Can you buy stocks with a credit card in 2024?

Find a stock broker that accepts credit cards. Learn how to buy stocks using a credit card broker with our step-by-step guide.
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Updated: May 13, 2024
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What you’ll learn

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  • How to find a stock broker that accepts credit card, charges low fees, and keeps your money secure
  • How to buy stocks with credit card for the first time
  • The pros and cons of buying stocks with credit card

So, can you buy stocks with a credit card?

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Yes, the answer is yes. Many trading platforms allow users to sign up and deposit money with their credit card. However, a more pressing question is: should you invest in stock with credit cards?

Its all about being a responsible adult with your money. If you use a credit card to simply benefit from its advantages, and you have more than enough cash to consistently pay your credit card bills monthly – then why not. This is no different to using your card to purchase anything else.

However, if you’re using your credit card to buy stocks because you don’t have enough money, this is dangerous and we strongly advise against it.

Where to buy stocks with credit card

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The best stock broker that accepts credit card is Start Trading .

Here are three more stock trading platforms where you can buy stocks with credit card, ranked according to their trading fees, security features, and platform reliability.

How to fund your credit card broker account

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It takes 10-15 minutes to set up a trading account with a broker that accepts credit card. Follow this guide to learn how to invest with credit card.

Step 1. Sign up with Start Trading

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Start Trading is the best stock broker that accepts credit card as a payment method.

To set up a trading account you must enter some personal details, like your name, street address, and email, and provide a valid photo ID for verification.

Step 2. Go to the deposits or payments page on your trading app

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You will find this in the main menu or site navigation tab. It may be labelled ‘bank’ or ‘account’, each credit card brokerage is different.

Step 3. Choose credit card from the list of options

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Choose your payment method from the drop down menu. There may be a lot of options, so scroll down until you find credit card.

Step 4. Enter the amount of money you want to deposit and confirm

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Decide how much you want to deposit and type that amount into the box. Bear in mind that there may be a fee for credit card deposits. 

Double check the details and then make the deposit. You may have to confirm the transaction with credit card before it goes through.

Step 5. Search for your favourite stock and place an order

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Each stock trades under a unique ticker symbol. For example, Apple stock trades as ‘AAPL’. Search for the stock you want to buy using its ticker and place your first trade.

Find broker & start trading

Things to know before buying stocks with a credit card

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The first thing to know is that you can buy stocks with a credit card, but doing so comes with several strings attached. It is, generally, a lot more expensive to make deposits via a credit card. Both the broker and your card issuer may charge fees, and there is more risk to investing this way compared to using other payment methods.

Only a handful of stock trading platforms accept credit card payments to begin with, which can prompt you to use less reputable services. Buying stocks on credit can also open you up to serious financial problems if you don’t understand the process properly.

Let’s dive into these issues in more detail.

Using a credit card means borrowing money

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Any time you use a credit card, you’re borrowing money from your bank. The cost of borrowing that money is the APR (annual percentage rate).

While you can get credit cards with APRs of 0% for a period of time, which means you just need to pay the borrowed amount back with no interest, the annual rate can be between 5-30% and averages 19%.

The average stock market return is only 7% annually. So if you’re buying stocks on credit, even if the value of your investments goes up, you may not earn enough to balance out the interest payments.

Then there is the risk that the value of the investments goes down, and you end up losing money on the stocks themselves and paying interest on the money you spent.

This can become a negative spiral. And if you miss any monthly payments, it could affect your credit score so that it becomes harder to borrow money in the future.

There are more fees when using a credit card to invest

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There are two types of fees to consider. One set are the fees charged by the stock broker, which may include steeper fees for deposits and withdrawals made via a card payment compared to a bank transfer. You may also have to pay trading fees each time you make an investment.

The fees for online card transactions vary depending on where you live. In the UK, EU, Australia, and China, the transaction fee is capped so you won’t pay more than 0.30%, 0.45%, or 0.50%, respectively. In practice this means that the fees for depositing with a credit card on a stock broker in those countries hover around £2-£3 each time.

Elsewhere, however, it can be significantly more expensive. There is no cap on credit card fees in the US, for example, so you may face charges of 3-4% or more.

The second set of fees and charges come from your credit card issuer. If you ever miss a monthly repayment or fail to meet the minimum, you will be charged a fixed fee – which varies depending on the issuer – as well as interest on the balance.

