How To Buy Carbon Capture Stocks – Buying Carbon Capture Stocks Beginner’s Guide 2021

Fact Checked by Gary McFarlane

New trends emerge in the stock market every day, some fade away while some take the market by storm. One such trend in its very early innings is carbon capture. Also called carbon sequestration, it is the process of capturing carbon dioxide before it enters the atmosphere. While it is not a new phenomenon in climate change technologies, it has recently found itself to be the center of attention of some big bidders, such as the Canadian government. This potentially positions carbon capture to grow into a billion-dollar industry with time.

If you are looking to venture into the untapped market of carbon capture, look no further. Throughout this guide, we’ll be covering everything about carbon capture stocks: right from the process of buying stocks, best brokers to help you do so as well as some pros and cons that come with carbon capture stocks. 

#1 Broker to Buy Carbon Capture Stocks – eToro

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How to Buy Carbon Capture Stocks – Step by Step Guide 2021

A number of new traders find buying stock a confusing and rather intimidating process, especially when it comes to newer markets such as carbon capture. If that is a concern you are facing, fret not, we’ve compiled a quick guide to buying carbon capture stock. 

  • Step 1: Register yourself: To buy a carbon capture stock, you will need to register yourself with a stock broker first. We recommend eToro for its blend of top-notch features and ease of navigation. Simply type ‘eToro.com’ in your browser and click ‘join now’ to fill the required fields. 
  • Step 2: Verify yourself: eToro is a regulated platform that has strict rules in place for customer protection. This is why you will have to verify your identity post registration by providing a photo ID and address proof. 
  • Step 3: Fund your account: Upon verification, you will need to put some money in your eToro wallet to be able to make a purchase. Click on the ‘deposit funds’ option, enter the amount you want to put in your wallet, say $100, and hit ‘deposit’. You can perform the transaction using credit or debit cards, bank transfers, and eWallets such as PayPal. 
  • Step 4: Invest in Carbon Capture Stocks: You are all set to buy your first stock. All you have to do is search for the company you want to invest in. In this case, it would be a player in the carbon capture market such as ‘NRG Energy Inc’. Next, click on ‘trade’, enter the amount you wish to trade, and lastly, click ‘open trade’. You can manage your investments in the portfolio section of your account. 

Where to Buy Carbon Capture Stocks – Choose a Broker

Before you delve deeper into the world of carbon capture stocks, you would need to choose a reputable stock broker. With so many platforms out there, it can get a bit confusing to pick one. Below, you can find an in-depth review of some of the top brokers in the market today.

1. eToro – Overall Best Broker to Buy Carbon Capture Stocks

eToro is one of the biggest stock broker platforms in the world. Starting in 2007, today it serves more than 20 million users. They boast of an easy-to-use interface with terrific features and top-notch security for their users. On top of that, their simple fees structure makes them a favorable choice for most new traders and experienced users alike.

Security and Privacy

Security is arguably the most important concern for traders when picking a stock broker platform. After all, no one wants to log into their account one day to see their securities hacked, which is a possibility with unregulated platforms. eToro is a fully regulated platform to prevent any illegal activities. It is governed by the SEC and also follows 128-bit SSL encryption. As additional protection, you can enable 2FA, a feature that requires you to input a code that will be sent to your mobile phone every time a sensitive action needs to be completed.

Fees and Features

eToro has a simplified fee structure and is significantly less expensive than most premium apps. As for features, beginners can benefit greatly from a feature called eToro Academy. It offers a wealth of information that users can browse through at their own pace. CopyTrading is another feature that greatly helps beginners as it lets them copy the trading styles of experienced users. It helps users learn about trading strategies easily. Seasoned users can find use in the extremely useful charting tools.

eToro Fees

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

 

Pros

  • eToro is regulated by the SEC
  • It offers charting tools for all users
  • It offers the feature of CopyTrading
  • eToro academy features helps beginners 
  • Offers 128-bit SSL encryption for protection 
  • 2FA feature protects sensitive information

Cons

  • Does not have the MetaTrader support

2. TD Ameritrade – Traditional Stockbroker to Buy Carbon Capture Stocks

TD Ameritrade is a traditional stock broker that has been in the game since the 1980s, making it an extremely reliable option for new traders. It may have changed names over the years, but has stayed up to date with the times in terms of features and security. It’s not just an option for traditional stock brokering but a fit for newer ways as well.

Security and Privacy

In their own words, TD Ameritrade ‘take security very seriously’. They deliver on this claim by regulating their platform under the guidance of the SEC. Their platform follows the 128-bit SSL encryption and is periodically audited, similar to eToro. In addition, they have a user verification phrase system in place. It assigns you a special phrase when you first create an account on the platform, you can request this phrase from any employee of TD Ameritrade to verify their legitimacy as a company employee.

