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How to buy Ford shares (F)
This guide will give you an overview of Ford, its history, and the reasons for its spotty recent performance. You’ll also get some pointers over what might affect its stock price and help deciding whether to invest.
Compare the best Ford trading platforms
If you have all the information you need and just want to invest, you can get Ford shares immediately by visiting one of our trusted brokers below. We’ve assessed all the best brokers and compared them so that picking the right choice for you is quick and easy. If you’re not ready to do that, keep reading for more information on Ford.
How to buy Ford stock, a step-by-step guide
The process of buying shares isn’t massively complicated, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Choose a broker. The first thing you need to find is an online brokerage platform. There are many different options to choose from, each with their 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.
- 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.
- 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 Ford shares.
- Place an order for F stock. Search for Ford’s ticker symbol (F) 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.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Ford shares will be listed in your account. Congratulations, you’ve just bought shares in Ford!
What is Ford? And should I invest?
The Ford Motor Company (NYSE: F) is an automotive manufacturer that was formed by the legendary American businessman Henry Ford at the turn of the 20th Century. Ford is famous for its use of the assembly line to mass-produce affordable cars for the US market but now operates in many countries across the globe and is the fifth-largest automotive manufacturer in the world.
Ford is an American institution that still produces many millions of cars and employs more than 200,000 workers around the world. Despite its strong manufacturing roots, it is trying to boost growth and keep up in a world where the future of automotive manufacturing lies in electric and self-driving vehicles. Its stock might present opportunities for technical investors but its prospects for long term growth require deeper fundamental analysis.
The company is trying to muscle its way into the war for the future of vehicle manufacturing. Most notably it has set up the Ford Smart Mobility unit to develop its own research and compete with tech companies encroaching on its turf.
How has the company performed in recent years?
Ford’s era of dizzying success came to a halt around the year 2000, as a struggling economy and rising fuel prices took their toll on its bottom line. Ford’s price has remained stagnant throughout most of the 21st century, it was trading at $9 in 2003 and not much has changed, while it underperformed the S&P 500 for long stretches of that time as well.
An attempted major overhaul and restructure of the business throughout the 2010s did not achieve the results investors hoped. Even before the pandemic, Ford was reporting poor results and going through another shake up in its senior management positions.
When the pandemic arrived, the auto industry was particularly badly hit as it is so sensitive to consumer demand and sentiment. Ford was no different and saw its debt rating downgraded to junk status in the initial aftermath, although the share price recovered almost to pre-pandemic levels by the end of the year.
Is it a good time to buy Ford shares now?
There could be opportunity in Ford, particularly for short term investors who use technical indicators to make their trading decisions. Longer term, the picture is more cloudy as it trails behind competitors that are already more established in automated and electric vehicles.
Ford is banking on that automation as a way to reverse its long-term struggles. It has invested heavily in developing electric and self-driving vehicles, both internally and through acquisitions. The new management team features automation experience and it is gearing up to compete on this front. One of the biggest question marks remains the stiff competition, with companies like Tesla already well established and more popular with investors.
Long term investors will want to look at Ford’s fundamentals before makign a decision. Although there are some more positive signs, the company has posted a lot of losses over recent years and you’ll need to assess what you expect to change before investing. You can get our view on Ford stock as well as the latest news and market analysis using the links below.
Should I buy Ford shares after Barclays raised its price target to $16?
Ford stock price moves higher on Google Android partnership
What are the best automotive industry stocks to buy in February?
Buying, selling and trading Ford 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 investing in Ford shares.
- Research the company. You should always examine the fundamentals of a company first. What is Ford? How did the company get its start? How did it grow? Is Ford’s revenue and profit growth picking up? Is the company innovating? The more you know about Ford, the better positioned you’ll be to make smart investment decisions.
- 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.
- 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.
- 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.
- 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.
- 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 bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news section can help you 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 Ford shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Ford 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.
When you sell any Ford 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 Ford’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 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 Ford 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 refers to the practice of 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 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.
- 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
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
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 F 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.
- 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
- 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 stock trading course and read our guide to CFD trading to get you up to speed.
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 find the shares you want on your chosen broker platform. 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 to place trades and buy shares. 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 use a specific payment method, such as PayPal, to fund your account. 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 Ford news
Ford shares climb again to hit a 20-year high on Wednesday
Should I buy Ford Motor shares after a positive view from Bank of America?
Jim Cramer: ‘Sky is the limit for Ford this year’
Ford stock outlook as CEO vows to scale up EV production in brand reinvention
Ford CEO on Tesla Inc: ‘we can’t ignore this competition anymore’
Ford reveals its strategy to rewin investment-grade credit rating
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >