Ways to invest in Bank of America
The simplest way to start on the stock market is to sign up with an online stock broker. A broker is a platform that lets you buy and sell stocks, requiring just a few minutes to sign up and fund your account before you can dive in and start.
That’s only one way to invest in Bank of America shares, though. Other ways to get exposure to its stock include mutual funds and exchange-traded funds (ETFs) that hold shares in Bank of America. The links below take you to individual pages which explain multiple choices you have.
What is Bank of America?
Bank of America is one of the world’s largest financial services companies, doing business in both commercial banking and investment banking. The company employs more than 200,000 people and reports tens of billions in revenue every year.
If you’re a beginner who wants to learn more before investing in Bank of America, start with our Stock Markets 101 course. It explains everything you need to know about the market and how it works.
How to invest in Bank of America
You have lots of different options. Which one is best for you depends on your goals and your level of experience, plus how much time you want to dedicate to managing your own portfolio. Below we’ve listed the most popular methods, and if you want to learn more, follow the links to our guides on each subject.
- Stock brokers. The simplest way is through an online stock broker. Many brokers charge from nothing to just a few pounds per trade and offer basic research tools that can help you better understand the potential risks and rewards, making them ideal for the new starter.
- ETFs. ETFs, or exchange-traded funds, are a way of getting exposure to lots of different shares at once. ETFs track the performance of a market or index by owning all the stocks in it and so an ETF can be a good way to turn a profit, while still spreading out your overall risk.
- Mutual funds. A mutual fund pools money together from many different people. A fund manager takes that money and spends it on a variety of stocks, with the goal of making money for all of the fund’s investors over the long haul. If you want to use this method, then just look for a fund that includes Bank of America as part of its holdings.
- Trusts. A trust is like a mutual fund but is ‘closed-end’, which means you have to buy shares from someone else to gain access to it. These tend to be a bit less unwieldy than funds, which can get very large as more and more people buy into it.
- CFDs. Another option is to trade contracts for difference (CFD). The biggest difference between trading with a CFD vs. buying shares is in the case of a CFD you don’t actually own the stock. Instead, you use CFDs to predict price movements. These are often used by day traders who move in and out of stocks quickly to try to take advantage of small price changes.
- ISAs. An ISA (Individual Savings Account) is a tax-free savings account that allows you to set aside a portion of your income to spend on the stock market. In the UK, the allowance is up to £20,000 per year. Within your ISA you can own shares in Bank of America, along with all sorts of different assets, to protect them from the taxman.
Where can I buy Bank of America shares now?
Latest Bank of America price analysis
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