Buy Stocks With Credit Card – How to Buy Stocks With a Credit Card in 2021
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
One of the easiest ways you can buy stocks is with your credit card. There are numerous platforms that support this payment method, meaning it shouldn’t be difficult to find a suitable broker.
Nonetheless, our research team has examined the market to determine the best platforms for this purpose. If you want to learn how to buy stocks with a credit card, this guide will walk you through the process step-by-step.
Table of Contents
#1 Broker to Buy Stocks With Credit Card – eToro
How To Buy Stocks With Credit Card – Choose a Stockbroker
Below are the best brokers for investors that are looking to buy stocks with a credit card.
- eToro – Overall Best Broker to Buy Stocks With a Credit Card
- Capital.com – Great Broker to Trade Stocks at 0% Commission
- AvaTrade – Credible Platform to Buy Stocks Through Leveraged CFDs
- Pepperstone – Popular CFD Platform for Trading Stocks With a Credit Card
- Plus 500 – Regulated Platform to Buy Stock CFDs With a Credit Card
While all these platforms allow you to gain access to stocks via a credit card, each provider comes with notable differences in terms of fee policies, listed markets, and more. We shall fully consider these in a more comprehensive section further down.
Can You Buy Stocks With a Credit Card? – A Quick Guide for 2021
Yes, you can buy stocks with a credit card. Once you get started with the process of buying stocks, you’ll realize that the steps aren’t as challenging as you might have thought. To guide you through this process, below we explain how to buy stocks with a credit card using a 0% commission broker like eToro.
- Step 1: Open an Account with eToro – You can complete this step within a couple of minutes at eToro. You’ll have to enter some personal information and choose a username/password.
- Step 2: Upload ID – The broker will request that you validate your identity. You can get this done by providing a copy of your passport or driver’s license.
- Step 3: Add Funds With a Credit Card – Once you’re ready to make a deposit, you’ll have to choose ‘credit card’ from the listed options. Additionally, you’ll decide the amount you intend to add to your account – with the minimum standing at just $50.
- Step 4: Search for Stock – On eToro, you’ll find no less than 17 international stock exchanges. All you need to do is to enter the company in which you wish to invest. Once you enter the name into the search box, click on ‘Trade’ after the result tab displays the option.
- Step 5: Buy Stocks with Credit Card – The last step involves an order box where you’ll input your stake. Note that the minimum you can invest is just $50 – irrespective of how much the shares are trading for. Following that, you can click ‘Open Trade’ to finalize the process.
The guide above has outlined the steps involved in buying stocks with a credit card on eToro. However, if you need a more comprehensive explanation of these steps, continue reading to learn more.
Note: The stock exchange on which your desired company is listed might be closed for the day. In that case, the broker will prompt you to set your order, meaning eToro will complete the trade once the stock exchange reopens.
67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Buy Stocks With Credit Card – Full Stockbroker Reviews
When learning how to buy stocks with a credit card, you’ll need to evaluate a number of brokers to determine the most suitable one for and your financial goals. To do this effectively, you’ll need to examine these brokers based on factors such as regulation, ease of use, listed markets, and more.
Considering all these metrics, we have assessed dozens of investment platforms in the market and below are the top picks you can utilize to buy stocks with a credit card.
1. eToro – Overall Best Broker to Buy Stocks With a Credit Card
eToro is a broker regulated by several financial bodies, making the platform a credible option when looking to buy stocks with a credit card. This includes the SEC, FCA, and ASIC. Within five minutes, you can buy stocks with a credit card. First, you’ll need to sign up to the broker and provide the relevant personal information. Then proceed to search for the preferred stock and finalize the investment process. When you make deposits with eToro using a credit card, you’ll incur a competitive fee of 0.5% (free for US investors).
Following the deposit, you can proceed to buy stocks on a 0% commission basis. In even better news, eToro won’t charge you any stamp duty tax when you invest in UK-listed stocks, saving you a further 0.5% in fees. This invariably cancels the initial cost incurred while making a deposit. Additionally, the broker’s simple user interface makes this process highly convenient.
