How to buy Deutsche Telekom Shares (DTE)

By:

Charlie Hancox

Charlie is a Financial Writer for Invezz. He covers commodities, cryptocurrencies, and breaking news. Prior to joining Invezz he helped grow Crux Investor into the fastest-growing... read more.

Updated: Jul 6, 2023

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This page is a beginners’ guide to purchasing shares in Deutsche Telekom. We explain what the company is, how it generates revenue, what its recent market performance has been like, and what its prospects are as an investment. Scroll down to get started.

Compare the best Deutsche Telekom trading platforms

It can be hard to find a trading platform to satisfy your financial needs. To help you out, our team of analysts have listed some of the best places to buy Deutsche Telekom stock below along with a brief description of what the platform has to offer. Click on the relevant link to sign up, or keep reading for more on Deutsche Telekom.

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How to buy Deutsche Telekom stock, a step-by-step guide

The process of getting shares in Deutsche Telekom is quick and easy, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:

1. Choose a broker. You need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Deutsche Telekom shares.
4. Place an order for DTE stock. Search for Deutsche Telekom’s ticker symbol (DTE) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Deutsche Telekom shares will be listed in your account. Congratulations, you’ve just bought shares in Deutsche Telekom.

Should I invest in Deutsche Telekom?

It is one of the world’s leading telecommunication companies. Deutsche Telekom is a prominent large-cap player with around 242 million mobile customers and 22 million broadband customers, and 27 million fixed-network lines. With a presence in over 50 countries and more than 225,000 staff, Telekom offers faster data transfers and integrated solutions for businesses and customers, making it a key part of the accelerating digital age.

There are five key segments to the company: Germany, United States, Europe, Systems Solutions, and Group Development. Through these divisions, the company offers fixed-network and internet services, sells hardware products like mobile devices and terminal equipment, and provides services to resellers. Perhaps the company’s most well-known subsidiary is T-Mobile, which employs 52,000 people and serves upwards of 100 million consumers with mobile services, including 5G. Some investors confuse the two, which is why ‘how to buy T-Mobile stock’ is searched so frequently.

All in all, if we were to use one word to describe Telekom as an investment proposition, it would be multifaceted. You should think about investing in the company if you appreciate its diversity of revenue streams, forward-thinking approach to the problems of tomorrow, sheer scale, and dividend yield of well over 3%. With a world-leading reputation/brand and interests in new and expanding markets, DTE could be a strong addition to both value and growth portfolios.

How has the company performed in recent years?

Deutsche Telekom’s share price has been relatively stable in recent years, growing slightly. This performance has been reinforced by consistently growing revenue for each year in the last decade, up from €62 billion in 2010 to over €100 billion now. Part of this drastic uptick is due to the COVID-19 pandemic and the increased demand placed on the telecommunication sector with people locked down, so it remains to seen if this new benchmark can be maintained.

As previously mentioned, this performance has allowed the company to pay out some of the most generous dividends in its sector. Moreover, part of what has taken the company to a new level is its strategic partnerships with major companies including Netflix, Microsoft, Huawei, Mojio, and others, which have allowed the company to innovate and evolve parallel to a changing society.

Looking to the future, Deutsche Telekom has the foundations in place to cement its position as a market frontrunner, and it also has the credentials to deliver meaningful growth. For instance, the rapidly growing 5G sector promises to experience greater adoption in the next few years, and DTE already supplies in excess of 40 million people with this latest mobile communications standard.

Is it a good time to buy Deutsche Telekom shares now?

At the core of the answer to this question is your own needs and goals. In short, how exactly do you want to gain exposure to the performance of DTE stock? If you want to purchase it and hold it for the long term, the best way of determining if now is a good time to get involved is by conducting a fundamental analysis. This is the process of dissecting a company via due diligence to determine if it will provide returns in the future, and it will tell you when it is a good time to invest.

However, if you don’t plan on holding shares for too long, and you want to trade them for accelerated returns, the true fundamental value of Deutsche Telekom is much less important. Instead, you want to delve into technical analysis so you can assess the market for indicators and trends, thus deducing the perfect time to buy and sell.

Regardless of the strategy, you choose to pursue with DTE, it is always important to be informed about the latest events surrounding the company and how they may impact your position. As a result, we have listed the latest news articles on Invezz that feature Deutsche Telekom below. Click on any of them to find out more about that particular story, or scroll down to learn more about investing.

Buying, selling and trading Deutsche Telekom shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you start.

1. Research the company. You should always examine the fundamentals of a company first. What is Deutsche Telekom? How did the company get its start? How did it grow? Does Deutsche Telekom’s balance sheet look like it’s in a good place? Is the company innovating? The more you know about Deutsche Telekom, the better positioned you’ll be to make smart investment decisions.
2. Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the latest news to keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Deutsche Telekom shares. Here’s a quick run-through of what’s involved in each.

Buying Deutsche Telekom

This process involves finding a broker and placing an order for Deutsche Telekom stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling Deutsche Telekom

When you sell any Deutsche Telekom shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Deutsche Telekom’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading Deutsche Telekom

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Deutsche Telekom shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.

Pros

• Can build wealth over time to achieve financial goals
• Don’t need to be very reactive to short-term market movements
• Some stocks will give you an income through regular dividend payments

Cons

• Takes a long time to realise any profits
• Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into DTE shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

• Can generate fast profits if you read the market right 
• Some platforms allow you to trade with leverage
• Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

• Trading with leverage is risky and can lead to big losses
• Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

• Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
• Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
• Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
• Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
• Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
• Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.