How to buy Spotify (SPOT) stock

By:

James Knight

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.

Updated: Mar 9, 2023

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A big part of learning how to buy Spotify stocks is finding the best place to make your investment. Spotify stocks are available to invest in through an online stock broker, and it usually takes just a few minutes to buy shares in Spotify when following our step by step guide.

Where to buy Spotify stock?

The best stock trading platform to use to buy Spotify stock is eToro .

Based on our research, we’ve ranked the top three brokers where you can buy Spotify shares, according to how easy they are to use, how low their fees are, their safety and security rating, and average customer reviews.

Most Popular

1

Min. Deposit

$ 10

Best offer

User Score

10

Up to $240 bonus!

Deposit with ACA, Wire, Pay with my bank

Invest for dividends and get payout on stocks on Ex-Dividend day

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Payment Methods:

Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer

Full Regulations:

CySEC, FCA

77% of retail CFD accounts lose money.

2

Min. Deposit

$ 100

Best offer

User Score

9.8

Trade +2000 CFDs on Shares, Options, Commodities & more

Unlimited risk-free Demo Account

0 commissions & attractive spreads with up to 1:5 leverage

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Payment Methods:

American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill

Full Regulations:

ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Read more about how we test, rank & review platforms.

How to buy stock in Spotify in 3 simple steps

Buying Spotify stock is quick and easy, all you need is an internet connection and a copy of your photo ID. Here’s how to do it.

Step 1. Sign up to eToro

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eToro is the best stock trading platform for beginners. Fill in your details to set up a brokerage account and attach a copy of your ID to verify it.

Most Popular

1

Min. Deposit

$ 10

Best offer

User Score

10

Up to $240 bonus!

Deposit with ACA, Wire, Pay with my bank

Invest for dividends and get payout on stocks on Ex-Dividend day

Start Trading more info

Payment Methods:

Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer

Full Regulations:

CySEC, FCA

77% of retail CFD accounts lose money.

Step 2. Make a deposit

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Transfer money to your new account with your credit or debit card, a bank transfer, or an alternative payment method, like PayPal. The minimum deposit is £10.

Step 3. Buy Spotify shares

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Search for Spotify using the ticker, SPOT. Click the ‘trade’ button and enter the details of your investment, such as how many shares you want to buy or how much you want to spend. Hit ‘trade now’ to invest in Spotify and complete your purchase.

It’s as easy as that! You can buy Spotify shares in just 10-15 minutes and now you’re a Spotify shareholder.

Compare the best platforms to buy Spotify stock

1. eToro. Best for beginners, copy-trading & demo-account

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2900

No. assets

$10

Minimum deposit

Stocks

Platform type

Pros & Cons

Great for beginners, simple to set up and get started Zero commission stock trading Popular ‘CopyTrader’ function lets you follow top traders Excellent customer service, with live chat support provided Over 2,000 CFDs available to trade

Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because you can trade more than 3,000 stocks, commission free. When you buy stocks on eToro, you’re buying the underlying asset, which means you can earn dividends. Or you can trade fractional shares, which means you can invest in even the most expensive stock from just $10.

As well as being a broker that offers lots of investor protection, eToro offers a very social trading experience. You can easily see what’s trending on the stock market every day, browse the latest analyst opinion about every one of those stocks, and copy other people’s trade suggestions from your desktop or the eToro app.

The fees: Stock and ETF trades are commission free. Stock CFDs are charged a 0.15% spread and overnight fees can apply. You can deposit money for free but you have to pay $5 per withdrawal, and there’s a minimum withdrawal of $30. A $10 per month activity fee is charged if you don’t log in for a year.

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77% of retail CFD accounts lose money.

2. Plus500. Best for international CFD trading*

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4300

No. assets

$100

Minimum deposit

Stocks

Platform type

Pros & Cons

Can get a free demo account A great mobile platform Well regulated in multiple jurisdictions Wide variety of CFDs to trade Several good risk management tools

No support on trading information and education Website isn’t brilliantly designed to help users find answers to their questions No MetaTrader trading platform compatibility

Overview

We love Plus500 because it is one of the industry’s most transparent and reliable brokers. Its fees are clear and you’ll know exactly what you will be paying before you make a trade. Its technology driven platform gives access to CFDs on over 2000 stocks.

Plus500 has something for all types of stock trader, no matter what level of experience. Its zero commission and tight spreads make it a top choice for day traders and its trading academy is packed with educational content, perfect for beginners just starting.

For accurate instrument availability, visit plus500.com.

The fees: There are no commission fees on any trades with Plus500 and it makes it money through the Bid/Ask spread. Spread starts from 0.01% and varies depending on the instrument. Additional fees include overnight funding depending on trade size and guaranteed stop orders, which add a minimum of 10% to the spread. There is an inactivity charge of £10 per month for accounts not logged in for three months. 

*Based on a comparison of 60+ leading brokers and trading platforms.

Visit Plus500 Plus500 Review

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Fundamental analysis of Spotify shares

What is Spotify’s total worth?

Spotify’s total net worth is $25.34 billion. This is its total market capitalisation, calculated by multiplying the number of shares outstanding on a stock exchange by the current share price.

How has Spotify’s share price performed in recent years?

The current Spotify stock price today is $131.15, which is 64.03% below its all time high of $364.59, which it reached on 19 February 2021. 

