While this certainly can be a great investment opportunity for you, it is important to appreciate that there is quite a bit to know about this process.
Before you purchase Microsoft shares, you need to have a proper understanding of the company.
You should also know why it is that you should be investing in the company as well as the best place to buy the shares. You can discover all this and more here.
Where to Buy Microsoft Shares
If you reside in Australia, buying shares in an American company isn’t the same as investing in a local company. This is because brokers that give you access to the American market are far and few in between. And, when it comes to selecting a broker, you do have to think beyond simply selecting one that will allow you to buy Microsoft shares.
Arguably, choosing an online broker is one of the most significant steps that you can take as an investor.
In more ways than one, HFTrading is the broker that you should check out. It is regulated by ASIC as well as FMA. This means that the broker is trustworthy and that there will be no issues with you buying or selling shares.
The broker lets you buy Microsoft CFD shares. This means that you only have to contribute a minute portion of the shares. With this type of trading, you can also go long or short on the shares.
HFTrading is a suitable option regardless of whether you are placing your first trade or have been at it for a while. You can choose to register with Silver, Gold, or Platinum accounts. And, depending on which one you select, you can expect 1:200 or 1:400 max leverage respectively.
HFTrading also gives you access to one of the best trading platforms in the world – MetaTrader 4. As a result, you can buy and sell shares in a streamlined and efficient fashion. The mobile version of the platform lets you trade wherever you are.
Since you will possibly want to invest in other industries and instruments as well, HFTrading will allow you to do just this. You can invest in Forex, Commodities, Stock, Cryptocurrency, and more. You will also have more 750 trading instruments to choose from as well.
Can I Buy Shares Without a Broker?
No. Everybody needs to have an account at a broker, in order to buy shares. You cannot buy shares directly from the company.
A broker can often mean the difference between a small and large profit. Not to mention, it is your broker that will determine just how smooth or positive your trading experience will be. As such, there is quite a bit to focus on when selecting your broker.
To begin with, most traders prefer brokers that are licensed and regulated by a major authority agency. This is because these brokers tend to be more reliable. After all, they are expected to adhere to higher standards and know that all of their operations are being monitored.
Licensed brokers don’t just give you peace of mind, they tend to offer far better trading services as well. Thus, selecting such a broker can give you the best of both worlds.
Now, different brokers will provide you with access to various trading platforms. Therefore, before you sign up with a particular broker, it is important to consider the trading platform that you will be using. Is it a well-known one with plenty of users? Is it user-friendly and praised for its efficiency?
Finally, the broker that you select should fit in well with your current trading budget as well as your future aspirations. Due to this, you should find one that has a trading account that is suitable for your capital. At the same time, you will need a broker that will offer up enough of leverage while minimizing commissions to ensure that you get a good leg up in the trading market.
What is Microsoft?
Microsoft Corporation is a multinational technology company. The company was founded in 1975 by Bill Gates and Paul Allen. In the beginning, Microsoft was focused on converting BASIC for use on the early versions of the personal computer.
However, after working alongside IBM and then releasing Windows, a popular graphical user interface, the company grew quickly. The company went public in 1986 and by the mid-1990s was one of the most powerful technology companies in the world.
At the moment, Microsoft is associated with the development, manufacturing, licensing, support, and sales of computer software, consumer electronics, personal computers, and other services. The company is also responsible for the game console series Xbox.
|Founded||Headquarters||Revenue (2020)||Net Worth|
|April 4, 1975||Redmond, Washington||$37.2 billion||$1 trillion|
Officially, Microsoft claims that there are 400 million users worldwide, while other estimates presume that there are around over a billion active users. This makes it around four more times more popular than Mac. It is also why Microsoft is one of the few companies to be valued at around $1 trillion.
Why Should I Buy Microsoft Shares?
It doesn’t matter that Microsoft is one of the better known tech companies. You still need to be able to justify investing in the company. So, why should you buy Microsoft shares? Well, the good news is that there are plenty of reasons here.
Now, as you are well aware, buying shares come with a certain level of risk – all investment does. However, Microsoft is able to mitigate a great deal of this risk. In fact, all major credit rating agencies in the US agree that Microsoft is a lower default risk than the federal government!
However, what really sets Microsoft apart from all other investments is the level of stability that is involved. While the company may no longer be growing as rapidly as it once did, there are fewer dips in between. Microsoft appears to be able to ride out most problematic financial situations.
This is something that has been especially prominent during the global pandemic crisis. While the revenue of other companies has been steadily falling, Microsoft is still showing modest returns. This means that even during the toughest times, Microsoft is continuing to make money.
And, this is the important thing about Microsoft – its future looks to be secure. This is because it is one of the more favored tech brands in the world. This is true for devices, software, and more. Thus, even when people aren’t spending as much money, they will continue to invest in a brand that they trust. This results in continuous revenue for the company.
