How to Invest in Facebook UK – Invest in Facebook Shares Today!
Facebook is a trillion-dollar social networking firm that also owns a number of well-known subsidiaries, such as WhatsApp and Instagram. If you want to access shares in this company, you need entry into the NASDAQ stock market, which is located in the US.
Today we are going to explain how to invest in Facebook in the UK. This guide will provide you with a full breakdown of the best stockbrokers for this purpose, alongside sign-up instructions to buy FB shares at 0% commission!
#1 Stockbroker to Invest in Facebook UK – eToro
How To Invest in Facebook UK – Choose a Stockbroker
Never before has it been easier to access the US stock markets. The first hurdle to invest in Facebook in the UK is finding a credible platform from which to buy shares, in a cost-effective and safe manner.
See the best stock brokers to access Facebook shares in the UK below:
- eToro – Overall Best Place to Invest in Facebook UK
- Capital.com – Trade Facebook Shares in the UK at 0% Commission
- AvaTrade – Invest in Facebook via Leveraged CFDs
After the following guide on how to invest in Facebook shares with an online broker, we review the platforms listed above. This should help you decide on the best stockbroker for your needs.
How to Invest in Facebook UK – A Quick Guide For 2021
If you are a beginner and are worried that signing up with a stockbroker is going to be complicated, don’t be. You will see below a super-simple guide to sign up and invest in Facebook in 5 steps.
We opted for eToro, not least because the platform is stress-free to navigate. You can invest in Facebook shares at 0% commission, and for safety, eToro is regulated by the FCA.
- Step 1: Open an Account with eToro – Signing up couldn’t be more simple. Go to the eToro platform and make a new account by clicking ‘Join Now’. Complete your name, date of birth, residential address, and nationality. You will also need to fill in your chosen password and username
- Step 2: Upload Your ID – The best stockbrokers in the UK are regulated by the FCA and give you access to the US markets. eToro falls into this category. As such, you can spend a minute or so uploading some ID and proof of the address you provided. A passport or official photo ID will be accepted, as will a bank statement or bill showing your home address and full name. eToro will quickly validate your ID so that you can invest in Facebook shares
- Step 3: Deposit Funds – To make an investment in Facebook, you will need some funds in your account to place a trading order. eToro accepts deposits via major credit cards, debit cards, e-wallets like PayPal, and the slower option of wire transfer. Enter your payment details and the amount to deposit before confirming. This should be a minimum of $50 (around £36)
- Step 4: Search for Facebook – When eToro has credited your account, you can find Facebook shares by typing the company into the search bar on the main dashboard. Click ‘Trade’ to make the order box appear
- Step 5: Invest in Facebook – eToro offers 2,500+ share markets, so ensure it says ‘BUY FB’ at the top of the pop-up. Complete the ‘Amount’ box by entering a value. You can invest in Facebook in the UK from just $50 at eToro
Click ‘Open Trade’ and the stockbroker will execute your trading order immediately, at the next best market price. You will find the Facebook shares you’ve purchased in your portfolio.
Note: FB stock is listed on the NASDAQ in the US. If you place an order to invest in Facebook in the UK outside of 14:30 and 21:00 GMT, you will see ‘Market Closed’. You can still enter the required details such as the amount to invest, and eToro will execute your purchase when the US stock markets reopen. In this scenario, just hit ‘Set Order’, instead of ‘Open Trade’.
67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Invest in Facebook UK – Full Stockbroker Reviews
Facebook is one of the world’s most recognized companies, so tracking down a suitable stockbroker in the UK won’t be an issue. However, it’s crucial you choose carefully. The most convenient and secure option is usually to opt for a broker with tons of markets, low fees, and regulation from a tier-1 body like the FCA.
1. eToro – Overall Best Place to Invest in Facebook UK
If you are looking for a user-friendly and low-cost experience when hitting local and international marketplaces, eToro provides a great service. The broker looks after over 20 million clients and offers access to 2,500 stocks. The listed stock exchanges include the NASDAQ, NYSE, and LSE, as well as markets in Brussels, Hong Kong, Stockholm, Frankfurt, and many others. You can invest in Facebook from just $50 at eToro, which is also the minimum deposit amount.
