How To Invest In Water – Investing in Water Stocks For Beginners 2021

Fact Checked by Gary McFarlane

Water, the lifeforce of the earth, every single living thing needs to consume water in some capacity. Any resource with such demand can be capitalized on and although you can’t directly invest in water as you can gold, there are a number of industries that facilitate the supply of water that we can invest in. Many people take water for granted, after all, I’m sure you’ve heard the statistic saying 70% of the earth is water, however, what they don’t tell you is only 2.5% of this is fresh water, and further still, only 0.5% of it is usable by people and animals. With the rate at which the population is increasing, many believe that water will become far more scarce, and considering the current water supply infrastructure is not equipped to deal with an increased population, it appears we have a two-fold opportunity. 

Throughout this article, we’ll be discussing exactly how you can invest in water with top broker eToro, the different ways you can invest, and the best brokers to do so. 

#1 Broker to Invest in Water – eToro

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How to Invest in Water – Step by Step Guide 2021

We understand how difficult getting used to a new trading platform can be, they’re often crowded and full of jargon. So, to make the whole process easier for you, we’ve included this handy guide you can use to invest in water with eToro in just a couple of minutes. If you’re looking for a more in-depth guide, you’ll be able to find that toward the bottom of this page. 

  • Step 1: Open an eToro account: Before you can make your first investment, we’ll need to register with a well-known, trusted broker. After extensive research we can recommend eToro, its interface is simple and the platform is powerful. All you need to do to register is type “eToro.com” into your browser’s search bar, press “Join Now”, and fill in the required details. 
  • Step 2: Verify your Identity: Following your registration, you’ll need to verify your identity. This is because eToro is a regulated platform and as such has to comply with a number of strict rules. Verification is quick and simple, all you’ll need to provide is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).   
  • Step 3: Fund your account: Once your eToro account has been verified, you’re only one small step away from investing in water. All that’s left to do is fund your account. To do this simply click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. To ensure users have an easy time investing, eToro supports deposits with a credit/debit card, bank transfer, and e-wallet (PayPal, Skrill, etc).
  • Step 4: Invest in Water: Now that your account has been funded, you’re ready to invest! Just type in your chosen water stock, press “trade”, enter however much you’d like to invest, and press “Open Trade”. You’ll be able to monitor your investment from the “Portfolio” section of your eToro account. 

Where to Invest in Water – Choose a Broker

One of the most commonly overlooked aspects of investing is selecting a broker that matches your needs. If you rush this step, it’s easy to get stuck with a broker that charges exorbitant fees, is difficult to use, or doesn’t have a feature you need. To ensure our readers have as easy a time as possible selecting their broker, we’ve compiled a list of our top 3 water brokers and provided a full-length review for each of them.  

1. eToro – Best Overall Water Broker

If you’re looking for a broker that offers an excellent all-around investment experience, then it doesn’t get better than eToro. Founded in 2007, eToro has made investing far more accessible for the general population; they’ve managed to demystify investing by offering beginners the tools and support they need. Clearly, this strategy has paid off because as of 2021, eToro is currently serving over 20 million customers.

Security & Privacy

Brokerages of this size have always been targets for hackers and nefarious individuals attempting to steal money. eToro is aware of this and has implemented several high-tech security features to ensure it doesn’t happen on their platform. The first way eToro defends itself is by adhering to strict regulations, this ensures the company doesn’t mishandle any customer data or funds, preventing any larger issues down the line. Continuing the theme of protection for customer data, eToro protects sensitive information using SSL encryption, meaning nobody can intercept your data on its way back to the eToro servers. And finally, another way eToro protects customers is with 2-Factor-Authentication (2FA). Enabling 2FA on your account acts as an additional layer of protection, you’ll be required to submit a code sent to your mobile before completing sensitive account actions. 

Features

Making sure customers have all the tools required to succeed is a great way to build a loyal user-base, after all, if your customers are consistently making a profit with you, they’re more likely to stay with you. Those just beginning their investment journey will be delighted to hear that eToro offers some unique features designed to help you start earning a profit as quickly as possible. One of these features is CopyTrading. A way you can automatically mirror the trades of users with more experience, allowing you to start learning various trading strategies, while making a passive income, all without much experience. Technical traders will be happy to know that eToro comes complete with a heap of advanced charting tools, meaning you have the freedom to plot even the most advanced strategies. Another way eToro makes sure its users get the most value from their platform is by offering commission-free trading. Meaning you’ll be getting the best bang for your buck when investing with eToro.

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • CopyTrading
  • Regulated
  • Advanced charting tools
  • Low fees
  • SSL encryption
  • 2FA

Cons

  • Support for 3rd party trading tools would make a nice addition

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Robinhood – Invest in Water Stocks for Beginners 

If you’re based in the US and have spent much time looking into investment platforms, then it’s almost a certainty that you’ll have heard the name Robinhood mentioned. For over 7-years they’ve been making the investment process near-effortless for customers, providing them an extremely simple way to invest, while still retaining useful features.

