How to Buy Natural Gas Stocks – Top 3 Natural Gas Stocks to Buy Now 2021

Fact Checked by Gary McFarlane

As a race, we’re becoming increasingly dependent on electricity and fossil fuels. Natural gas is a key part of our lives, it’s how we generate heat, electricity, and cook food. Considering just how important natural gas is for our daily lives, it’s no wonder investors are looking to add natural gas stocks to their portfolios before prices begin to rise. To help you with this process, we’ll be covering the best natural gas stocks, the best brokers, and exactly how you can buy natural gas stocks from the comfort of your own home, right now!

#1 Broker to Buy Natural Gas Stocks – eToro

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How to Buy Natural Gas Stocks With eToro – Step by Step Guide 2021

Learning how to use a new platform can be a time-consuming task, so to make the whole process easier, we’ve broken down exactly how to buy natural gas stocks for beginners. 

  • Step 1: Open an eToro account: The first thing you’ll need to do is register with a trustworthy broker like eToro. To do this just type “eToro.com” into your browser, press “Join Now” and fill in the required fields. 
  • Step 2: Verify your identity: Once your account has been created, you’ll need to verify it. Luckily, this process is quick and easy. All you’ll need to have at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 
  • Step 3: Fund your account: After your account has been verified, you’ll need to fund it. To do this, simply click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 
  • Step 4: Buy natural gas stocks: As soon as the funds land in your eToro account, you’re ready to buy natural gas stock. Just type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you want to buy, and press “Open Trade”. You can manage your position from the portfolio section of your account. 

Where to Buy Natural Gas Stocks – Top 3 Natural Gas Brokers

There are hundreds of brokers out there that will let you buy natural gas stocks, as such, it’s easy to get locked into a subpar broker that charges exorbitant fees. To prevent this from happening to our readers, we’ve given you the rundown on the top 3 best natural gas stock brokers. 

1. eToro – Overall Best Broker to Buy Natural Gas Stocks

If you’re on the hunt to find the best broker to trade with, you’re in the right place! eToro is one of the largest brokers in the world with more than 20 million active users. They were founded in 2007 and have managed to create an inclusive trading platform with features that appeal to users of every skill level. 

Security & Privacy

Security at eToro is top-notch, it’s clear they’ve put a lot of time into figuring out how they can best keep customers safe. One of the ways they achieve this is by following rules outlined by the SEC to ensure client funds and data are handled correctly. Being regulated also means you can get recourse in the event of something happening with the broker. Another way clients are protected by eToro is through SSL encryption. This method of obscuring client data renders it useless if an attacker were to get their hands on it, making attacks on client data much more difficult to pull off. Additionally, every eToro user has the option of enabling 2FA to act as the last line of defense in the event of a client account getting compromised. 

Features

eToro has created an excellent trading experience for investors. Regardless of your skill level, there will be something for you. Beginners can benefit from the eToro academy, an education platform created to get beginners up to speed with the basics of trading. CopyTrading can also be massively useful for beginners as it allows them to sharpen their skills and learn new strategies by following the trades of other, more experienced users. Technical traders haven’t been forgotten about either, they have access to advanced charting tools and a range of indicators to ensure you’re always able to plot your trading strategies. On top of all this, eToro offers commission-free trading, meaning when you buy natural gas stocks, you get more bang for your buck. Overall, eToro is an excellent all-around broker, you can use to buy natural gas stocks right now!

eToro Fees

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

 

Pros

  • Regulated
  • Commission-free
  • SSL encryption
  • eToro academy
  • Charting tools
  • CopyTrading
  • 2FA

Cons

  • MetaTrader support would be beneficial

68% of retail investor accounts lose money when trading CFDs with this provider.

2. WeBull – Great Broker to Buy Natural Gas Stocks

Webull is the youngest broker on our list, however, this hasn’t stopped them from sending shockwaves resonating through the industry. They were founded in 2017 and in that short space of time have managed to amass more than 11 million users, a meteoric rise to fame if you ask us.

Security & Privacy

Security is always important, however, especially so for new brokers that don’t have a long track record to fall back on. Like any reputable, modern broker, Webull adheres to strict regulations outlined by the SEC, meaning Webull customers needn’t worry about their broker running off in the night. To further protect clients in the event of Webull facing financial issues, they are covered with SIPC insurance meaning customers’ balances are covered if Webull goes into insolvency. To stop client data from being usable if it gets intercepted by an attacker, Webull uses AES-256 bit encryption, rendering the data useless to anyone other than Webull. And to round things off, Webull uses a piece of technology called “Plaid” to allow clients to securely log onto their online banking. 

