Buy Dow Jones Stocks – How To Buy Dow Jones Stocks in 2021

Fact Checked by Gary McFarlane

The concept of Dow Jones stocks was developed in 1882 by Charles Dow and Edward Jones under the Dow Jones and Company flagship. The firm started by producing priceless information about the stock market. The two founders would later go on to establish the Wall Street that we know today. Despite changing hands of ownership, Dow Jones remains one of the best bets for accessing news about the most profitable stocks out there.

This article will provide you with a complete guide on accessing Dow Jones stocks and the best online brokers where you can buy Dow Jones stocks of your choosing.

#1 Stock Broker – eToro

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eToro is our number one call for investors looking to buy some Dow Jones stocks for the long-term. It is also a good choice for beginners getting to know about stock investment in general. Here is how to get started on eToro:

How to Invest in a Dow Jones Stock – Step by Step Guide 2021

  • Step 1: Register with eToro – Open an account with eToro to get started. Visit the homepage and click on ‘join now’ to get started.
  • Step 2: Verify your identity – You will be required to provide a means of identification, preferably a photo ID (e.g., passport/drivers license/utility bills)
  • Step 3: Make a deposit – You need to deposit on eToro before you can enter any trade. On your dashboard, simply click ‘Deposit funds” and proceed to choose your most preferred payment method to make a deposit.
  • Step 4: Buy Dow Jones stocks – You can simply type in any Dow Jones stock of your choice in the search box on your account page. Press ‘Trade’ and enter the amount of dollars you want to invest. The press ‘Buy.’ That’s it.

Where to Invest in Dow Jones stocks – The best brokers

Given Dow Jones stocks’ long history, it is one of the world’s leading stock market news providers. You can find valid information about large corporate stocks on Dow Jones stocks, not on other platforms. Some of these company stocks might relatively be unavailable on most brokerage platforms due to their exclusiveness. We have done the bulk of the research and brought you the top online brokers that allow you to buy Dow Jones stocks with relative ease.

1.   eToro – Best Overall Option to buy Dow Jones Stocks

eToro remains our top pick when its overall features are compared with other brokers on this list. The company has grown exceedingly over the last 14 years, and its total active users as of 2021 are about 20 million-plus users. It has a simple but enjoyable user interface, and the high earnings recorded have made it a darling for investors worldwide.

Security and Privacy

eToro has a high-end security interface that has become the choice of many investors over the years with little to no ill reports. There is a different level of ease that comes with buying stocks on eToro as it is a highly regulated platform by the CySEC. ASIC, FCSA, FCA, and others. eToro also comes with extra protection to guard against hacks in the form of the 2FA authentication feature. It is the last line of defense against a user’s account getting hacked or his other details getting stolen without their consent. With its introduction, cases of loss of funds due to fraud have been non-existent on eToro.

Fees and Features

Copy Trading is a fantastic feature that eToro offers users of the platform to enable them to trade while not being actively involved in the technical aspects of the trade. It means a beginner can simply look at the trading pattern of an experienced trader and merely replicate it. When profits accrue, he earns from it. Gone are the days when you felt like you could not trade without taking about a year to learn the rudiments of stock trading. The platform also offers trading tips to enlighten both new and existing traders on the changing dynamics in the market.

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee £0
Withdrawal Fee £5
Inactivity Fee £10 per month

 

Pros

  • Commission-free
  • A low minimum deposit fee
  • User interactive platform
  • High security
  • Offers negative balance protection
  • Access to 1000+ stocks

Cons

  • Charges inactivity fee
  • No Meta trader support

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

2. AvaTrade- Interactive platform for trading Dow Jones stocks

AvaTrade has been a longstanding dealer in all things stock and other forms of assets trading for over 15 years. It remains one of the most trusted brokers for earning profits from virtual assets. Some of the tradeable assets on Avatrade now include stock, crypto, CFDs, ETFs.

Security and Privacy

AvaTrade runs on a 256-bit SSL encryption that has been certified by regulatory authorities to be efficient at protecting user data and a strong defense against hackers. Hence, it is a go-to platform for safe and secure investment across multiple markets. The security of user accounts is very much in the hands of the users themselves as they are tasked with keeping their passwords and other relevant account information outside the knowledge of third-party agents, which could put accounts at risk.

