How To Invest In Apple – Investing in Apple for Beginners 2021
Whether you own an iPhone or you feel it’s overrated, there’s no denying Apple Inc’s financial weight in the stock market.
This guide will cover the best brokers currently available and help you learn how to invest in Apple. Through this guide, we also feature a step-by-step strategy that will help you create your own account with our recommended commission-free broker – eToro.
#1 Broker to Invest in Apple – eToro
How to Invest in Apple – Step by Step Guide 2021
Here is our four quick-step guide to begin investing in Apple today.
- Step 1: Open an eToro account – First, you have to register with a broker. We recommend using eToro and clicking the “Join now” button to register.
- Step 2: Verify your identity – Verify your identity by providing the required photo ID (a driving license or passport) and proof of address (bank statement or utility bill).
- Step 3: Fund your account – As soon as your account is verified, you’ll need to fund it. Click on “Deposit funds” and enter the amount you wish to invest and press “Deposit”
- Step 4: Invest in Apple – You’re good to go! Just type “Apple” in the search bar. Click “Trade”, enter the amount you’d like to Invest, and click “Buy”
Where to invest Apple: Choose a broker
There are many brokers out there and each has its pros and cons. We have made the job of your search easier for you as we have made a comprehensive review of the broker options available to you to invest in Apple.
1. eToro – Best Overall Way to Invest in Apple
eToro is by far the largest platform on our list. It has over 17 million users and has established itself as a go-to investment for both novice and experienced traders since its launch in 2007. The platform has awesome features and it is also really to understand.
Security and Privacy
Security is an important factor to consider when deciding which brokerage best suits your needs. The FCA and CySEC govern eToro and they ensure that your funds are safe and your personal information is secure. eToro SSL encrypts any important information you supply to protect it from hackers attempting to intercept it. There is also two-factor authentication (2FA) which works as a last line of protection if your account is compromised.
Fees & Features
eToro possesses a huge amount of advanced trading features that would marvel even the most advanced trader. If you’re a new trader, you may be interested in CopyTrading which allows you to automatically mirror more experienced traders. This would give you a headstart even with your minimal trading knowledge. If you have some previous trading experience, you’ll be happy to know eToro covers a range of markets including cryptocurrency, forex, and of course stocks, so you’re free to manage all your investments in one place. Additionally, eToro is a commission-free platform, meaning if you invest £1000 you’ll receive £1000.
|Fee Type||Fee Amount|
|Inactivity Fee||£10 (Monthly)|
- Simple interface
- SSL encryption
- Could do with MetaTrader support
67% of retail investor accounts lose money when trading CFDs with this provider.
2. AvaTrade – Great Way to Invest in Apple
AvaTrade is the oldest platform on our list. It has existed for over 15 years. They have done so by providing a safe and polished trading environment for their customers. They allow customers to invest in the most popular markets, so you’re covered if you want to invest in something other than Apple.
Security and Privacy
AvaTrade clearly cares about their customers’ security, and they’ve done a good job of improving on traditional security measures. To limit the possibility of a digital adversary intercepting client data, they deploy 256-bit SSL encryption. AvaTrade users can also take advantage of McAfee Secure integration, which hides any identity documents or card information.
Fees and features
On AvaTrade, users benefit from a commission-free fee structure that ensures you won’t lose any of your investment to hidden fees (just make sure to watch out for the inactivity fees).
AvaTrade also makes sure their customers do not feel abandoned or confused, they have a 24/7 hotline along with an efficient email support team. This reduces the chance of a customer losing out due to technical issues. If you’re an experienced trader, you can open up a professional trading account. This will give you access to a wider range of financial resources.
In a bid to ensure trading accessibility for all, AvaTrade also allows the creation of an Islamic account.
|Fee Type||Fee Amount|
|Inactivity Fee||£50 after 3 months & £100 after 12 months|
- Islamic account
- Professional trading account
- Excellent support
- Not available in certain countries
- Steep inactivity fees
Your Capital is at Risk.
3. Robinhood – Invest in Apple CFDs
Although it is a relative newcomer, Robinhood has attracted so many customers to itself. This is due to its commission-free trading and the user-friendliness of its mobile application
Securities and Privacy
The Robinhood Security Team employs a variety of high-level security procedures to safeguard the accounts of its users.
Here are a few of the security measures in place:
⦁ Your account password is hashed using the BCrypt hashing method, and it is never saved in plaintext.
⦁ Before being saved, sensitive information like your social security number is encrypted.
⦁ Your banking credentials are also protected as the platform will not have access to them once you get verified.
Fees & Features
With Robinhood, you’ll be able to trade stocks, ETFs, options, and cryptocurrencies for no cost. The platform also offers a cash management account. This facilitates the movement of money anytime you wish to trade.
