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How to Buy Facebook (FB) Shares From Australia

Facebook Inc is a multinational technology company based in the US with headquarters in Menlo Park, California, and it’s the most known social media platform in the world. FB, a short form for Facebook, was developed by four Havard students in 2004. Mark Zuckerberg, the Chairman Chief Executive Officer being among them. 

 

Are you from Australia and looking to buy into the social media beast? This article is a complete guide on how to do that.

Company Overview

Facebook allows users to share news, events, videos, photos, and chat on the platform. By mid-July 2021, it had garnered over 2.853 billion monthly users, with the second-largest used application being YouTube which has 2.291 million monthly active users. 

 

The other top three global apps in the top five are WhatsApp, Instagram, and Facebook Messenger, which are all part of Facebook’s ecosystem.

 

In 2020, the gross income for Facebook was US$85.97 billion, with 90% of the revenue coming from advertising. 

 

The US covers more than half of the ad revenue, with Europe and Canada accounting for 25%. Facebook is among the highest profitable companies globally, with over 80% in gross margins and an operating margin of over 30%.

 

Examples of Facebook subsidiaries are WhatsApp, PrivateCore, VR, and Oculus. 

Where Should I Buy Facebook Shares? 

1. Stake: The Best Option 

Stake aims to simplify trading US shares for Australians. Before Stake was established, you would be charged highly to invest in the US and have mountains of paperwork. But that changed when Stake arrived on the scene—today, opening an account is easy and with low fees.

 

You must create a Stake account first to invest with them—you’ll require identification forms such as your driver’s license or passport. 

 

Stake provides access to over 6,000 US stocks and ETFs once you deposit money to your Stake account. You can also open a Stake premium account called Stake Black—this gives you access to additional products, features, and data.

 

Generally, although international companies and the US are breaking record avenues, investing overseas has many upsides (though the exposure to overseas companies helps expand investment portfolios).

 

Another way of securing your shares from additional risks is by investing in numerous countries—while some countries are going through a downturn, others may be increasing.

 

However, this has its downsides too. You have to consider the currency exchange rate when investing overseas.

 

Also, you need to consider the rules and regions you’ll follow when investing in foreign markets. If you doubt anything, seek help from a professional financial advisor.

 

Stake doesn’t charge trading fees with FX. However, you’ll be charged a 0.7% FX fee for deposits and withdrawals. The premium account, Stake Black, charges a monthly cost of $9. 

 

Furthermore, you can encounter other fees, so you must read through the terms and conditions and understand the costs involved before opening an account.

 

Pros 

  • It offers over 4,500 US stocks and ETFs
  • Stake doesn’t charge any brokerage fees
  • The platform is easy to use
  • Accessible reports that ease filing taxes
  • Stake offers fractional shares
  • They use modern technology meaning, opening an account is easy and fast
  • Stake users can access it via Android and iOS apps—both apps have high positive reviews
  • Support is available via phone and email

 

Cons 

  • It only offers US stocks
  • A foreign exchange fee of 0.7% is charged
  • Settling sales takes up to 2 days
  • Poor customer service
  • Few small-cap stocks 

2. SelfWealth

SelfWealth was established in 2012 and is an Australian-owned and operated market with a user-friendly platform that provides easy access to the Australian share market. 

 

The company offered cheap Australian share trading brokerage and was awarded Finder’s 2019 Best Australian Share Trading Account. 

 

SelfWealth charges a $9.50 brokerage fee per trade, no matter the size. Compared with other online brokers like CommSec and NABtrade, this value is remarkably less.

 

The company has managed to keep prices low by outsourcing services such as execution and clearing to a third party wholesale stockbroker. 

 

SelfWealth not only provides a conventional website but a secure phone app too. However, you should only be concerned with their website.

 

SelfWealth users have a unique holder identification PIN or HIN. This condition means direct benefits and legal ownership for all the shares you buy via SelfWealth. This model is similar to the Stockspot model, where customer investments are protected on individual HINs.

 

SelfWealth provides services such as a wealth check and a safety rating. If you have a solid foundation of diverse index-tracking ETFs, you’re on the right path and don’t need to evaluate yourself to others.

 

You can open a SelfWealth account as an individual, a group of up to three people ( a joint account), companies, and family trusts or SMSF.

 

It’s directly aimed at shareholders who are already familiar with trading stocks and other investments but are put off by the high percentage-of-trade-value fees imposed by many traditional and online brokers.

 

You’ll access all features on SelfWealth Premium for 90 days for free once you open a free SelfWealth Share Trading account. And to keep those extra SelfWealth Premium account features, you’ll have to subscribe monthly for $20.