Fees and Features

The fee structure is on the economical side of TD Ameritrade, making it a great option for newcomers. By the virtue of being a platform that has been around for decades, it offers an enormous variety of investment options, from mutual funds to bonds. What is more, it regularly participates in initial public offers (IPOs). This ensures that users get an excellent variety in stocks, both old and new. Automatic dividend reinvestment is a feature that automatically reinvests your dividends to compound your interest, thus ensuring you consistent earning. 

TD Ameritrade Fees

Fee Type Amount
Commission 0% (on US stocks) 
Withdrawal Fee $0
Deposit Fee $0
Inactivity Fee $0

Pros

  • Offer 128-bit SSL encryption security
  • TD Ameritrade is SEC-regulated
  • A wide range of markets available 
  • User verification phrase for additional protection 
  • Automatic dividend reinvestment to compound your interest and ensure consistent earning

Cons

  • Leveraged positions have steep fees
  • The user interface may be a bit complex 

3. Robinhood — Easy Stockbroker to Buy Carbon Capture Stocks

Despite the fact that it only operates in the USA and is only available on mobile phones, Robinhood has over 13 million users. It is an impressive feat that speaks volumes about the quality of service Robinhood provides to its users to have amassed such a user base in spite of the geographical and platform-based limitations. It is a platform that is mainly geared toward beginners, something that is apparent in its interface. 

Security and Privacy

One of the reasons Robinhood has managed to perform so well for itself is its attention to security and privacy. The platform is covered by SIPC insurance that covers up to $500,000 of investor money. However, it goes over and beyond that by offering ‘excess of SIPC’ on balances up to $10,000,000. This is quite rare and one of the reasons big investors often choose Robinhood as their go-to platform. The multisig feature prevents any frauds confirming transactions. 

Fees and Features

While its fees may not be as economical as other platforms, Robinhood is still a good option for traders. It offers ‘cash management services’ that offer lucrative cashback on everyday purchases. This feature has been greatly appreciated by users. That said, Robinhood does suffer from being a USA-only and mobile-only platform. It alienates non-US users and people who may be using their computers for their brokerage activities. 

Robinhood Fees

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

Pros 

  • Robinhood gives users SIPC insurance 
  • Excess insurance cover 
  • Multisig feature to avoid fraudulent activities 
  • It has a simple interface
  • It is available as a mobile app
  • It is easy to use
  • Offers a cashback feature 

Cons

  • Some advanced features are missing 
  • Experienced traders may find it basic

Buy Carbon Capture Stocks – Broker Price Comparison

If the detailed analysis above feels a bit overwhelming to you, here is a simple comparison of the fee structure of the three platforms to help you make an informed decision. 

 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
TD Ameritrade 0% (on US stocks)  $0 $0 $0
Robinhood $0 on up to 50 shares. Up to $5.95 on more than 50 shares $0 $0 $0

What are the Different Kinds of Carbon Capture Stocks? 

Carbon capture is relatively new in the market and you might be unsure what are the different ways you can invest in it, especially if you are a new trader. Primarily, there are three ways you can buy carbon capture: stocks, ETFs, and CFDs. Before you buy any kind of stock, you should first understand each investment type and what they offer in terms of pros and cons.

Stocks

Purchasing shares, i.e., the stock of a company is the most common and popular way of investing in it. When you purchase a stock, you technically purchase a small fraction of that company, making you an owner in parts. You are now eligible to earn a dividend from the profits of that company. Dividends are usually paid at the end of the year or quarter and correspond to your share in the company. Additionally, you get the right to vote in company matters. All in all, stocks are a great way to get direct exposure to a company that will last long.

ETFs (Exchange-Traded Fund)

An exchange-traded fund (ETF) is a great investment to get exposure to a bunch of companies in one go. Your fund manager or brokerage will group together related assets from a bunch of companies to facilitate easy investment. Investment through an ETF greatly reduces risk as compared to traditional stock. This is because an ETF is made of a number of companies. Even if the price of one dwindles, the other assets will help mitigate the loss by a great extent. It should be noted that you do not get to own any underlying assets via this method of investment. 

CFDs (Contract For Difference)

Contract for difference is a short-term investment for people looking to make quick money without investing in the market for a long period of time. When you invest in a CFD, you speculate on an asset’s price – whether it will increase or decrease — instead of purchasing it. Usual CFD trading happens over a short period of time and takes advantage of small price swings. Thus, CFDs are usually leveraged instruments. They are also considered high-risk investments as they can lead to big losses. So, tread with care if you decide to invest in a CFD.

Best ways to Buy Carbon Capture Stocks

Now that you have a basic understanding of what different kinds of investments are, let us take a look at what the best way to invest is when it comes to the untapped market of carbon capture stock.

