How to buy Snapchat shares

Developed by social media company, Snap Inc., Snapchat is a popular multimedia messaging app. Find out about its recent market performance and where to buy Snapchat shares in our guide.
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: May 18, 2021
Tip: our preferred broker is, eToro: visit & create account

This page explains the essential things you need to know before you invest in Snapchat stock. We take you through the history of Snap Inc., the company’s investment prospects for the future, and the different ways you can invest.

Compare the best Snapchat trading platforms

If you are looking for the best place to buy Snapchat stock online, look no further than the below options, all of which are reliable brokers with low fees. For more on Snapchat, scroll down the page.

1
Min. Deposit
$50
Exclusive promotion
Our 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
Wire Transfer, Bank 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
Exclusive promotion
Our 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 Snapchat stock, a step-by-step guide

We have broken down the process of investing in Snapchat into 5 easy-to-follow steps to help you get started.

  1. Choose a broker. In order to invest, you will 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, or check out our apps page.
  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 Snapchat shares.
  4. Place an order for SNAP stock. Now navigate to the shares section of the broker of your choice. Here you’ll be able to search for Snapchat’s ticker symbol (SNAP) 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.
  5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Snapchat shares will be listed in your account. Congratulations, you’ve just bought shares in Snapchat!

What is Snapchat? And should I invest?

Snapchat was developed by Snap Inc., which was formerly known as Snapchat Inc. until 2016. Founded in 2011, Snap had its IPO on the NYSE in 2017, raising almost $30 billion on the first day of trading. It develops a variety of tech products, including its forefront offering, Snapchat, a service that allows users around the world to chat with customised photos and videos amongst other features.

The company has grown rapidly and consistently to around 238 million total users creating over 4 billion new ‘snaps’ (photos and videos) daily. Moreover, globally, the company is in the top 10 most downloaded apps. It is undoubtedly one of the largest social media players of this generation.

As an investment, Snap offers the stability of a large-cap stock with the rapid growth seen from less senior tech companies. The company will be hoping to leverage its roughly 3,000 employs worldwide to continue to innovate, push adoption, and drive up revenue. Therefore, it could be an interesting hybrid investment for someone aiming to minimise risk while gaining exposure to a growth stock.

How has the company performed in recent years?

In terms of share price, rather well. It has increased each year the company has been public, and this has been largely driven by Snapchat’s booming revenue, up to $2.5 billion in 2020 from $1.7 billion the previous year. The company’s revenue is generated almost exclusively by ads on the platform, much the same as other data-driven giants like Facebook and Twitter.

During the COVID-19 pandemic, individuals have been isolated from their friends and family, and communication services like Zoom, Microsoft’s Skype and Snapchat have become increasingly popular. It remains to be seen how permanent this trend is, though there is little doubt that Snapchat has cemented itself as one of the social media apps that is integral to the everyday lives of Gen Z individuals.

Moreover, there are numerous routes to growth open to Snap, and these include integration with video games via Snap Games, and a growing range of augmented reality (AR) features. It doesn’t currently pay a dividend, but the company’s business model and yellow-clad branding are unique enough to catch the eye of investors.

Is it a good time to buy Snapchat shares now?

That depends on what you are looking for as an investor. As we previously mentioned, there is no dividend, so any growth needs to come from the company’s share price. If you conduct a fundamental analysis of Snap, decide if you think it is undervalued or overvalued. If the price is right, making an investment may prove to be a prudent call as growth is realised.

The key trend to keep an eye on is potential rivals. The meteoric rise of Tik Tok in the last few years is evidence that it doesn’t take long for a social media app to rise to the top of the charts. Therefore, Snap must continue to innovate and create products for new use cases if it wants to stay on top.

The company’s brand strength is undeniable, and ventures into new territories are likely to create value. To stay up to date with any potential developments in this regard, and any other events concerning Snapchat, make sure to read our latest analysis below:

Shares of Snap Inc. (NYSE: SNAP) fell around 7% in the after-hours trading session after the tech firm said the net loss grew nearly 30% from last year. Snap stock price is now moving towards the nearby support at $21.  Fundamental analysis: Number of users climb, net loss widens…

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 Snapchat shares.

  1. Research the company. You should always examine the fundamentals of a company before investing. What is Snapchat? How did the company get its start? How did it grow? Is Snapchat’s revenue and profit growth picking up? Is the company innovating? The more you know about Snapchat, the better positioned you’ll be to make smart investment decisions.
  2. Make sure you understand the basics of stock investing. Before you start investing in the stock market, make sure you have an understanding of what the market is 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. Use our broker reviews to find the right platform or stock app 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. While if the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the news to stay on top of 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 Snapchat shares. Here’s a quick run-through of what’s involved in each.

Buying Snapchat

This process involves finding a broker and placing an order for Snapchat 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 Snapchat

When you sell any Snapchat 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 the long term, hoping to benefit from the company growing steadily throughout. Or, if you see that Snapchat’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 Snapchat

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 Snapchat shares outright or use 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 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 SNAP 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, use our 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 SNAP stock on this page. If, however, you’re ready to get started, simply select one of the brokers in the table above.

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 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 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 use 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.

Latest Snapchat news

Snap Inc (NYSE: SNAP) said on Thursday its revenue jumped over 100% in the fiscal second quarter as the advertising market continued to recover. Shares of the company jumped roughly 15% in extended trading on better-than-expected Q2 results. Financial performance Snap reported $151.6 million of net loss in the…
Snap Inc. (NYSE:SNAP) shares gained 3.3% on Tuesday morning after news broke late on Monday. The social media company is buying 3D and Augmented Reality (AR) solutions provider Vertebrae. The Santa Monica, CA-based technology company also bought WaveOptics, an augmented reality display…
Snap Inc (NYSE: SNAP) reports its quarterly financial results later this week, on July 22nd. Ahead of the earnings report, investors are wondering if the stock is a buy? Mad Money host Jim Cramer seems to think so. On CNBC’s “Squawk on the Street”, he noted that the…
Snap Inc. (NYSE: SNAP) published its earnings report for the fiscal first quarter on Thursday that topped analysts’ estimates for earnings and revenue. Snap shares were reported close to 5% up in after-hours trading on Thursday. Including the price action, the stock is now exchanging hands at £43.26…
Snap Inc. (NYSE: SNAP) reported its financial results for the fiscal fourth quarter on Thursday that topped analysts’ estimates for profit and revenue. The company, however, warned that advertising could take a hit in upcoming months as Apple Inc. launches its new operating system. Snap shares, that you…
Snap Inc. (NYSE: SNAP) published its financial results on Tuesday that blew past Wall Street estimates for the fiscal third quarter. The company said its daily active users (DAUs) jumped to 249 million in Q3, versus 238 million in the prior quarter. FactSet Consensus for the quarter over quarter…

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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.