this provider.
What Are the Best Stocks to Invest in Right Now?
To help you get started, let’s look at some of the best companies to invest in at the moment;
1. Microsoft (MSFT)
Tech is always a lucrative space to invest in, and Microsoft has always been one of the biggest names in tech. The Washington-based company is starting 2022 with a bang as it recently purchased gaming developer Activision Blizzard for $69 billion.
With the Activision acquisition, Microsoft will increase its gaming catalog and boost its capabilities as it looks to enter the metaverse.
2. ASML Holding NV (ASML)
ASML is a Dutch company worth about $320 billion. It is currently the only company globally that produces extreme ultraviolet (EUV) lithography machines. The machines are needed by large chip and semiconductor makers.
With the world’s demand for semiconductors growing, ASML sits on a goldmine. Investors should watch out for this one.
3. Nvidia Corporation (NVDA)
Speaking of semiconductors, Nvidia Corporation is another company to be on the lookout for. Nvidia became famous for its semiconductor chips, and it is now the world’s leading producer of these critical device components.
With a market cap of almost $700 billion, Nvidia is one of the top 10 most valuable public companies globally.
4. Tesla Motors Inc. (TSLA)
Since it broke into the limelight, Elon Musk-led Tesla Motors has been a rockstar in the electric vehicle industry. Now, it has set its sights on conquering the automotive industry.
Today, Tesla is the world’s most valuable carmaker and a member of the trillion-dollar club. The company’s delivery estimates have crushed expectations for several quarters, and all signs point to that trend continuing.
5. Amazon Inc. (AMZN)
Amazon was already the global leader in e-commerce before the coronavirus pandemic hit. In 2020, the company grew to become a true behemoth.
With investment in different industries, amazon is not stopping in its quest for global dominance.
68% of retail investor accounts lose money when trading CFDs with this provider.
Conclusion
So, there you have it – everything you need to know about how to invest in stocks. Remember that the market is constantly on the move, and there will always be quality stocks for you to invest in.
If you do want to learn how to invest in stocks, we recommend that you start on eToro. This platform makes it very easy for beginners to play in the e-market, with a low minimum balance and access to a wide range of stocks to choose from.
