Here you can learn about all the intricacies involved in purchasing shares from one of the most popular companies in the world. As you will come to learn there is a great deal that you need to know.
This includes information about the Apple company, tips for purchasing American shares as an Australian citizen and more. When it comes to buying shares – particularly from Apple – forewarned is forearmed.
How To Buy Apple Shares
There are many Australian brokers that let you buy Apple shares. The commissions are most of the time very low or even zero.
Here is how you can buy your first Apple shares:
- Pick a share trading platform: The only way to buy shares is through an online broker. We’ve tested most of them so you can compare them easily. Here is a list with the top rated shares trading platforms.
- Open an account: After picking your favorite broker, it’s time to open an account. Signing up is easy and it only takes a few seconds.
- Find Apple shares: After signing up, log in to your account and type on ‘Apple’ into the search bar. The ticker is ‘APPL’.
- Choose how to buy: Some brokers will let you buy real shares and CFDs. If you are new to investing, we recommend buying real shares.
- Decide how many to buy: You can buy as many shares as you want and some broker even offer fractional shares.
- Diversify: Don’t put all your eggs in one basket. Yes we also love Apple as a company, however buying shares from one company only is too risky. Try to diversify your portfolio by buying other shares from other industries.
Where to Buy Apple Shares in Australia?
For shares trading we like eToro.
If you live in Australia and want to purchase shares of an American company, then you need to find yourself the right broker. Not all brokers give you access to the American market. However, there is more to selecting a broker than simply selecting one that lets you buy shares in Apple.
It is important to choose a broker that is reliable and that runs a transparent and efficient operation. For this reason, it is best to stick to traders who are licensed by the ASIC. This ensures that the broker is under constant pressure to maintain standards and oversee a legitimate operation.
You should also be aware of the fact that brokers can often to cater to different kinds of traders and investors. For instance, some will deal with more basic traders, while others prefer advanced investors. Depending on their preferred clientele, brokers will have accounts that require a minimum deposit.
As such, you need to select a broker that has an account that is suitable for your budget. At the same time, look for one that will allow you to grow. So, if you do plan on investing greater amounts or in different markets, you will not have to switch from one broker to another.
The trading platform offered by brokers is quite significant as well. After all, not all of them are created equal. To ensure a smooth and efficient trading experience, it is a good idea to select a broker that gives you access to one or more of the best platforms in the world.
Alternatives to eToro – Pepperstone
Considering that Pepperstone is an award winning broker, you will find it difficult to go wrong with them. There is also the fact that this broker is one of the most trustworthy brokers around. They are licensed and certified by ASIC, ensuring that they meet the highest standards.
At the same time, this broker offers extended after hours on the US market – a rare feature. This lets you take a position when earnings are released, allowing you to lower your risk when trading. You can also diversify your portfolio by investing in some of the 180+ trading instruments that the broker has available for you.
With Pepperstone, you can access three different kinds of platforms – MT4, MT5, cTrader. Each of these platforms is highly regarded, ensuring a smooth and seamless trading experience. All these options are also great for traders who are transitioning from another broker and may have a specific preference.
Here, you can choose from two main accounts, the Standard and the Razor. The Standard is suitable for beginners and doesn’t have any commission attached to it! The Razor is better suited to experts and offers access to raw spreads from 0.0 pips with a commission charge applied.
Why Should I Buy Apple Shares?
Needless to say, you have to be certain about your decision regarding buying Apple stock. Yes, this is an incredibly successful and popular company. However, does it make sense for you to invest in it?
In reality, there are numerous reasons why Apple shares continue to be one of the top investments that you should make. To begin with, the company is one of the few corporations that have been growing by leaps and bounds over the last few years, with virtually no dips.
What this means is that Apple appears to be on a path to continuing success and revenue. 2020 was a particularly telling year for Apple. While companies all over the world found themselves floundering and at a loss, Apple outperformed the competition.
Apple has built up quite a bit of loyalty – this ensures that people who have once bought Apple products, will continue to do so. As such, this is a continued source of revenue for the company, making it a great investment for you.
Additionally, Apple has created a series of devices – iPhone, iPad, Mac, Apple Watch, and Apple TV that have been designed to work with one another. These create a seamless experience for users across the board. Such a guarantee means that people who have one Apple device are more likely to invest in others. Once again, this is a source of continued revenue.
As an increasing number of people engage in remote working and remote schooling, there is bound to be a greater demand for such devices. This means that there is a good chance that Apple will continue to make a profit, despite other companies suffering a downturn.
Apple is not new to diversification
Apple is also not a company that only relies on its hardware products. No, over the years, the company has branched out and invested in software and online services as well. This includes App Store, Apple Music, Apple Video, and Apple Cloud Services.
This allows the company to continue providing services to individuals who have already invested in products. And, these elements appear to be doing quite well. They all hit all-time high revenue records in 2020.
Of course, as a new investor, you are afraid of making hasty or bad decisions. Well, when you consider some of Apple’s current investors, you can see that there is no fear of this. This is because Warren Buffer owns a considerable number of Apple shares. And, he tends to be an excellent litmus test of which companies to invest in.
