How to buy Digital World Acquisition shares

Digital World Acquisition rose to prominence after it made a deal with a company owned by former President Donald Trump. In this guide, find out everything you need to know before you invest in Digital World Acquisition shares.
By: Charlie Hancox
Charlie Hancox
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player,… read more.
Updated: Oct 26, 2021
Tip: our preferred broker is, eToro: visit & create account

Digital World Acquisition is a special-purpose acquisition company (SPAC) that has risen to prominence after news broke the company is set to undergo a merger with Trump Media & Technology Group Corp. This page discusses the potential ramifications of this deal and provides a detailed step-by-step breakdown of how to purchase shares in the company.

Compare the best Digital World Acquisition trading platforms

If you want to get involved straight away, the fastest and easiest way to do so is by signing up to an online stockbroker. These are regulated platforms that allow you to purchase shares in publicly listed companies like Digital World Acquisition. Below are some of our top picks.

1
Min. Deposit
$50
Promotion
User Score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Promotion
User Score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

How to buy Digital World Acquisition stock, a step-by-step guide

The process of getting shares in Digital World Acquisition 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 Digital World Acquisition shares.
  4. Place an order for DWAC stock. Search for Digital World Acquisition’s ticker symbol (DWAC) 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 Digital World Acquisition shares will be listed in your account. Congratulations, you’ve just bought shares in Digital World Acquisition.

Should I invest in Digital World Acquisition?

First and foremost, you need to know what kind of company Digital World Acquisition is: it is a special-purpose acquisition company or SPAC. This is a company with no commercial operations that is created purely to raise capital for the acquisition of or merger with an existing company.

In the case of DWAC, it is linked to multi-billionaire business mogul and former President, Donald J. Trump. In the wake of the 2021 Capitol riot, Trump was permanently banned from major social media platforms like Twitter and Facebook. Now, after Apple’s temporary ban of right-leaning social media app, Parler, and the struggles of the conservative-tailored Gettr, the 45th President has decided to launch a social venture of his own in an effort to communicate with his support base.

The network will be known as Truth Social, a social media platform that is expected to have a limited launch on Apple’s App Store in November 2021, and a full public launch in 2022. Having filed for an IPO this year, Digital World Acquisition announced a deal with Trump Media & Technology Group Corp. on October 20th, 2021, which values its target at $1.7 billion.

How has the company performed in recent years?

It is difficult to draw any conclusions about the performance of DWAC given the recency of its deal with Trump Media & Technology Group Corp. However, it is notable that in the first few days of the deal, Digital World Acquisition Corp. surged hundreds of per cent in value, was the most popular stock on prominent Reddit investor forum, WallStreetBets, and had the highest trading volume of any stock on numerous major apps such as Fidelity.

However, things have settled down a little since then, and there have been reports that some institutional investors have established short positions in the stock. Moreover, some commentators feel that as with anything he is involved in, Trump is the true captain of this new merged vessel. Quite the course he chooses to set off on remains to be seen.

Much of the future performance of Digital World Acquisition stock will come down to the success of Truth Social. A beta version will be made available in November to invited guests, and a national roll-out across North America will be expected in the months that follow. It remains to be seen if Trump can reignite the passions of his supporters and take on some of the tech sector’s largest and most powerful names.

Is it a good time to buy Digital World Acquisition shares now?

Given that this newly merged company is in its infancy, expect to see a lot of volatility in the short term. However, if your eyes are on long-term growth, this shouldn’t bother you as much provided you believe in the platform’s credentials.

Right now, it is difficult to draw any decisive conclusions because there is still so much ambiguity regarding what the platform will look like, how it will be received, and how it will generate revenue. As a result of these unknowns, while investing in DWAC could prove a good move in the long run, right now, it looks more akin to gambling. As a result, trading DWAC shares to take advantage of heightened market volatility may be a better move for now.

Whatever you choose to do, it is absolutely crucial that you stay up to date with the latest news and events unfolding in and around the Digital World Acquisition story. To help you out in this regard, we have listed the top stories right now below. Simply click on one of them to learn more, or keep scrolling to continue learning about investing and trading Digital World Acquisition shares.

Buying, selling and trading Digital World Acquisition 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 Digital World Acquisition? How did the company get its start? How did it grow? Does Digital World Acquisition’s balance sheet look like it’s in a good place? Is the company innovating? The more you know about Digital World Acquisition, 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 Digital World Acquisition shares. Here’s a quick run-through of what’s involved in each.

Buying Digital World Acquisition

This process involves finding a broker and placing an order for Digital World Acquisition 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 Digital World Acquisition

When you sell any Digital World Acquisition 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 Digital World Acquisition’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 Digital World Acquisition

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 Digital World Acquisition 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 DWAC 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 cryptocurrency 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.

Latest Digital World Acquisition news

The Digital World Acquisition stock price tumbled by more than 10% as investors started taking profit. The DWAC stock is trading at $83.8, which is about 50% below its all-time high. What is DWAC? DWAC is a special purpose acquisition company (SPAC) that was relatively calm early last week.

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Charlie Hancox
Financial writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.