Safer ways to buy stocks

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With all this in mind, you might choose to fund your stock investments in a different way. Here are some cheaper and safer ways to buy stocks.

Quick answers to key questions

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What is a credit card stock broker?

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A trading platform where you can buy and sell stocks and which accepts credit card as a means of funding your trading account. 

Stock trading apps that accept credit card act as middlemen to complete stock trades, often charging a small fee for carrying out your orders.

Can you buy stocks with credit card?

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Yes, by using credit card to fund a trading account with a stock broker. 

To be clear, you can’t buy stocks on credit card. However, you can use it to make a deposit on a trading platform. All these recommended trading platforms accept credit card deposits. 

How much does it cost to fund a trading account with credit card?

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It can cost up to 3-4% of the deposit amount, depending on where you live. It costs less in the EU, UK, and Australia than it does in the US. Trading platforms normally offer free deposits, but credit card deposits incur an additional charge.

You may have to pay other fees as well, such as trading fees, withdrawal fees, inactivity fees, or overnight fees. Here’s a look at the fees you may encounter when buying stocks with a credit card from some of the top stockbrokers:

Asset Plus500 fees eToro fees Public fees
Cryptocurrencies From 2% 1%
Commodities From 0.04% From 2 pips
Currencies From 0.8% From 1 pip
Indices From 0.7% From 0.75 pts
Stocks From 0.08% 0% commission
View more > Plus500 > eToro > Public >

Is it safe to buy stocks with credit card?

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It is safe if you use a regulated and reputable broker, but it is also much more risky than using a debit card or another payment method.

We only recommend regulated stock brokers that accept credit card, which are forced by law to keep your money secure and abide by various financial disclosure and transparency requirements.

If you aren’t sure about a platform, search for its company registration number with your local regulator. This way, you can find out if the credit card brokerage is regulated by a reliable financial authority or not. Here’s the regulatory status of the best credit card stockbrokers:

Region Plus500 regulators eToro regulators Public regulators
Africa FSA
Asia
Australasia ASIC, FMA ASIC
Europe FCA, CySEC FCA, CySEC
International
North America FinCEN
South America
View more > Plus500 > eToro > Public >

Do I need to provide ID when I buy shares using credit card?

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Yes, if you’re using a regulated broker. Online stock brokers follow KYC (Know Your Customer) guidelines, so you will have to provide a form of valid photo ID when you set up a trading account.

Valid ID includes your passport or driving licence, so always have at least one of those to hand when you create an account. 

What are the risks of buying stocks with credit card?

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When deciding if you should invest with credit card, consider these benefits and drawbacks:

Pros

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  • Convenient. If you already use a credit card for everyday purchases, it’s easy to start using that same card to trade stocks online. Just link your credit card to your stock brokerage account and you can start trading.
  • Security. Most major credit cards offer built-in security and encryption capabilities to ensure that all your transactions (including your stock trades) are well protected.
  • Fast deposits. You can fund your stock broker account quickly using a credit card, allowing you to begin trading stocks whenever you’re ready. 

Cons

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What to look for when investing with a credit card stock broker

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If the stock broker you’re considering accepts a credit card as a payment method, you can then consider other factors to ensure your chosen platform offers great service. Here are some important qualities to look for:

  • Low transaction fees. Most brokers won’t charge too much per trade. But a difference of a few pounds between one broker and another can add up, especially if you’re a frequent trader. Look for brokers that charge the lowest transaction fees for trading stocks online.
  • Speed. Look for a stock broker that can execute your stock purchases quickly and efficiently. The stock market moves fast and you want to be able to react quickly as prices fluctuate.
  • Ease of use. The best stock brokers make the process of buying stocks online with a credit card a simple, painless process. Don’t choose a broker that gets in the way.
  • A strong reputation. Good reviews and a respected track record can give you peace of mind that the trading platform you’ve chosen is trustworthy and reliable.
  • Great customer service. The broker you choose should offer fast, helpful, on-demand customer service. 
Find broker & sign up

FAQs

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Does eToro accept credit cards?
What stocks can I get with a credit card?
Are there limits to how many stocks I can buy with a credit card?
Will a credit card stock broker let me trade with leverage?
OK, I’m ready to choose a broker


Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.