Features

At this point in the review, you’ve probably released how secure Webull is and are wondering what sort of features they boast. Well, Webull is a great overall broker that offers a great trading experience. They give users the option of improving their trading skills by using a practice account, meaning customers can learn without risking real money. Typically, you’re able to trade between 9:30am and 4:30pm each day, however, not everyone’s schedule is aligned with these trading hours. So, to make trading more accessible, Webull allows users to trade stocks out of hours, between 4am and 8pm, meaning you get an extra 7 trading hours each day. Something that likely contributed to Webull’s rapid growth is their free-stock promotion. Webull rewards users with a random stock (valued between $4 – $1600) for completely basic account actions like registering, depositing, and trading. The only thing letting Webull down is their lack of real-time support, which can make getting an answer to a question a lengthy and frustrating process. 

Webull Fees

Fee Type Fee Amount 
Commision Fee 0%
Transaction Fee (Sells Only) 0.00051% (Min US$0.01)
Deposit Fee $0
Withdrawal Fee $0

 

Pros

  • SIPC insurance
  • AES-256 encryption
  • Out of hours trading
  • Random stock
  • Practice account
  • Plaid

Cons

  • Missing real-time support

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Robinhood – Easiest Platform to Buy Natural Gas Stocks

Over the past few years, Robinhood has become a household name by providing Americans with a simple and accessible stock trading platform. By creating a simple-to-use app that just about anyone could figure out, they brought trading to the masses. It seems this strategy has done wonders for Robinhood as they currently have over 22 million users, which is especially impressive considering they were only founded in 2013. 

Security & Privacy

Robinhood takes the security of its users seriously, like the other two brokers we’ve discussed, they stick to guidelines created by the SEC to help ensure client data and funds are being handled correctly. Outside of this, they offer both SIPC insurance  (securities $500k & cash $250k) and excess SIPC insurance (up to $10 million). To prevent a bad actor from being able to falsely validate a transaction, Robinhood requires all transactions to be confirmed by multiple sources before it goes through. 

Features

I’m sure it won’t be much of a surprise to many of you, that Robinhood isn’t a particularly advanced brokerage. They have a clear focus on catering to the needs of beginners and making the process of buying stocks as simple as possible, rather than stuffing the platform full of advanced features. This is reflected by its no-frills, easy-to-navigate interface. Robinhood lacks many of the charting tools and technical indicators that you’d expect from a leading broker, however, they do support limit orders which is something of a saving grace. If you like the sounds of Robinhood and want to get the most out of the platform, you can sign-up for a service called Robinhood which grants you access to margin trading and market research, for the cost of $5 per month. All said and done, if you’re new to trading and what to get stuck in as easily as possible, Robinhood might be a great platform to buy natural gas stocks with. 

Robinhood Fees

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

 

Pros

  • Easy-to-use
  • Regulated
  • SIPC insurance
  • Excess of SIPC
  • Multisig transactions

Cons

  • Too basic for experienced traders
  • Lacking charting tools and indicators 

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy Natural Gas Stocks – Broker Price Comparison

To help paint a clearer picture of the fee structure offered by each of the brokers we’ve discussed, we included this easy-to-reference fee table. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Webull Commission 0% / 0.00051% (Min US$0.01) Transaction fee $0 $0 $0
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares  $0 $0 $0

Top 3 Best Natural Gas Stocks 

Now that you’re equipped with the knowledge to select the perfect broker for your needs, it seems fitting we break down some of the best natural gas stocks you can buy today! 

EQT Corporation (EQT)

The largest supplier of natural gas in the US, EQT Corporation (EQT), produces around 5.6 billion cubic feet of natural gas per day, 6% of the nation’s total output. They acquire the majority of their gas supply from the Appalachian Basin, found in Pennsylvania, West Virginia, and Ohio. 

Advantages

If you want to get a piece of the natural gas pie, then EQT corporation could be an excellent entry point. They’re the largest natural gas producer in the US meaning it should offer more stability than some other companies. Here are a few pros to buying EQT stock. 

Low Cost: Due to the sheer size of EQT, they’re able to take advantage of economies of scale to massively reduce costs. Because of this, they are one of the lowest-cost natural gas producers in the world. It doesn’t take a rocket scientist to figure out that the lower the costs, the higher the profit. Meaning EQT is in a great position to continue expanding in the future. 

Expansion: EQT Corporation seemingly wants to retain its status as the largest natural gas producer in the US because they’ve been rapidly expanding. Earlier this year, EQT purchased Alta Resource Development for $2.295 billion and Chevron’s assets in the Appalachian Basin for a further $735 million. These moves have firmly placed EQT Corp. in the top spot in the US natural gas industry. 

Disadvantages

Before you jump head-first into an investment, it’s worth checking out a company’s shortcomings. Here’s one of EQT’s. 

Profits: Every company is created to make a profit. As such, it’s never a great sign if a company has falling profit margins. EQT’s profit in 2020 fell by over 30% and the story is much the same if we look at the years prior. While many companies like to use debt to increase overall production, falling profit margins are never a positive.  

Cheniere Energy (LNG)

The largest liquified natural gas producer in the US and the second-biggest globally, Cheniere Energy is a solid stock with massive potential. They offer a degree of predictability when releasing earnings, something that can be massively useful. To help you make up your mind on whether LNG is right for you, here are a few pros and cons to this natural gas stock. 

