Want to invest in Apple shares? It’s easy to see the appeal, but buying stocks in any company isn’t something you should attempt without familiarising yourself with the essentials of investing. Happily, you’re in the right place to do just that. Our easy to digest guides will take you through the need-to-know basics of online investing and point you towards the very best brokers.
Buy Apple stock, right now
Ready to buy Apple stock now? Click below to choose which online stockbroker best fits your needs.
Trade Apple shares, right now
Not so keen on long-term investing? You can also opt to trade shares in Apple, aiming for shorter-term profits by buying and selling shares in a limited amount of time. We’ve reviewed some of the best low-fee online brokers that are best suited for higher-volume trading.
How to buy Apple stock in 7 simple steps
Buying Apple stocks and shares requires research and diligence. Scrutinise the stock then choose the investment method you want to use. Only then can you invest with confidence.
Often, budding investors start buying shares online by using relatively small amounts of capital. As they gain experience, they might steadily raise the amount of capital they’re willing to risk and sometimes venture into more complex forms of investments. Here’s a quick checklist to follow as you consider investing in Apple shares.
- Know the company. We all know Apple but, as a prospective investor, it pays to ask fundamental questions: What is Apple? What are the company’s origins? What’s led to its growth? Is the company’s revenue and profit growth accelerating or decelerating? How are consumers reacting to their newest products? The more you know about the company, the better equipped you’ll be to make intelligent investment decisions.
- Learn the basics. That includes all the terminology that comes with buying shares in Apple, such as bid price, ask price and more. It also includes the different ways you can invest in the company, like share-dealing and trading.
- Share-dealing vs Trading. Share-dealing is a form of investing that involves buying shares in a company. There are two ways you can make money from share-dealing: The first is when you sell your shares at a higher price than when you bought them, the second can come from dividends. Some companies issue dividends to shareholders as part of the profits the company decides to share with investors. Trading usually refers to a shorter-term approach to investing, including buying and selling shares of a company on the same day (also known as day trading). If you choose to day-trade shares of Apple, you’re more concerned with reading the company’s chart than you are with projecting how consumers will react to the release of the next iPhone announcement.
- Decide your budget. When you first start investing in stocks, it’s a good idea to start with a smaller budget, say, a few hundred dollars. With Apple trading near $300 a share, that might amount to buying no more than two or three shares. As your experience and success grows, you might start to get more aggressive.
- Choose a broker. There are many different online brokers you can use to buy and sell shares of Apple, including plenty of brokers that won’t charge more than a few pounds per trade. Find a broker that combines an easy-to-use platform with low fees and a strong reputation.
- Assess market conditions. When the stock market is going up sharply (a ‘bull market’), most stocks will rise. When the stock market is going down sharply (a ‘bear market’), most stocks will fall. You’re safer following the broader market trend, rather than trying to fight it.
- Make your first investment. You’ve learned all about how Apple operates, and the basics of stock investing. You’ve figured out your budget, found a broker you like, and decided that the market is working in your favor. From here, simply log onto your online brokerage account, type in Apple’s ticker symbol (AAPL), make sure that the price Apple is currently trading at isn’t too steep, then hit the Buy button. And there you have it: you’re now the proud owner of Apple shares.
Ways to invest in Apple – share-dealing vs trading
There are a few options to buy, sell, and trade Apple shares online, depending on your preferred investing strategy. Here are some of those options:
Share-dealing is a form of investing that involves buying shares in a company. It’s typically meant to signify a longer-term approach than trading shares for a quick buck.
- Pros: You won’t need to master the art of chart-reading and technical analysis. If Apple moves into an uptrend, holding for a longer period of time could result in an impressive profit.
- Cons: You’re tying up your money for a longer period of time, instead of having it free to make multiple trades. if Apple moves into a downtrend right after you buy its stock, it could be emotionally difficult to sit through a major correction.
A CFD is a ‘contract for difference’. CFDs are investment derivatives that let you speculate on the price movement of a given asset (be it forex, commodities, or shares of Apple) without actually owning that particular asset (in this case, shares of Apple).
- Pros: With a CFD, you can trade with leverage. This means you only need to deposit a percentage of the total trade value, with the broker providing the rest, if shares of Apple rise you’ll make a bigger profit than you would if you’d only ventured your own money. CFD trading can make sense if you don’t want the hassle of owning and storing, say, gold bars or piles of currency.
- Cons: Just as trading with leverage increases the size of your gain if shares of Apple rise, it also ups the size of your loss if those shares fall. if you leave a leveraged CFD position open for more than a day, you will often have to pay overnight fees. It often makes less sense for trading stocks, since you lose the voting rights and potential dividends that can come with owning actual shares of a stock.
