How to Invest in 5G Companies – Investing in 5G Companies For Beginners 2021
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Fifth Generation, or more commonly known as 5G, is one of the most prominent infrastructure upgrades coming to the telecommunication industry. With its advanced technology, 5G enables the fastest mobile internet speed, increased bandwidth capacities, and enhanced global coverage. Companies and direct consumers have been experiencing this revolutionary shift, but, it’s just the beginning. It comes as no surprise that the investors are thus becoming increasingly interested in making top-performing 5G stock investments.
5G is going to dramatically change the way that we do things. If you’d like to make investments in 5G stocks but are not sure where to start from we will help you in this well-researched article. We are going to cover some of the most popular brokerage platforms, their fee structures and their pros and cons. We will also demystify the “getting started” process in a couple of simple steps you can take.
Disclaimer: There is no investment advice here. The content is for informational and educational purposes only.
Table of Contents
#1 Broker to Invest in 5G Stocks – eToro
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How to Invest in 5G Stocks – Step by Step Guide 2021
In 2021, we have more tools than we ever needed and the investment world is no different. In this abundance of information technology, efficiency and informed decision making become more crucial than ever. We created this quick guide to help you get started with a trustworthy broker in less than 5 minutes, so if you already have an interest in 5G technology, you don’t miss out on investment opportunities.
- Step 1: Open an eToro account: First of all, you will need to sign up with a broker of your choice. We recommend eToro since it’s widely regulated, charges 0% on deposits and offers great beginner-friendly features. Just type “eToro.com” into your browser, press the “Join Now” button, and fill in the required details.
- Step 2: Verify your Identity: Next step will be account verification. This is a simple process that takes a few minutes but you will need a photo ID (passport, driving licence) and proof of address (utility bill, bank statement) to prove your identity and residency.
- Step 3: Fund your account: Once you have a verified account, you can make a deposit in order to start making investments. Just click on “Deposit Funds” enter the amount you want to invest and press “Deposit”.
- Step 4: Invest in 5G Stocks: To trade your first CFD after making a deposit to your account, you can simply type the name of the asset (such as “Verizon”, “Nvidia” or “Qualcomm”) into the search bar, press “Trade”, enter the amount you’d like to invest, and press “Buy”.
Where to Invest in 5G Stocks – Choose a Broker
As we mentioned before, too many options can be confusing and counter-productive. Here we created a breakdown of some of the most popular brokerage solutions out there including their pros and cons so you can make fast and informed decisions more easily.
1. eToro – Best Overall Way to Invest in 5G Stocks
eToro is a social trading network that allows you to invest in your favourite 5G Stocks. They offer rich resources for learning, a number of stock traders and investors to follow and share ideas with and famous trading software such as Meta Trader 4 and 5. This platform is one of the top choices for many when it comes to investing in 5G Stocks.
Security & Privacy
eToro successfully incorporates a number of security and privacy-related technologies. They use SSL technology for encryption to protect your data and keep it safe. You can also enable 2FA authenticator technology to make your account a lot more secure in case a bad actor gets ahold of your passwords.
Fees & Features
eToro has great beginner-friendly and advanced-level features. On this platform, you can find many interesting 5G stocks such as Verizon or Qualcomm but also your options aren’t limited to stocks. You will have the chance to buy ETFs, CFDs, Forex and Commodities.
Additionally, eToro pioneered social trading or copy trading feature which allows traders to follow successful traders and learn from their moves. This feature alone can make eToro the go-to brokerage solution for some investors that want to take advantage of the social trading aspect of the platform. If you ever get confused about the lingo or a specific feature eToro offers rich and incredible learning resources.
eToro Fees
| Fee Type | Fee Amount |
| Commission Fee | 0% |
| Deposit Fee | £0 |
| Withdrawal Fee | £5 |
| Inactivity Fee | £10 (Monthly) |
Pros
- Great user interface
- Mobile app for both Android and iOS
- Rich learning resources
- Copy-trading implementation
- free account registration and 0% fees on deposits
Cons
- Some features such as AI algorithms and robot-trading can be confusing to new users.
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Interactive Brokers – Invest in 5G Stock CFDs
Interactive Brokers is another big trading platform that might be attractive for investors who want a robust trading experience and access to a long list of asset classes. They have expanded their educational content to help new traders and investors have a smoother onboarding experience. Clients from more than 220 countries and territories can open trading accounts with this popular brokerage house. Interactive Brokers supports trading on 135 markets across 33 countries, using 23 currencies. You can stocks, options, futures, EFPs, futures options, forex, bonds, and funds efficiently on the Interactive Brokers trading platform.
Security & Privacy
Interactive Brokers meets industry security standards. You can even login with biometric recognition on the mobile app and multiple forms of two-factor authentication are also available. Interactive Brokers also gives great importance to confidentiality and privacy of personal information. They seem committed to protecting the privacy of their traders which is a welcome security feature.
By opening an account with Interactive Brokers or by utilizing their services and applications you can also opt-in for a physical security device delivery which provides another layer of login security for those who are very serious about not leaving any vulnerabilities behind in their operation.
Fees & Features
Interactive Brokers attracts investors and traders with low-fee structure, advanced trading features and a large selection of tradable securities such as foreign stocks, commodities, futures and CFDs. Their new platform, IBKR Lite, provides commission-free trades of stocks and ETFs. Interactive Brokers offers 68 different order types, and they can be suitable for advanced day trading operations.
Throughout the years, they have made significant progress to make a user-friendly website for beginner investors and included more robust fundamental research and technical analysis features. Interactive Brokers can be a strong candidate for beginners as well as advanced investors
Interactive Brokers Fees
| Fee Type | Amount |
| Commission | $1 minimum |
| Withdrawal Fee | $0 |
| Deposit Fee | $0 |
| Inactivity Fee | $0 |
Pros
- Superior order execution features
- Low margin interest rates
- Large investment selection
- Strong research tools
- Over 7,000 no-transaction-fee mutual funds
Cons
- IBKR’s Smart Router is not available to IBKR Lite clients
- Some features can be overwhelming for beginner traders
- No backtesting of trading algorithms or automated trading
67% of retail investor accounts lose money when trading CFDs with this provider.
3. IG – Accessible Way to Invest in 5G Stocks
IG provides an excellent blend of trading features and research tools. Like eToro, they have industry-leading educational resources and a competitive fee structure. IG developers managed to create a pleasant user interface for trading as well as general navigation and research activities through news or analysis. IG is regulated and trusted across the globe which makes it possible for them to be included in this top 3 list.
Security & Privacy
IG broker is considered a safe and secure trading platform because it is overseen by top-tier regulators and employs state-of-art security measures. IG was established in 1974 in the UK and with decades of experience, they have very serious know-how when it comes to platform security. You can easily activate the 2FA extended authentication method to make your account more secure. Additionally, you will be required to install IG’s own IG Authenticator app.
Fees & Features
IG has different forex and CFD fees unfortunately they are both on the high side. For example, for Vodafone CFD, IG charges 0.1% of trade value; min £10. This makes small size trades quite costly. But when it comes to option trading fees are actually quite favourable with $0.1 per contract.
Regarding features, IG has a well-organized and easy-to-navigate website. Additionally, IG supports 6 base currencies which can be useful and they provide a nice demo account for practising. Products offered by IG are ETF, Forex, Options, CFD, Stocks, IPOs and even Robo-advisory if you are in the UK.
IG Fees
| Fee Type | Fee Amount |
| Commission Fee | minimum $15 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
| Inactivity Fee | $15 per month (After 2 years of inactivity) |
Pros
- No withdrawal fees
- The inactivity fee is charged only after 2 years
- The trading platform is simple to use, very easy to access data and tick charting.
- Compatible with most operating systems including Mac.
- A dedicated Account Manager is assigned to assist the trader in all aspects of dealings with IG
Cons
- Web-based platforms are quite slow compared to the application platforms
- The market maker platform displays only Level 1 data so no real market depth insight when trading
67% of retail investor accounts lose money when trading CFDs with this provider.
Invest in 5G Stocks – Broker Price Comparison
It can be difficult to analyze different fees associated with each platform. So, we created a table to demonstrate different fee structures between popular brokerage platforms. Here is how eToro, Interactive Brokers and IG fee structures compare.
| Broker | Commission | Deposit Fee | Withdrawal Fee | Inactivity Fee |
| eToro | 0% | £0 | £5 | £10 monthly (after 12 months inactivity) |
| Interactive Brokers | $1 minimum | $0 | $0 | $0 |
| IG | $15 minimum for some stocks | $0 | $0 | $15 monthly (after 24 months inactivity) |
What are the Different Ways to Invest in 5G Stocks?
If you are looking to add 5G stocks to your current portfolio, here are the different ways to invest.
