Buy Stocks With Paypal – How to Buy Stocks With Paypal in 2021
If you want to buy stocks with Paypal – your options will be extremely limited. After all, most stockbrokers will either support debit/credit cards or bank transfers. With that said, our research team has sourced a number of investment platforms that accept deposits via Paypal at competitive fees.
In this guide, we show you how to buy stocks with Paypal and which brokers you might want to consider when completing your investment.
#1 Stockbroker to Buy Stocks with Paypal – eToro
How To Buy Stocks With Paypal – Choose a Stockbroker
Below you will find a selection of pre-vetted brokers that allow you to buy stocks with Paypal.
- eToro – Overall Best Place to Buy Stocks With Paypal
- Capital.com – Trade Stocks at 0% Commission and Minimum Paypal Deposit Just £20
- AvaTrade – Buy Stocks via Leveraged CFDs and No Paypal Deposit Fees
Each of the above brokers will differ in departments such as fees and supported markets, so be sure to read our full reviews further down.
How to Buy Stocks With Paypal – A Quick Guide For 2021
When learning how to buy stocks with Paypal, you will quickly find that the process is actually very straightforward. To illustrate this point, the steps below will explain how to complete your stock purchase with Paypal in under five minutes with FCA-regulated broker eToro.
- Step 1: Open an Account with eToro – Before you can buy stocks with Paypal, you will need to open an investment account with eToro. This shouldn’t take you more than a couple of minutes, as it’s simply a case of entering your personal information, contact details, and choosing a username and password.
- Step 2: Upload ID – Upload a copy of your driver’s license or passport to get your eToro account verified. You can skip this step right now if you are depositing less than $2,250 with Paypal – which is about £1,600.
- Step 3: Deposit Funds With Paypal – From the list of supported payment methods, select Paypal. Next, enter the amount of money you would like to deposit. A pop-up box will appear asking you to enter your Paypal username and password. Finally, confirm the deposit and eToro will add the funds to your account balance in a matter of seconds.
- Step 4: Search for Stock – eToro supports thousands of shares across 17 and international stock exchanges. As such, to find the stock you wish to invest in, enter the name of the company into the search bar – and then click on the ‘Trade’ button.
- Step 5: Buy Stocks With Paypal – And finally, you will now see an order box appear for your chosen stock. Simply enter the amount of money you would like to invest into the stock ($50 minimum) and confirm the buy order by clicking on ‘Open Trade’.
And that’s it – you’ve just learned how to buy stocks with Paypal in five simple steps! If you need a more detailed walkthrough of how to complete the process, you will find the required steps further down on this page.
Note: If the stock exchange that your chosen company is listed on is currently closed for the day, you will instead be prompted to click on the ‘Set Order’ button. eToro will therefore complete your investment when the respective stock exchange reopens.
67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Buy Stocks With Paypal – Full Stockbroker Reviews
When searching for a broker that allows you to buy stocks with Paypal, you need to look at a full range of metrics other than just supported payment methods. This includes the fees involved to deposit via Paypal, as well as stock trading commissions and spreads. And most importantly, you need to ensure that the broker is authorized and regulated by the FCA.
Taking all of these important factors into account, below you will find a selection of top-rated brokers that allow you to trade and buy stocks with Paypal.
1. eToro – Overall Best Place to Buy Stocks With Paypal
From start to finish, eToro allows you to buy stocks with Paypal in under five minutes. All you need to do is open an account by providing some personal information, before making a deposit with Paypal. Then, it’s just a case of searching for your preferred stocks and completing the investment. At eToro, you can deposit funds with Paypal instantly and at a super-competitive fee of just 0.5%. After that, you can buy stocks at 0% commission and eToro will even waiver stamp duty tax on your purchases.
This saves you a further 0.5%, which effectively wipes out the aforementioned deposit fee. In terms of supported markets, eToro allows you to buy stocks with Paypal from 17 exchanges. This includes all FTSE 100 stocks and most equities that make up the secondary FTSE 250 index. You can also invest in stocks from the US, Hong Kong, France, Germany, the Netherland, and more. Regardless of how much your chosen stock is trading for, eToro supports fractional investments from just $50 (about £36).
This means that you can buy shares in companies like Berkshire Hathaway and Amazon without needing to outlay thousands of pounds. Once you have funded your account via Paypal, eToro also allows you to invest in ETFs, index funds, indices, cryptocurrencies, and even commodities like gold and natural gas. You can also invest in pre-made portfolios that are managed by the eToro team. The Copy Trading tool at eToro is also worth a look, as this allows you to copy the investments of a successful eToro trader.
The most important point to note about eToro is that the broker is authorized and regulated by the FCA. Your investment funds are also covered by the FCSS up to the first £85,000. We should also mention that eToro is particularly useful for stock market beginners, as the trading suite is super-easy to use. You can find your chosen stock by using the search box and placing an investment is as simple as specifying your stake and clicking the ‘Open Trade’ button.
- Invest in stocks at 0% commission and ZERO stamp duty
- Minimum investment per stock investment is $50
- Supports debit/credit cards, e-wallets, and bank transfers
- Regulated by the FCA and covered by the FSCS
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
- Perhaps too basic for technical traders
- No support for MT4 or MT5
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade Stocks at 0% Commission and Minimum Paypal Deposit Just £20
If you’re looking to buy and sell stocks with a small amount of money, it might be worth considering a CFD broker like Capita.com. This is because the popular trading site allows residents to deposit from just £20 when using Paypal. This is also the case with debit/credit cards and other supported wallets, albeit, bank transfers require a minimum of £250. Nevertheless, once you have funded your Capital.com account with Paypal, you will then have access to thousands of stocks.
It is important to note that as a CFD broker, you will not own the underlying stocks that you wish to trade. Instead, CFDs merely track the price of the respective stock like-for-like and in real-time. This means that you can trade stocks by going long or short, which allows you to target both rising and falling prices. Capital.com is superb when it comes to fees too – as the broker permits 0% commission trades on all of its supported markets. Much like eToro, Capital.com gives you access to international stock exchanges.
This means that you can trade shares from the London Stock Exchange, NYSE, and NASDAQ, as well as markets based in Canada, Europe, Asia, and more. You are not required to trade full stocks at Capital.com, meaning that you only need to risk a few pounds on your chosen position. We should also mention that Capital.com allows you to trade stocks with leverage.
Always consider the added risks involved in applying leverage, as this trading tool will amplify both your profits and losses. In addition to stocks, Capital.com also offers CFD markets on forex, hard metals, energies, indices, agricultural products, and more. You can trade via the main Capital.com website or through MT4. There is also a Capital.com mobile app available on both iOS and Android. Finally, when it comes to safety, Capital.com is regulated by the FCA, and your capital is covered by the FSCS.
- Top-rated spread betting and CFD broker
- Licensed by the FCA
- £20 minimum deposit (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spreads and no fee on deposits or withdrawals
- Supports thousands of financial markets
- Convenient for newbies
- 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 – Buy Stocks via Leveraged CFDs and No Paypal Deposit Fees
Another online trading site that we like the look of is AvaTrade. In addition to debit/credit card and bank account payments, this top-rated broker also allows you to deposit funds with Paypal. Opening an account at AvaTrade rarely takes more than two minutes, as it’s just a case of providing some basic personal information. After that, you will then have access to hundreds of stock trading markets.
In a similar nature to Capital.com, all stocks at AvaTrade are represented by CFD instruments. As such, you can apply leverage to your positions as per FCA limits. AvaTrade is a true low-cost broker, insofar that it won’t charge you any trading commissions when you enter or exit a position. AvaTrade also supports markets on forex, ETFs, commodities, and indices.
In terms of reputation, AvaTrade has a huge customer base and the broker is expected to go public within the next 12-18 months. Most importantly, AvaTrade is authorized and regulated in no less than seven different countries. In choosing AvaTrade as your go-to platform, you will have access to lots of stock trading tools and features. This includes interactive pricing charts and technical indicators – which will give you the best chance possible of predicting the future value of your chosen stock.
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
How to Buy Stocks With Paypal – Detailed & Explained in Full
If you want to buy stocks with Paypal right now – but you’ve never invested in the financial markets before – this section is for you. Within it, not only do we show you how to open an account and deposit funds with Paypal at leading FCA-regulated broker eToro – but also how to complete your stock purchase at 0% commission.
Step 1: Open a Stockbroker Account
Before you can deposit funds with Paypal, you will need to open an account with eToro. Fortunately, this is just a case of providing eToro with some basic personal information and contact details. You will also need to choose a username and password – which you will need to log into your eToro account on future occasions.
As an FCA-regulated stockbroker, eToro will also require you to go through the KYC (Know Your Customer) process. This will entail uploading a copy of your passport or driver’s license – which eToro will verify in under two minutes. If you don’t have the required documentation to hand, you can come back to this at a later date on the proviso you are not looking to deposit more than $2,250 (about £145).
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Deposit Investment Funds
Now it’s time to make a deposit with Paypal. You will be prompted to choose your preferred payment method – so look out for Paypal from the list of deposit options. Then, enter the amount of money that you wish to deposit ($200 minimum – about £145).
Once you confirm the amount, a pop-up box will then appear. You will then be asked to enter your Paypal email address and password. Paypal will then show you the amount of money that you will be depositing into your eToro account, and which funding sources will be used (e.g. Paypal balance or linked debit card).
Once you confirm the deposit, the pop-up box will close. Within a few seconds, you should see that eToro has credited your investment account.
Step 3: Search for Stocks
Now that you have some investment funds in your eToro account, you can search for the stocks that you wish to buy. In our example below, we are looking to invest in Vodafone shares, which are listed on the London Stock Exchange.
You can also click on the ‘Trade Markets’ button to see which stocks eToro offers.
