How to invest in the stock market
Open Account Open Demo AccountTrading is risky. Your Capital is at risk.
What is stock trading?
Stock trading is the buying and selling of a company’s shares. The goal? Making a profit.
When you buy shares in a company, it means you then actually own a small part of it – with the hope that the company grows and performs well, increasing the value of your investment.
If that does happen, you can sell your shares for more than you paid for them.
Read on to learn more about the different ways to invest in stocks. We’ve got it all laid out.
What’s your investment approach?
Every single stock trader’s needs are different. Luckily, there are a range of different options available – so you can trade what you want, the way you want.
What’s your investment approach?
Where do your unique interests lie? Big fan of social media (Facebook or Twitter devotee?)? Maybe a certain tech company is the ‘apple’ of your eye? By investing in individual stocks, you’ll have the freedom to buy and sell the companies close to your heart.
At FXTM, we offer hundreds of individual international stocks, including major household names such as Amazon, Alibaba, Facebook and Google. You’ll get free access to real time price data on US stocks (and competitive subscription fees on Hong Kong stocks) to help you make the most of your investments.
Have a look through our stock options here.
Stock baskets
Not quite ready to commit? We’ve got just the thing. You can also trade Stock Baskets, our collections of companies available to trade based on theme and industry. This can be a great way to zoom in on the sectors you connect with best by trading the price movements of multiple companies in one smooth move.
Still not sure? Stock baskets have cheaper holding costs than multiple single stocks and are a great way to diversify both your portfolio and your risk, as you aren’t counting entirely upon the performance of one company. So, if you’re expecting exciting market news, you can trade the trend of the affected industry with a single click.
Our stock baskets
With our stock baskets, you can invest in popular industries including US social media, aerospace, mobile companies and more.
Here’s a snapshot of what we have on offer:
The Social Media Index
The social media companies helping us stay connected; Facebook, Twitter, Snapchat and Google.
The Green Index
The environmentally friendly companies keeping it green; Beyond Meat, Tesla, Enphase Energy Inc., Weyerhaeuser, Clean Harbors and Bloom Energy.
The Mobile Index
The telecommunications companies on call; Apple, T-Mobile US, Verizon Communications, Qualcomm, Crown Castle Int., Qorvo, and Skyworks Solutions.
The Space War Index
The aerospace companies taking us above the clouds; Lockheed Martin, Boeing Co/The, Northrop Grumman, Ball, and Viasat.
The Vegan Index
The agricultural companies riding the boom of the vegan lifestyle: Beyond Meat, Ingredion Incorporated, Bunge Limited and Archer-Daniels.
Setting your budget
When you decide to start investing in stocks, it’s important to remember that however you invest, you should never risk more than you can lose to afford.
Investing in stocks as a beginner? It might be tempting to jump straight in, but it’s better to take it steady. Stick with a budget you’re comfortable with, experiment until you find a strategy that works for you and get to grips with solid risk management techniques.
For more info on how to protect your money and maximise your investment potential on the stock markets, check out our educational video library right here. Remember - you can always reach out to us if you’d like to learn more. We’re more than happy to point you in the right direction of our educational tools designed to make things just that bit clearer.
Our account types
Your stock trading experience starts right here.
Wherever you are in your stock trading journey (beginner? market expert?), we’ve got the trading account to suit you. Here’s a little breakdown.
Advantage Account:
Minimum deposit:
$500Advantage Plus:
Minimum deposit:
$500All of our account types offer you great conditions, but there a few differences between them when it comes to stock trading.
Our Advantage account is by far the most popular among our traders. Alongside a wide range of instruments, market execution and competitive pricing (including spreads as low as zero on major FX pairs), you can also trade both stock baskets and individual stocks. The choice is yours!
Our Advantage Plus account is another option. This offers similar conditions to the Advantage, with both stock basket and individual stock trading available. An extra bonus is you can trade with zero commission, but the spreads are wider.
Not quite sure which account to go for? Check out our trading account comparison page here, or reach out to us directly if you’d like a little more guidance.
FAQ
What is stock trading?
Stock trading is the buying and selling of a company’s shares with an aim to make a profit. When you buy shares in a company you then own a small part of that company, and the value of your investment will change as the company’s share price moves up and down.
What is the ‘stock market’ exactly?
When we talk about ‘the stock market’, it’s actually a bit of a catch-all term to refer to several different stock exchanges. There isn’t one universal stock market. There are many; some of the most well-known being the New York Stock Exchange, NASDAQ and the Hong Kong Stock Exchange (HKSE). Each of these provide their own specific range of companies available to trade. FXTM offer access to all 3 of these stock exchanges.
Is stock trading profitable?
As with all forms of financial investment there is the potential to make a profit. However, trading is risky. There are no guarantees and the stock markets can turn at the drop of a hat. That’s why it’s so important to tread carefully, plan and practice your trading strategies and constantly build your skills.
Are there different types of stocks?
We’ve gone through stock baskets in greater detail above, but here’s a few things you should know about individual stocks. You might come across the term ‘common stocks’. What does this mean? Well, if you’d like to own a company’s stock and take up your voting rights, you can have your say on important issues such as the brand’s overall strategy and other important decisions. How this works will differ from company to company, but the option’s there.
Ever spotted the phrase ‘preferred stocks? Put simply it’s a company stock that gives you more limited rights. You won’t get to get to voice your vote on the big decisions – but you may benefit from better dividends (What’s a dividend? It’s when you receive extra shares in a company when it does well, instead of cash.)
How much money do I need to start trading stocks with FXTM?
This depends on the account type you choose. You can start trading stock baskets you’ll need to deposit a minimum of $/€/£ 50 on our Advantage and Advantage Plus accounts.
How do I get started?
Register with us by completing a simple registration form. It won’t take long and you’ll only need to provide us with a few details. Once we have these and you click ‘Send Pin’, we’ll give you your individual access code by both email and SMS. Click below on the link below to get your stock trading experience started!
The resources you need - and all for free.
Educational videos
We're committed to trader education, which is why we offer a range of insightful short trading videos alongside our other educational resources. Learn about key forex trading and technical analysis concepts at a time and place to suit you.
Latest forex news and insights
Just a heads-up though — if you do invest in a single stock, you’ll need to follow that company closely for any new developments. That’s where we can help! Our experienced global research team offer free daily market analysis and updates, helping you keep one step ahead of your trades at all times.
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