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How to buy Stripe shares (Stripe)
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Since it was founded, Stripe has remained a private company. However, this could soon change, with suggestions that the company will go public in the near future. This could potentially be the biggest initial public offering (IPO) of 2022. In light of this, this page explains everything you need to know about Stripe and its investment prospects so you can prepare for what could be a major opportunity.
For years, investors have been expecting Stripe to go public like its rivals Paypal and Square. However, this has never quite materialised. Now Stripe is the top US startup with a valuation of around $95 billion – triple what it was worth in 2020 – speculation is mounting that a public listing is imminent to kickstart its next phase of growth.
The most likely route would be an IPO, a situation where a certain amount of shares are offered to the public for the first time at a set price. Companies that go public can use then use the capital of their new investors to create growth, and they also enhance their reputation because they are abiding by a set of strict regulations prescribed for public companies.
On the day of the IPO, you would be able to get your very own piece of the Stripe pie alongside anyone else who wants to buy shares. By getting in early, you can sometimes find a good opportunity to make your entry before a company uses this new capital to accelerate growth, driving its share price up.
When is the IPO?
Nobody knows yet, though it is likely to be in 2022. To find out as soon as the date is announced, we recommend that you bookmark this page and check back periodically. In addition, you can read our stocks and shares news regularly to find out about this story as it unfolds.
Can I pre-order Stripe shares?
No. However, on certain platforms, such as IG in the UK, you can take up a position in a stock before it goes public on something called a grey market, which is a virtual market based on a private company’s potential market cap (valuation).
Where can I do this?
Once Stripe goes public, we recommend using a broker to buy shares. You can easily manage your investment portfolio online and even from the convenience of your mobile or tablet if you use an app. We recommend that you sign up and fund your account well in advance of Stripe IPO; this way, you will be ready to purchase stock as soon as it becomes available.
Compare the best Stripe trading platforms
Once it becomes publicly traded, the best place to buy Stripe stock online is one of the brokers in the table below. Our team of financial experts has taken time and care to ensure these are the best platforms to invest in Stripe.
How to buy Stripe stock, a step-by-step guide
Anyone can invest in Stripe stock, and it can be a great way to make your money work as hard as you do. Below are the 5 steps that you should follow to successfully invest in the company.
- Choose a broker. To get started, 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 Stripe shares.
- Place an order for Stripe stock. Now navigate to the shares section on the interface of your chosen broker. Here, you can search for Stripe’s ticker symbol 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 Stripe shares will be listed in your account. Congratulations, you’ve just bought shares in Stripe!
What is Stripe? And should I invest?
Founded in 2010 by brothers Patrick and John Collison, Stripe is an online payment service and financial stock. It offers a variety of services for merchants and consumers including web payment processing software, the Atlas platform to help startups register as corporations, and a way for companies to issue Mastercard and Visa credit cards. The platform now also offers loans and credit cards to businesses, has a publishing company called Stripe Press, and even a climate change initiative, Stripe Climate.
Stripe’s status as an all-round e-commerce payment processor has been cemented by its support from some of the biggest brands around like now Lyft, Under Armour, Blue Apron, and Pinterest. The company now claims that 89% of all credit cards have been processed on a Stripe network at some point, and the company’s ability to handle 135 currencies has clearly influenced this growth.
Some claims that Stripe possesses certain advantages over PayPal. Stripe doesn’t charge a monthly fee, whereas for merchants to access all of PayPal’s features, they need a pro account costing around £20 per month. In addition, its fees are lower than PayPal’s, and it offers a deeper set of features due to powerful developer tools.
How has the company performed in recent years?
From being valued at around $5 billion in 2015, Stripe has grown rapidly to achieve its 2021 valuation of $95 billion. Around 2 million websites now use Stripe, at it is available for business in 43 countries. Holding 38 patents and having raised $2.5 billion of funding from 33 investors, including an investment from Tesla CEO Elon Musk in its infancy, Stripe may be hoping an IPO holds the key to unlock even more value.
The company processed roughly $250 billion in payments last year, generating $2.5 billion in revenue, up from $40 million just 6 years previously. With in excess of 2,500 employees working at Stripe across 14 offices, Stripe is an undoubted large-cap stock in the making, and this may affect your eventual investment, making it more stable and secure.
Online payments services have become one of the most significant categories in the fintech industry, and but Stripe’s rise extends beyond the expansion of its sector. It has performed like an assured company with a management team that knows exactly what it is doing, and the only major question mark is against why it hasn’t gone public already.
Is it a good time to buy Stripe shares now?
You can’t buy shares in Stripe now; you have to wait until the company’s IPO. Before you put money into Stripe stock, make sure you are comfortable with the associated risks because investing isn’t always plain sailing, even when investing in a major, successful company. Expect there to be some volatility shortly after the IPO as the market finds a price it is at ease with, but the presence of large investments from major institutions may help stabilise this.
Before putting your capital on the line, make sure you conduct extensive research to make sure you aren’t making an error. This involves digging deeper into the available information about a company’s financials and fundamentals, as well as taking a broader view of the macro story for the online payments sector and the financial market as a whole. However, you won’t be able to find documents like profit and loss statements, since Stripe is not currently public.
If you plan on holding for the long term, fundamental analysis is your best friend, whereas, for short-term traders, technical analysis will usually produce the best results. To stay informed about Stripe’s IPO, check out our latest market analysis below and see what events could be affecting your investment goals:
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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 Stripe shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Stripe? How did the company get its start? How did it grow? Is Stripe’s revenue and profit growth picking up? Is the company innovating? The more you know about Stripe, 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 Stripe shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Stripe 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 Stripe 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 Stripe’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 Stripe 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 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 financial 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 trade 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 Stripe 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 Stripe 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 stockbrokers 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 place trades. 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 to invest, 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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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 >