Locating your chosen stock is simple here, as eToro is beginner friendly and the search bar is responsive. Furthermore, you can invest in Facebook whilst paying 0% commission. This means you can buy shares and only pay a competitive spread. There is a low conversion fee of 0.5% to factor in. This is only charged when you make a deposit because the platform operates in USD. As such, this saves you the hassle of exchanging your British pounds first.
If you develop an interest in UK stocks later, this broker waivers the stamp duty fee usually charged for each transaction. There is a long list of supported payment types at eToro, including convenient e-wallets like PayPal and Skrill. You may also elect to make a deposit using a credit or debit card, or a wire transfer. You should only choose the latter if you are willing to wait for the deposit to reach your account, as it can take up to 5 working days. The FCA regulates eToro and the broker is also covered by the FSCS.
eToro offers a significant feature aimed at investors who don’t mind the hands-off approach – Copy Trading. Like the idea of buying shares without putting in the work yourself? You can simply invest in a seasoned stock trader with impressive gains. Let’s offer an example; you invest $1,000 in MrStocks123; they place a buy order on FB totaling 50% of their equity, and 10% on AAPL. As its proportionate, you now have $500 allocated to Facebook and $100 to Apple.
- Invest in stocks at 0% commission and ZERO stamp duty
- Minimum investment per stock investment is $50
- Supports debit/credit cards, e-wallets, and UK 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 Facebook Shares in the UK at 0% Commission
The FCA regulates Capital.com, and this broker offers access to the US stock markets in a different way. Put simply, when you buy Facebook shares here, they come in the form of CFDs (Contracts for Difference). CFDs offer a flexible investment vehicle that tracks the underlying market value. You won’t own any real shares. This allows you to trade Facebook, but with your position established from your prediction of its future value.
For instance, let’s say Facebook makes an announcement and you think the share price will fall as a result. You can place a sell order to capitalize on its predicted decline. If the price drops and you cash out, you make gains. On the other hand, you can still place a buy order if you think FB shares will see a price increase in the future. CFDs will suit you if you want to trade in the short term. You can also leverage your stake in Facebook shares by up to 1:5.
If you have £100 to invest in Facebook stock but want more buying power, 1:5 leverage will boost your position to £500. Beginners should be cautious. If you speculate incorrectly, you have also leveraged your losses. Nevertheless, you can trade Facebook CFDs here on a commission-free basis. The spread is fairly tight and the minimum deposit stands at just £20 for e-wallets and debit and credit cards from major providers. Bank transfers require a minimum of £250.
- 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 – Invest in Facebook via Leveraged CFDs
AvaTrade operates under several regulatory bodies, including ASIC (Australia). This broker also offers access to Facebook shares via CFDs. As is the case at the aforementioned Capital.com, you can leverage any position you take on stocks, with a ratio of up to 1:5. Again, proceed with caution if you opt to use leverage. The platform offers 0% commission on Facebook shares, plus; the spread is fairly competitive site-wide.
In addition to the biggest stock exchanges in the US, you can also trade other marketplaces here, covering the UK, Europe, and more. With multilingual support and an easy-to-use website, this broker is suitable for newbies. The minimum deposit here is higher at £100. However, when you’re ready to add funds, there are multiple payment methods accepted. This consists of wire transfers, credit and debit cards, and e-payments, including Skrill.
If you would like to use trading tools such as charts and technical indicators, and access more share CFDs – link AvaTrade to MT4. This enables you to trade Facebook shares from any web browser of your choice and use the free demo account. MT4 also makes it easier to set up trading orders with pre-defined targets and stop losses. Beginners might want to check out the educational content via the main AvaTrade platform, which includes tuition on CFDs.
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
How to Invest in Facebook UK – Detailed & Explained in Full
We provided a super-quick walkthrough of how to sign up with eToro and invest in Facebook at the beginning of this guide. However, those who need it can find more detailed instructions next. This covers the ins and outs of creating an account with regulated broker eToro, and how to invest in Facebook in the UK today at 0% commission.
Step 1: Open a Stockbroker Account
Upon visiting the eToro website, you can open a stockbroker account by selecting ‘Join Now’ and filling in your name. As you can see below, you will also need to think up a unique username and password and tell the broker your email address and mobile number.
You will also be prompted to provide your full address, place of citizenship, and date of birth. This is standard practice with licensed stock trading platforms, as it enables them to get a clearer picture of who you are.