Security & Privacy

That last thing any investor wants is to wake up one day and see funds missing from their investment account. Unfortunately, this is a fairly common occurrence, but to ensure it doesn’t happen to Robinhood’s customers, they’ve implemented some interesting security measures. As a platform serving US audiences, it makes sense that Robinhood is regulated by the SEC, they provide Robinhood regulatory guidance, ensuring they’re always compliant with US regulations and in turn, Robinhood makes sure to take extra care that its customers are well looked after. If you’re worried about Robinhood getting compromised, you don’t need to be. They’re protected with SIPC insurance covering securities balances up to $500,000 and cash up to $250,000. Additionally, if you’re a “high-value” customer with more than $500k you’re covered up to the tune of $10 million, by what Robinhood has dubbed “excess of SIPC coverage”. 

Features

Robinhood has a clear focus on making investing as easy as possible, they offer customers a no-frills mobile app, giving everyone with a phone the power to invest. Their platform is simple to understand and features a clean interface, allowing for easy navigation. New users can benefit from a referral program that grants the new user one free stock upon registration. Overall, Robinhood is a great trading platform for anyone new to investing, with the only drawback being it’s only accessible to US residents.

Robinhood Fees

Fee Type Amount
Trading Fee 0%
Credit/Debit Card Fee 3.99%
Spread Fee Variable

 

Pros

  • Regulated by the SEC
  • Encryption of sensitive data
  • SIPC insurance 
  • “Excess of SIPC coverage” up to $10 million
  • Stock referral program

Cons

  • Missing some more “advanced” features
  • Limited to US residents

67% of retail investor accounts lose money when trading CFDs with this provider.

3. Fidelity– Great to Invest in Water Stocks for Experienced Investors

Fidelity is by far the oldest platform on our list, they’ve been operating since 1969 and currently serve over x customers. Fidelity offers users an extremely comprehensive investment platform with heaps of useful features. They’re the most “traditional” investment platform on our list and offer a range of investment products outside stocks, such as IRA and 401K accounts. 

Security & Privacy

Protecting customers and their funds should always be at the forefront of any investment platform’s goals, and it seems like Fidelity got that memo. Fidelity is regulated by several authoritative bodies across the world with one of the most notable being the FCA.  To ensure its customers remain safe, they’ve taken biometric security a step further than the usual fingerprint or face scan, instead choosing to use voice biometrics. This results in a security measure that more people can take advantage of because the only requirement is a microphone-enabled device. Fidelity has also made sure to include 2FA, which offers a last-line of protection in case your account is compromised. 

Fees & Features

It’s only logical that a platform operating for over 50-years has got a good grasp of what its customers are looking for. Fidelity has made sure to cater to the needs of all its users, by including features that are relevant to the vast majority of investors. One area that Fidelity definitely didn’t skimp on, is the huge amount of market research they offer customers. It’s all been conducted by financial experts and helps users to make better-informed decisions, creating better investors. If you’re looking for more direct guidance, Fidelity also offers its users the option of consulting with a financial advisor (although it should be noted this isn’t free unless you meet some strict requirements)

 

Fidelity Fees

Fee Type Fee Amount 
Commision Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • 2FA
  • Voice biometrics
  • Employee education
  • Extensive research
  • Financial advisor

Cons

  • Potentially too complex for beginners
  • Some services will cost extra unless you meet specific requirements

67% of retail investor accounts lose money when trading CFDs with this provider.

Invest in Water – Broker Price Comparison

We understand how difficult it can be to select the best investment broker, so to help make this process a little easier, we’ve included this handy table that compares the fees of all the best water brokers. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares $0 $0 $0
Fidelity 0% $0 $0 $0

 

What are the Different Ways to Invest in Water?

Prior to making an investment in a water stock, you first have to consider which industry you’d like to invest in. Because you can’t directly invest in water like it was a commodity, you’ll have to choose an alternative way of investing. The two most popular are investing in water utilities or infrastructure.  

Water Utilities/Infrastructure

Do you have a tap in your kitchen? If so, you most likely have some sort of deal with a water utility company. By investing in shares of a water utility company, you can take advantage of the water industry by becoming a part-owner of a company supplying citizens with water. As the population increases, there will be a greater strain on the already decades-old infrastructure that supplies the nation with water. It stands to reason that at some point in the near future the government is going to have to cough up billions of dollars to refurbish this infrastructure and when they do, it’s going to be the utility and infrastructure companies that are winning. 

Water Rights

If you’d prefer a direct investment in water, then you might be interested to hear about investing in water rights. This method of investing differs greatly from investing in shares of a company, as instead, you’ll be purchasing a body of water (lake, well, etc) and charging people to use it (typically the government of a town or village). This is certainly a more hands-on approach that will require far more time and effort than investing in a stock, however, once set up it presents an excellent passive income opportunity.

Best Ways to Invest in Water 

There’s a tonne of different ways you can invest in water, you have the option of investing directly in a piece of land with water rights, investing in water stocks, or even an ETF. We understand this can be overwhelming, to begin with, so we’ve done the research and broken down 2 of the best ways you can invest in water today. 

