Invest In Nike – Investing in Nike Beginner’s Guide 2021
No matter what your personal interests are, you’ve heard of Nike. The ubiquitous Nike checkmark can be seen all over the place online, on TV, and on people’s attire when you walk down the street. Founded in 1964 as “Blue Ribbon Sports”, Nike has expanded from a single retail location to a global giant. The company has a massive distribution network that is active in over 170 countries. That “swoosh” checkmark can be recognized in every corner of the globe.
In this article, you will learn how to invest in Nike, the pros, the cons and the best broker to invest with.
#1 Broker to Invest in Nike – eToro
How to Invest in Nike – Step by Step Guide 2021
If you’re having any trouble figuring out how to invest in Nike, you can refer to our quick and simple step-by-step process to help you get started in under 5 minutes.
- Step 1: Open an eToro account – To purchase any security, the first step is to find the right broker. We recommend eToro. Just type “eToro.com” into your browser, press the “Join Now” button, and fill in the required details.
- Step 2: Verify your Identity – eToro is a well-regulated and secure platform. To make sure everything stays that way, you will be asked to verify your identity. That means you’ll need a photo ID (passport, driving licence) and proof of address (utility bill, bank statement).
- Step 3: Fund your account – After your ID is verified, you will be enabled to deposit funds. Simply click “Deposit Funds” and enter the amount you want to invest.
- Step 4: Invest in Nike – You are now ready to make an investment. All you need to do is type “Nike” on the search bar. Then, press “Trade”, enter the amount you would like to invest, and press “Buy”.
Where to Invest in Nike – Choose a Broker
When you want to invest in a company, you have many choices for where to make the transaction. In the end, you will need to choose one broker to make your investment.
The only problem with this is that there are simply so many brokers to choose from. That’s why we’ve done the work to narrow down the most effective options for Nike investors. We’ve also included the details that are the most important to investors, including ones who are just making their first investment.
1. eToro – Best Overall Way to Invest in Nike
eToro has to be the overall winner when it comes to a simple, easy, and inexpensive way to invest in Nike. The platform is also massive; with more than 17 million users, it’s actually the most used on our list. But when you use it, it’s easy to understand why. Brand new investors and trading/investing veterans can both find a lot to love about it.
Security & Privacy
Security and privacy are among the primary concerns of modern investors leveraging tech to make their experience easier. They are concerns that any kind of investor needs to pay attention to. You can gauge a platform’s security by regulatory certification and by user experiences.
eToro is regulated for security and privacy by the FCA. They also have CySEC certification, which covers cybersecurity concerns. The result of compliance is users’ money being as secure as possible and data privacy for all users. In addition, eToro uses encryption to protect the crucial information that is provided to them to be able to use their services.
eToro is very secure with these measures. As one extra step, users can opt to set up 2FA as an additional layer of defence.
Fees & Features
eToro is a feature-rich platform. Advanced traders can take advantage of those features as they wish. At the same time, new traders or anyone who just wants to make a few simple investments can ignore them. The eToro interface is simple, with interactivity that makes it easy to use advanced features, but without being overbearing.
New users can also take advantage of a few unique features meant for them. CopyTrading is one of the features that is most ideal for new users. It allows new users to automatically copy the transactions of more experienced traders. Because it’s automatic, new users can effectively gain a passive income by piggybacking with the experts.
More experienced traders interested in any of the markets can find the kinds of investments they’re looking for. Cryptocurrencies and forex trading pairs are both available, along with all the traditional securities like stocks and ETFs. One of the benefits is that diverse portfolios can be managed through eToro. A dedicated trader can manage their stocks, foreign currencies, cryptos, and more, all from the same platform.
Lastly, it’s important to note the low cost of using eToro. It’s a commission-free platform, so you don’t need to worry about commissions undercutting your profits. However, eToro does charge a few small fees.
|Fee Type||Fee Amount|
|Inactivity Fee||$10 (Monthly)|
- Strong security (CySEC)
- No commissions
- Friendly interfaces
- Inactivity fees
- Only USD accepted
67% of retail investor accounts lose money when trading CFDs with this provider.
2. AvaTrade – Accessible Platform to Invest in Nike
AvaTrade is an older platform that brokers many types of investments. Users have the option of investing in a wide variety of stocks including Nike, all without commissions or fees.
