Shopify is an e-commerce giant that has quickly gained significant market share in the past years. The business helps its clients set up online shops in more than 175 countries. With such an impressive span rate and success, many investors consider adding Shopify to their portfolio.
In this article, you will find everything you need to know about investing in Shopify and the best brokers for buying Shopify stocks.
Table of Contents
Learn How to Buy Shopify Stocks in 3 Easy Steps
Find a Broker
The first aspect you need to consider is the right broker. This is an intermediary that will grant you access to your chosen securities. It is important to ensure that the broker is regulated and has access to Shopify stocks before making an account. You will be required to provide your personal information to complete the registration stage. After your account is verified, you will be ready to trade Shopify stocks.
Analyse a Shopify Chart
Depending on your chosen broker, you will have access to different charts that show you information regarding Shopify. Some examples include overall performance and resistance levels.
Investors analyse these charts to identify trading opportunities. In other words, a positive performance indicates that the stock is a good choice for your portfolio. In case of negative trends, you may want to treat the stock with caution, depending on your risk profile and investing strategy.
Once you analyse your options, you need to fund your account. The necessary time to top-up your account may differ between brokers, so make sure you verify how long this takes and whether there are any extra fees involved. After your account is topped up, you can purchase Shopify stocks.
Shopify Company Overview
Shopify is an e-commerce platform that has customers all around the world. Some of the most popular clients serviced by Shopify include Kylie Cosmetics, Homegrown Meats, Sephora, Tesla, and Allbirds.
The e-commerce platform is mainly used to create online shops for its customers, but also provides point-of-sale systems. As of May 2021, more than 1.7 million businesses used the platform to sell a large variety of products and services, including apparel, food and drinks, digital products, classes, and consultations, among others.
Shopify Business Model and Revenue Streams
The company offers a global platform where interested businesses can create websites to market and sell their products and services. In turn, Shopify capitalizes on this by offering monthly or yearly subscriptions to their clients.
Shopify’s philosophy is to empower businesses by allowing them to focus solely on what they can do best: creating and selling products and services to their customers. In other words, the company aims to provide peace of mind to clients looking to digitalize their businesses by helping them create successful online stores.
History of Shopify
Shopify was created by Tobias Lütke and Scott Lake in 2004. Lütke grew up in Germany and now lives in Ottawa, Canada, where he founded the platform. He is also the company’s CEO and on Forbes’ list of the wealthiest people in the world.
The two wanted to sell snowboards online but could not find any satisfying e-commerce products. As Tobias is a computer programmer by trade, he decided to establish his own e-commerce platform, creating Shopify.
Payments are available in multiple currencies, which allows them to reach clients from all around the world, including USD, AUD, EUR, GBP, and JPY. Products are also displayed in different currencies and languages.
Brokers That Offer Shopify Shares
To help you make a better-informed decision, we have shortlisted the best brokers that provide access to Shopify stocks. The list has been created with an unbiased opinion, taking into account the importance of regulation compliance, customer support, deposit, and withdrawal methods.
Should I Invest in Shopify Stocks?
Shopify Stock Investment Potential
Shopify has shown great investment potential throughout the years. Many different products and services are sold through this global e-commerce platform. Because of its flexibility and outreach, it seems to have constant growth potential.
However, financial markets are constantly changing, so there is an inherent risk, regardless of your decision. For instance, many events may change your predicted outcomes or the direction of a share price, including breaking news, macroeconomic factors, corporate decisions, a global pandemic, and many more.
What Kinds of Investors Should Include Shopify in Their Portfolios?
Shopify may be an excellent addition to your portfolio if your trading or investing goals are aligned with its vision. Apart from analysing the charts, you should consider investing in businesses that you find inspiring and with excellent growth potential. If you believe that Shopify is one of these companies, it might be the right asset for you.
Also, investing in Shopify stocks depends on your investment or trading strategy. For instance, keep in mind that Shopify has never paid any dividends, so it may not align with a long-term strategy. The company continuously reinvests its earnings for further expansion, so there will not be any dividends paid to shareholders.
So, whether you are a long-term investor or a short-term trader, you could be interested in purchasing Shopify stocks. It depends on your investment strategy and how you intend to manage your portfolio.
How Much Should I Invest In Shopify?
There are many aspects you should consider before deciding how much you want to invest in Shopify. Firstly, you need to determine your desired returns, your investment strategy, and the rest of your portfolio. Investing heavily in only one stock may expose you to higher risks compared to having a well-balanced portfolio, so you need to identify your risk profile and current financial abilities.
How to Buy Shares in Shopify Stock?
First, sign up with a broker that grants access to Shopify stock. It could take a few days for your account to be verified. The payment methods may differ, but you should choose the one that fits your needs according to fees, maximum deposit, and the waiting period before it is released.
After this, you can download or log into your broker’s platform. This is where you will be able to customize your interface, read and analyze charts. Then, it is time to place your trade.
Part of the “how” when it comes to buying shares in Shopify also has to do with your financial knowledge and experience. Many novices find it extremely helpful to choose a broker with a rich educational section and excellent customer support in case any extra help is needed.
Buy Shopify Shares Using a Broker
The most common option to purchase shares is through a broker, an intermediary party that connects you with the securities exchange. For this service, the broker will charge you fees and commissions, which is why you should verify these costs before choosing the right option for your needs.
Also, brokers offer different funding methods that require variable periods until the money becomes available in your account. Some of these are credit cards, debit cards, bank wire transfers, checks, and e-payment methods, such as Skrill or Neteller.
The beginning of this article contains a list of the best brokers for buying Shopify stocks. Each of them was specially hand-picked to help you choose the best one according to your needs.
Buy Shopify Shares with a Direct Stock Purchase Plan (DSPP)
DSPP or direct stock purchase plan is a program that allows you to buy the stock directly from the company or through a middle person, known as a transfer agent. You can access fixed plans and schedules.
Some investors prefer DSPP because they find it cost-effective since some brokers may have higher fees. However, it is crucial to understand the cost structure because they might have smaller but more frequent fees that can quickly increase your costs.
Nonetheless, Shopify does not offer a direct stock purchase plan. In other words, you still need to use a broker to access Shopify stock.
Frequently Asked Questions
You can make money trading Shopify stocks if you identify the right timing to enter the market. Speculation is risky, but if done correctly, it can be extremely rewarding. Read fundamental news about Shopify, analyse chart patterns, and check technical indicators. These will help you identify your trading opportunities.
The best platform depends on your trading skills and strategy. Trading platforms have different interfaces, tools, and features, so you need to pick the right one according to your knowledge, abilities, and investment strategy.
Shopify trading hours are from 9:30 A.M. to 4:00 P.M. (EST), Monday to Friday.
Shopify is listed on two stock exchanges with the symbol “SHOP.”: the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX).