Investing in shares of well-performing companies is one of the best ways to make money in the long term. This is why you may want to know how you can buy Alibaba stock in Australia.
Now, Alibaba is one of the top ecommerce sites in the world.
There are several factors you should first look into prior to purchasing shares.
You can find all the information you need below.
Ways to Buy Alibaba stock in Australia
If you wish to purchase Alibaba stock in Australia, you have two main options open.
The first is buying the shares outright on a major exchange such as the Australian Securities Exchange (ASX). Your second avenue is to engage in stock CFD trading instead. So which should you choose?
- Simply opening a CFD Trading account is a lot less hassle then opening an account with a stock broker.
- With CFD Trading you can get started with a low AU$250 deposit while stock brokers require AU$10.000 or more.
- CFD Trading is regulated and safe (so are stock brokers)
The Best CFD Broker For Australian Traders
Now, as mentioned, Alibaba is one of the biggest companies in the world.
As such, its share prices can often be astronomical. Due to this, the average investor may not be able to purchase enough shares to actually make much of a profit.
This is where stock CFD trading comes in. The main difference between buying shares and engaging in stock CFD trading is that with the latter, you don’t actually have a stake in the company.
Rather, you are simply buying a contract from a contract provider such as etoro.
There are actually quite a number of advantages associated with CFD trading.
For instance, it allows you to open up a larger position, without having to invest quite as much.
Understand, CFDs are leveraged and as such, are traded on margin.
This means that when you open a position on the market, you will only be expected to pay a small percentage. So, you will not have to put quite so much money upfront.
To add to this, you still stand the chance of making a sizable profit, if the position closes in your favour.
Where to Buy Alibaba stocks in Australia
Now, regardless of which option you decide on, you are still going to need a broker before you can make any purchases.
You should recognise just how important it is for you to make the right decision regarding your broker. In many instances, a broker can have a significant impact on whether or not you will actually make a profit.
The first thing you will need to do is to find a well-reputed broker that has a suitable platform.
If you wish to engage in CFD trading, then eToro broker is perhaps your best option. For one thing, the company is completely reliable as it is regulated by both CySEC as well as the FCA.
However, what really sets this broker above the rest is that it makes opening and closing your position on Alibaba stocks quite simple.
This is largely due to the social trading aspect of this broker. The feature allows you to follow and copy more experienced or profitable traders. This, too, makes it easier for you to make the right trading decisions.
When selecting a broker, make sure that the related platform supports all your needs. So, not only should you be able to trade with the instruments that you want, but it should also be easy to manage.
This way, you will find it a lot easier to place relevant trades quickly.
These are the main things to know about buying Alibaba stocks in Australia. Once you have fully understood this process, it is simply a matter of watching the market and knowing when to open and close your position for the greatest profits.
Why Buy Alibaba stocks?
Now, before you go ahead and buy Alibaba stocks, you need to be certain that you are making a sound investment.
So, you will need to be aware of the benefits associated with buying Alibaba stocks and stock. Here is a quick rundown of how this can be beneficial to you:
- The company continues to make profit
- Continues to expand
- Services majority of the Chinese ecommerce market
- Has diversified against economic risks
Perhaps the main reason to purchase shares in this company is due to the fact that revenue has been consistently increasing.
This trend has continued since the inception of the company. While there have been minor downturns over the years, the company has always managed to bounce back in spectacular fashion.
Similarly, this is a company that is constantly expanding, branching out into various sectors.
This proves that it is set to grow, bringing in even more revenue in the future. This expansion, along with the diversification into many markets has another advantage. It means that, to a certain extent, the company has safeguarded itself from economic risk.
Last, but certainly not least, Alibaba offers its services to around 80 percent of the Chinese ecommerce market. Considering that this is a market that is likely to grow by leaps and bounds over the next few years, this is certainly good news for investors.
What is Alibaba?
Before you actually invest in Alibaba, you should learn as much about the company as you can.
The Alibaba Group was established in 1999 by founding member Jack Ma. He was supported by a group of eighteen other individuals.
In the beginning, the company was simply focused on helping smaller Chinese business owners and manufacturers sell their wares to an international market.
However, the website quickly grew and today, it is one of the largest ecommerce sites in the world.
While Alibaba.com is the most well-known portions of the company, it also operates through the branches of AliExpress.com, Taobao, and more. They are doing more and more investments every year.
The company first went public in 2007 on the Hong Kong Stock Exchange but delisted several years after that. However, in 2014, the company filed to be listed on the New York Stock Exchange.
It was with this move that the company made history.
Alibaba conducted the world’s largest IPO, raising $25 billion when it listed in the United States. Just as impressive is the fact that the brand is currently identified as the fifth-largest internet company by revenue alone.