The more you know, the better equipped you’ll be to buy or trade shares in Apple. We suggest reading our guides and courses to get up to speed. On the other hand, if you’re ready to give it a go, click on the above links.
How to buy, sell and trade Apple shares for beginners
Ready to make Apple your first investment? Make sure you read our beginner’s tips first!
Generally, this involves using an online broker. Buying shares is recommended for investors who want to hold for longer periods of time. Simply log onto your online brokerage account, type in the ticker symbol of the stock you want to purchase and click Buy. Within a couple of seconds you will own those shares.
When you sell the shares you bought, you’ll ideally want to do so at a price that exceeds the price you bought at – thus earning a profit. Of course, when you sell is a subjective decision. You might decide to hold for as long as possible, hoping to realise the biggest profit possible. On the other hand, if you see that your Apple shares are up and the broader stock market is starting to tumble, it might make sense to sell and claim your profits rather than being greedy in hoping for more.
You can trade shares either through conventional transactions, or by using a CFD broker. If you opt for the latter, make sure you understand the risks that come with leveraged trading and consider the extra fees that CFD brokers can sometimes charge.
Our top tips for investing in shares of Apple
By now you should have a broad overview of how to invest in Apple shares, but it let’s go over the key takeaways so you’re sure:
- Be sure about your budget. Make sure the amount you invest doesn’t exceed your means. You don’t want to end up in debt from trying to make money investing.
- Choose the right approach. Make sure the investment strategy you’re pursuing fits your investment goals, and your tolerance for risk.
- Stick to a logical investing plan, rather than reacting to emotions. If you follow a sound plan, you’ll be more likely to find success. Falling victim to emotions such as fear and greed can torpedo your results, if you’re not careful.
- If market conditions change, have a plan for how to react. When financial markets rise or fall you should aim to anticipate and react. You can and should make decisions while keeping prevailing market conditions in mind.
- Learn from your mistakes. You could easily make a mistake when buying shares of Apple, whether you’re a beginner or an expert investor. If this happens – as it does to most investors at some point – take some time to go over your mistakes. Figure out what went wrong, and how you could have fared better. You can apply those lessons in the future and hopefully produce better results.
Unsure which platforms to use?
Still wondering where to go from here? That’s normal. Here’s a short list of considerations to help you decide how to proceed:
- Budget size. If you have a budget of £1,000 or less, you may wish to limit the number of transactions you make. Say you trade shares of Apple 20 times, at a cost of £10 per transaction. You’ve already eaten up at least 20% of your investing budget on fees alone. Keep things simple by just buying a few Apple shares, with an eye toward potential profit when you sell. Conversely, if you have a larger budget (say, greater than £10,000), you have a larger number of logical options to work with, including day-trading and CFD trading.
- Risk assessment. The more you know, the better equipped you’ll be to understand and deal with risk. If you’re interested in putting in the time to learn, more complex investing options could begin to make sense for you. For instance, you can choose to sell shares of Apple short. When you sell shares of a stock short, you’re betting that their price will go down, not up. Alternatively, you can try to protect your investment. For instance, if you buy shares of Apple at $300 per share, you can put in a stop-loss order at $270 per share. That means that if the stock starts falling, you won’t lose more than 10% on your investment.
- Market conditions. Say stocks have tumbled into a declining market (also called a ‘bear market’). At such a point, more defensive investment strategies like bonds or commodities (as opposed to growth stocks, like Apple) tend to make sense. On the flip side, if the stock market is performing well, you might choose to take advantage by snapping up shares in Apple, or any other stock that might entice you.
- Know your investing goals. If you’re trying to make money quickly, you’ll need to learn the ins and outs of faster-moving investments, such as day-trading Apple (that is, buying and selling shares in Apple on the same day). On the other hand, if your timeframe is closer to 30 years, you can opt to simply buy shares, and trust that the strength of the company will deliver a handsome profit in the longer term.
- Keep track of emerging trends. Technology is always evolving and with it comes exciting new investment opportunities. Stocks like Apple have reaped the benefits of technological growth and commercial innovation, but new developments are always possible. Keep an eye on market trends that might affect Apple’s market share and overall financial health.
What is Apple?
Founded in 1976, Apple is a company that got its start making home computers. It has since evolved into a worldwide leader in consumer electronics, selling Smartphones, tablets, computers, programming services, and more. For more information, including charts, live prices, analysis, and more, visit our Apple stock price page.
Try some of our stock market courses for beginners
Preparation is everything when you’re weighing up an investment. Which is why our easy-to-understand educational courses are so invaluable, especially if you still feel you need more understanding . Learning the ins and outs of stock investing will help you feel secure and ready to make a well considered investment in Apple stocks and shares.