How to buy Block (SQ) shares
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This page explains how to buy your first Block shares by taking you through the process in a step-by-step guide. Learn about what makes the company tick and what you need to look out for before you buy, then choose from a list of top brokers to start investing right away.
Where to buy Block stock
Copy link to sectionUse any of the trading platforms below to invest now. These beginner-friendly brokers make it easy to sign up and get started and you can start by clicking any of the links in the table. Otherwise, scroll down to learn more about the company first.
77% of retail CFD accounts lose money.
How to buy Block stock, a step-by-step guide
Copy link to sectionThe guide below takes you through how to make an investment, from setting up a broker account to executing your first trade.
1. Choose a broker and create an account
Copy link to sectionThe first step is to find a reliable stock broker. A broker is an online platform that acts as an intermediary between you and the stock market and you have to use one to buy shares, and hold the ones you own.
The key features to look for in a good broker are low trading fees, as you normally have to pay a fee on every transaction, and the range of assets available if you want to invest in other things apart from Block.
Once you’ve chosen a platform, you have to create an account. Doing so usually only takes a few minutes but you will have to provide your contact details and verify your identity with a form of photo ID.
2. Decide how much to invest
Copy link to sectionA good rule of thumb is to invest no more than 5% of your total budget in one company under normal circumstances. You should also consider the balance of the rest of your portfolio; Block is a growth stock, which means it can be more volatile. You can invest in safer, more stable assets as well to reduce the risk of sharp price changes from any one stock.
Another factor to consider is how much a single share costs, as this can influence how you invest. If you have a smaller budget, it might not be possible to buy a full share in Block, so you could buy a CFD or invest in an ETF that contains Block instead.
3. Research Block and its potential
Copy link to sectionTake time to thoroughly research any company and its competitors before you put your hard-earned money into it. Every business that lists on a stock exchange has to submit quarterly financial reports that are publicly available. Use those, along with expert analysis, to form an opinion about Block.
It can be a good idea to compare its performance and potential with competitors. Consider looking into other payment providers like PayPal, Monzo, and Starling Bank, and think about whether you expect financial services to migrate towards blockchain technology in the future.
4. Place an order for SQ stock
Copy link to sectionLog in to your broker account and search for Block’s ticker symbol, SQ. It trades on the New York Stock Exchange, so the result you’re looking for is the one listed as NYSE: SQ. The broker normally sets a fixed buy and sell price that you can use to get shares instantly at the current market rate.
5. Execute your order
Copy link to sectionDecide how many Block shares you want to own. Enter the amount and check the details of your order before you send it, to check that everything is correct. Once you’ve placed the order, be aware that there might be a lag before it is executed, depending on whether you sent it during market hours or not.
One your order has executed, you can see your new shares in the portfolio section of your account. Through the portfolio you can watch how your investments have performed and use that information to decide when to buy or sell.
6. Review your investment regularly
Copy link to sectionIt’s important to keep track of the stocks you invest in after you buy the shares. That way you can decide when to sell, or whether to buy more in the future. You might want to set stop-loss orders, which execute automatically when the share price hits a certain level. This can be a useful way to reduce risk or to lock in future profit in case the price suddenly changes dramatically.
What is Block? And should I invest?
Copy link to sectionBlock is a financial services company that was formerly known as Square. It owns and operates a group of mobile payment platforms, including Cash App and Square. More recently it has also started to invest in blockchain technology as well.
The company was set up by Jack Dorsey, who’s best known as the founder of Twitter, in 2009. Dorsey has long been a proponent of cryptocurrency as the future of money, which is what prompted the company’s rebrand to Block in 2021 and a heavy investment in Spiral (formerly Square Crypto) and TBD to develop new technology in the crypto space.
Like many tech stocks, Block prioritises growth before profit. That means that the share price can be volatile and you have to be willing to accept some risk to reap the rewards of potential growth in the future. It’s best suited to investors who have a balanced portfolio full of reliable assets and can afford to add something more volatile.
How has the company performed in recent years?
Copy link to sectionBlock soared in value during the pandemic as more commercial activity was forced online. An influx of new businesses using Square to process payments, as well as individuals signing up for Cash App to make transfer money online drove huge share price growth in 2020 and 2021.
The company continued to add new users into 2022 and its underlying performance improved even further, even as the stock price itself hit a wobble. A broader sell off in tech stocks at the end of 2021 caused Block shares to halve in value, as investors moved their money into safer industries.
Despite its relative youth, however, Block has a strong track record of success. It has increased its revenue every year since 2012 and its share price steadily increased for most of that time as well. It has established itself as a major alternative to the likes of PayPal as a business payment operator and is challenging established banking apps as well.
Is it a good time to buy Block shares now?
Copy link to sectionIt could be if you expect the market for new financial services to keep growing. Block offers a route into cryptocurrency and blockchain investments, as well as online payments. The more transactions that take place online, the better for Block.
To that end, the company is expanding to offer more products that it can upsell to existing users, as well as geographically to target customers in new locations. Alongside its financial services platforms, for example, it is offering things like a photo editing platform to help sellers create high quality pictures and upload them straight to a store.
Like any fast moving industry, it’s important to follow the fortunes of the crypto and financial services industry if you do decide to invest in Block. Use the links below to get the latest news and analysis to help you make the right investment decisions.
Ways to invest in SQ
Copy link to sectionThere are a few different ways to invest in Block. Find out more about each in detail in the bullet points below.
- Buy Block shares. The simplest way to invest; buying a share means you own a piece of the company and the value of your investment will rise and fall with its business performance.
- Invest in Block ETFs. An ETF is a fund that tracks the performance of an index or industry by owning shares in lots of different companies. They are a great option for beginners or those with a smaller budget. The best tech ETFs include Block, while growth ETFs and blockchain ETFs are likely to own it too.
- Invest in Block funds or trusts. Funds and trusts are like ETFs except they’re managed by a financial professional. The fund manager decides which stocks to invest in and when to sell, with the aim of generating the best return possible for everyone. Tech or growth-focused funds are the best place to find Block.
- Trade Block. Trading is the best option for those with a short term focus. Study the price chart to identify trends and then buy and sell shares frequently to try to profit from the fluctuations. The fundamental strength of the business is less of a factor when trading, although you should still consider how it might impact the price.
- Spread betting. Spread betting is similar to trading, in that it is generally a short term practice. You can bet on the price changes of a particular stock, rather than taking ownership of the shares yourself. An advantage of spread betting is that you can bet on prices to go down as well as up, and any gains you make are tax free.
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