Buy Biotech Stocks – 5 Best Biotech Stocks To Buy Right Now In 2022

Fact Checked by Gary McFarlane

If you’re looking to invest in the global healthcare sector, it might be worth buying a selection of top-rated biotech stocks. After all, many market commentators argue that biotechnologies will dominate how we treat patients in the near future.

In this guide, we take a look at the best biotech stocks to buy right now based on various core metrics. We’ll also show you how to buy biotech stocks at zero commission from the comfort of home.

Table of Contents

#1 Broker to Buy Biotech Stocks – eToro

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How to Buy Biotech Stocks – A Quick Guide For 2022

Learning how to buy biotech stocks doesn’t have to be difficult when using a beginner-friendly brokerage like eToro. In the quickfire walkthrough below, we’ll show you how to complete your biotech investment in under five minutes without paying a single cent in commission.      

  • Step 1: Open an Account with eToroBefore you can access the best biotech stocks at eToro, you need to register an account. Click on ‘Join Now’ via the homepage and enter your personal details as prompted.
  • Step 2: Upload Your ID – To complete the registration process, you need to upload a copy of your ID. This is part of the KYC procedure that is mandated by all regulated brokers.
  • Step 3: Deposit Funds – Next, click on the ‘Deposit’ button and choose your preferred payment method. The minimum deposit requirement is $50 for new customers.
  • Step 4: Search for Biotech Stock – Find the biotech company that you wish to invest in by using the search box. Click on the ‘Trade’ button to process.
  • Step 5: Buy Biotech Stocks – An order box will now appear. Enter your desired investment amount and click on ‘Open Trade’ to complete your biotech stock purchase.

Your biotech stocks will now be added to your eToro portfolio – which is where you can monitor their share price performance in real-time.

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

Best Biotech Stocks to Buy Now – List of the Best Biotech Stocks

Biotech stocks can be found in a variety of markets and exchanges. If you’re not sure which companies to invest in, we think the best biotech stocks are those outlined below.

  1. Exelixis – Overall Best Biotech Stock to Buy Right Now
  2. Vir Biotechnology – Biotech Stock Working on New COVID Treatment
  3. Merck – Top Biotech Stock With Attractive Dividend Yield
  4. BioNTech – Top-Performing Biotech Stock With Huge Gains in Recent Years
  5. Bionano Genomics – Cheap Biotech Stock With a Small Market Capitalization

Read our full analysis of each biotech stock picks further down.

How To Buy Biotech Stocks – Choose a Broker

You will need to have an account with an online trading platform before you can access the best biotech stocks. The 10 platforms listed below are highly rated.

  1. eToro – Overall Best Place to Buy Biotech Stocks
  2. Webull – Buy Biotech Stocks at 0% Commission
  3. Ally Invest – Challenger Bank Offering Low-Cost Stock Investments
  4. Merrill Edge – Online Brokerage With a Variety of Investment Accounts
  5. E*TRADE – Good Broker for Long-Term Investments
  6. Interactive Brokers – Trade US Stocks at 0% Commission
  7. SoFi – Invest in Biotech Stocks via Fractional Shares
  8. Zacks Trade – Top Broker for Advanced Traders
  9. Robinhood – Great US-Based Broker for Beginners
  10. Fidelity – Trusted US Brokerage With 7,000+ Stocks

If you need more information on any of the above trading investments listed above – scroll down to the relevant section of this guide.

Best Biotech Stocks to Buy Now – Full Analysis

The biotech stock arena is getting more and more popular among investors. Many look to this niche marketplace as a way to catch growth stocks that could be worth a lot more in the very near future. But, many biotech stocks carry enhanced risk levels, not least because they are working on treatments that are yet to be fully developed or approved by the FDA.

Nevertheless, to point you in the right direction, check out our list of the best biotech stocks below.

1. Exelixis  – Overall Best Biotech Stock to Buy Right Now

Founded in 1994, Exelixis appears to be one of the best biotech stocks to consider right now. This US-based biotechnology company specializes in genomics-based treatments and has a number of innovative products already in circulation. At the forefront of this is its treatment for hepatocellular carcinoma and renal cell carcinoma.

