You’ve heard about the profit potential of stock investing, you’re interested in diving in, but you don’t know where to start. If that’s the case, buying shares in Santander could be for you. We’ve produced a series of educational articles and guides to help you learn how to buy Santander stock and make money doing it.
Follow the helpful hints below, then make your first trade. Or, If you’re not ready to start investing quite yet, read on.
Buy Santander stock, right now
You can buy Santander shares through an online broker. Buying shares is typically a strategy meant to encourage longer-term holding. Our helpful investment guides profile the best brokers and go over numerous investment methods for buying shares in Santander.
Trade Santander shares, right now
Trading shares in Santander might be the way to go if you want faster-paced action. When you trade shares, you’re buying and selling within a much shorter period of time, sometimes on the same day (day trading). We’ve reviewed low-fee online brokers that can help you trade shares.
How to buy Santander stock in 7 simple steps
Having a road map will help you navigate the perils and pitfalls of stock investing, while also getting you up to speed on the basics. Here’s a seven-step approach to help you get started on your journey toward buying shares in Santander.
- Know the company. What is Santander? How did it grow to become the fifth-largest bank in Europe? Are Santander’s fundamentals improving, or getting worse? Get to know as much as you can about the company, and you’ll have a better feel for the stock.
- Learn the basics. You’ll want to learn the key terms associated with stock market investing so you can research prospective investments with confidence. A solid understanding of the different ways you can trade and invest in stocks is also important. The articles and how-to guides on this site will walk you through the entire investing process.
- Share-dealing vs Trading. When you engage in share-dealing, you’re buying shares in a company, with plans to hold it for an extended period of time. You can make money in share-dealing by selling shares at a higher price than your buy price, or from company-issued dividends, assuming it’s a company that issues dividends. Trading shares is a shorter-term approach, with day trading a popular option among more experienced traders. When day trading shares in Santander, focus on technical analysis rather than the long-term outlook.
- Set a budget. When you start investing, use a smaller budget, perhaps £1000-£1500. Santander currently trades around £320 a share, so you can buy a few shares with that budget. As you gain experience, you can raise the stakes.
- Choose a broker. The best online brokers offer a strong reputation, an easy-to-use platform, and low transaction fees. Peruse our site to find one that works for you.
- Evaluate the broad market. In a ‘bull market’ (the stock market goes up a lot), most stocks will perform well. In a ‘bear market’ (stock market goes down a lot), most stocks will perform poorly. If the market turns for the worse, be ready to sell your positions.
- Make your first investment. You’ve done all your research and confirmed that the stock market’s holding up. Log in to your online brokerage account, type in Santander’s ticker symbol (BNC), make sure the stock is trading at a price that doesn’t look too high, then buy.
Ways to invest in Santander; share-dealing vs trading
You can buy, sell, and trade Santander shares online in numerous different ways. Two of these methods are share-dealing and trading:
Share-dealing involves buying and holding shares in a company, whereas trading shares is a method you use when you’re aiming for a quick profit.
- Pros: Buying and holding could result in big gains if you buy the right stock under the right market conditions. When share-dealing, you can devote your attention to studying the company’s fundamentals, rather than trying to become an expert in technical analysis.
- Cons: Buying and holding means the capital you invested is tied up and unavailable for further trades. Buying and holding sounds simple in theory, until the market wreaks havoc on your investmen and you have to decide if you’re willing to sit through a 30% correction.
CFD stands for contract for difference. CFDs are investment derivatives that allow you to speculate on the price movement of investment assets, in either direction. You can bet on assets such as commodities, forex, and shares in Santander to either go up, or down. When CFD trading, you buy a contract, not the actual asset you’re trading.
- Pros: CFD trading enables you to trade with leverage, meaning you only have to put down a percentage of the total trade value, with your CFD broker covering the rest; when trading with leverage, you can make more money than you would if you only trade with only your own capital, assuming the stock goes up.
- Cons: Just as leveraged trades are more lucrative when you buy a stock and it goes up, they’re also more painful when you buy a stock and it goes down; if you leave a leveraged CFD position open for more than a day, you pay extra fees; owning actual shares of a company enables you to have voting rights and also to sometimes rack up dividends…CFD trading doesn’t offer those perks.
Read our online articles and courses to improve your investing knowledge. If you’re ready to buy, click the links above.
How to buy, sell and trade Santander shares for beginners
Here are some basic facts to know:
Buying shares is a simple process, often done with the help of an online broker. Log in to your online brokerage account, type in Santander’s ticker symbol and click Buy. You now own shares.
You can sell shares when day trading, hoping to make money fast or sell shares after holding for a long time, hopefully bagging a much bigger profit.
Of course, it’s not always that simple. If your stock has gone up in value but a bear market has kicked in you may be prompted to sell a little quicker than expected to protect your profits.
You can trade shares with a conventional online broker, or with a CFD broker. If you use a CFD broker, know the risk that comes with leveraged trading, and factor in the extra fees that CFD brokers charge.
Our top tips for investing in Santander
Let’s review five important points:
- Know your budget. Everyone has a threshold for what they can afford to lose, or are willing to lose. Establish that threshold, then be disciplined about not threatening it. You can start by investing a smaller amount of money, to play it safe.
- Choose the right investing approach. There are many investment options out there, from hyper-aggressive styles to more conservative ones. Find a strategy that suits your goals, and your tolerance for risk.
- Don’t react to emotions. A sound investing plan will help prevent emotions from taking over. Without a plan, fear and greed can push you to make rash investment decisions.
- If market conditions change, be ready. If the market starts falling sharply, you should give serious thought to selling your shares. Unless you’re day trading, you should keep the state of the broader market in mind when making investing decisions.
- Learn from your mistakes. Making mistakes is OK. Not learning from your mistakes is a waste. Review your trades, figure out what went wrong, then try a different approach next time.
Unsure which platforms to use?
Not sure what to do now? We understand – there’s a lot of information to take in! Consider these key investing elements to simplify your decision-making process:
- Budget size. If you’re just starting out and have a budget of £1,500, keep it straightforward and simply buy and hold a few shares in Santander. If you have a bigger budget (for example, more than £10,000), you can broaden your horizons and consider day trading, CFD trading, and other techniques.
- Risk assessment. Don’t take on riskier investment strategies until you’ve gained more experience and expertise. The same goes for more complicated investing strategies, such as selling shares short, betting that the price will fall. To protect your investment, consider a stop-loss order. Say you buy shares in Santander at £320 per share. You can then put in a stop-loss order at £288 per share. If Santander starts to fall, you won’t lose more than 10% with a stop-loss order in place.
- Market conditions. In a bear market, buying bonds or commodities are defensive strategies that might work better than chasing growth stocks at sky-high prices.
- Know your investing goals. If you’re trying to make money quickly, day trading could work well, especially if you’ve gotten a feel for reading stock charts. If you think a stock could be a long-term winner, buy and hold shares instead.
- Follow emerging trends. Banking is a competitive industry, and changing with the times is a must to keep competitors at bay. Watch how Santander evolves along with new technology, since that could play a big role in determining the company’s future health.
What is Santander?
Santander Group, also called Banco Santander, is a Spain-based multinational commercial bank and financial services company, founded in 1857. The bank has more than 200,000 employees, with revenue topping £48 billion as of year-end 2018. For more information on the company, including charts, live prices, analysis, and more, visit our Santander stock price page.
Try our stock market courses for beginners
Learn more about both the stock market and individual stock investments by reading the many articles and guides on this site. That way you’ll improve your chances of making money when buying shares in Santander.