How To Buy Shares Online Online Broker To Buy Shares At CAPEX

Participating in the stock market is one of the most traditional ways to invest your money, so there is no doubt why more people want to learn how to buy stocks online.

However, did you know that there are other alternatives to participating in the stock markets besides directly buying the stocks, such as stock CFDs? We will let you know how to get into the stocks market so that you can make a more informed decision.

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CAPEX Academy, one of the best places to improve your knowledge

We at CAPEX are committed to ensuring a hassle-free trading experience for novice and expert traders alike. Considering the enormity of the global trading market, traders  can find it extremely difficult, and a lack of proper understanding could even incur heavy losses.

Through our CAPEX Academy, we offer technical and educational assistance in understanding the global trading market. You can learn how to trade CFDs on shares online, how to analyse stocks and companies, etc., through our CAPEX Academy. Before investing your hard-earned money, you can also leverage our CFD demo trading account to put to the test everything you’ve learned. It is our aim to empower and formulate novel and customised solutions for our global traders.

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Experience high quality online trading with CAPEX

We, at CAPEX, are an ever-growing community committed to building and formulating creative solutions for global traders.

We understand that our clients are integral determinants for a solid ecosystem in the global trade market. It is one of our highest priorities to ensure that our online interface and safeguards are customer-centred and comply with the highest safety checks and balances. We provide prompt exposure to more than 2,100 assets from diverse markets like shares, bonds, ETFs, and Forex via CFDs. Also, we are regulated by the Cyprus Securities and Exchange Commission (CySEC).

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Understanding the Stock Market

A stock market basically functions as an auction place where you can open buy and sell positions on shares of different companies. The price of these shares keeps fluctuating due to numerous external factors, so the value of the shares can go up or down. Therefore, when you learn how to buy shares online or open a position on stock CFDs and utilise the services of an online stockbroker you can start investing in shares.

Stock market trades take place through a negotiated price between the buyer and seller regarding the shares of companies. The individuals who believe in the growth and development of the company can open a buy position on shares and vicariously benefit from the company’s financial gains. However, if the company experiences a fallback, the individuals are free to close their positions but could still potentially lose money.

In addition, there are other ways to trade and invest in stocks besides buying shares at the stock market. Today, one of the most popular methods of operating with shares is CFD trading. With us at CAPEX, you can truly learn how to trade CFDs with the help of CFD trading experts.

What is CFD trading?

CFD trading is a contractual agreement between the buyer and seller. It explains that the buyer settles the difference between the current value of a financial instrument and its value at the time of contract without involving any asset. This advanced online trading method allows you to trade on the price movement without actually owning an asset. We at CAPEX grant access to more than 2,100 CFD instruments and ensure updates on every variation on the global market.

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What Determines Stock Value?

Stocks keep fluctuating in value due to various factors like varying demand, changing market sentiment, macroeconomic data of the company, and so much more. Simply put, the value of a stock depends upon the change in its supply and demand in the share market.

Reasons Why The Demand For A Share Might Fluctuate Over Time

The value of a stock depends on fundamental factors determined by the company based on their basic policy, socio-economic issues, inflation, taxation, and more. The determining factors work collectively yet inversely from one another, influencing the price of the stock. The demand for the stock impacts fluctuations in the monetary value of the company’s stock. A company has limited shares, and the numerical figures are available and known to the public. So, when the number of buyers increases, the price of the share rises along with its demand. But if the number of buyers is less than the sellers, the demand and the prices fall. Our expert advisors at CAPEX believe that an investor should be well-informed about these determinants before entering the trading game.

Earning Reports

The interim reports of the company’s financial performance get released once every quarter, and the full report is published once a year. The prices of the company’s shares are determined by financial experts who study profits, earnings per share, and its impact.

Macroeconomic Data

The data of the economic status of the company plays a huge role in its stock value. For example, the GDP and retail sales data significantly cause a rise or fall to the company’s share value.

Interest Rates

The prices of stocks are indirectly and inversely affected by the interest rates. The global stock market experiences a low rate of investments when the rate of interest is hiked. On the other hand, when the rate of interest is lowered, investors tend to put more money in the market.

Market Sentiment

The share prices are also determined by the public’s perception of the company and the value system. This determinant causes the demand to fluctuate.

Similar to other financial assets, varying stock prices are a fruit of the shifting demand and supply. Therefore, the analysis of changing prices is most efficiently done by applying technical assistance provided by trading brokers. Our expert team at CAPEX study these determinants and formulates trading strategies to help predict the fluctuations of the prices and the trading opportunities.

 

Difference Between Investing In Shares And Trading Shares

Before you learn how to get into the stock market, it is imperative to understand the distinction between investing in shares and trading shares. The difference between the two techniques is the time frame for which the techniques are used. However, both approaches are distinctive means to participate in the stock market.In simple words, investing in shares usually means holding a position for the long-term while trading usually refers to opening and closing a position in a shorter frame of time with the intention of getting results in the short term.

Investing on Stocks

Holding a buy position on a company’s stock for the long term is a brilliant way to invest in a company. The factors determining such investments include the kind of business, its profit and sales growth, and its dividend payments. Investing in shares online works on the classic mantra of “buying low and selling high”, termed as going long. The buy position shares could be closed when the company has a setback and fails to reach the profit margins of the investor. The perk of investing in stocks is that they do not require regular management.

