How To Buy High Beta Stocks – Invest in the Best High Beta Stocks Today!

Fact Checked by Gary McFarlane

What are high beta stocks? We are not so surprised that you might be hearing about it for the first time. High beta stocks are a series of high-performing stocks known to be high-risk assets in the short term. They are only relevant during bullish markets, and they are nothing like what you have seen before. Buying high beta stocks requires a bit of meticulousness, and great care has to be taken to avoid losses.

This article will show you how and where you can buy high beta stocks and the options you have to maximize to earn profits from these stocks.

#1 Broker for buying High Beta stocks- eToro

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High beta stocks have a complicated relationship with S&P 500 exchange, and with its intricate nature, you would need the best broker to help you navigate the rigorous market. That is why we recommend eToro as your go-to broker to get the best out of high beta stocks. eToro is more than just your regular broker regarding its high-end services that have kept millions of users loyal for years. You would need to take a few steps first to begin your journey as an investor with the eToro brokerage platform.

Buying High Beta Stock – Step by Step Guide 2021

  • Step 1: Register your account with eToro  Visit the homepage of eToro and click ‘Join Now’ in the top righthand corner of the homepage.  Once you have entered the required details and validated them, click ‘Sign up to complete the registration.
  • Step 2: Identity verification – You will provide a viable photo ID as a means of identification (eg. driver’s license, passport).
  • Step 3: Make a deposit –  To deposit on eToro, click “Make Deposit” and follow the prompt. You can make the payment using the following methods such as bank transfer, credit cards, and Paypal.
  • Step 4: Buy high beta stocks – You can use the search box on your eToro dashboard to locate your desired high beta stocks when you have done that, select the amount in dollars that you intend to buy, and you are good to go!

Where to Buy High Beta stocks – The best brokers

There are hundreds of investment brokers that you can find on the internet. As a new investor looking to buy high beta stocks, you will need to explore the options available, but you may not see it through. We have done all the necessary studies into several online brokerages and have developed three brokers that best suit your purposes.

1. eToro – Best Overall Option to buy High Beta Stocks

In order of prominence, eToro comes first on our list as the best place to buy High Beta stocks. When you opt to use the platform, you would be joining 20 million other users to enjoy the advanced features of eToro that will enable you to earn significant returns on your capital.

Security and Privacy

Reviews from users of this broker have been positive, given that it is a company with an enviable track record. According to metrics, the broker is available in over 150 countries with over 17 million users from those countries. eToro operates as a legitimate broker, having secured the approval of top regulatory authorities. Our research has shown us that the broker is regulated by several bodies across its various branches, such as; Cyprus Securities and Exchange Commission (CySEC), ASIC, FSCA.

You can also enjoy the double protection offered by the 2-factor authentication technology that acts as a final defense against aggressive hacks and unauthorized access by third-party agents.

Fees and Features

Like many other online brokerage firms, the platform enables its users to enjoy the Copytrading feature. Copytrading is a most enjoyable feature for beginners who are yet to handle the market dynamics but are willing to begin trading. All they have to do is copy the trade pattern of a highly rated trader and earn profits from the successful trading sessions. The company does one better by offering a tradeable negative balance for users trading stocks in the EU. To make deposits much more effortless, users have options such as bank transfer, Paypal, or credit card as payment methods when depositing at no cost. Withdrawals and trades attract no fee as well. The inactivity fee is £10 per month.

eToro Fees

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

 

Pros

  • Commission-free
  • Offers negative balance protection
  • No deposit fees
  • No withdrawal fees
  • Highly regulated

Cons

  • Charges inactivity fee
  • No Meta trader support

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

 

2.     AvaTrade – Buy High Beta stocks easily.

AvaTrade has existed as a top investment brokerage for over 15 years, and it has since grown from strength to offer its users a more enjoyable investment adventure. It is one of the most used brokers by investors worldwide, albeit a lot less than eToro.

Security and Privacy

AvaTrade is a highly regulated platform secured by high-level 256-bit encryption to protect user data from theft and misappropriation. Users can rest easy and know that their interests are secured with AvaTrade. It is regulated by CySEC, NBRB, FSCA, FCA, AGM, among others. It does not have the 2FA system integrated into its user accounts like eToro, but its security measures are secure enough. They do enough to educate users about securing their account details to prevent unwanted access by fiends, thus compromising their holdings on AvaTrade. AvaTrade is not liable for losses resulting from that event.

