If you wondering how you can invest your money in Apple, worry less. Here are five steps for how to buy Apple stock, including figuring out how much you should invest.
For many, Apple products have become an integral, and often unavoidable, part of life whether you’re a fan of Apple or not.
Plus, during the past several years, after its founder Steve Jobs’s tragic death in 2011, Apple continues to introduce innovative, life-changing products.
Apple is a US Tech company, traded on the NASDAQ under the AAPL ticker. It’s valued at $813.3 billion and it is known for its quality and unique products and solutions, like the iPhone, Macbook or iCloud.
If you’d like to buy its stocks you need to find a broker that gives you access to the NASDAQ because that’s the main exchange it’s traded on (hang tight, we’ll get into this in a bit).
Apple’s market cap was around $813.3 billion at the time of writing, which is March 2019.
All of this doesn’t mean that Apple is a good company or a bad one. As part of this example, you might want to get reminded of what you are considering investing in though.
Pros of Buying Apple Stock
- Growth has remained strong over the past 18 years, even after the founder and CEO passed away in 2011
- Apple continues to design and manufacture innovative products, constantly creating newer versions of their classic.
- iPhone, Macs, and iPads continue to perform well
- Apple hit the trillion-dollar market cap in 2018
Cons of Buying Apple Stock
- Shares may be expensive for first-time investors. As of August 2018, shares sit at over $200 each
- Apple, no longer the only tech giant on the scene, finds itself in the middle of large competitors, such as Samsung.
Steps of Buying Apple Shares
Step 1: Find a good online broker
One of the characteristics of an online broker is the exchanges they have access to. Not all brokers allow you to buy shares of Apple, simply because they don’t have access to the NASDAQ.
Needless to say, you need a broker that gives you access to this exchange.
The next important thing with a broker is that it should fit you as well. Not all brokers allow every citizen to open an account with them; some brokers are super expensive if you just want to buy a couple of Apple shares every once in a while, some brokers can be absolutely free.
When recommending a broker, we take into account different factors, like the broker’s fees, trading platform, accessible markets to trade, and how easy it is to open an account.
Safety is also highly important, but since we recommend only safe brokers, you do not have to worry about it.
Step 2: Open your brokerage account
After finding your online broker, you need to open an account. This is much like a regular bank account and opening one is usually a fully online process.
At some brokers it’s as quick as opening a new Gmail account, at some brokers, it takes a couple of days until they do some background check on you.
Instead of storing money on it, you will store your shares on this though, so you definitely need this to buy Apple shares and to store them.
Step 3: Deposit money to your account
You will pay cash to buy those Apple stocks. This cash first needs to be sent (deposited) to your broker. This is usually super easy and quick, actually even easier than opening your brokerage account.
The most common way you can deposit your money is through bank transfer and using a credit/debit card. At some brokers, you can deposit to your investment account even from different electronic wallets like Paypal, e.g. at eToro.
Step 4: Buy the Apple share
You have the account, the cash, and the share target. The last step is to press the buy button!
You log in to your online brokerage, search for Apple shares, insert the number of shares you wish to buy, and click buy, which will initiate the purchase of shares (in trading lingo: execute the buy order).
A couple of hints around this: when placing an order, you can choose from different order types. The market order buys at the actual market price, while the limit order allows you to specify the exact price at which you want to buy the share.
Step 5: Review your Apple position regularly
You are not finished after you purchased your Apple stock. Now it is key to monitor your investments. This basically means following your investment strategy.
If you bought the Apple share for holding it for a longer-term, you might participate in the annual meeting and collect all the news and information about the company.
If you plan to sell it shortly after you see some increase in the price, you might use different position management tools.
Example, you can set the target price at which you want to sell the share with a profit, or use the stop-loss to set a price at which you want to sell the share to avoid further losses.
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Fees for Investing in Apple Stocks
You have to count on different kinds of fees when you are trading with Apple shares.
Commission is a fee, based on the traded volume or a flat fee per trade. For example, 0.1% of €10,000, $5/trade or $0.005/share.
Needless to say, these are different at each broker. Let’s see the fees of trading with Apple shares at our recommended five brokers
|US stock||Stock and ETF trading is free||$0 per trade||Free stock and ETF trading in Europe, 0.09% spread cost per side for non-EU clients||Free stock and ETF trading||$0.02/share; min $10, but using VIP pricing the minimum can be as low as $3|
|US stock fees class||Low||Low||perhaps Low||Low||Average|
How to Reduce Risks
Investments always come with some risks, investing in Apple is no different. Please take the time to review the following tips to help you minimize your risks.
You can also read more about market risk and other types of risks over here.
Avoid the scams
Risk: unfortunately, there are tons of scam “brokers” that are trying to steal your money. When you are faced with binary option ads and automated investment algorithms that generate outstanding returns, start to get highly suspicious.
In these cases, the best thing to do is to immediately turn these ads down.
How to manage it: when buying shares online, go with our broker selection. We have an active account with the brokers we selected and we test them regularly.
Diversify your portfolio
Risk: spending all of your savings on one or two shares. If Apple goes bust, you lose all your invested money.
How to manage it: buy other shares as well, not only Apple to diversify your investment portfolio. This practically means buying more different shares and not putting all your eggs in one basket.
The ideal number of shares in a portfolio varies somewhere between 20 and 30.
1. When does Apple’s fiscal year end?
Apple’s fiscal year ends in September.
2. Where is Apple based?
In the USA. Apple’s address is One Apple Park Way, Cupertino, CA, United States, 95014.
3. What is Apple’s international securities identification number?
Apple’s ISIN is US0378331005.
While Apple has seen mostly successes since it became public in the mid-1980s, it has struggled a bit and picked itself out from a slump to see some of the biggest stock market wins of the 21st century.
Some may think it’s too late to make money off of Apple, but it could still be your turn.
The stock has been trending up for decades and the company continues to turn out innovative products that the public adores.
We hope this article has been helpful for you. Please share it with anyone who you think will appreciate the information!