 

Pros 

  • CHESS sponsored – ASIC, ASX, and OpenMarkets offer complete protection
  • $9.50 fee trade for all sizes
  • Offers all US and Australia listed shares and ETFs
  • Excellent mobile application and user friendly
  • No-frills service and low costs for users 
  • Easy integration to Sharesight using email trade confirmations 
  • Fixed price trades and market price trades 
  • Holdings are beneficially owned under your HIN 
  • Offers children share trading accounts

 

Cons 

  • Has no automatic options
  • High rates for AUD to USD conversion and charges US trades in USD 
  • The SelfWealth premium induces comparative anxiety and promotes trading.
  • The wealth check score, safety rating, and user ranking are unnecessary and misleading for new investors.
  • The portfolio tracker doesn’t account for dividends or stock prices and is entirely inaccurate. For accuracy, use Sharesight.

3. eToro

eToro is a UK-based company founded in 2017 with over 17 million customers in 100 countries, and by 2018, it had garnered millions of users in 43 US states, including Washington DC. 

 

When it started, it was a graphic-intensive forex platform that uses tools for cryptocurrency trading. Customers not based in the US have access to additional trading asset classes like contracts for difference and stocks on numerous exchanges.

 

US states that can access eToro but cannot trade are Delaware, New Hampshire, Minnesota, Nevada, New York, Tennessee, Puerto Rico, Hawaii, Guam, American Samoa, and the US Virgin Islands.

 

US customers complained about the withdrawal fee, which eToro then eliminated. Non-US clients, however, must pay $5. eToro also considers users with little knowledge on forex and cryptocurrency and therefore tailored it well for them.

 

It has a simple interface and tools for new clients and offers advanced features for accustomed users. But what differentiates it from other platforms is the extra features. You can use the virtual portfolio to trade over $100,000 worth of practice virtual funds before investing even a penny.  

 

You can also socialise your investment by following and combining the trading schemes of the platform’s top users—non-experts who meet the criteria depending on the period they’ve traded on the platform, the investment made, and their risk tolerance.

 

Another unique feature is the CopyTrader. This feature allows users to use their high-performance trader’s tradings with just a click.

 

eToro allocates the funds automatically to reflect the position of your favourite trader—the process is free. With CopyTrader, you can copy over 100 successful traders at the same time.

 

Pros 

  • eToro can trade 15 cryptocurrencies 24/7
  • It has a user-friendly website and mobile app
  • Low fees when opening an account and can begin immediately
  • It offers social trading and can also copy tradings of high trades
  • Desktop and mobile applications are available
  • It provides virtual portfolio and education for new users
  • It has a user community network 
  • eToro offers the most  popular coins that aren’t on other exchanges
  • The platform allows for the use of trade methods used by others

 

Cons 

  • Has only 20 coins
  • Fees vary widely
  • Available in a few states
  • High fees for depositing and trading compared  to other exchanges
  • No option for transferring eToro coins from eToro wallet back onto the eToro exchange account

4. Superhero

The Superhero investing app was founded in Sydney and allowed its users to invest in Australian, American companies, and EFTs. It’s famous among Australian investors as it broke the legacy brokerage model in Australia.

 

Like other financial technology companies, Superhero has joined the chain and is using technology to overtake companies that have been leading for decades. Including Neobanks, these upcoming platforms have the youngest people as their customers. 

 

Another feature offered by Superhero is that users can trade over 2,500 ASX listed products for less than $500 per trade. Commsec Pocket is the only other platform on the market that offers similar features—its low-value trading account can only trade up to seven EFTs.

 

The minimum amount Superhero invests before brokerage is more than $100 to trade on the platform. 

 

You have two fundamental options for trading:

 

  • Market price: you take the lowest selling price present on the market and;
  • Limit order: you decide the amount you want to pay or get for the stock

 

For every Australian Security Exchange (ASX), Superhero charges $5 and $0 for a brokerage to buy EFTs. The fee is fixed, so you don’t have to worry about the times and amounts you trade monthly. Traditional online brokers charge $20 for every trade for lower values and $50 or more for high traders.

 

Pros 

  • Trade with unsettled funds after you sell 
  • One of the cheapest transfer fees for FX is 0.50%
  • Take complete control of your funds
  • $5 per trade for Australian brokerage shares, which is the cheapest
  • Low transaction fees of $100 only
  • No monthly charges
  • Accessible platform and mobile app 
  • Investing in EFts brokerage is free
  • A $5 fixed price for all Australian Company trades

 

Cons

  • No auto-investment feature
  • The minimum trade size in the United States is $100
  • The app lacks an education platform.
  • Non-CHESS sponsored (if that’s what you’re looking for)
  • You’re not individually CHESS sponsored, and you don’t receive a HIN
  • International shares cannot be traded
  • Can become overburdened with trading information

5. Pearler

Perler is an investment and financial platform founded in 2018 by three friends. It aims at helping Australians have financial freedom and make their financial lives simple. The platform is used for investing, saving, and providing loans and insurance from numerous providers. Today, Pearlers has over 11,000 investors and close to 20,000 customers.

 

If you want to cancel a direct credit or trade, you’re more likely to continue investing monthly or quarterly. Pearler is the only brokerage platform that supports automated investing. It provides an automation tool that helps you stick to the plan. 

 

A brokerage fee is the only money charged on Pearler; no account opening fees, annual fees, or hidden fees. 