Overall, SPOT is down 11.34% over the last five years. The SPOT share price is up 60.12% in 2024 with a 52 week high of $160.06 and a 52 week low of $69.28.

What is Spotify’s EPS?

Spotify’s EPS is -$3.15. EPS stands for earnings per share and is calculated by dividing Spotify’s net profit by the number of shares outstanding. It gives you an idea of how valuable a company is.

What is the Spotify P/E ratio?

Spotify’s P/E ratio is 0.0. The P/E, or price to earnings ratio, tells you how much you would have to pay per share for $1 of Spotify’s earnings. 

It is calculated by dividing the share price by the earnings per share. You can use Spotify’s earnings estimates to predict its future (or forward) P/E and set a target price you think the stock can reach.

What is Spotify’s dividend yield?

Spotify’s dividend yield is 0%. The dividend yield tells you how much of Spotify’s share price it gives back to shareholders in dividend payments every year.

Is Spotify stock a buy or sell?

The indicator below shows you live technical ratings for Spotify stock on time frames from one minute to one month. 

It tracks a selection of key technical indicators on live market data, including moving averages, relative strength index (RSI), oscillators, and momentum. 

This indicator should be used when you research Spotify to help you decide whether to buy Spotify shares. Past performance is no guarantee of future results. It is not investment advice or a recommendation from Invezz to buy this stock.

Is Spotify a good investment for me? 

The right answer is different for each person, so here is some information to help you decide whether to buy stocks in Spotify.

• Spotify is the dominant podcast and music platform in many parts of the world. Spotify owns about 30% market share in the worldwide music subscription market, which is far ahead of the competition. It has spent a lot of money on cracking the podcast market too. Both industries are forecasted to keep growing, which is Spotify’s ultimate path to profitability.
• Spotify is an unprofitable business, for now. Spotify has never made a profit, as the company has spent on expansion at the expense of revenue. It prefers to spend to acquire new content – such as exclusive rights to podcasts – and grow its subscriber base.
• Subscriptions pay the bills, but advertising is the plan for long term revenue. Roughly half of Spotify users pay for a premium subscription, which generates almost 90% of its total revenue. However, as its user base increases it should be able to generate more money from advertising, which should help the company start to produce consistent revenue.
• Its streaming service has competition from giants like Apple, Amazon, and Google. Those three tech giants have their own streaming services, through Apple Music, Amazon Music, and YouTube, that compete with Spotify’s offering. Ultimately, the company has to win enough subscribers to fight off that wealthy competition. 
• It has continually added new users each quarter. The key metric for judging whether the company is doing well is its monthly active users (or MAUs). Spotify has continually added more MAUs and subscribers, although that growth has slowed in recent quarters.
• It’s about to break free from the limitations of the App store. Currently, the Apple App store only allows Spotify to promote subscriptions within the iPhone app. That law has changed and there will be fewer restrictions on how it can advertise, which should result in more subscriptions.

It’s always a good idea to think about any potential risks there might be as well. Use this summary of Spotify’s pros and cons before you make a final decision on whether to buy Spotify stock.

Are there other ways to buy shares in Spotify?

Yes, you can invest in Spotify stock in a few different ways. One option is to buy stock in Spotify directly through an investment platform as laid out above, while another popular choice is to invest in a fund. 

Mutual funds provide instant diversification to your investment portfolio by investing in lots of companies at once. You can invest in a NYSE index fund to get exposure to Spotify, or choose a tech ETF.

Another option is to use a social copy trading platform, like eToro . Find a trader who you like and copy their Spotify trades directly to your own account. 

This can be a good investment strategy for beginners and a way to learn how to buy Spotify shares from someone with more experience.

What are the fees for investing in Spotify stock?

It depends on the stock broker. Some platforms charge a flat fee per trade, others charge a commission as a percentage of the total trade value each time you buy Spotify stocks.

Consider that there may be other costs to trading too. Other fees can include deposit and withdrawal fees, or inactivity fees if you don’t use your account for three months or more. 

These are the trading platforms that charge the lowest fees for buying stocks in Spotify.

How to sell Spotify stock

When you decide the time is right to sell and lock in some profit (or cut your losses), log into your broker account and navigate to your portfolio. 

From there, find your Spotify stock and you’ll see a ‘sell’ option next to it. Click that to set the details of the trade (you don’t have to sell all your stocks at once) and sell back to cash.

Should I buy Spotify stock now?

It’s your investing goals and style that define whether now is a good time to buy. The current Spotify stock price plays into it but ultimately it depends on your investment horizons.

• If you’re a short term trader: the goal is to make money by buying and selling stocks regularly to secure a profit or avoid a loss. That can mean trading hourly, daily, or weekly but the focus is always on the near future. Traders learn how to buy stocks in Spotify based on short term technical analysis and don’t hold shares for a long time, so any time can be a good time to buy SPOT.

• If you’re a long term investor: you’re more interested in long term price appreciation than whether a stock is up or down on any given day. The important thing is finding a stock with a strong foundation where you think the share price will be up over a period of months or years. If you think Spotify’s fundamentals are solid then the best time to invest in Spotify stock is after a dip or a pullback in price.

Most new traders sit somewhere between these two positions. You don’t want to actively trade Spotify stock all hours of the day but you don’t want to wait years for a return either.

Either way, following SPOT price news and analysis will help you decide when to dip your toe into the market.

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