How To Invest In Netflix UK – Investing in Netflix For Beginners 2021
Looking to invest in Netflix? Well then, this guide is for you! It’s no secret that during the pandemic Netflix increased its revenue by over 30%, and with the increased success of Netflix originals, it could be an excellent time to invest in Netflix before the stock price shoots even higher. Throughout this guide, we’ll discuss some of the merits and risks associated with investing in Netflix, give you our top 3 Netflix brokers, and provide a detailed guide on how you can start investing today!
#1 Broker to Buy Netflix – eToro
How to Invest in Netflix – Step by Step Guide 2021.
If you’re wanting a quick and simple explanation on how you can start investing with our top broker, eToro, then you’re in the right place. Below, we’ve broken down exactly how you can start investing in Netflix in just a few minutes.
- Step 1: Open an eToro account: The first thing you’ll need to do is register with eToro. Just type “eToro.com” into your browser, press “Join Now” and complete the sign-up form.
- Step 2: Verify your Identity: Because eToro is a regulated platform you’ll need to verify your identity. All you’ll need is a photo ID (passport, driving licence) and proof of address (utility bill, bank statement).
- Step 3: Fund your account: Once your account has been verified, you’ll need to deposit funds. You can do this one of three ways: credit/debit card, bank transfer, or e-wallet.
- Step 4: Invest in Netflix: Now that your account has funds, simply type “Netflix” into the search bar, press “trade”, enter the amount you want to invest, and press “buy”.
Where to Invest in Netflix – Choose a Broker
Choosing a reputable broker is one of the most important aspects of investing, unfortunately, there’s a lot of conflicting information out there. This is why we’ve created this handy list of the best brokerages when it comes to investing in Netflix.
1. eToro – Overall Best UK Netflix Broker
If you’ve spent any time looking into brokers, it wouldn’t be a surprise if you’ve heard the name eToro thrown around. Launched in 2007, eToro has grown to be one the premier brokerages, allowing users to trade in a range of markets, from Forex to Stocks and commodities. An almost 15-year track record means that when investing with eToro you needn’t worry about the safety of your funds.
Security & Privacy
One area the team at eToro takes special pride in is security. As a platform regulated by both the FCA and CySEC, eToro has to comply with strict rules surrounding the protection of customers, their data, and funds, this ensures that there’s nothing strange going on behind the scenes. To continue the theme of data protection, any sensitive information you provide eToro is protected with SSL encryption, ensuring your data cannot be intercepted. And to round off, eToro allows users to enable an additional layer of protection in the form of 2FA, preventing any unwanted account access.
Fees & Features
An excellent platform for anyone, from beginners to experienced traders, eToro has several features that differentiate it from others on this list. The first is copy trading, a way of automatically mirroring the trades of more experienced users, this allows you to earn a passive income without much experience. In addition to this, they also give users the option of investing in managed portfolios, a group of assets bundled together, this allows you to have a balanced portfolio without spending hours researching.
|Fee Type||Fee Amount|
|Inactivity Fee||£10 (Monthly)|
- Copy trading
- Managed portfolios
- Great security
- SSL encryption
- Lacking support for MetaTrader
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Best CFD Platform to invest in Netflix
Capital.com is one the largest brokers in the UK and it didn’t get this status from treating users or their funds poorly. Since its launch in 2016, Capital.com has focused on educating traders allowing them to see greater profits and reduce risk. Because of this, they have gained a loyal customer base of over 800,000.
Security & Privacy
In order to protect its customers, Capital.com has implemented a number of strict security procedures. As another regulated platform, Capital.com is subject to the same strict rules outlined by the FCA and CysEC, this ensures any Capital.com customers don’t have to worry about the safety of the platform. Any sensitive information you’re required to provide Capital.com is encrypted using Transport Layer Security, preventing nefarious individuals from stealing your information. If all that wasn’t enough to reassure you how safe Capital.com is, they oven offer UK-based users insurance on balances up to £85,000, meaning you won’t be left out of pocket if something were to happen to Capital.com
Fees & Features
As we touched on, Capital.com gives value to its customers by helping educate them, making people better traders, this works 2-fold, when people are making money they’ll trade more, and stay a Capital.com customer for longer. Therefore it makes sense for Capital.com to offer such a huge amount of educational material and market research, providing users with full trading guides as well as guides on the different markets. To further entice both new and experienced traders, Capital.com offers commission-free trading and no inactivity fee, allowing investors to get the most from their money.
- Educational material
- Good security
- Practice account
- You’re limited to trading stocks & CFDs
76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Great Alternative Way to Invest in Netflix
Since its launch in 2006, AvaTrade is the longest-serving platform on our list and has been steadily gaining customers, thanks to its status as a reputable trading platform. They offer users a great all-around platform that is perfect for both new and experienced traders. As with all platforms on this list, AvaTrade is regulated by the FCA, meaning you’re in safe hands when trading on their platform.
