Despite being one of the best known companies in existence, however, there is quite a bit that you need to know about buying BP shares in Australia.
You must be well-versed with the company’s history and activities before investing in them.
Since the company has been around for a while, there is quite a bit that you need to know.
Don’t worry, though, as you can find all that you need right here. Once you are done, you will have a much clearer idea of whether this is the right move for you or not.
Where to Buy BP Shares in Australia?
BP is a British company. This means that you can’t buy shares in the company the same that you would with a local, Australian company.
Instead, you need to find a broker that deals with British companies and more specifically BP shares.
Plus500 Disclaimer: 76.4% of retail CFD accounts lose money.
On the surface, this can seem like a rather simple task. However, just because a broker can be a medium to the British stock market doesn’t mean that it is automatically a good fit for you. There are plenty of other factors to consider.
This begins with licensing and regulation. Since you are often placing a significant amount of money with a broker and need to make a profit, it is important to register with a trustworthy one. And, how do you know that a broker is reliable?
Well, for this purpose, it is best to associate yourself with a broker that is licensed by a well-known regulatory authority. This way, you can guarantee that the broker’s finances and dealings are carefully monitored. It can also ensure that you receive a high standard of services as well.
Choosing A Broker
Naturally, you will also have to consider your current financial standing and choose a broker that has accounts that fit into your budget. After all, you shouldn’t have to invest or deposit any more than you can afford – this would be counterintuitive.
You should keep in mind that as an investor, you can’t afford to put all of your eggs in one basket – you have to diversify your portfolio. This means finding a broker that gives you access to various financial instruments, in addition to shares and stocks.
Last, but certainly not least, you should consider the trading platform of the broker that you wish to register with.
Does the broker use a well-known or internationally recognised trading platform?
Or, does it have its own proprietary platform? In this case, does the trading platform function efficiently?
Well, Plus500 is the broker that can give you peace of mind and meet all your needs. First and foremost, the broker has one of the best reputations around. It is licensed and regulated by ASIC. What’s more, Plus500 is listed on the Lond Stock Exchange’s Main Main Market for Listed Companies as a UK FTSE 250 company. This proves to you that this is a broker that has global prominence.
What is quite important is the fact that the broker has segregated accounts for clients’ funds. This ensures that there is no overlap between how your money and the broker’s money is stored. In the event that Plus500 faces any financial difficulties at all, you will be able to make certain that your money will remain untouched.
Of course, one of the top features of Plus500 is that it allows you to trade BP shares via CFD trading. And, you aren’t charged any commission either. Rather, you get to enjoy low spreads. Furthermore, Plus500 gives you access to 1:30 leverage as well. This means that you can engage in higher volume trading.
Now, Plus500 uses its own trading platform for CFD trading. The good news, though, is that this is a platform that has been put through its paces. As a result, it has been determined to be a user-friendly platform that allows for the seamless placing of trades.
As exclusive software, it has been carefully tailored to suit the needs of their clients.
Plus500 is also an excellent option if you are looking to expand your portfolio. This is because the broker also offers Contracts for Difference for stocks for top global companies from a wide variety of industries. At the same time, you will also be able to dabble with commodities, ETFs, options and indices, and a whole lot more.
What is BP?
BP has a long and storied history that begins in 1901. Financially backed by William D’Arcy and spearheaded by George Reynolds, the expedition to find oil in Iran began. However, it wasn’t until 1908 that any signs of oil would appear. Within a year, though, the Anglo-Persian Oil Company that one day would be known as BP was incorporated in England.
From 1910 to 1920, the company becomes one of the leading oil producers in the Middle East. It then stretches its reach to Europe, Africa, and Australia as well. In 1922, the company goes public. In 1954, the company becomes The British Petroleum Company Limited. Over the next decade, BP Oil would go onto conquer more of Europe and Africa as well as breaking grounds in the markets in New Zealand and America.
|April 14, 1909||London, UK||$282.6 billion||$68.1 billion|
At the moment, BP Oil is one of the top five oil and energy companies in the world. In 2019, the company made over $282 billion. The future of the company looks bright as well. Although the company is mainly focused on oil, it has begun to create a stake in green and renewable energy as well.
Why Should I Buy BP Shares?
Sure, BP is a household name – but should you be investing in the company? After all, the oil business has a tendency to be rather volatile, which can make it a risky investment for you. However, despite some minor concerns, buying BP shares can prove to be an excellent investment in the long run.