Fees and features

Its simplicity is one of the things that makes it relatively easy for beginners to adapt to operating on the platform. For making deposits, you can have easy options such as credit cards and bank transfers and PayPal for making e-payments. They offer 24/7 customer service who are ready to attend to your every need at any time. They swiftly respond to the most severe issues to provide customers with the best services. All activities on AvaTrade are commission-free but with a high inactivity fee.

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

  • Completely regulated platform
  • 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- The best place to learn to trade High Beta stocks

It is an excellent move further to encourage the learning and development of novice traders. As a new user, you have the option to either run a standard or a cent account on the brokerage platform. The firm is based in the United Kingdom, and it has some sweet offers specifically for users from that region. Users can use their mobile app to perform transactions and invest in high beta stocks with relative ease.

Security and Privacy measures

The services of Capital.com are certified by top regulators in the U.K. and by other regulators in the market. It ranks high among the brokers that offer the most robust security for the personal data of their users. Without such strict compliance with regulatory laws, the company would not be rated as the most secure broker in the U.K according to PCI standards. It would be virtually impossible for any user to have their accounts hacked or accessed unless they reveal details about their accounts to third party agents.

Fees and Features

Users have found their platform relatively easy to use. It is restricted in many countries of the world, which could be why its users are not as numerous as those of eToro and AvaTrade. The restriction might be why they have been able to maintain the high level of security of the platform and protect the integrity of the database. All U.K users have access to FDIC insurance that protects users against the rare loss of funds due to hacks and other cybersecurity concerns. While it is not easy to compromise the platform, users still have to be extra handy with their passwords and account details. The only broker on this list runs entirely free of charges via commission, deposit, withdrawal, or inactivity fees.

Capital.com Fees

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

Pros

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

Cons

  • High risk on CFD trades
  • No price alerts

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

Comparing the three brokers’ prices for buying High Beta stocks

Below is a summary of the fee required across each platform to buy High beta 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 High beta stocks?

Discovering the best brokers to use is only half the job; it is essential to know how to use them. Usually, there are few technicalities to the process, but there are three methods of buying stocks across many brokerage platforms: stocks, CFDs, and ETFs. Other options may include cryptocurrencies and futures. But these have little to do with high beta stocks; hence we are limiting our discussion to the first three methods we mentioned. If you can maximize these three methods on eToro or any of the other two brokers we discussed earlier, you are set to earn profits across the board if you know just what to do.

Stocks

When you buy stocks, you are purchasing percentage ownership of a specific company. One of the benefits attached is that you get to partake in certain decisions or polls about the company’s progress or a change in its management. Every public traded company registered with the SEC and listed on the NYSE, Nasdaq, and S&P 500 can be said to be a tradeable stock. It is a long-term investment option for users looking at the prospects of established companies and startups. One of the most successful men globally, Warren Buffet, has thrived as one of the greatest stock investors of all time. The key attribute of those who buy shares is their incredible patience and ability to wait and hold company shares until they are ready to yield dividends. It eventually delivers a slow but steady stream of income that continues to rise as the company expands.

CFDs (Contract for Difference)

CFDs enable you to trade based on the value of company stocks instead of owning those assets by yourself. Much like crypto traders, you get to predict the direction of stock prices, whether it surges or dips. Traders that make the correct suppositions get to earn profit within a single market session. It is not one for the long term as the market dynamics can shift rather unannounced, and the longer you trade on the wrong side of the market, your money begins to reduce until it liquidates. It might be necessary for you to have technical, analytical skills to predict moves on the charts. You must take adequate care to ensure that you do not run a loss on your investments. CFDs are responsible for a high percentage of users’ losses via trades on most brokerage platforms that enable CFD trading. It is undoubtedly not something a beginner should try out.

ETFs (Exchange-Traded Funds)

ETFs, enable you to invest in a fund containing a combination of two or more viable stocks. If you invest in ETFs, you do not need to wait long to benefit from the fund. As one company stock in the fund begins to grow in value, you also profit. It also offsets the high risk usually attributed to CFDs.