There is also the fact that Microsoft is investing in the future of tech in a smart way. This starts with the Microsoft cloud strategy. First and foremost, Microsoft is making its Office services available online, via the cloud. And, these yearly charges are adding up to more than what people would pay for a one-time software package.
Cloud computing is the latest trend and at the moment, Microsoft is right at the front with its Azure services. The revenue of this sector continues to grow at an incredible rate and appears to do so for the foreseeable future. In fact, this portion of the company is so successful that it was able to carry Microsoft over the uncertain global pandemic quarter.
What to Consider When Buying Microsoft Shares
While it has been determined that buying Microsoft shares is certainly a good thing, you should always double check your decision. It is only once you have truly thought things through that you should go ahead and make your purchase. This will increase the chances of you making a good investment.
To begin with, you need to dig into the financial history of the company. Due to the Microsoft’s prominence, such information is readily available. This will give you some idea of the growth and performance that the company has undergone in the near future.
This kind of research can also be helpful in determining how well the value of your shares will hold up during economic downturns. For instance, you will discover that during the 2008 economic crash, Microsoft continued to make money at various points. This offers a positive outlook for the current economic situation as well.
The other thing to consider is how well Microsoft will perform in the future. Well, once again, the outlook does look rather good. And, this isn’t just because Microsoft is continuing to be innovative.
Rather, since there are so many current Microsoft users, this number is set to grow simply because others will want to use the same systems as their friends, family members, and colleagues. This makes exchanging files, etc. a great deal easier to manage.
Another thing to focus on is competitors. Who are Microsoft’s competitors, what are their future plans, and how well does Microsoft measure in contrast? There is no denying that Microsoft has stiff competition, but it continues to be at the head of the pack.
Fortunately, this position also appears to be rather stable. This is because of continued brand loyalty as well as improved services in growing sectors. And, considering the sheer size and coverage of Microsoft, it will be holding its position for quite a while.
Even if you decide that you want to buy Microsoft shares immediately, there may be one obstacle – cost. The truth is that Microsoft shares are some of the most sought after in the world, particularly due to their stability and reliability. This means that it can often be incredibly expensive for you to hold enough of shares to generate proper profits.
The good news, though, is that Microsoft can still provide you with investment opportunities, even if you can’t buy shares outright. Here, you can engage in CFD trading. This means that you can predict whether the value of Microsoft shares will go up or down, allowing you to take a long or short position.
What is great about this opportunity is that your broker will cover much of the cost. This requires you to invest far less money than buying stocks. Thus, you get to enjoy the best of both worlds.
Is Now a Good Time to Buy Microsoft Shares?
Your final step involves deciding when to invest in Microsoft shares. So, is that time now? Yes – if you are planning on buying Microsoft shares, now is the time to do it. There are few different reasons to strike now.
First of all, fewer and fewer people are buying shares. This, of course, is due to the current economic downturn. As a result, the prices of Microsoft are more than fair right now. Thus, you could buy even more shares while sticking to your budget.
If you wait for the market to rebound, you will find that the prices will rise drastically as more and more investors jump on the bandwagon. At this point, the cost may be too high for you to actually buy in. Or, you may not be able to invest in as many shares as you would like, reducing your overall profit.
There is also the fact that when it comes to Microsoft, the lowest level of risk exists for long-term investors. So, the longer that you hold your position, the better it will be for you in the long run. Not only will you be able to weather more financial storms, but you also stand the chance of making more in terms of dividends or when you finally decide to sell your shares.
This is what you need to know about buying Microsoft shares in Australia. There is quite a bit that you need to know and learn before you head down this path. Once you are equipped with the appropriate knowledge, though, your financial decisions become far easier to take. Thus, once you have gone through this information, you will know exactly when, where, and how to purchase Microsoft shares for your portfolio.
Frequently Asked Questions:
What is the minimum amount required to invest in Microsoft shares?
The minimum amount required to invest in Microsoft shares varies depending on the broker, but it can be as little as $1.
How do I know if buying Microsoft shares is a good investment?
Before buying Microsoft shares, it’s important to do your research and analyze the company’s financials, industry trends, and overall market conditions to determine if it’s a good investment for you.
What are the fees associated with buying Microsoft shares?
The fees associated with buying Microsoft shares include broker commission fees, trading fees, and potential transfer fees.
How do I choose a broker for buying Microsoft shares?
When choosing a broker for buying Microsoft shares, it’s important to consider factors such as fees, trading platform, customer support, and reputation.
Can I buy Microsoft shares directly from the company?
Microsoft offers a direct stock purchase plan, which allows investors to buy shares directly from the company without going through a broker.
How can I track the performance of my Microsoft shares?
You can track the performance of your Microsoft shares by monitoring the stock price on financial websites or through your broker’s trading platform.
What factors should I consider before buying Microsoft shares?
Before buying Microsoft shares, it’s important to consider factors such as the company’s financials, industry trends, competition, management team, and overall market conditions.