Advantages

Cheniere Energy is a solid company and one of the best natural gas stocks to buy right now. So, we thought it wise to give you the rundown of a couple of things they’re doing well.

Predictable Returns:  The stock market is rarely predictable, there are just too many uncertainties to gauge the performance of a stock with 100% accuracy. However, Cheniere Energy offers some predictability by selling the majority of its natural gas products through long-term, fixed-price contracts, meaning they can predict earnings with a good degree of accuracy. This is huge for investors that are worried about a company reporting earnings lower than expectations.  

Dividends: If you want to add cash-flow generating assets to your portfolio, it’s hard to beat dividend-paying stocks. By adding dividend stocks to your portfolio, you can benefit from semi-regular (quarterly or yearly)  payments which can come in handy when you’re in need of cash. Cheniere Energy offers a quarterly dividend at a rate of $0.33 per share. 

Disadvantages

Every investment comes with a few issues and Cheniere Energy is no different. So, without further ado, here’s why LNG might not be the best natural gas stock to buy right now.

Missed Expectations: Every year, analysts take a look at how various stocks are performing and create a report with their predictions for the stock. If a company exceeds these expectations, the stock price will likely increase, however, if they fail to meet them, it’ll likely fall. Unfortunately for LNG, it got the short end of the stick, their earnings-per-share ended up being just $0.94 with expectations being $1.28. Since this report was released the stock has hardly moved. LNG will need to improve profits if it wants to see a rise in stock price anytime soon. 

BHP Group  (BHP)

BHP Group (BHP) is one of the largest natural gas suppliers in the US. They were founded all the way back in 1885, meaning the company is now more than 135 years old. This is a big positive as it shows they will likely be around for a while yet. To help you decide on whether this stock is right for you, we’ve broken down a few key points below. 

Advantages

If you want to buy natural gas stock, then BHP could be the perfect investment for you. Here are a few reasons why it could be a great time to buy BHP stock. 

Diversification: When deciding which natural gas stocks to buy, it can be a good idea to diversify in order to reduce risk. This is also a solid strategy for a company. Outside of natural gasses, BHP also trades in commodities like iron, coal, and copper. Meaning, the company is at far less risk of a drop in gas prices badly affecting their revenue. 

Merger: Sometimes a couple of different companies will merge together and form one larger business. This can be beneficial for both parties as it gives them access to each other’s resources and technology. BHP has recently signed an agreement with Woodside Petroleum Limited (WPL) to merge the two businesses. Only time will tell how this merger will work out, but on the surface of things, we can’t see a reason why it would be negative. 

Disadvantages

Every company has a few skeletons in the closet. Here’s a reason why buying this natural gas stock may not be as great of an idea as you first thought. 

Asset Value Stagnating:  Over the past 4 years, the value of BHP’s assets have dropped by 2.74%. While this isn’t a huge change, it could be a sign that BHP isn’t currently putting much money back into their business or that their reserves have decreased in value. Whatever way you look at it, this isn’t ideal and is something to be wary of. 

How to Buy Natural Gas Stocks with eToro

When you’re new to a platform, learning how to buy stocks can be an unnecessarily drawn-out and confusing process. Oftentimes, brokers will overwhelm you with heaps of jargon, making it even more difficult to get started. So, to prevent our readers from having difficulty, we’ve broken down precisely how to buy natural gas stocks for beginners. 

Step 1: Open an account with eToro

Before you can buy natural gas stock, you’ll need to register with a trustworthy broker. We recommend eToro as they provide users with an excellent blend of security, features, and simplicity. Just head over to “eToro.com”, hit “Join Us”, and fill out the form. 

68% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

eToro is a regulated broker, while this has several security benefits for clients, it also means that you’ll need to verify your identity before buying anything. The verification process is quick and easy. The only documents you’ll need to have at hand are  a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 

Step 3: Fund your account

Once your identity has been confirmed, you’ve only got one step left to complete before you can buy natural gas stock. The final prerequisite is funding your account. To do this, just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Buy Natural Gas Stocks!

Now that your account has been funded, you’re ready to buy natural gas stock! Just type the name of the asset you want to purchase into the eToro search bar, press “Trade”, enter the number of shares you want to buy, and press “Open Trade”. You can view and manage your stocks from the “Portfolio” section of your account. 

Conclusion

A large portion of the world is powered by natural gas, and with supplies slowly dwindling, it could be an excellent time to get into the market before prices begin to climb. Despite the pandemic hurting natural gas producers, they are slowly starting to recover. As such, it’s no wonder why so many investors are flocking to get in on the action at a discounted rate. If you want to take advantage of this opportunity, you’ll need to arm yourself with the best broker possible. After conducting countless hours of research, we can safely say, eToro remains ahead of the competition and is by far the best broker you can use to buy natural gas stocks right now. 

eToro – Best Broker to Buy Natural Gas Stock

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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

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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.