As part of the KYC process, eToro will also require you to provide confirmation of your residence and ID in order to invest in Facebook in the UK. Don’t worry, this takes next to no time, and this platform accepts plenty of documents. The vast majority of investors upload a copy of a passport as a photo ID and a bank statement for the residence side of things. Feel free to check eToro for more options.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Deposit Investment Funds
When you elect to invest in Facebook in the UK, you will need to make a deposit first. This is simple at eToro, as the platform is easily accessible and is able to support numerous cards and payment types.
This consists of e-wallets such as Neteller, Skrill, and PayPal. Other deposit options include debit and credit cards, Rapid Transfer, and bank transfer. Note that the latter may hold up your ability to invest in Facebook shares for between 4 and 7 days, as it takes a while to process.
Fill in all relevant boxes, including the amount to deposit, and click ‘Next’ to proceed. As we mentioned, eToro operates using US dollars. As such, bear in mind that you will be charged 0.5% of your deposit to convert British pounds to US dollars. To give you a clearer indication of what to expect, that’s only £5 for every £1,000 you fund your account with.
Step 3: Search for Facebook
Now that you have some funds in your account, you can search for Facebook and buy some shares. As we touched on, the eToro site is super-responsive. Type Facebook into the search bar and you will see your chosen market appear.
When you are sure you are hovering over the correct market, click ‘Trade’ to confirm you want to invest in Facebook.
Step 4: Invest in Facebook UK
In the pop-up window that appears, you should see ‘BUY FB’ at the top. This is your order box to invest in Facebook shares. As such, think about how much you can realistically allocate to invest in Facebook, and enter that number in the space that says ‘Amount’.
eToro makes investing in Facebook in the UK easy, for any budget. You can buy fractional shares from just $50, which, as we said, is around £36. At this time, in mid-October 2021, $50 would buy you around 0.15 units. If you are placing your order when the markets are open, just hit ‘Open Trade’ to buy shares immediately.
Note: Click ‘Set Order’ if you are creating this position outside of US stock trading hours (14:30-21:00 GMT). The broker will complete your transaction the moment the NASDAQ reopens for trading.
Step 5: How to Sell Facebook Shares UK
As you’ve no doubt realized by now when you elect to learn how to invest in Facebook in the UK, choosing the right broker is key. This will also make selling FB shares easier.
Below, we shed some light on how to sell Facebook shares in the UK:
- Go to the eToro platform
- Sign in using the username and password you entered when creating an account
- Head to your portfolio and view the markets you’ve invested in
- Click ‘Facebook’ and place a sell order
- eToro will repurchase the Facebook stock from you
Note that if you only want to sell some of your FB shares, you can just enter the specific monetary amount you want to cash out. You will find the proceeds are available as trading equity in your account. This is when you may make a withdrawal or reinvest, the choice is yours.
Buy Facebook Shares UK – Best Place to Invest in Facebook UK
As Facebook is such a well-known company, and many stockbrokers have access to international markets, there are tons of options out there. Tread carefully, as some platforms charge outrageous trading fees, offer sloppy customer service, and may not look after your funds.
The best place to invest in Facebook in the UK should tick the following boxes:
- The stockbroker can provide access to the UK and international markets, including the NASDAQ
- Getting around the trading platform is easy and placing orders is uncomplicated
- The platform charges affordable fees to invest in Facebook in the UK
- When it’s time to fund your account, you know there are plenty of payment types supported
- The stockbroker has the approval of at least one regulatory body – a license from the FCA is a great start
eToro came out on top when we reviewed the best places to invest in Facebook. You will find 2,500+ stocks at this brokerage. The site is super user-friendly, and you can invest in Facebook, as well as other stocks and ETFs, with 0% commission and low spreads.
eToro supports a varied list of deposit methods. Moreover, you only need to pay a small fee of 0.5% to convert to US dollars, which is what your account will be denominated in. Last but not least, the FCA and other respected regulatory bodies provide licenses to eToro.
Is Facebook a Good Stock to Buy?
Mark Zuckerberg’s social media journey began life in a dorm room in a university in Massachusetts. The company transformed into a global social networking site in just a couple of years, and now has a market value of over $1 trillion.
Next, let’s take a look at the company’s share price history and some other factors, to aid you in deciding whether Facebook is a good stock buy.