Invest in Water Stocks

Investing in water stocks is a great option for anyone wanting a long-term investment that doesn’t require too much effort. When you purchase a share of a company dealing in water, you become a part-owner, this comes with several benefits. The most notable being dividend payments, a way a company can pay forward a portion of its profits to investors. On top of this, with enough shares, you can also vote on the future of whichever company you choose to invest in, an excellent opportunity if you believe in the long-term performance of a particular company. Before you can invest in water stocks, you’ll have to choose which sector you’d like to invest in with the most common being infrastructure and utility companies. 

Invest in Water Rights

If you’re looking for direct exposure to water and don’t mind a bit more hands-on work, then you might benefit from investing in water rights. Let me just say, this method will be far more labor-intensive and could require you to physically travel in order to survey your plot, however, the rewards for doing so can make it well worth it. Once you do the necessary leg-work to get everything running smoothly, you’ll end up with a great passive income stream, and depending on the deal you get, you might even end up with a reasonably sized bit of land.

Is Water a Good Investment? 

Water is a necessity for every living thing on this planet to survive, without it the world would be lifeless and full of baron deserts. Considering water is so important to our continued survival and we’re predicted to face a global shortage within the near future, it makes sense that investing in water is a smart move.

Limited Freshwater

I’m sure you’re all aware of the statistic stating that 70% of the world is water, and while this is true, only a small percentage of that is freshwater, and an even smaller percentage of that is accessible to us. As such, despite having oceans filled with water, not much of it is actually usable (on a cost-effective basis). As we previously mentioned, wherever there is a living creature there is a demand for water, and with such high demand and such a finite supply, it makes sense that water could be set to become a far more valuable commodity. 

Global Necessity 

Everyone in the world requires water, whether it’s for personal consumption, agricultural use, or even cleaning. Because of this, anyone that can facilitate the supply of water is in a great position. Outside of the utility companies directly charging customers, there is a huge amount of government funding and contracts available, which could result in high earnings for a water company, and therefore a spike in the share price. 

Investing in Water – What are the Risks

Water is one of the rare investments that comes with very few downsides. Everyone needs and will continue to need water, this results in water being fairly safe from unfavourable market conditions. Even if a company was having a few issues, the chance of it receiving a bailout is far higher than a tech manufacturer for example. This is because utility companies keep everyone living in comfort, with the conveniences we’ve come to expect from the modern world.

Standard Investment Risks 

Although investment in a water company can be seen as low-risk, you still have exposure to the underlying risks involved with every investment. When you look at the stock price of the biggest water companies in the US, we can see that although the majority have managed to maintain a steady rate of growth, there are still a couple that have lost value over the past few years. While this is no surprise and common in just about every market, it shows that even if you choose the right sector, without picking the right company, you could still be left out of pocket. 

How to Invest in Water with eToro

As we promised, for those needing a more compressive tutorial on making your first investment, we’ve included this full-length guide on getting started with top-rated broker eToro. These same basic steps will be relevant to the majority of brokers, but after comparing hundreds, it still seems as though none can top eToro. 

Step 1: Open an account with eToro

Prior to making your first investment, we’ll have to jump through a couple of tiny hoops, however, this whole process will only take a few minutes. The first thing you’ll need to do is type “eToro.com” into your browser, then press the “Join Now” button, and fill in the details the form asks you for. eToro protects all sensitive information using SSL encryption, so you needn’t worry about the security of your data.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

Now that you’ve created your eToro account, we’ll have to verify it. This is because eToro is a regulated investment platform and as such has to comply with the frameworks lined out by bodies like the SEC and FCA. Luckily, getting your account verified is easy, all you need to provide is a photo ID (passport, driving license) and proof of address (utility bill, bank statement).

Step 3: Fund your account

Once your account has been verified, you’ve only got one step left before you can invest. You’ll need to fund your eToro account, to do this just click on the button marked “Deposit Funds”, type in the amount you plan on investing, and press “Deposit”. Your funds will automatically be credited to your account. eToro supports deposits using either credit/debit cards, bank transfers, and e-wallets (PayPal, Skrill). 

Step 4: Invest in Water!

Now that you’ve funded your account, you’re ready to invest in water. All that’s left to do is type the name of your chosen stock or ETF into the eToro search bar, select the relevant option, press “Trade”, type in the amount you want to invest, and press “Open Trade”. Once you’ve opened the trade, you’ll be able to monitor its performance from the “Portfolio” section of your account. 

Conclusion

All in all, there is a long list of benefits associated with investing in water stocks, they remain a relatively safe and stable investment, that is can only continue increasing in demand. Unfortunately, the world is facing a water shortage although many people are shielded from it. The effects can be felt in places like California which has been plagued by wildfires in recent years. The WWF predicts that by 2025 two thirds of the world’s population could be facing a water shortage, this shows us just how finite the seemingly infinite resource of water is. This is likely to only continue driving the value of companies supplying water higher, presenting an excellent opportunity for investors. If you’re ready to invest in water but can’t decide on which broker is right for you, then we have a recommendation. After comparing the security, features, and ease of use of countless investment platforms, we’ve come to the conclusion that none can compare to eToro. If you need a hand making your first investment, just follow along with the above guide and you’ll be investing in just a few short minutes. 

Best Platform to Invest in Water – eToro

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

FAQs

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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.