Step 4: Buy Stocks
Once you have located the stocks you wish to buy, click on the ‘Trade’ button. This will then bring up an order box – which you need to fill out. If you want to keep things simple, you only need to enter your total investment amount, which needs to be at least $50 (about £36). This is the case irrespective of how much the stock is currently trading for – as eToro supports fractional investments.
And finally – to complete your 0% commission stock investment at eToro – click on the ‘Open Trade’ button!
Note: You will notice from the example image above that the order box displays ‘Set Order’ as opposed to ‘Open Trade’. This simply means that the respective market is closed. So, in this scenario, click on ‘Set Order’ and eToro will complete your stock investment when the market reopens.
How to Cash Out Stocks to Paypal Account
Once you have purchased stocks with Paypal at eToro, there is nothing more for you to do. That is to say, you might decide to keep hold of your stocks for months or even years.
With that said, at some point in the future, you will need to sell your stocks back to cash – should you wish to realize your financial gains. Fortunately, this part of the process is just as easy as buying stocks.
All you need to do is:
- Log in to your eToro account
- Click on the ‘Portfolio’ button
- Look for your stocks and click on the ‘Sell’ button
- Confirm the sell order
Within a few seconds (assuming the markets are open), your stocks will be sold back to cash. Now, if you want to cash out the proceeds back to your Paypal account, you can do this by requesting a withdrawal. eToro typically processes withdrawals within 24 hours. Once it does, you should receive the funds in your Paypal account in less than a minute, as e-wallet withdrawals are super fast.
Fees to Buy Stocks With Paypal
The fees that you need to pay to buy stocks with Paypal will ultimately depend on your chosen brokerage. The main fees to look out for surround deposits, withdrawals, and commissions.
We explain each of the aforementioned fees in a bit more detail below:
First and foremost, Paypal itself won’t charge you any fees when using your account to deposit funds at your chosen broker. However, you might find that the broker itself charges fees. The only way to assess this is to check the broker’s fee table before opening an account.
Once again, withdrawal fees will be determined by your chosen brokerage site. eToro, for example, charges just $5 on withdrawals, which amounts to approximately £3.50. This is the case regardless of how much you are withdrawing back to your Paypal account – so this is very competitive.
Commissions – otherwise referred to as share dealing fees, are charged on each buy and sell order that you place. That is to say, when you buy stocks from an online broker, you will pay this fee at the time of the trade. You will again be charged a commission when you get around to cashing your stocks out.
To give an idea of how much commissions and share dealing fees can vary, check out the examples below:
- Hargreaves Lansdown is arguably the most expensive stockbroker, as you will pay a share dealing fee of £11.95
- You then have Halifax, which charges £9.50
- eToro, on the other hand, allows you to buy and sell stocks at 0% commission
As per the above, eToro is by far the best low-cost broker to buy stocks with Paypal.
Reasons to Buy Stocks with Paypal
When buying stocks online, choosing the right payment method is crucial. In the sections below, we explain some of the core reasons why more and more people are looking to buy stocks with Paypal.
No Need to Enter Payment Details
Perhaps the main reason to buy stocks with Paypal is that you will not be required to enter any sensitive financial information directly on the broker’s website. On the contrary, once you elect to use Paypal to fund your deposit, a pop-up box will appear. After you have signed into your Paypal account with your email address and password, you will then get to choose your preferred funding source.
The easiest option here is to use the available funds that you currently have in your Paypal account. Alternatively, you should already have a debit or credit card linked to your Paypal account, which you can select if you don’t have enough funds to cover the transaction. Either way, there is no requirement to enter any of your payment details – which makes buying stocks with Paypal super secure.
Not only are transactions secure when you buy stocks with Paypal, but they are extremely fast. In fact, as soon as you have signed into your Paypal account and confirmed the transaction – then payment will be processed by your chosen broker instantly. This will then allow you to buy stocks without delay.
As we briefly noted earlier, Paypal itself won’t charge you any fees to deposit funds into your brokerage account. Although the broker might charge you a fee, this can be competitive when selecting the right provider. For example, at eToro, you can deposit funds with Paypal at a fee of just 0.5%.
One of the best benefits of using Paypal to buy stocks is that you will benefit from lighting fast withdrawals. Ordinarily, when you withdraw funds out of a broker back to your bank account, this can take 2-3 working days.
This is also the case when you withdraw back to a debit or credit card. However, in the case of Paypal, it takes a matter of seconds for the funds to land in your account after the broker has authorized the withdrawal.
Buy Stocks with Paypal – The Verdict
In summary, if you’re looking to buy stocks with Paypal, the process can be a simple one when choosing the right broker. At eToro, for example, you can open an account, deposit funds with Paypal, and buy your chosen stock in less than five minutes. Best of all, when choosing eToro as your go-to broker, you can buy stocks at 0% commission and without paying any stamp duty.
Most importantly, eToro is authorized and regulated by the FCA, so you can be sure that both your Paypal account and investment funds are safe at all times.