Security & Privacy
AvaTrade takes industry-standard measures to make sure users have a safe investing experience. They more recently introduced 256-bit SSL encryption to protect your data from cybercriminals. The company has partnered with cybersecurity giant McAfee for an integration that protects users from card fraud. In all, that means customers’ personal data including payment details are well-hidden from potential attackers.
Fees & Features
Like Capital.com, AvaTrade doesn’t charge commissions, deposit fees, or withdrawal fees. However, they do charge a large inactivity fee for users who are inactive for too long. It is recommended that users who don’t want to continue using the service close their accounts to avoid large fees.
Apart from the inactivity fees, AvaTrade does not come with any surprises.
AvaTrade offers a few features that make investing easier for everyone. They offer 24/7 phone support to handle any of your concerns. They also offer unique features that can appeal to their diverse usership. They offer normal features such as price updates, as well as more advanced features such as leverage for advanced traders. They also try to foster inclusivity with their Islamic accounts, which aren’t offered by many alternatives.
|Fee Type||Fee Amount|
|Inactivity Fee||$50 after 3 months & $100 after 12 months|
- Professional trading account for experienced users
- Completely regulated platform
- Commission-free fee structure
- Islamic account to make trading available to more people
- Excellent 24/7 support system for grievance handling
- Rather high inactivity fees
- Not available in some countries
Your Capital is at Risk.
3. Capital.com – Easy Way to Invest in Nike
Capital.com is a newer investment platform that brokers investments of all kinds. Like eToro, they don’t charge commissions. Capital.com offers simple interfaces to facilitate simple investments for beginners. At the same time, they make it easy for advanced traders to make better trades with the help of their features.
Security & Privacy
Capital.com uses modern data security practices to protect users’ data. The company is regulated by the FCA and CySEC, so they must follow the same rules laid out for eToro. The company also submits to PCI data security standards and does not sell any user data.
British Capital.com users are covered under FDIC insurance for balances of up to £85,000. This offers another layer of protection to customers in the case that Capital.com goes bankrupt or suffers other disruptions.
In all, Capital.com is regularly independently audited and submits to the relevant security and privacy regulations.
Fees & Features
Fees are the area where Capital.com really stands out. There are no fees for withdrawals, deposits, or inactivity, on top of zero-commissions trading.
Capital.com offers features that help beginners ease into investing. One such feature is a practice account that lets users make fake investments. This allows you to “practice” investing by spending no money and just sitting back and seeing what the real consequences of your investment would have been if it were real. This tool can be very useful for those considering investments but who aren’t quite ready to make the leap.
Experienced traders benefit from Capital.com features that track market movement. They also provide guides for features meant for investors of all levels of experience. All users can take advantage of intuitive and arguably necessary features such as customized price alerts.
- The feature of Practice Account for newcomers
- TradingView integration feature for experienced users
- Informative guides to learn about the market
- Trading options limited to CFDs and stocks only
- Relatively new in comparison to competitors
76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
Invest in Nike – Broker Price Comparison
To sum everything from above up, here is a comparison of the prices of all available platforms. This will help you get a clear idea of where to invest in.
|Broker||Commission||Deposit Fee||Withdrawal Fee||Inactivity Fee|
|eToro||0%||$0||$0||$10 monthly (after 12 months inactivity)|
|AvaTrade||0%||$0||$0||$50 after 3 months, $100 after 12 months|
What are the Different Ways to Invest in Nike?
If you want to invest in Nike, there are several ways to do so. It’s important to consider your trading experience and level of knowledge when deciding how to invest. As a beginner, understanding these different ways of investing can be a bit confusing. In that case, it’s best to stick with the simpler options (more on that soon).
All users, regardless of experience, must read through the same terminology, including financial jargon that doesn’t make any sense outside the financial world. Then there is the issue of knowing which investments are available through your broker. Some brokers may offer Nike shares, but not other investments. Knowing which investments are available is an important part of selecting a broker.
The variety of investments available, even just for Nike, can be confusing for new investors. But you can refer to these three options to get a simple idea of what investment would best suit your needs.
You can invest in Nike’s stock (NKE) by buying shares in the company. This is a great way to invest regardless of whether you’re just getting started or if you have experience investing in other companies. Stocks offer the most direct and easily understandable way to profit from a company’s activities.
When you buy stock in a company, you are buying a fraction of the company’s ownership. Each share represents your portion of the company. That means that if you buy even a single share in Nike, you are a partial owner of it.
Being the partial owner of a company offers you a few benefits. One of them is that as the company grows, the value of your shares increases. If you’re looking for a long-term investment, stocks offer that, alongside the other benefits.
