If you’re thinking about investing in stocks for the first time, buying Netflix shares through an online broker could be a good entry point. Of course, buying a stock doesn’t guarantee you’ll make money – it takes skill and knowledge to become an effective investor. So, before you launch in, read through this page, and our numerous educational articles, to build your understanding and confidence.
If you’re ready to invest in stocks, we’ll show you how below. If you want to learn more first, keep reading.
Compare the best platforms to invest in Netflix shares
Ready to invest in Netflix shares? Click on the links below to find an online broker that makes the most sense for you. Our helpful guides walk you through top best investment choices and the most reputable online brokerages. We also explain various different methods of investing.
Trade Netflix shares, right now
Looking for something more dynamic than long-term investing? You can always opt to trade shares instead. When you trade shares in a stock like Netflix, you’re typically buying and selling shares in a short timeframe, sometimes on the same day (this is known as day trading). Read on to see which online brokers offer the best platforms and most affordable fees for those interested in high-volume trading.
How to buy Netflix shares in 7 simple steps
Want to increase your chance of success when buying Netflix shares? Take some time to research how the company operates and how the stock historically behaves before taking the plunge.
If you’re just starting out, consider buying a modest initial investment in Netflix. As you get more comfortable with investing, you can choose to put more money on the line. In the meantime, here’s an investing checklist to guide your decisions:
- Know the company. What is Netflix? How did the company get started? How did it become the market leader it is today? How strong is the company’s revenue and earnings growth? How well equipped is Netflix to grow in the future? The more you know about Netflix’s business, the better prepared you’ll be to invest with confidence.
- Learn the basics. Learn the terminology that comes with buying stocks. Get to know key fundamentals such as revenue growth and earnings growth, and trading terminology like bid price and ask price. Learn how to invest in and trade shares in Netflix. Popular methods include share-dealing, trading, and contracts for difference (CFDs). More on all of these shortly.
- Share-dealing vs Trading. When share-dealing, you’re buying shares in a company. There are two ways to make money from share-dealing. You can sell shares at a higher price than your buy price or, in some cases, collect dividends (not all companies issue dividends, so you’ll need to research that ahead of time). Trading is a shorter-term approach to investing that includes buying and selling shares on the same day (day trading). When you day-trade shares in Netflix, you’re interested in Netflix’s stock chart, not the company’s long-term future.
- Set your budget. When you first start investing, consider going with a smaller budget, say £1,000 or less. Netflix’s stock currently trades between $300 and $350 a share, meaning you could buy three shares with an investment of about £1,000. As you gain experience, you can venture more money on your investments.
- Choose a broker that suits your needs. It’s easy to find an online broker that will enable you to buy Netflix shares but keep in mind that every online broker is different. Find an online broker with an easy-to-use trading platform, strong reputation, and low fees.
- Evaluate market conditions. When the stock market is going up sharply (a ‘bull market’), most stocks rise. When the stock market is going down sharply (a ‘bear market’), most stocks fall. Follow the broader market trend, rather than trying to fight it.
- Make your first investment. By now you have a good feel Netflix’s business and you understand the basics of how to invest. You’ve arrived at a budget that makes sense given your level of experience and your disposable income. You’ve found a broker, and you’ve confirmed that the market is doing well. Ready to invest? Log into your online brokerage account, type in Netflix’s ticker symbol (NFLX), make sure the stock price makes sense given your research, then hit Buy. You’ll own shares of Netflix within seconds.
Ways to invest in Netflix – share-dealing vs trading
There are numerous ways to buy, sell, and trade Netflix stock online. These include:
When share-dealing, you are buying Netflix shares. Share-dealing is typically a longer-term strategy than trading shares.
- Pros: If you want to buy and hold, you don’t need to master the art of technical analysis. If Netflix’s stock starts rising, holding on for a while could prove to be highly lucrative.
- Cons: Share-dealing can tie up your money for a long time, limiting your ability to make other investments. If Netflix’s stock starts falling after you buy, you might have to decide whether or not you want to sit through a big correction, which can be an emotionally testing situation to find yourself in.
A contract for difference (CFD) is an investment derivative that lets you speculate on the price movement of an asset. Examples of such assets include contracts for foreign currency, commodities such as gold or oil or stocks like Netflix. When CFD trading, you don’t actually own foreign currency, gold or Netflix shares. Rather, you’re temporarily holding a contract pegged to the short-term price movement of one of those assets.