From an investment perspective, Exelixis carries a modest market capitalization of just over $5 billion as of writing – so the upside is super-attractive. The financials look good too, with revenues up 42% year-on-year as per its September 2021 earnings report. The same report also showed a 219% year-on-year increase in net income.

exelixis stocks

In terms of its share price action, Exelixis stocks have had a turbulent 2021. Over the 12 months, for example, the stocks are down 14%. Trading at $16 per share as of writing, this is a major drop from its prior 52-week high of $25. But, on the other hand, if you like the look of this biotech stock, current prices are offering a great discount.

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

2. Vir Biotechnology  – Biotech Stock Working on New COVID Treatment

If you’re looking for the best biotech stocks that are heavily involved in COVID-related treatments, it could be worth looking at Vir Biotechnology. Launched in 2016, this biotech stock is one of the latest entrants into this marketplace, with the shares only going public in 2019. Back then, you would have paid in the region of $14 per share.

Fast forward to late 2021 and the stocks are trading at over $38, representing an increase of 173% since its IPO. However, Vir Biotechnology stocks have since hit 52-week highs of $141, so current prices are a significant drop from this level. Nevertheless, Vir Biotechnology – in partnership with GlaxoSmithKline, is behind a COVID treatment named Sotrovimab.

Vir Biotechnology stocks

Put simply, this treatment is injection-based and it has already shown promising results via its phase-3 trials. Plenty of governments around the world have signed contracts with Vir Biotechnology for the treatment, so this biotech stock is certainly worth keeping an eye on.

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3. Merck  – Top Biotech Stock With Attractive Dividend Yield

Merck is one of the best biotech stocks to consider if you’re looking for a firm that not only offers great growth potential but regular income too. Regarding the latter, Merck is offering a running dividend yield of over 3.7% based on prices as of writing. And, with a P/E ratio of just over 25 times, this biotech stock isn’t as expensive as many of its market peers.

Looking at the stock price action of this stock, Merck has increased by over 25% in the prior five years. Although more modest than the wider markets, the upside on this stock is still attractive.

Merck stocks

In particular, Merck is behind an innovative antiviral pill that is tasked with treating COVID-19. Although the pill hasn’t yet received full FDA approval, this could be imminent. On the other hand, this treatment has been approved in the UK – so the markets are in anticipation of the FDA’s decision.

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

4. BioNTech  – Top-Performing Biotech Stock With Huge Gains in Recent Years

BioNTech is a biotechnology firm based in Germany. Founded in 2008, the stocks made their way over to the NASDAQ exchange in 2019. Since then, the stocks have continued to reward investors with huge returns. In fact, since 2019, BioNTech stocks are up almost 2,000%. Over the past 12 months alone this top-rated biotech stock has increased by 122% – subsequently outperforming the broader market by some distance.

But, with a market capitalization of just under $68 billion as of writing, there is still plenty of upside potential on the table. Perhaps the most notable aspect of buying this biotech stock is that the firm is behind the Comirnaty COVID vaccine – in partnership with Pfizer.

BioNTec stocks

With that said, BioNTech is working on plenty of other treatments at present – many of which are focused on cancer-related drugs. While these treatments still have some way to go in terms of testing, BioNTech has proven that it has what it takes to lead innovation in this space.

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

5. Bionano Genomics  – Cheap Biotech Stock With a Small Market Capitalization

If you’re prepared to take on additional risk in your search for the best biotech stocks, it might be worth considering Bionano Genomics.  This biotech stock – which was founded in 2003, has performed extremely well over the past 12 months. In fact, share price gains of over 530% have been achieved over the prior year.

Bionano Genomics stocks

The firm specializes in locating therapeutic targets via ultra-sensitive technologies. It is important to note that this stock is highly volatile, which is further amplified by its small-cap valuation of just under $1 billion as of writing. Furthermore, as per its most recent earnings report, although revenues were up year-on-year by 111%, net income dropped by a whopping 92%.

 

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

Where to Buy Biotech Stocks – Full Broker Reviews

In the sections above, we discussed five of the best biotech stocks to consider buying right now. If you know which stocks interest you, then the next step is to choose a suitable broker. We prefer brokers that are not only SEC-regulated, but commission-free. We also prefer investment platforms that allow you to buy fractional shares.

Therefore, the ten platforms listed below are worth considering when buying the best biotech stocks.