Fees and Features

AvaTrade charges zero fees on commission, deposits, and withdrawals. The only exception is in the fact that its inactivity fee charged is pretty high. It seems like quite the hefty price to pay. However, other features seem reasonable, with the easy-to-understand interface and one-click response buttons. They have altogether contributed to the smooth sailing activities of users of AvaTrade. To make deposits, users have three options: bank transfers, Paypal, or credit cards. There are specific concerns raised about any aspect of AvaTrade’s services; they have an active customer support system available 24/7 to attend to your needs via email or phone call.

AvaTrade fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee £0
Withdrawal Fee £0
Inactivity Fee £50 after three months and £100 after 12 months

 

Pros

  • Allows scalping
  • Completely regulated platform
  • Allows hedging
  • 24/7 email and phone support
  • Islamic account is available to accommodate more users

Cons

  • No negative balance protection
  • No guaranteed stop loss
  • High inactivity fee

Your Capital is at Risk.

3. Capital.com- Easily trade Dow Jones stocks.

The firm offers a mobile app with excellent features that are simple and easy to understand for new traders. It primarily helps them to find their rhythm in the market much earlier with its instructive interface. Stats have shown that more than 50% of new traders on Capital.com could trade efficiently after a month or two. It is the attribute that has made it one of the leading investment brokers in the United Kingdom.

Security and Privacy measures

The United Kingdom has a strict policy for digital projects that have to do with investors’ money, given the high level of risk attached to such activities. The deplorable actions of hackers and other fraud mechanisms used by specific agents make the digital economy a minefield, and brokers such as this have fallen victim in the past. Hence, the function of regulatory bodies is to test the integrity of brokers to ensure that they will not pose a risk to the investments of people under their jurisdiction. Capital.com fits the bill nicely, having been cleared fit for safe and secure trading activities. Data loss and theft are also inhibited by the institution of a high level of encryption. The firm also offers FDIC insurance to cover the losses of U.K. citizens who lose their money if the firm’s security is compromised and investors lose their funds.

Fees and Features

Capital.com has zero commission, deposit, and withdrawal fees as well as no inactivity fee. There are no exceptions when it comes to trading cryptocurrencies, stocks, crypto, CFD,s or ETFs. All transactions are free. The high risk of trading CFDs has made it essential for the platform to maintain its more educative features. It is not a good idea to just jump into trading CFDs without technical know-how. About 78.77% of CFD traders on Capital.com have lost their money due to sheer volatility. Capital.com to keep both new and experienced traders informed about the risks of trading.

Capital.com Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee £0
Withdrawal Fee £0
Inactivity Fee £0 

 

Pros

  • Proper user orientation
  • Commission-free
  • Low CFD fees
  • FDIC Insurance (for UK-based traders)
  • Access to analytical charts
  • Efficient customer support

Cons

  • High risk on CFD tradings
  • No price alerts

 76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

Buy Dow Jones Stock – Broker Price Comparison

Below is a summary of the fee required across each platform to buy Dow Jones stocks.

Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% £0 £0 £10 monthly
Capital.com 0% £0 £0 £0
AvaTrade 0% £0 £0 £50 after three months and £100 after 12 months

 

What Are the Different Ways to Buy Dow Jones Stocks?

Now that you are familiarized without our list of recommended brokers for trading, it is essential to know what options you have for each Broker. Take eToro as a prime example; they offer three forms of investment that you can capitalize on to earn maximum profits. We have simplified all the technicalities of these options below, so you do not have to rack your head trying to figure out their complexities.

Stocks

On Dow Jones Industrial Average, NYSE, or NASDAQ, every registered company has its asset valuation represented as stocks. Stocks form the bedrock of the investment brokerage, given their simple nature and mode of operation. It possesses minimal volatility and low cost per capita, which means it grows significantly slowly compared to other investment forms. It entails directly buying a portion of a particular company in the form of shares. When you buy stocks, you become a shareholder of the company, and you can partake in the decisions that can promote the company. Returns on stock are paid as dividends at a predetermined rate. Rewards accrue from the total profits a company generates over a period. The amount that you get depends on how significant your shareholdings are. The size of your shares also determines the decisions you get to make within the company. If you are looking to invest in a company’s long-term prospects, you should try buying Dow Jones stocks.