Security & Privacy
One of the most important aspects of any trading platform is security. The team at AvaTrade takes care to ensure customers don’t have to concern themselves with security, they’re regulated by the FCA meaning the strictest data protection regulations are in place, boast 256-bit SSL encryption for sensitive information, and even utilise McAfee secure to protect any identity or card information you might have to provide.
Fees & Features
Despite not having many unique features, AvaTrade manages to retain the title of a great all-around platform for anyone looking to invest in Netflix, by offering users a phenomenal all-around experience. There are no trading fees on the platform (outside of a tiny spread fee), meaning you won’t be losing unreasonable amounts just for placing a trade. The only lackluster aspect of AvaTrade is the extremely high inactive fees, if you go 3 months without trading you’ll be charged £50, after 12 months £100, not ideal for anyone looking for a platform to make casual investments.
|Fee Type||Fee Amount|
|Inactivity Fee||£50 after 3 months & £100 after 12 months|
- Great all-around platform to invest in Netflix
- McAfee Secure
- 256-bit SSL encryption
- Extremely high inactivity fees
- Could do with some additional educational material
Your Capital is at Risk.
Invest in Netflix UK – Broker Price Comparison
After reading through our full-length reviews on the best platforms to invest in Netflix, you’re likely trying to decide which is best for you. To make it easier, we’ve included this easy-to-reference table comparing fees.
|Broker||Commission||Deposit Fee||Withdrawal Fee||Inactivity Fee|
|eToro||0%||£0||£0||£10 monthly (after 12 months inactivity)|
|AvaTrade||0%||£0||£0||£50 after 3 months, £100 after 12 months|
What are the Different Kinds of Stocks?
If you’re new to investing then it’s easy to get spun out by all the financial jargon trading platforms like to throw at you. To prevent this from happening to any of our readers we’ve created this useful section to explain the differences between the different types of stocks you might find yourself wanting to trade.
Investing in stocks (or shares) is one of the most common ways you can invest in a company. When you’re investing in a company’s stock, you’re buying a fraction of the company, technically making you a part-owner, pretty cool right? Because buying stocks is essentially buying a fraction of a company, it comes with some great benefits. If you purchase enough shares you might start to receive quarterly/yearly dividend payments, which is a company’s way of paying a portion of its profits forward to investors. Once again, if you purchase enough shares you can get voting rights, allowing you to help shape the future of the company you’re investing in.
ETFs (Exchange Traded Funds)
An ETF, otherwise known as an exchange-traded fund, is commonly a group of related assets bundled together, to allow for easy investment. Typically a brokerage or fund is the one to create this group of assets. When you invest in an ETF, you’re essentially buying a fraction of every asset in the group, earning money if the underlying stocks increase in value. Due to this, you can once again receive dividends from the companies you’re invested in (if the fund passes them on), which can end up generating a reasonable amount of passive income.
CFDs (Contract For Difference)
The 3rd type of investment we’ll speak about is a CFD or contract for difference. This type of investment works a little bit differently from the others we’ve previously mentioned. Instead of investing directly in a company or bundle of companies, you speculate on if the stock price will increase or decrease, earning the difference between your entry and exit. Typically, because you will be trying to make money on small price changes, you would use leverage to magnify your profits. As with any leveraged instrument, you should only use leveraged CFDs when you have some trading experience, as it can lead to serious losses. Another important thing to note is when trading a CFD you don’t own any of the underlying assets.
Best Ways to Invest in Netflix UK
It’s important to research which way of investing will be right for you. The best way to invest will depend heavily on your personal risk tolerance and trading strategy. To make it easier to decide which financial instrument is perfect for you, we’ve explained who can best benefit from each.
Invest in Netflix CFDs
If you’re looking to make day trade or short-term investments it doesn’t get much better than trading CFDs. When trading a CFD, you don’t have to worry about the long-term prospects of a company, typically this is best suited to technical traders, although you can certainly still make huge profits by trading using the news. Because trading CFDs has a greater reliance on technical indicators it can be a bit daunting for new traders, especially when combined with leverage, which can cause nasty profits if you don’t know what you’re doing. When you invest in a CFD you don’t own any of the company, meaning you don’t gain any assets from investing with CFDs.
Invest in Netflix ETFs
When you’re looking to hold your investment a bit longer than a CFD but not as long as a stock, an ETF might be the best bet for you. By investing in an ETF, you’re hedging your bets, meaning you greatly reduce your risk when compared to stocks or CFDs. An ETF will generally still provide fairly stress-free and steady gains, operating in a very similar fashion to a stock. If you’re an experienced trader looking to amplify your profits, you’re not limited to CFDs, some funds will allow you to invest in a leveraged ETF, although it’s far less common than in CFD trading. Similar to a CFD, if you invest in an ETF you have no ownership of the actual companies.