Invest in carbon capture CFDs

If you are looking to make a quick buck without investing in the market for the long term, CFD is the option for you. CFD trading happens over a much shorter period compared to the other investment options that we discussed. CFD is best suited for day traders or investors not wanting to be tied to a particular asset for long. CFD trading involves leverage that carries risks. Thus, it is only advised if you fully understand the risks associated with it.

Invest in carbon capture ETFs

If you are looking for a safer investment with lesser risk involved, we recommend ETFs to you. Many traders cannot afford to take big risks, which makes them averse to investing altogether. If you are one such trader, you can find excellent investment opportunities in an ETF. As discussed above, you get to invest in a bunch of companies in one go. If the value of any one decreases, the other stocks will help make up for that loss in the long run.

Invest in carbon capture stocks

Investing in the good old shares is still a fantastic way to build your wealth and get exposure to a company. If you believe that carbon capture is going to be the next big thing in the stock market, then investing in stock could be what you are looking for. If the price of carbon capture stock rises, you stand to gain more with traditional stocks than most any other method. However, if the price declines, the loss may be heavy for you.

Is Buying Carbon Capture Stocks a Good Investment? 

As carbon capture rises on the scene, it appears as a lucrative investment option. Let us explore the pros and cons associated with this climate change technology that is starting to find its footing in the stock market. 

Untapped market

As mentioned above, carbon capture is not a new phenomenon in climate change technologies. It is, however, new in the stock market. Being in its beginnings in the market while already having big money in it gives it an edge most markets don’t get. What we are witnessing today may well be a booming industry a lot like Bitcoin and Cryptocurrencies were back in 2009. Though, unlike Bitcoin, Carbon Capture has the backing of some of the wealthiest players of the market. 

Billions riding on it 

The Canadian federal government recently pushed to provide incentives to have at least two gigantic carbon capture projects set up by 2030. Additionally, 6 Canadian companies are chasing the carbon capture market. What is more, major oil and gas companies are also pursuing this particular market. With such major players pouring into the carbon capture market, it is shaping up to be a lucrative industry.

Buying carbon capture stocks — what are the risks?

No investment is risk-free. You should always do your own research to make sure you understand the downsides of investing in a market.

Unexplored market 

No matter how lucrative the carbon capture market appears, especially with the involvement of the Canadian government, it is still an unexplored market. There is still a hypothetical chance that the market may lose its steam in some time and fall behind others. Though it is a very slim chance as climate change is the need of the hour.

How to Buy Carbon Capture Stocks with eToro

Earlier we provided a quick guide to buying stock. Here is the detailed version of it to take you through the steps with clarity.

Step 1: Open an account with eToro

The only thing you need to buy a stock is an account on a brokerage platform. We recommend a regulated and safe platform such as eToro as they offer a host of services to their users at a great price. Simply type ‘eToro.com’ in your browser, and then ‘join now’ to fill in your information. 

Step 2: Verify your account

eToro is a regulated platform that takes appropriate measures for its users’ protection. You will need to verify your information to be able to trade stocks on eToro. Simply provide a photo ID such as a passport or driving license and address proof such as a utility bill or bank statement to verify your identity. 

Step 3: Fund your account

After you have completed the verification process, you will need to fund the account in order to make a purchase. Think of this as putting money in your wallet before you head into the market to buy groceries. Simply click on the ‘deposit funds’ option, enter the amount you want to put in your virtual wallet, and click on ‘deposit’. You can make the transaction using your debit or credit card, a bank transfer, or your eWallet such as PayPal or Skrill.

Step 4: Buy carbon capture stocks!

You are ready to buy your first stock. Type a company’s name dealing in carbon capture stock in the search box. Such as NRG Energy Inc (NYSE: NRG) OR Viking Energy Group Inc (OTC US: VKIN). Click on ‘trade’, enter the amount you want to buy, and click ‘open trade’. There you go, you purchased the stock. You can manage all your investments in the portfolio section of your account.

Conclusion

Carbon capture has recently come to the scene and appears to be a lucrative option for investors. As it is in its earliest stages, it may take some time to get moving. Though with the involvement of big companies and a national government, it could potentially have billions riding on it. Climate change is the need of the hour, so it is safe to say carbon capture is also here to say. You may find it beneficial to invest in it now as the market around it is still forming to earn big later. 

Best Platform to Buy Carbon Capture Stocks – eToro

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

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ETFs vs CFDs

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About Atreyee Chowdhury PRO INVESTOR

Atreyee Chowdhury works full-time as a Content Manager with a Fortune 1 retail giant. She is extremely passionate about writing and helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted and compelling content. She loves to read, experiment with different cuisines, travel, and explore the latest content marketing and L&D trends in her free time.