Stocks
You can directly purchase the shares of your desired 5G stock through an individual broker or online broker platform that would assist you with your investing and trading activities. Deciding which broker to select depends on the services you require and various factors such as cost, minimum investment, and commissions. Once you have chosen the one that suits you best, the broker will help you with creating a portfolio, selecting the 5G stocks to put your money in, or when to buy or sell the shares
CFDs (Contract For Difference)
Contract for difference (CFDs), a trading strategy, allows investors to anticipate the movement of derivatives and securities by making price bets. The investors may choose to buy the CFD if an upward trend is anticipated, while other traders who expect a downward movement would decide to sell. CFD is thus the price difference in the contract between the purchase price and sale price. The contract includes the usual features of risk and reward of traditional stock trading but without actual security or asset ownership.
ETFs (Exchange-Traded Fund)
Listed on the exchange along with the other listed assets, an Exchange-Traded Fund (ETF) is a fund that tracks the price of an individual asset or a collection of the stocks, indices, or commodities. For instance, the SPDR S&P 500 (SPY) is one of the most renowned EFTs which tracks the S&P 500 stock composition. ETFs are commonly used to increase portfolio diversity and optimize risk management practices in portfolios.
Best Ways to Invest in 5G Stocks UK
5G was officially introduced in the UK in 2019, and a recent article indicates that the majority of the country will have access to the technology by 2022. With this booming global technology, it is only natural that many investors are looking for suitable ways to invest in the most successful 5G stocks. Following are the alternative ways to buy 5G stocks in the UK.
Invest in 5G Stocks Stocks
The most obvious way to buy a 5G stock is to purchase the shares directly through an individual broker or investment platform. A few significant brokerage companies in the UK include eToro, Hargreaves Lansdown, Interactive Brokers, AJ Bell, Saxo, and IG. Any of these platforms can assist you with your investment decisions.
One of the most renowned investors, Warren Buffet, has high hopes for 5G stocks especially for Verizon and T-Mobile where he has expanded his recent investments. Stocks of other tech giants such as Apple and Ericsson are also amongst the top stocks with 5G exposure to buy in the UK. While 5G network providers are an excellent choice, investors can further include shares of companies utilizing 5G technology through various industries, for instance, infrastructure and manufacturing.
Invest in a 5G Stocks CFD
If you would like to trade rather than take ownership by buying stocks, investing in CFDs of 5G stocks might be a suitable option. It would allow you to speculate and bet on the various 5G stock prices, taking a long position when you expect prices to rise or short position in the anticipation of a price fall are the two most common plain-vanilla strategies. The primary benefit gained from CFD trading is that it sometimes enables traders to take a larger position with limited capital amounts. However, utilization of leverage means that as the opportunity for reward increases, so does the risk for losses.
Invest in a 5G Stocks ETF
Instead of investing in a single 5G stock, investors can choose to invest in a 5G ETF with a basket of securities to gain exposure to the 5G technology in a diversified manner. It is a great way of spreading your risk between multiple stocks and securities rather than placing your money in an individual stock which can be riskier. A few of the most sought ETFs include Vanguard Communication Services EFT, Defiance Next Gen Connectivity ETF, Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF. These funds respectively have over $3.16 billion, $1.2 billion, and $1.0 billion in assets under management.
Are 5G Stocks Good Investments?
According to a recent report on the “5G Services”, the global 5G industry is expected to expand significantly and reach a valuation of $249.2 billion by 2026. 5G is said to be 100 times faster than its predecessor and offers minimal latencies in receiving data with enhanced bandwidth capacity. With trends revamping the technological landscape, some investors foresee attractive returns for the years to come.
Early Investment Opportunities
As discussed above, the opportunity presented by 5G technology is immense. Some investors who realize and act wisely upon smart trading strategies are expected to experience favourable returns. Even though the 5G technology has already been introduced in many countries, it will be years before it reaches its full global potential. Therefore, many analysts believe it’s not too late to make the most out of this potential high-gain opportunity.
Diversification
The majority of the people only consider cellular companies when they think of 5G. However, 5G technology spreads wide through many different industries. The fact is that 5G is highly interactive by nature and is likely to be utilized in various sectors and fields. From chipmaking to autonomous vehicles, infrastructure to healthcare, the benefits presented by his technology will likely be massive. It will benefit not only established companies and sectors but also small scale businesses and new startups will take advantage of the 5G technology as it matures.