Facebook Stock Price History
When you seek to invest in Facebook or any other company, you should take a look at its stock price history. To save you some legwork, we’ve investigated the company’s growth since its inception. Facebook’s initial IPO was held on May 18th, 2012.
Let’s breakdown how things have progressed since then:
- At the time of its first listing, FB shares were priced at $38
- Just a few months later, by the end of August 2012, Facebook was trading at just $18
- At the end of October 2015, Facebook shares rose to triple figures and were priced at $102 each
- By late June 2018, FB was trading 97% higher, at $201
- By the end of December, the same year, the stock had fallen to $124
- Fast forward to late January 2020, and Facebook shares had picked back up and were trading at $217
- Despite a drop to $149 in March 2020, Facebook steadily increased, trading between $200 and $300
- Today, in late October 2021, Facebook share costs $324 each
If you are wondering why a company’s stock price history matters, it can give you some insight into what the future might bring. For instance, let’s suppose you learned how to invest in Facebook in the UK in August 2012, when each share was $18. Imagine you bought 100 Facebook shares, costing a total of $1,800.
Facebook has never actioned a stock split. As such, your $180 investment would now be worth around $32,400. This represents an increase of 1,700%!
If you invest in Facebook shares today and the company’s anticipated growth is anything to go by, there is no telling how much you could make later down the line. With that said, it’s important to carry out in-depth research of your own before risking any funds.
Does Facebook Pay Dividends?
Like a few other big US tech companies listed on the NASDAQ, Facebook does not pay dividends to shareholders and never has. Some market commentators have been calling for the company to pass on profits to investors for many years. With that said, the reasons are not too dissimilar to other large-cap companies, like Amazon.
That is to say, Facebook chooses to reinvest its profits for company expansion/growth, which in turn should be good for you as a shareholder. With that said, although Facebook has stated they will not pay dividends for the foreseeable future, that’s not to say the company never will.
Should I Invest in Facebook?
The decision of whether you should invest in Facebook in the UK ultimately falls down to you. Having said that, it can be hard to see the wood for the trees when researching investment opportunities.
As such, we have revealed a few reasons you may choose to invest in Facebook shares below.
Facebook Shares are Still Fairly Inexpensive
Considering the power of this company, which recently hit a market cap of over $1 trillion, it’s possible to invest in Facebook in the UK at a relatively economical price. If the company’s price-to-earnings ratio of 35 is anything to go by, it’s not exactly cheap to buy a share but is certainly competitive.
Furthermore, even if you would rather not spend over $300 on Facebook shares, the best stock brokers offer the option of fractional investments. eToro for example will let you invest in Facebook shares in the UK from just $50, which equates to a mere £36.
Facebook is a Trillion-Dollar Company
When you research how to invest in Facebook shares in the UK, you will soon realize you are dealing with a highly profitable conglomerate.
- Facebook’s business model allows it to make a profit for each and every user, which is impressive
- In fact, in the second quarter of 2021, the corporation made a profit of $10.12 for each user, of which there are almost 3 billion
- That’s 43% higher than its revenue per user the year before
- Facebook makes around 98% of its returns from advertising
- In 2020, Facebook raked in over $84 billion in advertising
- By the second quarter of 2021, the company’s advertising revenue was $28.5 billion. This was 56% higher than the previous year
- In the second quarter of 2021, Facebook also converted 29% of its $28.5 billion revenue into free cash flow (FCF). This equated to $8.8 billion in FCF
As we touched on earlier, from its first IPO back in 2004 to late 2021, Facebook shares have since increased by over 1,700%. Furthermore, if you invest in Facebook shares in the UK, you are not only buying into its social networking site, but also other products. The broader presence of Facebook is still growing, as we discuss next.
Facebook is Always Evolving
Another potential reason to invest in Facebook is the string of other products the company has purchased over the years. As we said, this company is somewhat of a conglomerate. In 2012, the company bought the hugely popular video and photo sharing network Instagram, costing over $1 billion in stock and cash.
Just two years later, in 2014, Facebook acquired a well-known messaging app called WhatsApp. As you likely know, WhatsApp is one of the market leaders in messaging services. This transaction set the company back $16 billion in cash and stock. To put these acquisitions into perspective; Instagram has over a billion users, and Whatsapp boasts well over 2 billion.