One of the main concerns regarding BP shares right now is the current global pandemic. Due to quarantine zones, lockdowns, and general public safety precautions, fewer people have been buying oil. This means that there is already oil simply sitting around – no one is really buying more oil from BP.
On the surface, this can seem to be an issue. This is until you consider the fact that the oil business is a cyclic one. Yes, there can be downturns, but this is always followed by upward mobility. And, it appears that this will be the case once more.
The first few months of 2021 should find oil bouncing back as life reaches a new normal. The rollout of potential vaccines can also do a great deal in helping get people outdoors. Needless to say, this means that more people will buy more oil.
In fact, many experts state that travel will increase once the pandemic begins to ease off. This means that you will find a greater number of people driving around than ever before, causing the oil prices to rebound again.
Another comforting fact is that BP has been around for long enough that the company is well-equipped to handle small and large-scale downturns. In fact, in the past, the company has not just been resilient, but it has been incredibly versatile in the way that it has dealt with economic issues.
What this means is that BP is able to engage in cost-cutting ventures to ensure that the company is able to continue on until the market gets better. They are able to make strategic adjustments so that production isn’t impacted when things pick up back again.
However, one of the top reasons that you should buy shares in BP is because this is a company that can plan for the future. Many people are in agreement that interests in non-renewable energy sources are fading away. Most people are interested in green and clean energy.
What is surprising about this situation, though, is that BP actually follows this sentiment – the company said as much! This isn’t a discouraging fact, though, as the company has made renewed attempts to boost its green and alternative energy sector. This is something that few other companies have done.
This fact shows investors two things. First, it means that BP doesn’t feel the need to double down on an antiquated position. Rather, it is able to see the writing on the wall and admit that the world is changing. This isn’t a position that many global companies are willing to take, so it proves that BP can be an enduring force.
It also shows that the company is more than capable of planning for the future and to make these changes well before its competitors. This means that BP will be ahead of the curve once governments and the public begin to invest in renewable resources more readily.
So, yes, if you are planning on investing in your future, then buying BP shares may be just the thing for you. While your investment may not yield immediate profits, you will find that it does provide a handsome return on investment later on.
What to Consider When Buying BP Shares?
Even when investing in a giant like BP, it is important to do your research. This helps you to identify pitfalls, potential advantages, and more. In turn, this helps you to make a far more secure investment. So, what is it that you should consider?
First, consider all the BP holdings – the company has invested in a number of subsidiaries. Determine how diversified these are. Are all the companies in oil or has BP invested in various other industries. This will help you to calculate whether BP can cope with a few losses in the energy sector.
It is also a good idea to look at how BP has fared during other economic downturns. Since BP has been around for quite a while, it has lived through much global turmoil. So, how did the company cope then? Was it able to rebound and if so, how long did it take and what measures did BP take to help with the process?
Now, it is clear that BP has goals for the future. Nevertheless, you should take a closer look at these. For instance, how long will it take for these new changes to take effect? And, when they do, what kind of profit can the company expect from them?
In addition, you should scope out the competition as well. Who are BP’s top rivals and how are they faring. Does it seem like they will be investing in green energy in the near future as well? If so, how far along in these plans are they? Furthermore, how profitable do these changes appear – will they be a threat to BP when they finally take hold?
You should also be aware of the fact that it can be rather expensive to buy BP shares, since it is a sought after company. However, you don’t have to say goodbye to your dream of investing in the company just yet. Rather, you simply may need to consider an alternative.
For instance, think about engaging in CFD trading. This way, you only have to predict the price movement of the shares rather than owning the shares outright. Since your broker can provide you with leverage, you will only be expected to put up a portion of the share price.
Is Now a Good Time to Buy BP Shares?
So, when should you buy BP shares? Well, there really is no time like the present. To begin with, BP shares are most affordable right now. This means that you can invest in more shares for less. What’s more, you can get ahead of everyone else too.
There is also the fact that when it comes to BP, you need to be prepared to make a long term investment. Investment in the company will start to really pay off in the next few years, when its plans begin to take hold. So, if you get on board now, you can guarantee that you will make a tidy sum later on.
This is what you need to know about buying BP shares in Australia. Now that you have the right information in your hands, you can make the best possible financial decisions for yourself.