- Pros: CFD traders only have to put up a percentage of the total trade value, with the broker providing the rest (also called leveraged trading). In leveraged trading you make more on a winning trade than you would if you only ventured your own money.
- Cons: In leveraged trading, you also run the risk of losing more than you would on a regular trade. CFD trading can lead to overnight fees for trades that stay open for more than a day. You could argue that CFD trading is less beneficial for trading stocks than it is for trading commodities, because you lose the voting rights and potential dividends that can come with owning shares.
How to buy, sell and trade Netflix shares for beginners
Thinking about investing in Netflix shares? Here’s what you need to know:
Buying Netflix shares
You can buy Netflix shares through an online broker, a good idea if you want to hold your shares for longer. Log onto your online brokerage account, type in the ticker symbol of the stock you want, click Buy, and you’ll own shares.
When you sell Netflix shares your aim is to sell at a higher price to earn a profit. Exactly when you sell is up to you. You could hold for a long time, hoping to get the biggest profit possible. Or, if you see that your Netflix shares are already up a lot on the price you bought them at and the stock market is floundering, you might choose to get out while the going’s good and sell.
You can trade Netflix through a typical online broker or through a CFD broker. If you choose a CFD broker, know the risks that come with leveraged trading, and take note of the the additional fees that CFD brokers often charge.
Our top tips for investing in shares of Netflix
Now that you have an overview of how to invest in Netflix shares, let’s review a few key points:
- Know your budget. Feel free to invest as much as you can afford to lose, but no more. You don’t want to blow up your financial future while experimenting with investments.
- Choose the approach that makes the most sense for you. Tailor your investment strategy to your investment goals and risk tolerance. Acquire more experience before trying more complicated methods of trading.
- Stick to a plan. Follow a thoughtful investing plan to increase your likelihood of success. Emotions such as fear and greed can make you follow through on ill-advised decisions; a well thought out investment plan can help prevent that from happening.
- If market conditions change, don’t hesitate to adjust. In a bear market, few stocks escape the prevailing downtrend. Keep tabs on the broad market, and be prepared to adjust if you have to.
- Learn from your mistakes. It’s normal to make mistakes when investing. The important thing is that you learn from those mistakes, so you’ll be better equipped to succeed in the future.
Unsure which platforms to use?
Still not sure how to proceed? Here are some more investing factors to consider:
- Budget size. If you have a budget of £1,000 or less, you can simply buy a few shares of Netflix. If you have a larger budget (say, more than £10,000), more investment options become viable. Those investment options include CFD trading, day-trading, or buying more shares.
- Risk assessment. Taking on risk and complexity when investing gets less scary after you become more knowledgeable and experienced. For a more complex strategy, you could sell shares of Netflix short, if you think the stock’s price will fall. If you want to stay conservative, you can protect your investment on the buy side. Say you buy Netflix shares at $350. You can put in a stop-loss order at $315. Therefore, if Netflix’s stock falls to $315, you’ll automatically sell and won’t more than 10% of your investment.
- Market conditions. In a prolonged downtrend (a bear market), buying bonds and commodities can be safer than buying a growth stock like Netflix. Conversely, if the market’s doing well, you’ll have a better chance for success when you buy Netflix shares. Follow the latest market news on our site to make intelligent investment decisions.
- Set your investing goals. Want to make money quickly? Day-trading shares (buying and selling on the same day) could be for you. Want to hold for 10, 20, or 30 years instead? You can buy a stock like Netflix and then hold, betting that the company will succeed for many years to come.
- Keep track of emerging trends. New technology brings new investment opportunities. Netflix has become a worldwide leader in home entertainment and digital programming. To keep the party going, you’ll want to Netflix take advantage of new technology, fending off competitors in the process.
What is Netflix?
Netflix is a multinational holding company that specialises in e-commerce, retail, and technology. Founded in 1997, Netflix is an American media services provider and programming company that’s become a global leader in in-home entertainment. To find out more about the company, and Netflix’s stock (including charts, live prices, analysis, and more), see our Netflix stock price page.
Try some of our stock market courses for beginners
Still not ready to invest? Review our website and you’ll learn key investment fundamentals from our educational courses. Learning the best investing and trading techniques will prepare you to buy Netflix shares with confidence.