Nonetheless, irrespective of the trading price of the stock you’ve chosen, you can start your investment from just $50 when you utilize this broker. For example, instead of needing to invest over $3,000 to purchase a full Amazon share, you can buy just a small fraction as per your budget. Furthermore, eToro allows you to buy stocks from different countries including Hong Kong, the US, Germany, France, and more.
We should also note that eToro grants you access to many assets asides from stocks. After making a deposit into your account, you can choose to invest in cryptocurrencies, ETFs, indices, index funds, and even natural gas. For these markets, you can utilize the broker’s copy trading tool which allows you to replicate the positions of another successful trader. The broker also provides you with CryptoPortfolios through which you can invest in a wide range of assets — managed by the eToro team.
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Great Broker to Trade Stocks at 0% Commission
Capital.com is a CFD broker with a great reputation in the stock market scene. This platform allows you to gain access to stocks with a small amount of money. With your credit card, you can deposit a minimum of $20 and proceed to trade stocks. On the other hand, if you elect to use a bank wire, this minimum amount will increase to $250. Therefore, if you want to minimize your stake while investing in stocks, your credit card is a good way to start.
Furthermore, as a CFD broker, you won’t own the stock you purchase when you use this platform. Instead, you’ll be speculating on the underlying value of the stock. Additionally, the broker allows you to open both long and short positions, meaning you can secure a profit irrespective of the manner in which the price moves. Another notable perk with this broker is its ease of use, making it ideal for both beginners and pro traders.
In terms of fees, Capital.com is also a great broker to consider. This platform allows you to enter all supported markets at 0% commission. This is in addition to providing users with access to over a dozen international stock exchanges. Meaning, you can gain access to shares from the NASDAQ, London Stock Exchange, and more. Additionally, if you want to boost your purchasing ability while buying stocks, you can utilize leverage. However, you should understand that this tool can equally lead to incurring higher losses.
Pros
- Top-rated spread betting and CFD broker
- FCA-Licensed
- $20 minimum deposit (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spreads and no fee on deposits or withdrawals
- Supports more than 4,000 markets
- Easy-to-use for newbies
Cons
- Experienced traders might consider the broker too basic
- $250 minimum deposit on bank transfers
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Credible Platform to Buy Stocks Through Leveraged CFDs
Another platform we examined is Avatrade. This trading site supports different payment methods including credit cards. The end-to-end investment process on this platform takes just a few minutes. Once you provide all the relevant information, your account will be created and you’ll be able to access the stock markets.
The trading site is also a CFD broker and operates in a similar manner to Capital.com. This means that when you trade stocks on AvaTrade, you don’t take ownership of the underlying assets. Once again, you are simply required to predict whether you think the stock price will rise or fall. Additionally, the platform allows you to apply leverage when trading stocks, meaning you can open positions with more than you have in your account.
Furthermore, AvaTrade is licensed in seven different jurisdictions, indicating the credibility the platform has garnered since its inception. On this trading site, you’ll gain access to not only stocks but also commodities, ETFs, cryptocurrencies, and indices. The platform also provides you with tools to make stock trading super convenient. This includes different charting options and technical indicators that you can leverage to assess stock prices.
Pros
Cons
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
4. Pepperstone – Popular CFD Platform for Trading Stocks
Pepperstone is another investment platform that specializes in CFDs. This platform allows you to utilize leverage when trading stocks, making the process less capital-intensive. As a CFD broker, Pepperstone makes it easy to open and close positions in a seamless manner. The investment platform also offers out-of-hours trading, meaning you speculate on share prices even when the markets are closed.
One notable reason why users favor Pepperstone is that the platform doesn’t charge any mark-up when you’re using a ZERO spread account. This is unlike many other CFD brokers in this space – where investors will pay the mark-up between the ‘ask’ and ‘bid’ price. In summary, the spread doesn’t apply when you’re trading stocks on this platform through the aforementioned account, meaning Pepperstone offers the best available market price in this regard.