New Tech that Relies on 5G
There has been a steady growth in new devices and applications that incorporate 5G to improve performance and efficiency. Qualcomm, the multinational wireless tech company, is an excellent example of 5G utilization. They have incorporated 5G technology into their chips since Snapdragon X50’s modem technology. Furthermore, 5G enables advanced technologies such as virtual reality, big data, self-driving vehicles, the internet of things (IoT), and many more innovations that may be realized once 5G reaches its full global potential.
Investing in 5G Stocks – What are the Risks
5G stocks appear to be promising, however, several risks might be involved when making investments. Like most growth stocks, the unpredictability associated with 5G stocks is greater than usual, making them high-risk and high gain type investments. Read on to know about a few key risks that might be involved with 5G stocks.
Disruption
Through innovation, disruptive technologies like 5G undoubtedly make lives easier and significantly impact everyone from businesses to consumers. For instance, merging satellites with 5G will drastically increase the range and capacity while increasing accessibility to remote or far-fetched areas. However, there is also an increased risk of technological failure causing complete loss of service. The uncertainties and hazards pose an ongoing threat to the stock prices of 5G, thus increasing the risk. Additionally, for example, new technologies such as the Starlink Project could take a bigger than expected share from 5G utilization.
Compliance and Legal
There is a need for improvement in regulations for tech companies to increase transparency and credibility. As tech companies deal with huge volumes of sensitive data, advanced measures to ensure privacy are also expected. On the other hand, a lack of compliance from the company can tarnish its image, increase the risk of fines and lawsuits, while hampering the performance of its 5G stock. We have seen many cases of government crackdowns on tech companies once they reach a certain level of economic activity.
High Volatility
The growth of 5G stocks is not expected to be linear in nature; rather, it is likely to portray high levels of volatility. Technology by its very nature is highly dynamic, includes many game-changing trends and new advancements that are being introduced continuously. S&P Global indicated that technology is one of the most volatile sectors to invest, ranking at fourth place after energy, commodity, and financial services. The sector has experienced some massive booms and slumps over the years, thus all tech stocks are usually a riskier investment option and especially cutting-edge technologies such as 5G can carry those risks even more.
How to Invest in 5G Stocks with eToro
It can be stressful to navigate through all the different platforms and trying to figure out the “getting started” process while digesting lots of different information. We created a detailed but straightforward step-by-step guide that you can follow to start making 5G related investments. eToro is a respected brokerage platform and here is how the steps look like to get started there.
Step 1: Open an account with eToro
You can create a trader account with eToro simply by typing “eToro.com” into your browser. Then press “Join Now” and once you fill in some basic details your registration will be completed.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
After the registration (or sign up) you will still need to verify your account for compliance purposes. Verification is easy and it requires you to provide a photo ID (passport, driving licence) and proof of address (bank statement, utility bill). Your account should be verified within 15 minutes under normal circumstances.
Step 3: Fund your account
At this stage, your account is ready to trade with. All that is left will be to top-up your account with some fiat deposits. To do that on eToro, just click on “Deposit Funds”, enter the deposit amount and press “Deposit”. Since eToro offers numerous methods for making deposits such as credit/debit cards, PayPal, Skrill and bank transfer, you will likely have a smooth experience.
Step 4: Invest in 5G Stocks!
Here comes the final yet crucial stage. After doing your analysis and carrying out a solid decision-making process you can single out the 5G assets you’d like to invest in. As we explained above this can be the forms of stocks, CFDs and even ETFs. On eToro, just type the name of “5G Stocks” (for example Verizon or Qualcomm) into the eToro search bar, press “Trade” and proceed with the amount you’d like to invest by pressing “Buy”. And you will own 5G investments, congrats!
Conclusion
The introduction and expansion of 5G technology is a process that will take a few years before full-scale global adoption. Experts predict the market size for 5G to experience exceptional growth with more devices, processes, and businesses upgrading to it. Thus, this may represent a lucrative opportunity for those looking to invest in cutting-edge technology and being part of the promising growth cycle. Since 5G offers low latency and up to 100x faster speeds compared to 4G technology, it will enable many data-heavy processes on mobile devices or remote areas without fiberoptic infrastructure.
There are many good brokers to invest in 5G companies but it makes sense to go with a well-established and reputable brand such as eToro. In this article, we covered simple steps required by eToro to get started and we also reviewed a few other platforms and elaborated their pros, cons and fee structures.
#1 Broker to Invest in 5G Stocks – eToro
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FAQs
Where can I Invest in 5G Stocks?
What is a 5G Stocks ETF?
What is 5G Stocks Stock?
What’s the Future of 5G Stocks?
Should I Invest in Individual Stocks or a CFD