CFDs (Contract for Difference)

Contract for Difference operates in a much different way compared to stock. While it also deals with company stocks, the dynamics of CFDs are much more proactive. You get to predict whether the prices of stocks will increase or decrease. Based on market fundamentals and stock news, you’d be guessing which stock is likely to rise or fall. If you think properly, your profit is proportionate to the number of gains or losses you predict. For instance, if a Dow Jones stock increases by 30%, your CFD investment will increase by 30%, that is, if you indicated that it would improve. The market is often volatile, and thus, CFD traders are advised to tread with caution to avoid losing their investments. It is best enjoyed as a short trade as opposed to real stocks.

ETFs (Exchange-Traded Funds)

ETFs are a different ballgame that brings together the best features of both stocks and CFDs to form a proportionately low-risk investment option. Buying a single company’s stock may mean that you have to wait for years and also suffer severe heartache from trading the highly volatile CFD market. What if you could buy more than one company stock at the same time? An ETF fund contains a combination of stocks of two or more companies already purchased by a broker or investment manager. You do not directly own the shares, but you get to support the fund with your investment. The Broker uses the fund to increase the position of the companies in the stock. Your total profit is calculated based on the accumulated growth of the share prices of the stocks within an ETF.

Best ways to Buy Dow Jones stocks

Now that you know the options you have to choose from while buying Dow Jones stock on any brokerage. These methods apply to buying Dow Jones stocks in different ways, and your judgment is required to determine what would be the best choice for you.

You could consider the length of your investment (short or long-term), your budget and expectations, as well as your strategy and risk tolerance.

Buy Dow Jones Stocks

If you are a patient individual who can hold on for the long term, we recommend buying Dow Jones Stocks directly. Dow Jones and company lists the best companies with prospects, and you get to choose which of the stocks you want to buy and hold for the next 3-5 or maybe ten years. It means you are ready to buy stocks at a low value and wait for the stock price to rise while you earn dividends along the line. The promise of low risk and steady ROI makes it a viable way to buy Dow Jones stocks as long as the company grows.

Buy Dow Jones CFDs

If you intend to buy Dow Jones stocks and earn profit in the short term, you might have to overlook buying direct stocks and stick with CFDs. After due research on certain Dow Jones stocks, you can select a choice few that you think will experience some activities in their price action. Then, all you need to do is predict which stock price will rise or fall and earn a proportionate increase in revenue per trade. Stocks might take years to accrue, but you can engage in a CFD trade within 24-48 hours of trading and earn high profits. The downside is the unpredictable price action and high risk involved.

Buy Dow Jones ETFs

Your chosen Broker will most likely have a couple of Dow Jones stocks in an ETF, and after DYOR, you can decide to invest in the fund’s prospects. Even though you are indirectly linked to the stock value, you do not own any Dow Jones stocks. Earnings are generated from the total gains in the shares of one or more of the Dows Jones stocks in the fund. It is much less risky than CFDs, and it doesn’t require a long wait period like stocks. If one company’s stock price is down, the growth in value of another will generate profit for investors.

Is buying Dow Jones Stocks Good Investment?

Dow Jones has earned centuries worth of credibility in the stock market, and their opinions are highly respected in the financial markets. It is one of the highly-rated stock exchange mediums globally, rivaling the S&P 500, the NYSE, NASDAQ. The entire portfolio of Dow Jones Stocks is about $36,327 per share, and it holds about 30 large companies in its stock.

The firm’s stock compilations contain high-profile companies, but we have taken a few with their price valuation per share. They include Apple ($148.68), Boeing (219.44), American Express ($182.64), Chevron ($113.90), Goldman Sachs ($400.50), Coca-Cola ($56.73), JPMorgan Chase ($168.20). These are some of the top company stocks listed on Dow Jones. If you are familiar with the metrics of the several industries where these companies are rooted, you’d know that they are the best in their sectors and rake in the highest profits from year to year.