- The growth of Instagram’s revenue is on the rise, and advertising brings in billions of dollars
- There is an ever-rising trend of ‘social influencers’, known for using platforms such as Instagram to endorse products and services
- These people use social media to attract millions of followers
- Instagram is one of the market leaders in so-called ‘influencer marketing’
- Facebook also owns virtual reality headset maker Oculus
- In the first quarter of 2021, augmented reality headsets experienced a growth of over 50%
At least once a month, Facebook’s products are used by a third of the world’s population. If WhatsApp, Instagram, and Oculus forecasts for 2025 are to become a reality, now could be a good time to invest in Facebook. Just make sure you do your homework before allocating any funds.
Ways to Invest in Facebook UK
When you are getting a grasp of how to invest in Facebook in the UK, you will also need to consider the ways in which this is possible. By this, we mean payment methods.
See below for some more insight.
Invest in Facebook With Debit Card
If the platform of your choosing supports debit cards, then you can usually invest in Facebook instantly. eToro is compatible with deposits via Mastercard, Visa, Maestro, and Visa Electron.
Invest in Facebook With Credit Card
No two stockbrokers are the same when it comes to payment methods, so check what’s supported. eToro accepts all major credit cards.
Invest in Facebook With Paypal
If you wish to use PayPal as a funding method, check out your chosen broker’s website to see if it’s listed. eToro fully supports PayPal to invest in Facebook. As with any deposit method used at eToro, you will only need to pay a small 0.5% FX fee to fund your account.
Risks of Investing in Facebook in the UK?
When you are taking the time to learn how to invest in Facebook in the UK, it’s vital that you understand the risks you face. The most obvious danger is that you invest in Facebook shares and lose a lot of money, but there are other aspects to consider.
- If you sign up with an unregulated broker, there is the possibility that the site is not regulated, and your money will not be taken care of
- There is always the slight chance that a new social media company could take over the market, pulling the rug from under Facebook
- If advertisers stopped working with Facebook, the company would lose a large chunk of its revenue
- By putting all of your eggs in one basket and choosing to invest solely in Facebook, you face the real risk of being overexposed to a single market
To dilute some of these risks, you can invest in Facebook by joining an FCA-regulated space, such as eToro. This broker enables you to buy shares in over 2,500 alternative markets, with 0% commission and just the spread to pay.
The Cost of Investing in Facebook in the UK?
There will be a price to pay for entering the US stock markets to invest in Facebook in the UK. How much you pay will rest on the brokerage firm you sign up with, and also the payment type you opt for.
Brokerage Deposit Fees
When you sign up with a stockbroker to invest in Facebook shares in the UK, you will find that many stipulate a fee to execute deposit transactions. This will understandably vary. It can be down to the provider of the particular payment method you use as well.
Whether you opt for a credit or debit card, or an e-wallet like PayPal, eToro will only ever charge you 0.5%, which is £0.50 for every £100.
Share Dealing Fees
The vast majority of stockbrokers charge share dealing fees, payable on every sell or buy order.
- If you trade stocks at Halifax, you will pay a dealing commission of £9.50 per trade
- Over at Hargreaves Lansdown, you can pay anywhere up to £11.95 for a stock deal
- Regulated stockbroker eToro takes on the share dealing fee – meaning you pay ZERO
As such, at eToro, all you need to pay each time you invest in Facebook in the UK is the spread, which is tight. This is because the broker is 100% commission-free when buying and selling stocks.
As you are seeking to invest in Facebook in the UK, you will know that this company is listed on the NASDAQ in New York. As such, you will find share prices are quoted to you in US dollars. Many brokers charge hefty fees to convert GBP to USD.
How to Invest in Facebook UK – Conclusion
When you become more knowledgeable on how to invest in Facebook in the UK and feel ready to get started, make sure you select a stockbroker carefully. Some charge hefty fees, while others might only offer access to the UK stock markets or may not support your desired deposit method.
As such, there is a lot to think about. To save you some legwork, we analyzed the best stockbrokers in the UK with access to the NASDAQ. The FCA approves of eToro and so do we. In fact, the broker holds licenses from three regulatory bodies, spanning the UK, Australia, and Cyprus.
eToro supports a multitude of payment types to buy Facebook shares. This comprises wire transfers, e-wallets, and also credit and debit cards. You can invest from $50 and buy a fraction of a Facebook share. Furthermore, you will pay a 0% commission on both stocks and ETFs.