The Walt Disney Company is one of the most known names in the world. It’s a business that has continuously done well, largely due to its varied investments.
However, if you are considered an international investor, the process isn’t as straightforward. Thus, there are several elements that you need to be aware of before you can invest in the company.
Best Broker for Buying Disney Shares
As mentioned, one of the biggest decisions that you have to make when buying international shares is selecting the right broker. At the moment, the top broker for the average trader is HFTrading. Take a look at some of the features that make this one of the most sought-after options in Australia.
From a strictly Disney shares angle, HFTrading offers precisely what you need. It gives you access to major US markets via CFD trading. Yes, this does include trading CFDs for Disney with minimal obstacles and hassles.
This broker gives you access to one of the best platforms around – MetaTrader 4. There is also a mobile version, ensuring that you can trade on the go. The efficiency and design of the platform makes it far easier for you to place trades.
HFTrading caters to traders of all skill and budget levels. There are three different accounts – Silver, Gold, and Platinum to fit all your needs. As such, you aren’t required to invest any more than you can afford to. Depending on the account that you sign up for, you can get either 1:200 or 1:400 max leverage.
Naturally, you aren’t only going to want to invest in Disney shares – you will want to build up your portfolio in other ways. This is possible with HFTrading as you can trade Forex, Stocks, Indices, Commodities, Cryptocurrency and more. In addition to having a wide variety of trading instruments, you also have over 750 assets to select from.
The broker is equipped with a demo account. This allows you to carefully plan out and test various trading strategies. In turn, this improves your skills while simultaneously reducing the trading risk that is involved in the process.
As a trader, you will also be pleased to learn that this broker is fully regulated as well by ASIC and FMA. This gives you greater peace of mind when becoming involved in trades.
Buying Disney Shares in Australia
If you wish to invest in Disney, there are two main avenues that are available to you:
Being Involved with Share Trading
When you engage in share trading, it means that you will be directly purchasing shares and stock in the Walt Disney Company. In doing so, you receive shareholder privileges. If you become a shareholder with Disney, there are two ways that you can make a profit.
First, is via dividends. At this moment, Disney pays a semi-annual dividend of $0.88 per share. You can also make a profit by selling your shares when the price rises.
The issue with buying Disney shares outright, though, is the cost involved. It is important to understand that Disney is one of the most heavily traded companies in the world. Therefore, a single share can be incredibly pricey. There is a good chance that the average investor will not be able to buy enough of shares to make a suitable profit.
Investing in CFD Trading
It is due to the issues associated with share trading that most people consider CFD trading instead. Here, there is no ownership involved. Rather, you are speculating on the market price of Disney. The main advantage of this is that you have the option of leveraging.
As a result, you will only be required to put up a small fraction of the actual cost of the share. This is known as the margin. Margin requirements can vary from 5 per cent to 25 per cent. The rest of the capital will be covered by your broker.
With share trading, you can only trade when prices begin to rise. With CFD trading, however, you can go long or short in the market’s direction. Last, but not least, CFD trading makes it easier for you to diversify your portfolio.
Process of Buying Disney Shares
Now, let’s consider the actual process of buying Disney shares in Australia:
1. Finding a Broker
The first step to buying or trading shares is to find the right broker. Now, considering that you do want to buy Disney shares, the number of brokers available to you does shrink quite a bit. This is because there aren’t too many brokers that offer international shares. There are even less that give you access to big ticket shares such as Disney.
Even with this shorter list, you still have to compare the brokers. To begin with, examine the trading platform they use. It is best to opt for a broker that gives you access to a well-known platform. Consider the accounts that they have available to you as well as the cost involved. This includes commissions, leverages, fees, etc.
You should also be looking at the resources they offer and whether or not there is an education centre. Customer support is rather important as well, particularly if you encounter any issues. Look for brokers that will reply to your queries as quickly as possible.
2. Opening an Account
Once you have identified the most suitable broker for you, your next move would be to open a trading account. Most brokers will give you various kinds of accounts to select from. These will differ in terms of minimal investment, leverage, etc. You will need to select the one that makes most sense for your budget and your trading goals.
After the account has been opened, you will need to fund it. The minimum deposit for your account will often dictate how much you will need to add. At the same time, you should be conscious of the average cost of shares and how much you would like to invest.
For Buying Shares
When buying shares, you will need to open up the platform and search for Disney. You can find the share by name or ticker symbol. Once you have located it, you will need to decide how many shares to buy. Needless to say, this will depend on the last closing price.
Here it is important to pay attention to your budget. Keep in mind that you do need to diversify your portfolio. As such, you can’t afford to put all your capital into Disney. The next step is to determine whether you want to purchase the shares now or later. If the current price isn’t favourable, you can put your purchase on hold temporarily.
In case you would like to make a purchase immediately, you can buy shares via a market order. Or, you can use a delay order. This will ensure that the sale will only go through when the stock price hits your desired amount.
After you have purchased shares, all that is left for you to do is to keep an eye on your investment. Monitor the price movement of the shares and determine when the best time to sell would be.
For Trading CFDs
With CFD trading, the process is a little different, but is still rather easy to figure out, particularly once you have gained some experience.
Since you already want to know what asset you are dealing with, you just have to decide whether you want to Buy or Sell. You Buy if you predict that the price is going to increase or Sell if you feel like the value will fall.
Then, it is a matter of deciding how many CFDs you want to trade. 1 CFD is equivalent to a single share. Once again, your budget does come into mind. Consider how much you would like to diversify your portfolio and determine how much you want to invest in the trade.
Naturally, you need to minimize your risk when placing such an order. This is where the Stop Loss order comes in. This comes into effect if the price moves too far against you. Such a command can prevent you from losing more money than you are comfortable with.
After you have placed the trade, you can monitor the profit/loss update in real time. If you would like to exit the trade at any point, you simply have to click on the close trade button.
This concludes your introduction to buying Disney shares in Australia. As you can see, there are specific guidelines that you have to follow when buying these international shares. This is especially true when dealing with a major company such as the Walt Disney Company.
The above article highlights all the avenues available to you when considering investing in this business. It also touches upon the process involved as well. Now, all that is left for you to do is to select the most suitable route for you and to begin the trading process.