Buy Steel Stocks – 3 Best Steel Stocks to Buy Right Now 2021

Fact Checked by Gary McFarlane

Steel is one of the most commonly used materials in the world. It’s primarily used in the construction, manufacturing, and automotive industries. With the rate cities are expanding, especially in the developing world, it’s no wonder why the steel industry is steadily growing. As one of the most versatile metals in the world, steel seems like a fairly safe bet for investors looking for an asset that will stand the test of time. With many of the largest steel manufacturers around the world posting excellent growth over the past year it could be a great time to buy steel stocks. 

To help you get started on the right foot, we’ll be discussing some of the best steel stocks to buy right now, the best brokers to invest with, and we’ve even provided you with a detailed guide on exactly how to buy steel stocks. Enjoy!

#1 Broker to Buy Steel Stocks – eToro

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How to Buy Steel Stocks With eToro – Step by Step Guide 2021

We appreciate that some of our readers are only looking for a quick guide explaining how they can buy their first steel stock. Well, we’ve got you covered! If you’d prefer a more detailed guide, you can find that toward the bottom of the page.

  • Step 1: Open an eToro account: The first thing you’ll need to do is open an account with a reputable broker. We recommend eToro. Simply navigate to “eToro.com”, press “Join Now” and fill in the form. 
  • Step 2: Verify your Identity: Once your account has been created, it’s time to verify it. You need to verify your identity because eToro is a regulated broker. All you’ll need is a photo ID (passport, driving license) and proof of address (bank statement, utility bill)
  • Step 3: Fund your account: Now that you’ve verified your account, you’ll need to fund it. Doing so is easy, 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 Steel Stocks: As soon as your account has been funded, you’re ready to buy steel stocks! Just type the name of the asset you’d like to purchase into eToro’s search bar, press “Trade”, type in the number of shares you’d like to buy, and press “Open Trade”. You can monitor your investment from the portfolio section of your account.

Where to Buy Steel Stocks – Top 3 Steel Brokers

Selecting a great broker is one of the most important parts of the stock buying process. If you don’t take the time to do the research here you can quickly find yourself locked into a subpar broker that charges exorbitant fees. So to make sure that doesn’t happen to our readers we’ve compiled our reviews on the top three steel stockbrokers in the US.

1. eToro – Best Overall Steel Stock Broker USA

Not many brokers can boast stats as impressive as eToro. They have a 15-year track record of delivering an excellent investment experience to their users and serve more than 20 million users, making them one of the largest brokerages in the world. Regardless of your skill level, you’ll be right at home with eToro.

Security & Privacy

Security is at the forefront of any reputable broker’s mind. If a platform skimps when it comes to security measures, it’s usually the users that pay for it. Seemingly eToro understands this as they’ve taken the time to ensure their platform is watertight. To prevent client data from being intercepted while it makes its way to the eToro central servers, SSL encryption is used, obscuring sensitive data before it can even leave a device. Another way eToro protects its users is by giving everyone the option of enabling 2-factor authentication, which acts as the last line of defence in the event of an account getting compromised. On top of all this, eToro also follows regulations outlined by the SEC to ensure the correct handling of client data and funds. 

Features

As we mentioned, eToro has something for everyone, regardless of skill level. This jack of all traders approach seems to be working if the size of their user base is anything to go by. Beginners can benefit from the eToro academy, an educational platform created to help educate people new to trading. Better-informed traders make better traders so this is a big plus in our eyes. eToro also provides its users with a social trading system called CopyTrading. This enables users to brush up on their trading strategies by automatically mirroring the trades of more experienced users. Lastly, eToro has excellent charting capabilities, meaning no matter how complex your trading strategy, you’ll be able to execute it with eToro. Overall, eToro is the perfect fit for investors of all skill levels and ticks the three main boxes investors look for in a brokerage; security, ease-of-use, and features. 

eToro Fees

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

 

Pros

  • eToro academy
  • SSL encryption
  • CopyTrading
  • Charting tools
  • Regulated
  • 2FA

Cons

  • MetaTrader support would be beneficial

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

2. Fidelity – Longest Standing Steel Stock Broker USA

One of the longest-standing brokers in the US, Fidelity opened its doors in 1946 and has managed to accumulate an impressive 37 million users across the globe. They’re more of a “traditional” brokerage than eToro and offer various investment products not found on many trading platforms like 401Ks and college savings accounts. 

Security & Privacy

With a 50+ year track record, it’s no surprise that Fidelity has gained insight into what investors are looking for in a platform. Fidelity is regulated by the SEC and offers its users great security. One of the ways this is achieved is by providing users with 24/7 phone support, meaning customer queries are solved quickly and nobody is left in the dark. On top of this, Fidelity uses voice biometrics to help verify a user’s identity, something that’s seldom seen in the world of FaceID and fingerprint scanners. Any device equipped with a microphone can use this system, making it far more accessible than some alternatives. 

Features

Fidelity might be the most comprehensive investment platform on our list. They allow users to trade in a variety of markets ranging from forex to options, making it a great platform for anyone heavily diversified. They have a team of analysts on deck to provide users with top-of-the-line market research, helping traders make better decisions on what stocks to buy. For technical or experienced traders, Fidelity offers a desktop trading platform that has just about every indicator and charting tool you can imagine. On top of this, people buying steel stocks with Fidelity may also be interested in the range of proprietary ETFs they offer, which range from bond ETFs to active equity ETFs. All in all, Fidelity is a great platform for experienced traders, however, it may be overly complex for true beginners. 

Fidelity Fees

Fee Type Fee Amount 
Commision Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Regulated
  • Voice biometrics
  • Phone support
  • Market research
  • Desktop trading with everything
  • ETFs

Cons

  • Too complex for true beginners

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

3. TD Ameritrade – Most Secure Steel Stock Trading Platform USA

TD Ameritrade is one of the best-known names in the US trading space, they were founded in 1975 and managed to accrue more than 11 million users. This success can be attributed partially to the top-of-the-line features they offer and also to the phenomenal service they provide. 

Security & Privacy

Once again, TD Ameritrade has pulled out the stops to make its platform as safe as possible for investors. Likely any reputable broker these days, they’re regulated by several leading authoritative bodies, most notably the SEC. To protect client data they have also implemented 128-bit SSL encryption, this prevents any hackers from using data they intercept. In addition to these features, TD Ameritrade provides a range of guides on online security, mainly covering topics like spotting scams and keeping your information safe. 

Features

As one of the best-known brokerages in the US, it makes sense that TD Ameritrade has the features to back up its status. They allow users to trade in a variety of markets including forex, bonds, and crypto. To help users get an answer to any issues they might be facing, TD Ameritrade offers 24/7 phone support and 24/5 technical support. If you like the sound of buying dividend-paying stocks then you’ll be happy to hear that TD Ameritrade allows users to set up automatic dividend reinvestments, which effectively acts in the same way as comping interest; certainly a nice bonus. And to finish things off, TD Ameritrade has created a trading platform called “thinkorswim” that is improved based on recommendations from those using it, in theory making it better suited to actual traders than a platform created solely by a brokerage. All said and done, TD Ameritrade is a great platform with some powerful features. However, it’ll likely be overshadowed by Fidelity for those with previous trading experience and by eToro for those looking for an easy-to-use, modern platform to buy steel stocks.

TD Ameritrade Fees

Fee Type Fee Amount 
Commission Fee 0% (on US stocks)
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • 128-bit SSL encryption
  • Guides on online safety
  • User verification phrase
  • 24/7 phone support
  • Thinkorswim
  • Range of markets

Cons

  • Could be confusing for beginners
  • High margin fees

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

Buy Steel Stocks – Broker Price Comparison

To help paint a clearer picture of how each broker stacks up against one another in terms of fees we’ve created this handy table. You should use this table in conjunction with our reviews to assist you in finding the perfect broker for your needs.

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Fidelity 0% $0 $0 $0
TD Ameritrade 0% (on US stocks) $0 $0 $0

 

Top 3 Best Steel Stocks USA

Now that we’ve given you the rundown on the best brokers you can use to buy steel stocks, it seems fitting we discuss some of the top steel stocks to invest in right now. 

Cleveland-Cliffs (CLF)

Cleveland-Cliffs (CLF) is a steel producer from Ohio. They operate in both the manufacturing and mining sectors, meaning they mine, refine, and craft the steel they produce, resulting in far lower costs. They sell to a range of industries including, construction, automotive, and distribution.

Advantages

If you’re looking to buy steel stocks that have great fundamentals, then you’ll be interested to hear about Cleveland-Cliffs. They’ve been growing rapidly over the past few years and seem poised to continue. Here are a few advantages to buying CLF stock.

Revenue Growth: Over the past few years Cleveland-Cliffs has increased its revenue dramatically. Their revenue has gone from just $1.91 billion in 2016 to more than $17 billion in 2021 marking an increase of almost 800%. 

Vertical Integration: In manufacturing, vertical integration tends to be the deciding factor for how quickly a company can grow. If a company is not vertically integrated, it will have to outsource a portion of the supply chain to an external company. However, if a company controls the means of production then it can better capitalize on market changes.

Disadvantages

Regardless of how good a company seems on paper, it’s always worth considering the negatives. For the most part, CLF seems pretty solid, but here’s a reason why all might not be as rosy as it seems.

Steel Prices: Although CLF has managed to increase its revenue quickly, much of this success can be attributed to steel prices rising sharply. As CLF is vertically integrated well, they were in a great position to capitalize on rising steel prices. However, once the price inevitably drops back down, CLF’s revenue is likely to follow. Meaning investor expectations are unlikely to be met over the long term. 

ArcelorMittal (MT)

ArcelorMittal (MT) is the combination of Europe’s Arcelor and Mittal Steel of India, formed in a 2006 merger. They have production facilities all over the globe and export to a ton of countries. Their refinery powers a large portion of the steel production in emerging economies. 

Advantages

If you’re wondering if you should be MT stock, you’re not alone. Investors have been wanting to get in the action for a while, meaning it could be a good time to buy. Here are a few factors that might help you make a decision. 

Production: ArcelorMittal operates in markets all over the world and produces a range of steel products that are exported globally. They also own several mining operations and boast some of the top blast furnace capabilities. Meaning they’re excellent at efficiently producing steel products.

Emerging Markets: Typically, the manufacturing of metals can be broken down into two segments, mining/smelting, and manufacturing. If a company doesn’t have the capabilities to refine their ore, that’s where a company like ArcelorMittal comes in. They operate blast furnaces that produce a large portion of the steel used in the developing world. This is a big plus for MT as the developing world is where steel demand is projected to be highest for the next few years.

Disadvantages

Every investment comes with pros and cons, the ability to critically weigh them against one another is part of what makes a successful investor. So, to help our readers make a better-informed decision here’s why investing in MT might not be a great idea. 

Volatility: Despite the past few years being rather positive for the price of MT, it’s still trading below its 2017 highs. Although MT has managed to regain most of its success, it hasn’t been an easy road. The MT share price seems to swing fairly often, making it quite a volatile stock. 

VanEck Vectors Steel ETF (SLX)

The VanEck Vectors Steel ETF (SLX) is an ETF designed to mirror the NYSE Arca Steel index as closely as possible. This is achieved by holding stocks contained within this index. ETFs tend to be great for anyone that cannot afford to take on much risk and needs a safe place to store their wealth. 

Advantages

The VanEck Vectors Steel ETF presents a great opportunity for anyone looking for a low-risk investment. Here are a few advantages to investing in SLX.

Diversification: ETFs are loved by investors looking for an easy way to diversify their portfolios. They provide exposure to a variety of companies, greatly reducing your chance of taking on large losses. A few of the companies with the highest weighting in the SLX ETF are RIO TINTO PLC (14.24%), VALE SA (11.97%), and the company we just discussed, ARCELORMITTAL SA (8.28%).

Low Risk: ETFs are typically regarded as low risk because if one company has a poor year or goes into insolvency, the others within the fund will help to bolster the ETF’s overall price. Meaning SLX could be a great purchase for anyone looking for a safe investment or wanting to save for retirement.

Disadvantages

To help you decide on whether investing in an ETF is right for you, we’ve broken down a few disadvantages to buying SLX. 

Low Returns: The saying “with risk comes reward” rings true in the ETF space. While they provide a great way to safely accumulate wealth, they’re typically outperformed by most other investment types. Therefore, it’s worth considering whether you can afford to take on the additional risk and buy steel stocks directly in one of two companies.  

Underlying Assets: When you invest in an ETF, you’re not purchasing any of the underlying assets and instead investing in a portion of the fund’s value. While there won’t be a huge amount of difference in practice, it’s worth noting. 

How to Buy Steel Stocks with eToro

If you’re new to the investment space and need a helping hand to buy steel stock, we’ve got you covered! It’s no secret that buying stock tends to be pretty complicated at first, so to help our readers get it right the first time, we’ve included this detailed guide, complete with pictures. 

Step 1: Open an account with eToro

Before you can buy steel stock, you’ll need to create an account with a reputable brokerage. We recommend eToro as they offer an excellent balance between ease-of-use, security, and features. To get started just type “eToro.com” into your browser, press “Join Now” and fill in the form. 

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

Step 2: Verify your account

After you’ve created an account with eToro, you’ll need to verify it. This is because eToro is a regulated broker, meaning users can enjoy several security benefits. Verifying your account is a simple process and can be completed in just a couple of minutes. All you’ll need at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).

Step 3: Fund your account

Once you’ve verified your eToro account, you’ve only got one more step to complete before buying steel stock! To buy stock, you’ll need to fund your account. Just click on the button marked “Deposit Funds”, enter however much you plan on investing, and press “Deposit”. The funds will appear in your account shortly after. If you’re wondering which payment methods eToro supports, you can deposit using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Buy Steel Stocks!

As soon as your account has been funded, you’re ready to buy steel 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 monitor and manage your investment from the “Portfolio” section of your account. 

 

Conclusion

The steel industry is huge. It bleeds into pretty much every industry that requires strong materials to build something. When you look at how fast countries are growing, particularly within the developing world, it seems unlikely that the demand for steel will decrease any time soon. In fact, with many US steelworks bouncing back quickly after the pandemic, it seems the sector might even be primed to explode. Meaning it could potentially be the perfect time to start buying steel stock to build up positions. If you want to get a piece of the pie, you’ll need to make your you’re investing with the best broker possible. If you’re still unsure which one is right for you, then we recommend eToro as they offer an excellent blend of security, simplicity, and features. All in all, if you’re looking to buy steel stocks, there’s no time like the present. 

eToro – Best Broker to Buy Steel Stocks

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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.