1. eToro – Overall Best Place to Buy Biotech Stocks

bitcoin today

eToro is the best place to buy biotech stocks for many reasons that were identified when reviewing this broker. First, safety will be of no concern here, as eToro is regulated by the SEC, ASIC, FCA, and CySEC. The broker is also FINRA-registered. eToro is also extremely user-friendly, not least because it takes just minutes to set up an account and subsequently buy biotech stocks. US clients can deposit funds for free, and supported payment methods include debit/credit cards and e-wallets. Bank wires and ACH are also supported.

The minimum deposit amount at this platform is just $50. Plus, eToro supports fractional purchases from just $50 on all of its supported markets. Not only does eToro give you access to the NYSE and NASDAQ, but lots of markets in Europe, Asia, the Middle East, and more. All stock markets – regardless of the location, can be accessed on a 0% commission-free. This is also the case with ETFs, and forex, commodities, indices, and cryptocurrencies can be traded on a spread-only basis.

etoro copy portfolio

We also like the passive trading tools offered by eToro – all of which can be accessed at no extra charge. For example, there are CopyPortfolios that track various strategies. eToro will manage the portfolio on your behalf and rebalance the basket of assets when needed. The Copy Trading tool will instead see you invest in an eToro trader-like-for-like. This means that any positions they make will be reflected in your account. Finally, you can use eToro via your standard web browser or through the iOS/Android mobile app.

Pros

  • Invest in stocks at 0% commission
  • Minimum investment per stock is $50
  • Supports debit/credit cards, e-wallets, and bank transfers
  • Regulated by the SEC, FCA, ASIC, and CySEC
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

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

2. Webull – Buy Biotech Stocks at 0% Commission

webull review

Webull is home to a relatively diverse selection of biotech stocks – many of which have been discussed on this page. However, your chosen biotech stock must be US-listed, as Webull is virtually non-existent in terms of foreign companies. You can buy stocks here without paying any commission, and fractional shares are supported in all relevant markets.

webull review

You might also consider trading stock options at Webull, or perhaps investing in funds and cryptocurrencies. No minimum deposit requirements are in place at Webull, and retirement accounts can also be opened. Payments cannot be made via debit/credit cards or e-wallets, so it’s ACH or bank wire only. The latter attracts a deposit and withdrawal fee of $8 and $25 respectively.

Pros

  • Thousands of US-listed stocks
  • 0% commission trading
  • Also supports ETFs and stock options
  • No minimum deposit

Cons

  • No support for debit/credit card deposits
  • Very limited selection of non-US stocks
  • Spreads can be somewhat high
  • Wire transfer withdrawals cost $25 per transaction

at eToro, #1 Online Broker

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

3. Ally Invest – Challenger Bank Offering Low-Cost Stock Investments  

Ally Invest review

Ally Invest offers a top-rated mobile trading app across both iOS and Android. The app is free to download and the process of opening an account takes minutes. Once you have linked your checking account to the app, you can proceed to buy an assortment of biotech stocks. Best of all, and much like eToro and Webull, Ally Invest charges no commissions on stocks.

ally invest review

On the other hand, this broker does not give you access to international companies, so all markets are US-based. You can, however, invest in funds that track foreign markets if this is somewhat that interests you. Nevertheless, although Ally Invest does not support fractional shares, you can reinvest dividend payments back into the markets.

Pros

  • Access banking and investment services via a single platform
  • $0 commission stocks and ETFs
  • No minimum deposit

Cons

  • Does not offer international shares
  • Tools and research features very limited   

at eToro, #1 Online Broker

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

4. Merrill Edge – Online Brokerage With a Variety of Investment Accounts   

Merrill Edge review

Although you won’t find a huge number of international biotech stocks at Merrill Edge, this top-rated platform does give you access to thousands of US-listed equities. This means that you can easily buy shares in companies like Exelixis, Vir Biotechnology, and Merck. In choosing biotech stocks listed domestically, you won’t need to pay any commissions when using Merrill Edge.

Merrill Edge review

There are no minimum account balances either when opening a self-directed plan. On the other hand, if you seek guidance when making investment decisions, Merrill Edge will require a minimum of $1,000. Personalized financial advice requires even more capital at $20,000. Finally, Merrill Edge offers 24/7 customer support and plenty of research and market insights.  