Another benefit of owning Nike shares is that you can earn dividends. With enough of an investment, this can mean regular passive income. As of the time of writing, the dividend yield for Nike is 0.66%.
One overlooked aspect of owning company stock is that as a partial owner, you’re entitled to sit in on company meetings and vote on decisions. During shareholder meetings, you can listen in and gain a more in-depth understanding of the stock you’ve invested in. Then, you can use your voting rights to influence the direction of the company in such a way that suits you. Just remember that unlike voting for a politician, individuals don’t have equal votes. Your voting power is determined by how many shares you own.
Nike CFDs (Contract For Difference)
Another way to invest in Nike is through a Contract For Difference (CFD). CFDs are popular among day traders and are a bit more complex than stocks. However, it does present a way to invest in a company as an alternative to stock investing.
CFDs don’t offer ownership of a company. Instead, when you buy a CFD, you are speculating on price fluctuations. You are betting on whether the price will rise or fall. If you choose the correct direction, you make a profit. However, as you don’t have any ownership of the company, you don’t get any of the associated benefits covered above.
If you want to invest in Nike, this is a more risky way of doing so. There is always a chance of trade liquidation, and there is an even greater chance of the price going in the opposite direction. However, when you succeed, you can make more money than you would through stocks, and faster.
Nike ETFs (Exchange-Traded Fund)
Exchange-traded funds (ETFs) are funds containing stocks of multiple companies. When you buy into an ETF, you are investing in multiple companies. In this case, you would look for a fund that contains Nike.
ETFs offer a way for investors to invest in many companies at the same time. The fund managers control the assets in the ETF, so you don’t need to make as many decisions or do as much research. However, while you’re investing in multiple companies, you don’t directly hold any stocks. That means you still miss out on the benefits of owning Nike shares. The fund owns them, but they will pass down any passive income such as dividends, so you still profit from your investment.
Best Ways to Invest in Nike UK
The three investments we’ve gone over describe how you can invest in Nike and profit from your investment. However, they’re all very different investment types. It’s up to you to decide which investment type best suits your needs or your overall investment strategy. So, let’s go over how each option can fit into an investment portfolio.
Invest in Nike Stocks
If you believe in the long-term potential of Nike, investing in shares makes sense. Likewise, if you’re also new to investing, it’s a simpler and/or less risky option.
As a long-term investment, stocks are very hands-off, if you want them to be. You can retain ownership of Nike for many years, all while receiving dividend payouts. Of course, if Nike continues to grow and prosper, so do you. The more shares you own, the more significant any returns are for you.
Nike stocks depend on many factors, most of which surround the financial performance of the company. If you’ve done the research and are fairly sure of Nike’s direction, stock investment is a lower-risk option. Of course, if Nike has a bad year, you are at least temporarily at a loss. However, even so, dividend payments can help offset that loss while you wait for Nike to bounce back or decide to sell.
Invest in a Nike CFD
If you don’t want to make a long-term investment, CFDs are a potentially profitable alternative to buying shares. If you have more risk appetite and are more of a day trader, Nike CFDs are likely closer to what you’re looking for.
You are less invested in Nike if you purchase a CFD. You’re not buying any ownership of the company, and you have a more liquid asset. In fact, Nike CFDs offer the most liquidity of these three options.
Your success or failure with a Nike CFD is determined by positioning and timing. You have a higher chance of making money fast, but you also have a higher chance of losing your investment. Essentially, the risk/reward ratio weighs more on both sides.
Invest in a Nike ETF
Nike stocks and CFDs cover the needs of long-term value investors and short-term day traders, respectively. However, for some investment strategies, neither of those options is quite ideal.
By investing in an ETF, you are unattached to Nike specifically, but you still profit from Nike dividends. When considering the two types of investors mentioned above, ETFs are a more common choice for long-term, risk-averse investors. ETFs are diverse investment instruments. Because you are investing in many companies at once, your risk is lower. Should Nike, or any other one of the stocks in the ETF start performing very poorly, you are less affected. In theory at least, if one stock tanks, the others should partially balance that loss out.
There are many ETFs to choose from. According to ETF Database, there are 29 ETFs that include Nike. However, because you’re primarily considering investing in Nike, you need to consider Nike’s weight in the ETF. ETFs don’t invest in all stocks in their portfolio equally. With the 29 options, mentioned, Nike’s share of the funds ranges from 1.69% to 4.98%, as of the time of writing. You should monitor the ETFs you’re considering or any you’ve already invested in to see how much of your investment is for Nike.