He isn’t the only prominent investor, however. Berkshire Hathaway owns Apple stock. What’s more, the multinational conglomerate company actually increased its ownership, investing even more money in the stock. Due to this, you can tell that there is lowered risk of buying Apple shares.
What is Apple?
Apple Inc. is an American, multinational company that specialises in the design, development, and sales of consumer electronics, software, and online services. Apple was founded in 1976 in California by Steve Jobs and Steve Wozniak, and Ronald Wayne. Although the business began in a garage, it quickly grew.
By 1980, the company had made over a $100 million. When the company went public, it was the largest even since the Ford Motor Company going public. In fact, by the end of 1980, Apple was presumed to be more valuable than the car company at $2 billion.
At last estimation, Apple was worth around $1.3 trillion and in 2020, made a revenue of over $274 billion.
|Founded In||Headquarters||Active Devices||Revenue (2020)|
|April 1, 1976||Cupertino, California||1.5 billion||$274 billion|
What to Consider When Buying Apple Shares
Although Apple shares are definitely a great investment, there are a few things that you need to know before buying them.
Just because Apple is one of the most well-known companies in the world, doesn’t mean that you should skimp on your research. Always take a look at any and all financial records that you can get access to. In particular, pay attention to how the company has been performing over the last few years.
For instance, what has the revenue been like? Or, has the growth been consistent from one quarter to the next? You should also consider how well each of the Apple devices or services is selling. Is there an individual bestseller or do the devices and services appear to be doing well across the board?
Considering the current global pandemic and resulting economic situation, you should take a look at how well Apple can fare during such times. Now, it is true that the company many not be as old as some others. As such, it is difficult to determine how it will have survived during economic downturns.
However, if you were to look at the 2008 market crash and recession, you would find that Apple actually made it worked. They tweaked the devices introduced into the market at that time so that it would better fit the current economic situation. This shows that the company does have the capability to survive.
Of course, you can’t just focus on how the company is functioning now or how it will perform in the next year or so. No, you need to think about how the company is going to do well into the future. This will determine your dividends as well as your ability to sell your shares at a profit.
Apple Is A Long-Term Play
For this purpose, you should consider what Apple is planning to do over the next few years. Will they be introducing new products or services into the market? Are these anticipated moves? Do these devices or services have use enough to the public that they will continue to be big ticket items?
At the same time, it is just as important to consider Apple’s biggest competitors. What moves will they be making over the next few years? How will this compare to what Apple is doing? Which plan is most likely to work out?
If you are ready to invest in Apple shares, then you need to consider your own financial circumstances. In turn, this will assist you in determining just how much you can invest in Apple. This is important because Apple shares can be rather expensive.
Thus, if you are on a limited budget, you may not be able to buy as many shares. In turn, you will not receive as many dividends or sales profits. You should also bear in mind that you should never invest more than you can afford to lose.
If you can’t afford Apple shares outright, it doesn’t mean that you have to give up on your investment dream. Rather, you may want to consider engaging in CFD trading. Here, you speculate on the price of the Apple shares. As a result, you don’t have to have ownership to make a profit.
Another benefit with CFD trading is that you can take up either position in the market. Thus, you can make a profit regardless of whether the shares are increasing or decreasing in value.
Is Now a Good Time to Buy Apple Shares?
Once you have decided to invest in Apple shares, the next question that you may have is when you should buy the shares. Well, this is something that you should do immediately – and there are a few different reasons for this immediate action.
To begin with, the tech industry is going to become a popular industry to invest in. This means that a greater number of people will be buying shares to popular companies like Apple, driving up the price. After a while, it could become too expensive for you to buy all that many shares.
At the moment, however, not too many people are keen on investing. This helps to keep the cost at a lower point, allowing entry-level investors to take advantage of the situation.
The other reason to invest right away is that shares need to be held for a longer period of time. When you hold your position for longer, you can ride through any minor dips in the market. Not to mention, you allow the value of your shares to appreciate with time.
This is what you must know about buying Apple shares in Australia. As you can see, there is quite a bit of information to digest. As long as you are well-informed, you can go ahead and buy shares on your terms and make a greater profit.
Frequently Asked Questions:
What is the minimum number of shares I can buy when investing in Apple in Australia?
The minimum number of Apple shares that can be bought depends on the brokerage firm, but it can be as low as one share.
Can I buy Apple shares directly from the company?
Apple does not offer direct stock purchase plans, so you need to use a brokerage firm to buy its shares.
How can I track the performance of my Apple shares?
You can track the performance of your Apple shares by checking stock market websites, financial news, or your brokerage account.
What factors should I consider before buying Apple shares?
Factors to consider before buying Apple shares include the company’s financial performance, competition, and industry trends.
How can I make informed decisions when buying Apple shares?
You can make informed decisions when buying Apple shares by researching the company, analyzing its financial statements, and staying up-to-date on industry news and trends.
What is the potential return on investment when buying Apple shares?
The potential return on investment when buying Apple shares depends on various factors, including market conditions, company performance, and the price at which the shares were bought and sold.