Best ways to buy High beta stocks

Below, we will specifically address how to buy High beta stocks using the three methods:

Buy High beta Stocks

With high beta stocks, there is a bit of a complication which makes buying the stocks not similar in any way to the way you’d purchase regular stocks. Our research has shown us that high beta stocks are not ones you can hold for the long-term due to their extreme volatility. But is it possible to buy High beta stocks? Yes. The exception may be that you cannot hold it for the long term. Trading high beta stocks comes with the extra feature that yields high dividends quickly compared to other forms of stock investment. You could technically become rich overnight. However, it doesn’t erase the downside of the volatility, by the way.

Buy High beta stocks’ CFDs

Many would say that there seems to be no real difference between trading CFDs, and that might be true in a way as we have established that buying High Beta stocks is exceptionally volatile. CFDs in themselves are volatile. Hence, the comparison might hold water for a bit. However, the features of high Beta stock CFDs are still the same as regular CFDs in that you still do not own direct stocks; you are merely predicting the direction of the entire market.

Buy High beta stock ETFs.

The decision of your investment broker will determine just how much you can enjoy exchange-traded funds of high beta stocks. You can opt for a fund containing solely high beta stocks, or you can opt for a diverse one having other relatively stable company stocks. We think that would be the best choice for investors looking to capitalize on the benefits of both.

Are High beta stocks a Good Investment?

High beta stocks gain an advantage over the S&P 500 market and thus grow exceedingly high. On the other hand, low beta stocks are expected to dip lower than the S&P 500 market. It all depends on whether the High beta stocks outperform S&P 500 by an incredible amount. High Beta stocks are an excellent choice when considered in ETFs. To enjoy buying high beta stocks singly, it would take a more hands-on approach towards investment as you would need to watch the market trends constantly. The same thing could apply to CFDs. In the short term, they are a good investment choice if you can commit the time and efforts to paying adequate attention to even the slightest changes in its price actions. It will be a jolly ride if you buy high beta stocks during a bullish market. You can generate high returns, and you can find them to be some of the best-performing stocks in the market.

The Risks of buying High Beta stocks

When isolated, it is risky to buy high beta stocks. To forestall the chances of a loss, we recommend that you seek advice from an experienced investment broker (individual or a firm). The market is susceptible, and not one a beginner should be found trading in. It is best to stick with more stable stocks if you are not confident about your predictions. A bearish market can be a terrible time to buy high beta stocks.

How To Buy High beta stocks with eToro

In a few easy steps, we will take a brief look at how you can buy high beta stocks with eToro:

Step 1: Open a Broker Account

Get the process started by visiting the eToro website and clicking on the ‘Join Now’ button. Follow the on-screen prompts by entering your personal details and choosing a username and password.

You will also need to upload a copy of your government-issued ID – as part of the KYC (Know Your Customer) process.

Step 2: ID verification:

Verify your identity using a standard-issued photo ID such as your 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. 

Step 3: Deposit Funds

You can now make a deposit into your newly created eToro account – ensuring that you fund it with at least $50. No deposit fees apply if you are depositing funds in US dollars. Other currencies attract a fee of 0.5%.

Deposit Funds

If you want to buy high beta stocks instantly, it’s best to use a debit/credit card or an e-wallet like Paypal.

Step 4: Search and Choose High Beta Stocks.

With the deposit confirmed, you can enter the name of the High Beta stock you want to buy in the search box. You can also view the full list of high beta stock supported by eToro by clicking on ‘Discover’ followed by ‘Stocks’.

Step 5: Buy High Beta Stocks

Now it’s just a case of deciding how much you want to invest. You don’t need to buy full shares at eToro, so you can invest any amount of your choosing about the $50 minimum. Once you are ready to buy your chosen High Beta stock – click ‘Open Trade’. And that’s it – you have just invested in High Beta stocks at 0%.

Conclusion

We have come to the end of our guide to buy high beta stocks; we hope you enjoyed the read. We have looked at what high beta stocks are, how to buy high beta stocks and the various platforms where you can buy high beta stocks. If you’re still unsure about what platform to use, we recommend eToro, it is the best platform for buying high beta stocks. If you are still unclear about eToro, kindly read through some of our other articles. Thanks for reading!

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

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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.