 

Pearler provides free brokerage for 46 different ETFs. At this point, the other significant brokers have never seen anything like it. Pearler accomplished this by reaching out to and collaborating with ETF managers at eInvest, VanEck and ETF Securities.

 

To evade the brokerage fee, you can buy and hold EFT from one of the funds, and you’ll be charged zero fees for a brokerage for a year. 

 

Auto-investing, also available on Pearler, makes post investing and trading choices for users based on algorithms and factors such as age, goals, income, and risk tolerance. 

 

Motor-investing could be suitable for investors who prefer a hands-off strategy or are new to investing and are unsure about making investment decisions.

 

Pearler users can choose the shares they wish to invest in, how much they’d want to invest, and how frequently. The last step is to pick a plan that suits your needs. 

 

Pearler offers three policies you can use:

 

  • Lowest shares:  You invest the lowest-performing shares available in your portfolio. Take advantage of low prices and rebalance your portfolio as you won’t have to buy lots of shares then.

  • Rebalance portfolio: Decide the exact percentage you want and rebalance all your assets. This strategy is recommended for investors with a pool of investments.

  • Equal investment: This allows you to invest equal shares for all your investments. This option isn’t recommended for beginners.

 

Pros 

  • Zero fees for opening an account, maintenance, or inactivity 
  • Suitable for beginners and expert investors 
  • CHESS sponsored
  • Charges $9.50 for trades and zero fees for brokerage of EFTs
  • Long-term investing culture
  • It doesn’t require one to have any investing experience
  • Make goals like financial independence and track the progress
  • Free brokerage on your first investment for using ‘Strong Money Australia’ invite code

 

Cons 

  • It’s only available on Android phones
  • It offers zero international shares
  • Creating a Pearler account takes hours 
  • Zero research reports
  • Can’t access individual US shares
  • Distorted website

 

To buy Facebook shares from Australia, please follow the steps below:

Step 1: Select A Broker

There are key features you should look out for when looking for a broker:

 

    • Commission-Free Trading: Most US exchange platforms have this option. Not paying commissions enables you to save funds on share trading.
  • Fractional Share Investment: This means you can purchase a fragment of a share rather than the whole share. Consider this as Facebook shares are pretty expensive.
  • Simple-To-Use Trading Platform: Trading shares is easy. Look for user-friendly platforms.
  • Research And Analyst’s Notes: Look out for platforms with solid research and report sections. This section contains essential data about Facebook; company reviews, past prices, recommendations, and price forecasts.

Step 2: Fund Your Account

Next, deposit money into your account. Note that if you’ve opened a trading account, it takes time to clear and trade the funds.

Step 3: Decide How Much To Invest

It’s recommended to start small and invest in fractional shares and take fewer risks. This scheme can make you money too by buying shares at low prices.

Step 4: Buy Shares Or Buy Into An ETF

Examples of Exchange Traded Funds (EFTs) that invest in Facebook shares are Vanguard Communication Services ETF, ProShares Ultra Technology, and iShares Global Comm Services ETF. 

 

You can buy shares and directly own them or invest them in EFTs. EFTs are similar to mutual funds but less appealing to active traders as they have little control over the money’s destination.

Step 5: Configure Your Order

You can customise the things you buy and price. They have numerous order types, and these are the main ones:

  • Market Order: Order to buy and sell shares immediately. This ensures the order is accomplished instantly; however, it doesn’t guarantee the price.

    For example, if Facebook shares trade at US$355, the price of the Facebook shares will drop to US$352 after placing a purchase order. The purchase price will decrease.

  • Limit Order: For buy limit orders, execution-only orders are executed at the quoted price or less. You might want to purchase Facebook stock for $350.

    For this amount, you can place a limited order. But this will only happen if Facebook shares fall to US$350 or less.

  • Stop Limit: You can decide the price to sell your shares when the share price drops. For example, if you choose to sell your FB shares when the price falls to $352 per share, your stop-limit order will be executed once it drops to that price.

  • Stop Loss: Another order that prevents you from taking a hit on your shares is when the price drops.  You present a price to sell your Facebook shares. This means the stop-loss order you chose will be executed once the price drops to that level.

    However, your order will be filled in the next available market. Meaning your shares can sell for less than US$350.

Step 6: Place Your Order

You can place an order after choosing a broker, depositing your preferred amount into your account, and structuring a plan for investing your Facebook shares—all from the click of a button.

Step 7: Monitor Your Investment

Monitor your investments and performance after buying a share. This includes the following:

 

    • Facebook’s Share Price And Company Performance: You should watch the company’s performance whether you’re investing in shares for speculation or holding your investments over the long term.

      If you aim to benefit from stock price variations, you’ll have to monitor the price movement and business performance constantly.

  • Watch global regulatory developments: For a long time, Facebook has been dealing with regulatory issues worldwide, particularly in the areas of antitrust and content moderation. If you intend to keep Facebook for a long time, developments in these areas are worth watching.
  • Competition: YouTube is the second most popular social platform after Facebook, with over 2.291 million monthly active users. Tiktok is also growing first in the market share, especially with the key younger generation.

 

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