Other Dow Jones Stocks

We have compiled a list of other high-profile companies listed on Dow Jones stocks which you can look to invest in via eToro. They are:

  1. Microsoft – $332.51 per share
  2. Nike – $168.94 per share
  3. Verizon – $52.64 per share
  4. Walt Disney – $165.63 per share
  5. Visa – 216.39 per share
  6. Procter & Gamble – $147.10 per share
  7. Intel – $50.90 per share
  8. IBM – $120.61 per share
  9. Honeywell – $225.50 per share
  10. Walmart – $165.63 per share

NB: The prices indicated above were documented based on the valuations at the time of writing. The prices might be subject to change as the market progresses.

The Risks of Buying Dow Jones Stocks

As massive as the individual profiles of the company stocks that make up Dow Jones, you can expect some profit and some risks. One thing that has always affected stocks of companies of this magnitude is that they are always in the headlines. When bad news comes calling, stock prices drop. When there is a fault in the manufacture or distribution of their products, sales dwindle, and ultimately, stock prices are hit almost immediately. Also, companies that peddle technological products and services that have bugs or pose a risk to the health of their customers tend to earn bad reviews, which ultimately affects the stock price. Such occurrences are hardly predictable, and since these companies are always in the public eye, short traders on their stock’s CFDs have a tough job on their hands to avoid incurring a monetary loss. Overall, these companies have grown to an immense stature such that they can only develop an insubstantial percentage at a time per year, unlike the possible high returns to earn from trading in a more volatile market. A reoccurrence of the COVID-19 lockdown that restricted the trading activities of businesses in 2020 could impede the growth of the stocks.

How to Buy Dow Jones Stocks with eToro

You might have had experience buying stocks of smaller companies. The fortune500 companies on this list require a distinct approach to their investment and the type of broker you can use. eToro is the best that we can recommend to you to buy these stocks and join the list of winners who have earned considerable from investing in companies in Dow Jones stocks.

Step 1: Open an account:

Once you have decided to buy Dow Jones stocks, the primary action is to create an account with a viable broker. eToro comes highly recommendable from us, and all you have to do is visit their official website and click ‘JOIN NOW’ at the top right-hand corner of your screen.

Step 2: Proceed to enter your information:

On this page, you will be required to enter details such as your ’email, ‘username,’ and ‘password.’ Be sure to fill in the correct information and use a password/username that you can easily remember. Don’t forget that you must use your active email. You can use the email to retrieve the password or reactivate the account if need be.

Step 3: ID verification:

The platform requires that you verify your identity using a standard photo ID such as a driver’s license to help confirm that the details you input are correct. You can either use a passport or a driving license along with a document that affirms your geographical location. The scrutiny is necessary to ensure that the platform remains safe for investors to trade and earn profit. Identity verification can be carried out online.

Step 4: Deposit Funds:

With ID verification, you are now a full member of eToro. The next step would be to begin trading on the platform. Hence, it is necessary to provide funds to the account before buying or selling any stock. Select the ‘Deposit funds’ function and select deposit. You can do so through bank transfers, credit cards, or Paypal. The payment will be reflect on the platform once it is approved.

Step 5: Search for your desired Dow Jones stocks, CFDs, or ETFs.

With the deposit confirmed, you can enter your choice Dow Jones stocks in the search box, select it and buy the amount you desire in dollars.

Conclusion

Thanks for going through our guide on how to buy Dow Jones Stocks. We believe that you now know the kind of Dow Jones Stocks you can buy and the best Broker you can buy. If you still have questions about eToro, do well to check our other articles for more information.

#1 Stock Broker – eToro

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$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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About Blaise Luis PRO INVESTOR

Blaise Luis is a highly-skilled writer and content creator who has written for several high profile websites and YouTube Channels including Alex Costa. He is a skilled researcher who is great at simplifying complex concepts and making them reader-friendly with two degrees in English and several other professional certificates from top sites like Udemy.