Notably, the broker is able to offer this because it allows investors to trade directly with other market participants. Furthermore, Pepperstone offers you access to a wide range of markets including forex, stocks, commodities, and more. In terms of security, the platform is FCA-regulated, making it one of the most credible places that users can utilize to trade stocks.
Pros
- 1,000+ markets covering shares, indices, commodities, forex, and more
- Spread betting and CFD trading markets
- 0% commission accounts available
- No minimum deposit
- Authorized and regulated by the FCA
- Compatible with both MT4 and MT5
Cons
- Fee policy is somewhat confusing
- Limited educational resources
at eToro, #1 Broker in the Stock Trading Scene
67% of retail investor accounts lose money when trading CFDs with this provider.
5. Plus 500 – Regulated Platform to Buy Stocks With a Credit Card
Having been in the stock trading scene for over 10 years, Plus 500 is another notable platform to consider. The trading site offers various financial instruments including stock CFDs, hard metals, ETFs, energies, and more. Getting started on this platform will take you just a couple of minutes. All you need to do is provide the broker with some personal information and contact details – and you’re good to go.
Plus 500 also allows you to open buy or sell orders on all supported markets. This means you can gain a profit from the asset you’re trading whether the market price is moving positively or adversely. In even better news, the platform allows you to open and close positions at 0% commission. This is in addition to a competitive spread, making the platform a cost-effective option to trade stocks.
Furthermore, another reason Plus 500 makes our list of top-rated platforms is that it charges no fees when you make a deposit/withdrawal. This is highly suitable, especially if you’re a beginner looking to use a credit card. The platform also provides you with educational resources and tools to make it convenient to buy and sell stock CFDs. Finally, the minimum deposit at Plus500 when using a credit card is just $100.
Pros
Cons
at eToro, #1 Broker in the Stock Trading Scene
67% of retail investor accounts lose money when trading CFDs with this provider.
How to Buy Stocks With Credit Card – Detailed & Explained in Full
Suppose you want to buy stocks with a credit card and you’re curious about the steps involved? If so, this section is for you. Here, we’ll explain how to use your credit card to complete the investment process on eToro — a regulated broker that lists thousands of 0% commission stocks.
Step 1: Open a Stockbroker Account
The first step is to create an account with eToro. You’ll need to provide some personal details, alongside your email address and mobile number. You will also need to choose a username and enter a suitable password – which will act as your eToro login details hereon.
Finally, eToro will also attempt to gain insight into your trading experience. Here, you’ll be asked some questions about your risk appetite, among other things.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Upload ID
At a regulated broker such as eToro, you should expect that you’ll have to fulfill certain KYC requirements. Specifically, you’ll need to upload identity verification documents.
To validate your identity, you can upload a government-issued document such as your passport or driving license. For your home address, you can validate that by providing a utility bill or bank statement issued within the last three months.
Step 3: Add Investment Funds
Now, this is where your credit card comes into play. The broker will ask you to choose a payment method when you want to add funds to your account. Here, you’ll select your credit card. Then, you’ll enter the amount you desire (minimum of $50).
After confirming the amount you intend to add to your account, you’ll have to enter your credit card details. Following that, the broker will confirm the card details and complete the transaction instantly.
Step 4: Search for Stocks
Once you have funded your account, you can now search for the stock you want to buy. For instance, if you want to buy Vodafone shares as indicated in the image below, all you need to do is input the name into the search box.
Once the result tab displays the correct stock, click on ‘Trade’ to move on to the final step.
Step 5: Buy Stocks
You will now see an order box, which is where you’ll enter the amount you want to invest into the respective stock. The minimum you can enter here is $50. This means that you don’t have to trade the full price of the stock – as eToro supports fractional shares.
Once you’ve confirmed all the necessary details, then you can open your investment. That’s it! You’ve just bought stocks with your credit card.
Note: The image above displays ‘Set Order.’ Meaning, the market is closed. Consequently, once the market reopens, eToro will complete your investment.
How to Cash Out Stocks to a Credit Card
The purchase process ends once you buy your chosen stock. That is, you don’t have to do anything else until you’re ready to cash out. The good news here is that the process is super easy at eToro and can be completed within a few minutes.