Invest in Netflix Stocks
If you’re looking to build long-term wealth, then investing in stocks is most likely the best approach for you. Generally, because investing in stocks is a longer-term bet than a CFD/ETF, it pays to do a fair bit of research into the company. If you’re a big fan of the company, then investing in stocks technically makes you a part-owner and as we touched on earlier, gives you voting rights, letting you have some say in the direction of the company.
Is Netflix a good investment UK?
The streaming sector is only growing and was catapulted even further by the pandemic forcing cinemas to close their doors. This forced cinema-goers online, potentially marking a turning point in how we consume media. As streaming continues to grow there’s more and more reason for Hollywood to work directly with streaming services, should this trend continue there’s no telling how far a platform like Netflix could go.
Streaming is More Popular Than Ever
Gone are the days of travelling to Blockbuster for a weekly movie rental, streaming has replaced the need for movie mental business and while somewhat unfortunate it’s easy to see why. After all, what’s not to love about streaming content from the comfort of your own home? During the Coronavirus pandemic streaming has become even more prevalent, with some films being premiered on streaming sites alongside cinemas, marking a turning point in our media consumption. Although a portion of this rise in popularity can be attributed to cinemas being closed, it’s certainly a step in the right direction for Netflix investors.
First Mover Advantage
Netflix has been around since 1997 although only in the form we know and love as of 2007, still, this makes them an original streaming service, and with this comes a big advantage. Despite the fact that pretty much every media company has begun releasing their own streaming service, Netflix has been swooping up licences and customers for far longer, providing them a loyal customer base and a solid variety of content. Clearly, the first-mover advantage has been working well for Netflix because they’re still the largest streaming service by market, followed by Amazon Prime.
Investing in Netflix – What are the Risks
In 2021, streaming is a more competitive sector than ever before, with a lot of huge companies trying to capitalise on the growing sector. Netflix does have the distinct advantage of being highly specialised in streaming, but this might not be enough for the long term. It’s important to consider if you think Netflix will still be dominating streaming in a few years time.
Competition with Deep Pockets
It’s no secret that big names are getting into the streaming space, and while this is great for consumers, it’s the opposite for companies like Netflix. Despite now being a $100 billion company, Netflix has had to fight to get there, while competitors with seemingly infinite cash reserves have jumped on the bandwagon and started buying up licences to many titles. There are also companies like Disney+ and HBO Max, which are vertically integrated and fulfilling every part of the supply chain themselves, making it hard for a company like Netflix to stay competitive.
Over the past few years, Netflix has seen massive success, we can see this from a nearly 500% increase in share price over the past 5-years. For much of this time, however, Netflix had minimal competition, battling DVD rentals rather than other streaming giants, but not with so much competition with exclusive offerings, it’s only a matter of time before Netflix starts losing market share. While this can simply be the sign of a growing market, most competitors are multifaceted, earning revenue from sectors other than streaming, for Netflix, however, this is not the case, with pretty much all of their revenue coming from streaming.
How to Invest in Netflix with eToro
At Economy Watch, we understand it can get difficult when starting out on a new platform, which is why we’ve created this detailed guide that explains exactly how to set up the best platform to invest in Netflix, eToro.
Step 1: Open an account with eToro
If you want to invest in Netflix, the first thing you’ll need to do is register with a trusted broker. We recommend eToro because they’re a regulated platform that provides users with a great blend of security and features. Just type “eToro.com” into your browser, press “Join Now” and fill in the required information.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
Now that you’ve created an account with a broker, you’re ready to verify your identity. This is standard procedure with any reputable exchange, so don’t be worried. All you’ll need to get verified is a photo ID (passport, driving licence) and proof of address (bank statement, utility bill).
Step 3: Fund your account
Once your account is verified, you’re ready to deposit some funds. Doing so is simple, just click on “Deposit Funds”, choose a payment method, enter the amount you’d like to invest, and press “deposit”. You have 3 choices when it comes to your preferred payment method, credit/debit card, bank transfer, or e-wallet (PayPal, Skrill, etc)
Step 4: Invest in Netflix!
Now that you’ve deposited some funds, you’re ready to invest in Netflix! Just type “Netflix” into the search bar, press “trade”, enter the amount you’d like to invest, and hit “buy” That’s all! The shares will automatically be credited to your account.
If you’re looking to invest in Netflix, it doesn’t have to be a complicated procedure. Throughout this guide, we’ve discussed some of the pros and cons to investing in Netflix, explained the different kinds of investment, and hopefully give you the answer to the question “how to invest in Netflix”. If you’re ready to make an investment we can, after careful analysis, recommend trusted broker eToro. They provide users with a simple onboarding process that lets you start investing in just a few minutes, as well as industry-leading security, and an enormous range of features. As with any investment, it’s always important to do your own research and only risk what you can afford to lose.
Where can I Invest in Netflix UK?
What is a Netflix CFD?
What is a Netflix ETF?
What’s the Future of Netflix?
Stocks vs ETFs/CFDs