You can join their premium tier, Robinhood Gold, for $5 a month and obtain access to certain research and margin trading. However, Robinhood’s research capabilities are less sophisticated (nearly non-existent) than other brokers’ offerings. Another disadvantage is that, for the time being, Robinhood only offers individual taxable accounts, though it plans to extend to joint accounts and IRAs in the future.
- Low trading costs and access to fractional shares
- Very easy and simple to use.
- Good cash management
- Limited investment offerings
- Limited research
76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
What are the Different Ways to Invest in Apple?
If you want to invest in Apple, you must first understand the various options you have. It could be quite confusing to comprehend the differences between each form of investment. The technical jargon could be especially discouraging if you have little knowledge of investing. To make things as simple as possible, we’ve broken down three of the most common ways to invest in Apple and explained them in plain English.
Stocks, also known as shares, are a wonderful option to invest in Apple because they offer a convenient method of investing with a lot of long-term potentials.
When you buy a share of Apple, you’re buying a piece of the company, making you a part-owner. This means that buying Apple stock has a few distinct advantages, the first of which is dividends. Many people strive for passive income, which can be easily attained by investing in stocks. When you buy enough of a company’s stock, you can start receiving dividend payments (usually quarterly or annually), which are a company’s way of passing some of its earnings to investors. Another great advantage of investing in Apple stocks is the ability to vote in Apple shareholder meetings, similar to dividends. This allows you to participate in the company’s future decisions. However, the number of shares you possess determines the number of votes allocated to you.
Contract for Difference (CFDs)
A contract for difference, or CFD, is a means to invest in a company without having to buy any stock. Rather than buying a piece of a firm, you bet on whether the share price will rise or fall. Hence, you’d benefit if you get the direction right and take a loss if it’s vice versa. Because you do not hold any shares, you will not be eligible for any of the previously listed benefits. Investing in an Apple CFD is riskier than investing in equities. This is simply due to the possibility of a trade being liquidated and the increased risks of an unfavourable outcome.
CFDs, on the other hand, can make you a lot of money far faster than stocks, with some people generating thousands of dollars in just a day or two while trading CFDs.
ETFs (Exchange-traded funded)
ETFs, or exchange-traded funds, are the final method of investing in Apple that we’ll explore.
An exchange-traded fund (ETF) is a form of fund that a fund manager or brokerage creates that allows you to invest in a range of firms without having to do all of the research that you would otherwise have to do.
The fundamental distinction between an ETF and stocks is that, although you’re investing in a collection of firms, you do not own any of the companies themselves; instead, you own a portion of the fund that does. As a result, if the fund passes the shares on, you can continue to receive dividend payments but will no longer have voting rights.
Best Ways to Invest in Apple
Now that you know the distinctions between the three most common forms of investments, you can figure out who will gain the most from them. The best investment for you will be determined by your unique needs, investment strategy, and of course how long you expect to invest.
Investing in Apple Stocks
Do you believe in Apple’s long-term potential? Actually, there’s enough reason to do so, the technology giants have proved their doubters wrong for decades and no one can bet against them from doing so going forward. If you genuinely believe in Apple’s long-term prospects, Apple stocks could be ideal for you.
Stocks, which are often seen as the most basic sort of investment, are a fantastic choice if you want to invest with minimal effort. With all other things being equal, a company’s share price is directly linked to its performance. Hence, investing in stocks is relatively risk-free if you believe the company will continue to do well.
However, if the company has a bad year, you will be out of pocket. Dividends can also be a great way to earn passive income while investing. If you’re short on cash, you could avoid selling a portion of your stock with a dividend payment.
Invest in Apple CFD
The truth is that long-term investments aren’t for everyone; some people prefer short-term investments that last only a few days. If this describes you, a CFD may be the solution you’ve been seeking for. Because you are not purchasing anything when you invest in a CFD, you have more liquidity than when you invest in the other methods we discussed. CFDs typically offer a better potential of “getting wealthy quick,” yet if you don’t position yourself wisely, you could lose more money than you put in. This is by far the ideal approach for any risky traders because it has a significantly higher risk to reward ratio.
Investing in Apple ETF
Stocks and CFDs aren’t your cups of tea? We’ve got you covered, thankfully. Investing in an Apple ETF combines the two principles and bridges the gap. You’re not linked to any single equities with an ETF, and the risk is generally smaller because you’re investing in a range of companies. The implication of this is that if one suffers, the others in the fund should, in theory, compensate, reducing any losses. Because there are so many ETFs that comprise various firms, it’s crucial to figure out the proportion of the fund is made up of Apple stocks.
Is Apple a good investment?
As one of the largest companies in the world, Apple is generally regarded as a safe investment.