- Sign in to eToro your account
- Head over to your portfolio
- Click ‘Sell’ to initiate the process
- Confirm the order
Assuming the markets are open, eToro will complete your sell order within a couple of seconds. Following that, you can process a withdrawal of your funds and you should receive the money in your bank account within a day or two.
Fees to Buy Stocks With Credit Card
When you’re contemplating the cost you’ll incur when you buy stocks with a credit card, you need to understand that your chosen investment platform plays a major role. Typically, the fees you’ll likely incur surround deposits and commissions.
We have explained each of these items below.
Deposit Fees
You’ll need to assess a broker’s fee policy to determine whether the platform charges a fee when making deposits with a credit card.
- For instance, when you’re making a deposit on eToro using your credit card, the broker will charge you a 0.5% fee (free for US clients).
- On other platforms in this space, investing in stocks with your credit card might attract a fee of up to 4%.
You should also consider whether your credit card provider itself charges any fees. This will allow you to adequately estimate the cost you’ll incur when buying stocks.
Withdrawal Fees
Another place you might incur a fee is when you’re processing a withdrawal. Here, you’ll also need to consider your broker’s fee structure. eToro, for instance, charges just $5 on withdrawals. This is the fixed amount on all withdrawals regardless of the size. On the flip side, some investment platforms might charge based on the transaction amount.
Commissions
Commissions are often charged by trading platforms as a way to make a profit. Essentially, you pay a commission for the brokerage service offered to you by a trading site. In most cases, commissions apply both when you’re buying and selling stocks.
The structure for charging commission varies across different platforms.
- For instance, many platforms in the stockbroker scene charge in excess of $10 per trade.
- We have also come across brokers that charge a variable commission per trade – for instance, 1% of the investment amount.
- On the other hand, eToro will allow you to buy stocks with a credit card on a 0% commission basis.
Clearly, a broker like eToro offers you a low-cost option to buy stocks with your credit card.
Reasons to Buy Stocks With Credit Card
One of the key metrics for assessing a broker is whether or not the platform supports different payment methods. This is because choosing the right payment option is an important step when buying stocks.
In this part of our guide, we shall discuss why you might want to consider buying stocks with a credit card.
Fast Transactions
A key feature of using a credit card is that this payment method is super fast. Many investors consider whether a platform supports credit card transactions before they decide on whether to go ahead with such a trading site.
This is because deposits are processed instantly when you use your credit card. This way, you can conveniently buy stocks quickly without seeing any delay.
You Might Enjoy Low Fees
As we noted earlier, it’s crucial to consider whether or not your credit card provider charges a fee. Suppose the provider doesn’t, then you might enjoy low fees when using this payment method – especially with a stockbroker like eToro. This is is because the investment platform will only charge you a 0.5% deposit fee (free for US clients).
Popular Payment Option
Another reason to consider buying stocks with a credit card is that this payment option is common across many brokers in the online space.
- This gives you a wide range of choices when contemplating the broker from whom you’ll buy stocks.
- Additionally, using your credit card to buy stocks allows you to complete the purchase directly.
- All you need to do is to enter your card details and proceed to buy stocks with the amount you want.
This is in stark contrast to other payment methods – such as a bank wire or ACH. These payment options can often take days on end to arrive in your brokerage account – meaning you might have missed an investment opportunity.
Buy Stocks With a Credit Card – The Verdict
In conclusion, what makes the process of buying stocks simple or otherwise is the broker that you choose. When you select a platform that makes it super convenient to buy stocks with a credit card, you’ll complete the investment process in under five minutes.
This is why eToro stands out as a credible and low-cost broker that supports credit cards. This platform allows you to buy stocks at 0%-commission, making it a cost-effective option for this purpose.
eToro – Best Broker to Buy Stocks With Credit Card
FAQ
Can you buy stocks with a credit card?
Which stockbrokers accept credit cards?
Is it safe to buy stocks with a credit card?
What fees do you pay to buy stocks with a credit card?
Do stockbrokers support credit card withdrawals?