Pros

  • Several account types to choose from
  • Self-directing accounts offer 0% commission stocks
  • ETFs, mutual funds, and bonds also supported 

Cons

  • Financial advisory accounts require minimum investment of $20,000
  • No direct fractional share purchases    

at eToro, #1 Online Broker

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

5. E*TRADE – Good Broker for Long-Term Investments 

E*TRADE review

You might also consider E*TRADE when investing in the best biotech stocks – especially if your chosen equities are listed in the US. After all, like many brokers active in this space, E*TRADE charges nothing in commissions on stocks listed on the NYSE or NASDAQ. This low-cost offering extends to deposits – as no fees are charged when you fund your account.

E*TRADE review

E*TRADE is also a top-rated option for those seeking to diversify, as the platform offers lots in the way of index funds and ETFs. Perhaps one of the main drawbacks of this platform is that it doesn’t offer much in terms of high-level trading tools. If this is something that you require, then the likes of Interactive Brokers or Zacks Trade will be more suitable.         

Pros

  • Great for long-term investments
  • Supports a variety of retirement accounts
  • Low fees  

Cons

  • Very limited number of non-US stocks
  • Won’t suit seasoned investors seeking high-level trading tools     

at eToro, #1 Online Broker

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

6. Interactive Brokers – Trade US Stocks at 0% Commission

Interactive Brokers

As noted above, Interactive Brokers is a great option for seasoned traders that seek high-level research tools. In fact, by downloading the IBKR software, you will have access to all of the tools you need to outperform the market. In total, Interactive Brokers offers 135 marketplaces, which are spread across 33 nations. This opens the doors to a highly diversified portfolio of international biotech stocks.

Interactive Brokers

With that said, although US-listed stocks can be traded commission-free, Interactive Brokers can be costly if your chosen equity is internationally based. No minimum deposit requirements are in place when trading through a self-directed account. Managed portfolios do come with pre-defined minimums alongside annual commissions.

Pros

  • Thousands of investments across 135 markets
  • Advanced trading platform for seasoned investors  

Cons

  • Low fees only offered on US-listed stocks
  • Too complicated for beginners 
  • Debit card deposits and withdrawals not available     

at eToro, #1 Online Broker

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

7. SoFi – Invest in Biotech Stocks via Fractional Shares   

SoFi invest review

Another trading platform to consider when buying US-based biotech stocks is SoFi. You won’t pay any commissions here and we like the fact that minimum investment requirements have been lowered to just $5 per trade. Furthermore, for diversification purposes, SoFi gives you access to digital currencies like Bitcoin and Ethereum, as well as index funds.

SoFi invest review

If you have your eyes on an upcoming IPO, this is also something that SoFi can facilitate. Depending on your long-term investment strategy, you might also consider opening a retirement account at this broker. You can also decide to reinvest your dividends back into the market in an automated manner. Finally, SoFi also offers a simple yet intuitive mobile app.

Pros

  • Supports fractional shares
  • Offers stocks, ETFs, and crypto
  • Access to IPOs 

Cons

  • Trading platform comes with limited features
  • No copy trading tools
  • Number of supported assets is somewhat limited

at eToro, #1 Online Broker

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

8. Zacks Trade – Top Broker for Advanced Traders  

zacks trade review

Zacks Trade is a trusted online broker that will appeal to seasoned investors. At this platform, you can access high-level data in real-time alongside earnings reports and market insights. You can also day trade at this platform by downloading the Zacks Trade software to your computer. In terms of supported markets, this is where Zacks Trade really stands out.

zacks trade review

Not only does the broker give you access to the NYSE, NASDAQ, and OTC markets, but heaps of international exchanges too. Plus, when you trade US-listed stocks, commissions are charged at just $0.01 per (minimum of $1). Customer support at Zacks Trade is also highly rated, as is the broker’s commitment to education.