Is Nike a Good Investment?
Nike is a well-established brand and is somewhat financially stable. It’s a company that is actively expanding, all while maintaining healthy profits and strong growth. As an investor, it’s your responsibility to make sure Nike’s balance sheet aligns with your expectations. In recent years, Nike has maintained good margins, but taken on more debt as well. It’s no surprise that many people want to invest in Nike now, but it’s important to balance the potential rewards against the risks.
Business Is Growing
In the scope of the next few years, things are looking quite good for Nike. The company’s management expects post-Covid-19 growth to be faster than it was before. Current performance and forecasts for the next few years suggest low double-digit growth in revenue through 2025. Indeed, Nike’s forecasts have actually improved greatly compared to before the pandemic.
Wise Diversification Decisions
To follow up on that point, Nike has made a few advantageous decisions that are the right ones for the current time. One of the key aspects of Nike’s future growth is its digital products. Those products have been found to not only be profitable but to encourage repeat purchases. For a brand as large as Nike, this also improves brand recognition even more. It also helps Nike carve out a unique space in the athletic apparel market.
Nike has multiple apps that help its overall business, including the SNKRS app. The SNKRS app lets customers know when a new product is released. Free membership was also a wise decision, making Nike the default option for many consumers who are likely to seek athletic wear.
Digital membership may be even more significant in Nike’s surging business. On top of encouraging repeat business and making Nike the default option, Nike is gathering data on customer preferences. Digitalization is thus helping them ensure that new releases are in line with consumer demand.
Seeing as Nike’s digital membership has grown from 170 million in 2019 to 300 million in 2021, the payoff has already been realized. This shift in Nike’s management’s perspective has only helped encourage ever-faster growth.
Investing in Nike – What are the Risks
Nike may be a giant, but giants are still subject to risk and can even fall under certain circumstances. Nike is no exception, and the company needs to tackle the most pressing risks to help ensure its growth continues as planned.
Nike is perhaps a unique brand in the athletic wear market, but the athletic wear market is quite crowded. In addition, Nike isn’t the only athletic wear company that is engaging in innovative marketing practices. The overall market is growing very quickly, especially in “athleisure”, so all market participants are incentivized to become more competitive and innovative.
Nike has a large number of competitors, including Adidas, Reebok, Patagonia, Puma, and Under Armour, just to name 5 of their over 550 global competitors. Maintaining its market share in the face of such competition will remain an ongoing challenge for Nike. While the company is well-positioned to succeed in doing so, there are of course no guarantees.
While Nike has captured a lot of market share with its brand and the help of digital initiatives, capturing demand in growing markets may be a trickier issue. Nike’s growth in economies like China’s will be a key part of the competition for the growing athletic wear industry.
How to Invest in Nike with eToro
It’s already hard enough to enter the world of investing. Even experienced traders can be reluctant to make a leap to a new platform that they’re unfamiliar with. Fortunately, eToro has made the process simple, and we’ve created a brief but comprehensive guide to getting started. Follow these steps and you’ll be invested in Nike in no time.
Step 1: Open An Account
Investing in Nike is easier with the right broker. We recommend eToro for its balance of affordability, simplicity, and user-friendliness. You can get started with eToro by making an account. Just type in “eToro” on your browser and click “Join Now” to get started.
Step 2: Get Verified
For the security of eToro, yourself, and other investors, eToro has a quick ID verification process. As a regulated platform, it’s also a regulatory responsibility.
All you need to do is be ready with a government-issued photo ID such as a driver’s license or passport. Then, you just need proof of address, which can be provided with a bank statement or utility bill mailed to your address, with your name on it.
Step 3: Add Funds
Adding funds is simple. Just click “Deposit Funds”, fill in the amount, and click “Deposit”. You will be redirected to a payment portal and can choose from a wide range of payment options:
- Credit/debit card
Step 4: Invest in Nike
Once your account is all set up, click “Nike” into the search bar. Press “Trade”, fill in the necessary fields, and press “Buy”. You’re done, and now you own a piece of Nike!
You are now equipped with the knowledge to understand how investing in Nike works. You’ve learnt a little bit about Nike and you understand the brokerage process. What’s better is that you’re almost ready to get started already!
If you’re still excited about investing in Nike, you can read more news about the company and check its latest balance sheets. If you’re already decided on investing, you can get started fast with eToro.
Best Broker to Invest in Nike – eToro