Trading Stock

Trading stocks is impacted significantly by the fluctuations in the market price of the stocks. Traders can apply the tools for technical analysis and study the price trends and trading patterns in the market. The trading of stocks relies heavily on predictions on the price in the future.

The day traders hold the stocks for less than a day and get results quicker than others, either revenue or loss. A swing trader may keep the stock for days or months, factoring in inclinations, demand, and supply of the company stocks. Successful trading of stocks is notably more intricate than holding a position on shares in the long-term. Stock trading is a fast-paced technique to potentially earn revenue in a short period, but is also a risky activity by nature due to how the financial markets work.

Can you participate in the stock market with CAPEX?

At CAPEX, you can participate in the stock market with CFDs on shares, whether you prefer a long term or a short term strategy. Opening positions on stock CFDs means that you are not buying the underlying asset but directly getting results on the stock’s price changes.

While not every broker gives you the adequate products to both invest in the long term or trade in the short time, at CAPEX, you can trade leveraged CFDs on stocks, as well as unleveraged fractional CFDs on shares with StoX. With Stox, you can hold on to long (buy) positions without paying swap fees. Also, we provide access to reliable tools for conducting technical analysis, market news, and even pre-built thematic portfolios with ThematiX.

In addition, when trading CFDs you could open not only buy positions, but also sell positions. A sell or short position on a stock CFD would generate results when the value of the price of the underlying stock decreases, giving additional strategic alternatives to traders.

What Does It Means To Trade Leveraged or Unleveraged CFDs?

When you are trading through a CFD account at CAPEX, you can either trade leveraged stock CFDs or unleveraged CFDs. Trading with leverage means that large stock volumes can be traded for a small sum of investment, with the leverage up to 20:1. CFD trading on high leverage allows traders to enhance their initial capital and fully capitalise on the investment. However, the higher exposure due to leverage increases the risk that the trader assumes.

That means that while the benefit of a high leverage amount is that it generates higher returns from the productive trade, it could also generate a greater loss of capital than trading unleveraged instruments.

The essential aspect of CFD trading is the right online platform that you employ. At CAPEX, we allow multiple trading tools and performance features to enhance your stock profile, including the possibility of opening both buy and sell positions, depending on your perspectives of the market. Also, with our product StoX, you can trade without leverage if you prefer a lower exposition to the price changes.

 

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How to Get into the Stock Market

As previously mentioned, one of the most popular methods to invest in stocks is to trade CFDs on  shares online. To understand how to trade CFDs it is useful to create a trading account with an online brokerage. We, at CAPEX, offer you fully customisable trading accounts, including a free demo account that you can use to simulate CFDs trading using virtual money.

Creating a trading account

To create an online account, fill a concise registration application on the platform along with a password. The trading account gets approved within a couple of days, with a minimum trading capital deposit. However, the minimum deposit for the account varies significantly from broker to broker. The approved trading accounts can open buy or sell positions, buy, or learn how to trade CFDs on shares online from varied markets. Also, once the trade has materialised from your account, the online brokerage platform charges its commission.

Check the Spreads and Commissions

Online brokerages charge their commission on the trades individually or by the spread. A flat commission rate is set on the individual trade, and the spread commission may only be 1% of the spread. The spread commission is the difference between the buying and selling price of the asset. Mostly, the CFD trading fees and spreads are covered while opening and closing the position, but also in other circumstances, so it is important to check the spreads and commissions of your broker .

We, at CAPEX, do not charge any commission when opening or closing a position on CFDs, or any deposit/withdrawal, and the spread between opening a buy and sell position are clearly indicated. However, keep in mind that traders employing an online broker to trade CFDs on shares and generate revenues are also liable to pay capital gains tax.

Aspects To Consider While Trading CFDs on Stocks

  • Short-term or long-term investing: As indicated before, some investors prefer to hold a position for a long time to curb out all the ups and downs of the market, while others prefer short-term trading and daytrading.
  • Please do not put all your eggs in one basket: The advice that every expert investor swears by is that it is better to hold CFDs on shares in a diverse set of companies. It is highly risky to purchase shares of only one company for a long time.
  • Pooling your money in an investment fund is a safer bet for traders: Individuals may choose to trade CFDs on  independent shares or pool resources with others in a collective investment fund.
  • Invest regularly in an unpredictable market: The market is a capricious space, and even the most experienced traders can get their timing wrong. It is encouraged that you should make regular investments to understand market behaviour better.
  • Do your research before investing: Experts advise that an individual must have adequate information and data regarding the purchases and the market patterns before making any investments.

Conclusion- Trade stock CFDs at CAPEX

Before buying shares online, it is critical to perform an in-depth analysis and obtain ample information on the stock. Our team at CAPEX provides a thorough stock analysis for our users so that your trading experience remains seamless and beneficial. So, if you are trying to obtain the skill of how to invest in stocks online, we, at CAPEX, can assist you throughout your trading journey.

How To Buy Shares Online – FAQ

👀Is it necessary to diversify when trading stocks?
🤔How can I get the best out of trading stocks?
📈When should I close a position?