Pros

  • Advanced trading platform
  • Huge research and analysis department
  • Great for seasoned traders

Cons

  • Too complex for beginners
  • Cheaper trading fees available elsewhere
  • Minimum deposit required is $2,500

at eToro, #1 Online Broker

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

9. Robinhood – Great US-Based Broker for Beginners 

robinhood review

Robinhood is worth considering if you’re looking for a simple investment site that is conducive for newbies. It’s just a case of opening an account, making a deposit, and then searching for your preferred biotech stock. Virtually all supported markets are US-based here, other than a small selection of ADRs. No commissions are charged at Robinhood across the platform’s stocks, ETFs, options, and cryptocurrencies.

robinhood review

There is no minimum deposit requirement at Robinhood unless you wish to access margin trading facilities. If so, this requires at least $2,000. Any deposits above $1,000 will take a few days to process unless you sign up for the gold account. This will cost you just $5 per month and also offers advanced research and analysis tools. All in all, Robinhood is a solid broker that offers a simple and safe way to buy biotech stocks.

Pros

  • No commissions charged
  • Offers US-based stocks, ETFs, and options
  • No minimum deposit
  • Very user-friendly

Cons

  • Spreads can be uncompetitive
  • No support for e-wallets or debit cards
  • No foreign stocks

at eToro, #1 Online Broker

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

10. Fidelity – Trusted US Brokerage With 7,000+ Stocks   

fidelity review

The final option to consider is Fidelity – which is a trusted online broker that is home to thousands of financial instruments. This includes everything from stocks and ETFs to mutual funds and bonds. When buying biotech stocks at Fidelity, you won’t be charged any commissions if the equity is listed in the US.

Furthermore, and perhaps most importantly, the Fidelity stock slice tool permits investments of just $1 upwards. Fidelity is also known for its planning and advice tools. This means that the broker can create a tailor-made portfolio based on your investment goals and tolerance to risk. These tools will, however, come at an additional charge and may require a minimum capital outlay.     

Pros

  • Trusted US-based brokerage
  • $0 commission on US stocks and ETFs
  • Stock Slice tool allows fractional investments of $1 

Cons

  • Perhaps too complex for newbies
  • Non-US assets come with high fees  

at eToro, #1 Online Broker

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

How to Buy Biotech Stocks – Detailed & Explained in Full

Buying and selling biotech stocks can be a fast and stress-free process when choosing the right broker. This is why for this step-by-step tutorial, we will explain how to buy biotech stocks through eToro.

The reason we like this broker is that you can invest in stocks without paying any commission. Plus, it only takes five minutes to open an account.  

Step 1: Open a Broker Account

To get started with an eToro account, click on the ‘Join Now’ button. Then it’s just a case of filling in the registration form. Particulars include your name, nationality, date of birth, and contact details.     

how to join etoro

You also need to go through a quick KYC procedure. This requires a copy of your passport or driver’s license, alongside proof of residency. The latter can be a recently issued utility bill or bank statement. Both documents will be verified automatically.

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

Step 2: Deposit Funds

eToro will now ask you to make a deposit. This needs to be an amount of $50 or over and you can choose from multiple payment methods. This includes Visa, MasterCard, and Maestro, as well as ACH and bank wires.

Deposit Funds

Depositing in US dollars means that you will avoid any transaction fees.

Step 3: Search for Biotech Stocks

You can now use the search bar at the top of the screen to locate your chosen biotech stock. In our example below, we are searching for Exelixis. Then, when you see the relevant company, click on the ‘Trade’ button.

best biotech stocks at eToro

You can also click on the ‘Discover’ button from the left-hand side to view the full list of stocks supported by eToro.

Step 4: Buy Biotech Stocks

After you click on the ‘Trade’ button, you will be asked to fill out an order box. This simply means that you will need to enter your stake. Instead of specifying this in terms of the number of shares, it can be any USD value of $50 or more. 

best biotech stocks at eToro

In our example above, we are looking to invest $50. Finally, once you click on ‘Open Trade’ your biotech stock order will be executed in real-time – assuming that the markets are open.

How to Buy Biotech Stocks – Conclusion

In summary, biotech stocks are a topic in the financial markets at present, as many believe that this niche area will dominate healthcare treatments in the future. But, with so many biotech stocks to choose from – you need to spend some time researching the markets before parting with any capital. 

If you want to buy biotech stocks right now without paying any commission – consider using eToro. This regulated platform supports fractional stocks across 17 exchanges and it only takes a few minutes to get set up with a verified account.

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Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.