Apple’s (NASDAQ:AAPL) stock rallied roughly 48,660% over the past 20 years. The introduction of the iPhone, iPad, and iPod under Steve Jobs transformed Apple into one of the most Once dismissed as an also-ran of the tech sector, Apple’s introductions of the iPod, iPhone, and iPad under Steve Jobs turned it into one of the world’s most valuable tech companies.
After Jobs passed away in 2011, Apple has reinstated its dividend, initiated aggressive buybacks, and invested in next-gen technologies like augmented reality and connected vehicles.
Apple’s value hit one trillion dollars in 2018 and $2 trillion in 2020. The debate of Apple being a good or bad investment is dependent on several factors you may need to consider. First, we’d start with the risks.
What are the risks of an Apple investment?
Many analysts have argued that investing may be too late as they question the sustainability of its grip on the global market in the long term. These are some of their fears:
Dependence on the iPhone
The iPhone accounted for 54 percent of Apple’s revenue in the first nine months of the current fiscal year. Bears have cited Apple’s heavy reliance on the iPhone as its key weakness. It is hard to see if the demand for the iPhone 13 can follow the trend of sales that the company’s 5G iPhones have recorded in 2021. Intense rivalry and commoditization of the mobile industry are also long-term dangers to Apple’s most valuable asset.
It’s unknown whether Apple will ever produce another groundbreaking product like the iPhone, and the company’s lack of clarity about its future ambitions is concerning.
Dependence on China
China accounted for a whopping 19% of Apple’s revenue in the first nine months of this fiscal year. The country is Apple’s fastest-growing market. However, it is characterized by unpredictability in terms of rules, tariffs, and boycotts. With the endless tech tensions between the US and China, Apple might become a target for retaliatory regulations, levies, or bans in the future.
Finally, the long-term expansion of Apple’s services ecosystem confronts substantial obstacles. Apple’s App Store is under pressure to reduce rates, and several of its new subscription services (Apple Music, Apple TV +, and Apple Arcade) are likely to lose money to attract more consumers.
What then are the benefits of an Apple investment?
Stability of sales
Apple leverages innovation in creating its products. Therefore, its prisoner-taking ecosystems are likely to keep customers satisfied thereby sustaining the level of sales.
It would please you to know that Apple is not the type of company that milks a product dry without pursuing other options. It is reportedly working on new technologies such as augmented reality devices, an electric vehicle, and other possibilities to expand beyond hardware options.
Apple’s Arsenal of Financial Resources
Despite spending a lot of cash on buybacks, Apple had about $193.6bn in cash, cash equivalents, and marketable securities as of last quarter. This gives it the leverage for future acquisitions.
Apple’s subscription services currently have over 700 million subscribers worldwide. By gaining more customers on this platform, apple is also strengthening its grip on the iPhone and its other hardware devices.
Apple’s stock is also reasonably valued. Analysts have predicted Apple,’s revenue and earnings to increase by 33% and 70% respectively in 2021.
Apple is still a great long-term investment
It may not replicate the gains of the last twenty years in the next two decades, but it is largely profitable. Its core businesses are solid, its brand inspires great loyalty, and it has enough cash to fund its expansion plans.
How to invest in Apple with eToro
It can be challenging to get started on a new investment platform. The entire process of navigating the website, understanding the pricing structures, and determining which broker is suitable for you may get you frustrated. This comprehensive tutorial will show you how to get started with eToro, our top Apple investment platform.
Step 1: Open an account with eToro
The first step in investing in Apple is to sign up with a reputable broker. We recommend eToro for this since it provides customers with a fantastic combination of security, extensive trading features, and a simple pricing structure. You can simply go to “eToro.com,” click “Join Now,” and fill out the required information.
Step 2: Verify your account
eToro is a regulated platform, therefore, you’ll need to verify your account before you can start trading. This is because they follow strict privacy laws and money laundering rules. Verifying your account is simple; all you need is a photo ID (passport, driver’s license) and evidence of address (bank statement, utility bill).
Step 3: Fund your account
You’ll need to fund your account after you’ve validated it. This is made as simple as possible by eToro. Simply select “Deposit Funds,” input the amount you wish to invest, and click “Deposit.” eToro accepts a variety of payment methods, including credit/debit cards, e-wallets (PayPal, Skrill, and other similar services), and bank transfers.
Step 4: Invest in Apple
You’re ready to invest in Apple once you’ve funded your account! Simply type “Apple” into the eToro search field, choose “Trade,” enter your desired investment amount, and hit “purchase.” That’s it, you’ve become an Apple investor!
Now that you’ve completed our guide, you have all the information there is to know about investing in Apple Inc. We have explored the top Apple brokers and the pros and cons of investing. We have also given you the step-by-step process on how you can start investing in no time. By now, we’re certain you know that eToro is the best platform for you in terms of security, feature quality, and convenience.
Best Broker to Invest in Apple – eToro
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