The Australian Securities Exchange (ASX) is the largest stock market in the country. However, you can’t purchase FAANG stocks on it. You’ll have to use an online broker. We looked at the best 3, as well as why Netflix shares are worth your time.
Best Australian Brokers for Netflix Share Trading
Netflix probably seems more tempting than ever to invest in. Let’s talk about 3 brokers that will let any Aussie get the job done.
1. HFtrading
HFTrading is a super secure online broker. It is regulated and monitored by the Australian Securities and Investment Commission (ASIC). They are also regulated and authorized by the New Zealand Financial Market (NZFM). If you’re new to investing, you may not know why this is a good thing. Well, HFTrading follows a strict framework that ensures they have adequate security deposits, capital, audits, and privacy of clients.
If you’re outside New Zealand or Australia, you won’t be able to access its services. The site is also only in English. For Aussies and Kiwis, this shouldn’t be an issue.
The platform lets you trade all the major asset classes. When working with them, you’ll be met with 20 global stocks, 214 share CFDs, three ETFs, 17 commodities and 50 FX pairs
You don’t have to be a stock expert to use the site. There is a super resourceful education center. HFTrading makes use of an MT4 platform. It hosts various tools to help you trade better.
A disadvantage of using the platform is that it does not offer 24/7 customer care. Instead, you get 11/5 support, which is still good. Its support team is known to be very helpful.
2. IG Trading
IG Trading is not as popular as HFtrading. This doesn’t mean that it’s not as good, though. You can trade all kinds of major asset classes. What’s great is that you get access to the largest number of CFDs in the world.
One of the reasons it’s not as popular is because it’s fairly new. That being said, you get to trade around 2000 international shares and over 10,000 Australian ones.
Like HFTrading, there is an in-depth research center. You can get advice from its team of experts. You even have access to multiple tools that’ll make trading Netflix shares easier. An advantage of its education center is its library of trading terms.
Opening an account on the site is easy. It took us less than 5 minutes. Like the entry above, you will only be able to make an account if you’re an Australian – specifically, an Australian taxpayer.
They offer 24-hour customer support. We found that their team provided informative, concise replies. You’ll be able to reach out through emails and free calls. No, there is no ticket system.
Of course, they are regulated. They are governed by the Australian Securities and Investments Commissions. In turn, your money is stored in a bank account authorized by the ASIC.
The ability to create a demo account to try out your investing skills is appreciated too.
3. EToro
Compared to the other 2, eToro is the more popular option. It doesn’t come with a resource center that is as useful as the others, though. They’re just outlines than full-on study materials.
Trading stocks is easy as they offer a variety of tools. There are also constant updates on how the market is doing, and you get a news section with trading data. They frequently do webinars on the state of the market as well.
They are very secure. The site is regulated by ASIC and the CySEC and FCA.
They don’t offer 24/7 support. Instead, you’re met with 24/5 customer support. There aren’t too many ways to contact them. You can only do so through tickets, but their team is very helpful.
Any national can use its services. eToro is so popular as it’s a global broker. That being said, US citizens are restricted.
Like the other two, you get access to demo accounts. You can use up to $100,000 in virtual money to practice trading. You can trade major asset classes here. Unfortunately, the broker is not transparent with its numbers – we just know that around 50 FX pairs are available.
Netflix Overview
Everyone has heard of Netflix. It’s easily the leading name in streaming services. The company was founded in 1997 by duo Reed Hastings and Marc Rudolph who were based in Scotts Valley, California. When Netflix came into being, it was not doing what it’s currently known for. The company was a member of the DVD by-mail industry – a very successful member. Back in the day, people used to visit their local video-rental stores, so Netflix saved them from the hassle.
It’s 2020 and they are now a member of the multi-million dollar video streaming industry. In this year alone, they reported over 151 million subscribers globally.
Now that you know about their background, here are 5 reasons why every Aussie should invest in them.
Reasons Why I Love Netflix Shares
Netflix Created A Major Market
Streaming content on the internet is fairly new – it only came into being around a decade ago. Netflix is one of the pioneers behind it. The company partnered with Roku, a major media player manufacturer, to release the streaming service to Blu-ray players, Smart TVs, gaming consoles, and a range of other devices. This ease of use made internet streaming desirable and freely available. As an investor, picking a company that pioneered an industry means you’re betting on someone who knows what they’re doing.
It Out beats Competition
Back in their DVD rental days, they had to deal with major names like Walmart and Blockbuster. Blockbuster filed for bankruptcy some time ago. Walmart is still around, but their DVD service was abandoned.
To this day, major competition still exists. Netflix has to deal with Hulu, Amazon Prime, Apple, and Disney+. They’re all successful, especially the latter, as Disney+ has been striking many exclusive deals with celebrities like Beyonce’s Black is King film. Netflix is ahead of the pack, though. In 2017 alone they boasted over 117 million subscribers from around the world, with a massive 25% increase from 2016.
In 2018, they were reported to be used by 61% of the world’s video streamers. How do its competitors do? Hulu was reported at having 22% and Amazon Prime at 36%, according to Hub Entertainment Research’s Decoding the Default report.
It is Run By its Founder
When looking to invest in any company, one run by its founder(s) is a great choice. Netflix is still owned by Reed Hastings – its CEO. Founder-led businesses are superb as they view their company as their baby, so they do everything in their power to advance it. There’s a funny story about why Reed Hastings founded Netflix. According to him, he was charged AUD 55 late fee for returning his copy of Apollo 13 – and decided to do something about it. Although not a founder, Ted Sarandos, Netflix’s COO has been a part of the company for 20 years.
The Company Is Willing to Reinvent
As you know, Netflix was a part of the DVD by-mail service before they moved onto streaming. They were very successful at it. By the first quarter of 2007, they reported revenue that increased by 36% compared to 2006. They also reported a net income that was 125% better than the previous year’s.
Surprisingly, they decided to focus on streaming instead of their DVD by-mail service, even though it was making a lot of money. The executives at the company saw that the future was in streaming, and they were right about it.
As the industry keeps changing, it’s clear that Netflix will make bold moves to stay on top of its peers. It’s been around since 1987 and is still alive and kicking. As an investor, this is what you want.
It Learns From Its Mistakes
Whatever large corporation you look at, they will commit a few blunders along the way. Certainly, Netflix had theirs in 2011. They informed users that they were going to separate their DVD business from their streaming one. This meant that customers would have to pay separately for both. For the company’s loyal followers, this was unacceptable. It’s reported that they lost 800,000 users from the US alone.
Netflix was swift to apologize and they undid the decision. You wouldn’t be required to have two different logins. However, they increased their prices, which was a smart workaround.
Conclusion
Netflix stocks are worth your time. Not only are they a pioneer in the streaming industry, but they’re a company that’s constantly trying to better itself. This was crystal clear when they decided to fade money out of their very successful DVD by-mail business to focus on video streaming. They do have competitors, but statistics show that they have nothing to worry about – after all, they beat Walmart and BlockBuster when they were a part of the DVD rental business.
Sadly, you can’t buy Netflix stocks from the ASX. However, an online broker would have you covered. The following are the best:
- HFtrading
- IG trading
- eToro
So, will you be investing in the company’s stocks?