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How to buy Roblox Shares
This guide introduces you to Roblox and gives you all the information you need to know in order to invest in its shares. We explain how to invest in the stock market, a brief history of the company, and where to buy Roblox stock.
Compare the best Roblox trading platforms
If you are looking for the best place to buy Roblox stock, check out the options below. Our team of financial experts have been through all the best brokers and compared them so that you can find the ideal one for you. If you’re not ready to invest yet, keep reading to learn more about one of the stock exchange’s newest listings.
How to buy Roblox stock, a step-by-step guide
Nowadays, investing in a company is easy, so don’t worry, even if you’re new to investing. These are the steps to follow in order to complete your investment:
- Choose a broker. To get involved, 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.
- 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 Roblox shares.
- Place an order for RBLX stock. Now navigate to the stocks section of your chosen broker. Here you’ll be able to search for Roblox’s ticker symbol (RBLX) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Roblox shares will be listed in your account. Congratulations, you’ve just bought shares in Roblox!
What is Roblox? And should I invest?
Roblox (NYSE: RBLX) is an online gaming platform aimed at under-18s. Formed in 2004, Roblox has exploded in popularity over the last decade and now has more than 30 million active users every day.
More like an immersive online meeting place than just a gaming platform, Roblox has lots of features that were ideal for a world forced to stay inside for a year. Its most defining feature, however, is the fact anyone can create their own game within it. Amateur developers have made more than $200m in 2020 alone as a result, and the platform gets a cut from every transaction.
Roblox announced plans for an initial public offering (IPO) in late 2020 before changing its mind and ultimately choosing to go with a direct listing in March 2021. That means its price could be quite erratic in the short term, so you should keep that in mind if you want to invest.
How has the company performed in recent years?
Roblox is a new listing, having only been made available to trade on the stock exchange in March 2021, so there isn’t much history to go on. Ahead of its listing, it was aiming for a share price of around $45, which valued the company at more than $28m.
As an indication of how well it did during the pandemic, $28m is a seven fold increase on its valuation a year before. In February 2020, as part of its preparation for going public, Roblox was valued at $4m. The number was raised to $8m in November 2020 but the target price still represents a significant jump in the space of a few months.
Some of that optimism is warranted by the numbers behind its gaming platform. A global pandemic forcing everyone to stay at home led to it almost doubling its active user base from 17m in 2019 to 30m in 2020. The revenue followed: up to $600m in the first nine months of 2020, a 68% increase on the year before.
Is it a good time to buy Roblox shares now?
It depends on your attitude to risk. The early stages of a company’s listing can be volatile. This is especially the case with new listings in recent times, that have seen the prices of companies like Airbnb and DoorDash swing wildly over the first few weeks of trading.
Roblox tried to combat this by choosing a direct listing, which differs from an IPO in that it doesn’t set the launch price ahead of time. Instead it matches demand and supply on the first day of trading to create the price. Doing it this way means the company gets more funds from the listing, instead of watching investors in the middle sweep up most of the money.
In theory, that should mean the current price is an accurate reflection of market sentiment, but it could be worth being cautious. Particularly as the world opens back up post-pandemic, which could have an effect on Roblox’s user base and revenues. You can use our latest market analysis to help you decide whether to invest:
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Buying, selling and trading 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 Roblox shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Roblox? How did the company get its start? How did it grow? Is Roblox’s revenue and profit growth picking up? Is the company innovating? The more you know about Roblox, 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 Roblox shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Roblox 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 Roblox 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 Roblox’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 as buying and selling shares, 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 Roblox 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, 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 RBLX 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.
If neither of these options appeal to you, then you can find a variety of other ways to invest in RBLX stock on this page. If, however, you’re ready to invest now, simply select one of the brokers in the table above and get started.
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 purchase 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 to invest. 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 purchase Roblox shares using a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can search for 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.
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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 >