Google is an awesome company.
Unfortunately, you can’t purchase FAANG shares (including Google) on the ASX. However there is a simple way to buy it from elsewhere.
The ASX is the Australian Securities Exchange. It’s the largest stock market down under. Your best bet is to work with an online broker. For an Aussie, there are quite a few brokers available. That’s why we ran through our top three picks and discussed why purchasing Google shares is worth your while.
Best Australian Brokers for Google Share Trading
1. HFTrading
When it comes to FAANG, many regard HFTrading as the best platform. They are known for their highly useful education center. The tools you get access to are great – they make trading easier. The platform hosts trading news like competitors, and they are in-depth as well.
It’s regulated very well. HFTrading is governed by the Australia Securities and Investments Commissions as well as the New Zealand Financial Market. This means that the users’ privacy, experience, and cash-flow are always optimum.
You’ll only be able to utilize the site if you’re Australian. Moreover, it is only available in English.
Of course, you get demo accounts – you’ll be able to refine your craft.
Although brokerage fees will be charged, there are no commission fees. That being said, you’ll need to make a $250 minimum deposit.
You can trade all sorts of assets on it. This includes CFDs, ETFs, US stocks, global stocks, commodities, and FX pairs. In total, there are over 750 assets available.
There is no 24/7 customer support. Instead, there is 11/5 support. We have to say, its team is very helpful. You can contact them in multiple ways.
2. eToro
eToro is very secure. They are regulated by the Australian Securities and Investment Commission and by authorities in Europe – this includes CySec and FCA. As mentioned, this is secure as you know the broker utilizes frameworks that ensure users are safe.
When you use the platform, you won’t be paying brokerage fees to buy stocks. Many of its competitors don’t offer this feature.
If you’re looking to trade Google shares, but you’re new to the game, you can utilize eToro’s copying tool. This lets you mimic the trading activity of users of your choice.
You can make the best trading decisions – there is ample information on how the market is doing. There are also news and market ideas. The site is known to regularly do webinars on market states.
If you’re a new trader, demo accounts are useful. eToro lets you utilize USD 100,000 of virtual cash to trade. An ample education center is useful as well. Unfortunately, the site is not very good. Its guides are closer to outlines than studying materials.
If you have trouble buying and selling Google stocks, know that there’s 24-hour customer support. But they only work 5 days a week. You’ll also only be able to contact them through tickets.
In terms of what you can trade, there is a wide choice. eToro gives you access to US stocks, cryptocurrencies, global forex, commodities, and CFDs. You can trade them from your computer or hand-held device.
3. IG Trading
Like HFTrading, you won’t be charged commissions. However, there will be brokerage fees. Thankfully, IG Trading is known to offer very affordable rates.
You can easily track the market. The site gives you access to news and advice depending on how the market is doing. You’re also met with information on which stocks are worth watching – for a newbie trader, this should be appealing.
Over 10,000 Australian shares are available. There are about a thousand global ones as well, including Facebook, Apple, Amazon, Netflix, and Google.
You will get access to 24/7 support. You can contact them in several ways, but you won’t be able to utilize a ticket system.
The platform is only available to Australians, more specifically, Australian taxpayers. If you’re wondering, they are regulated by the ASIC.
Google – At A Glance
The company came into being in 1998. It was founded by Larry Page and Sergey Brin when they were doctoral students at Stanford University, California. Google started as a search engine. Today, it has been expanded to include Google Docs, Google Sheets, Google Slides, Gmail and so much more.
The company took a major step and reorganized itself in 2015. They became a conglomerate called Alphabet inc. If you want to purchase Google shares, you’ll have to purchase Alphabet’s GOOGL and GOOG stocks. GOOGL is a member of ‘Group A’, and you get one vote in the company per share. Its counterpart is ‘Group C’, where you don’t get any votes.
Yes, there is a Group B as well. These shares are held by the company’s founders. They come with 10x more voting power than Group A. You’re probably wondering why the shares were divided into groups. This is because Page and Brin wanted to keep power in their hands – when companies go public, their founders generally lose control.
Larry Page and Sergey Brin hold 14% of its shares. They also hold 56% of stockholder voting power.
Now that you know about how the company came into being, let’s run through why an Aussie investor would love the corporation’s stocks.
Its Founder Is in Control
Whenever you’re investing, it’s a good move to buy shares from a company run by its founders. Countless studies have shown that they’re destined to succeed. Good examples of this are Amazon and Netflix – Amazon’s founder, Jeff Bezos, is the richest man in the world. No surprise, Larry Page still runs Alphabet.
If you think about it, you’ll see why such companies do well – their founders have been present since day one, so they’re more invested in the business. After all, it is their baby.
Millions of Searches
It’s estimated that over 3.5 billion searches are done a day on Google, according to Investopedia. This is great for the business as with every search, they make cash. They do so by selling ads for search results.
Everyone knows that Google is more popular than its counterparts. According to Statistics, Google makes up 86% of the search market as of April 2020. There are around 85% for the internet mobile one, according to Investopedia. Considering that around 90% of their revenue comes from searches, it’s clear that they’re doing very well.
Alphabet Makes A Lot of Money
The conglomerate had a major 23.4% profit margin for a consecutive 12 months in September 2019. This margin is so huge that it overshadows equally large companies. Amazon’s margin was 4.8% at the time, while Netflix’s was 6.5%. Meanwhile, Apple failed in comparison too. They pulled in at 21.5%. You’re probably wondering how Facebook did. Well, they outdid Alphabet, coming in at 27.3%.
Google’s Employees Are Never Going to Leave
A major tech company should treat its employees well since tech skills are sparse. Glassdoor is a site that gives a true glance into company life. Alphabet’s employees have rated them 4.4 stars out of 5. Apple’s glass door rating is 3.9 while Netflix’s is 4.0. Meanwhile, Amazon is 3.8.
You don’t have to be an expert to know that without talented staff, a company’s performance would be affected – as an investor, this is something you have to keep in mind.
The Cloud Computing Industry
Believe it or not, Google is not the leading provider in the cloud computing industry. This title goes to Amazon. That being said, they are the third-largest company after Microsoft. This is still very impressive. It’s especially great as they are rapidly growing. In the second quarter of 2019, Google Cloud snagged a 9.5% share. In 2018, they captured 8.7% according to Canalys.
If that’s not enough, Canalys also says that the cloud computing industry is booming. In 2019, they grew by 38%, being worth over AUD 36 Billion.
It Isn’t Volatile
Compared to other FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google), Google stocks are the most stable. Their Group A and C stocks had a 3-year beta of 0.95 in 2019. Meanwhile, the other FAANG stocks sported 3-year betas of over 1.0. This meant that they were more volatile than the stock market in general.
Now let’s take a look at the brokers who can help you buy Google shares.
Final Thoughts
Trading FAANG shares are worth your while. We have reviewed them multiple times on our site, and it’s clear that they’re very profitable. This is especially true for Google – it is a part of the Alphabet conglomerate which is a giant in the tech industry. The company is ever-growing and is the most popular search engine in the world. Google is part of multiple industries too, and is the third-largest in the cloud computing game.
Although you can’t buy the company’s shares on the ASX, you’ll be able to work around it with online brokers. The below services are the best:
- HFTrading
- eToro
- IG Trading