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How to buy Apple shares?

Famous brand listed on the stock exchange and part of the reduced group of GAFA (Google, Apple, FacebookAmazon), Apple is a key company in the digital revolution. Innovative, avant-garde and endowed with an image of a luxury product, Apple has established itself in a few decades as a titan of the digital industry. The Apple share price is an excellent illustration of this. We will detail point by point how and why to buy Apple shares: history of the share price and a tutorial for safe investing.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Thanks to immediate success with the first microcomputer in 1976, thought and designed by the duo Steve Jobs and Steve Wozniak, the Apple brand went public in 1980.

For many years, the shares of the apple brand remain at a very low and affordable price. Between 1981 and 2001 (year of release of the first version of the iPod), Apple's share price went from $0.12 to $0.35. The Tech sector has not yet entered its financial boom. Despite everything, this allows the company to consolidate its reputation and especially its cash flow. During this period, changes in Apple share prices are relatively small.

The first real peak on the stock market took place in January 2008 with an Apple share value of 6.43 dollars following the consecutive release of the original version of the iPhone (2007) then of the MacBook Air (2008) which went in turn. revolutionise the world of mobile phones (beginning of the era of smartphones) and ultra portable computers).

The marketing in 2010 of the iPad will be at the origin of the new revolution of the connected digital tablet and of a historic consolidation of the market capitalisation of the company in 2011. The death of Steve Jobs, iconic figure of the company, is also helping to boost the price of an Apple share to a new high of 13.92 dollars in December 2011.

This rather incredible growth of 216% in barely 3 years marks the beginning of the consecration on the stock market (and in the eyes of the public) of the apple brand. Despite some fairly strong variations, Apple stock continues to increase in value:

  • A high of 23.31 USD in October 2012;

  • $32.57 in May 2015;

  • Apple shares at $56.07 in October 2018;

  • 79.68 USD in January 2020;

  • A very good way out of the Coronavirus crisis since Apple's stock price at 145.11 dollars in July 2021.
     

Since its IPO in 1980, Apple shares have gained + 120,825%. All the experts agree on this opinion: the investors who believed in this project more than 40 years ago are now at the head of a real small fortune. Not to mention the regular dividends which have boosted profits.

How to invest in an Apple stock? 

In this section, we present step by step how to buy Apple shares in an efficient and secure way: choice of broker, procedure of opening an account, deposit of money and action of acquiring an AAPL stock.

Step 1: Choose a stock broker 

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Although this may seem obvious to some trading experts, it is essential to carefully choose the online broker who oversees all transactions relating to the purchase and sale of shares. This choice must be made according to several criteria of varying importance. In our opinion, it is crucial to pay close attention to the weight of trading fees and commissions, the quality of customer service and the reliability of the online platform.

To buy Apple shares, we chose 3 versatile brokers who have proven themselves technically for many years and who have received excellent reviews from their clients: eToroXTB.

etoro logo on our trading platform comparison

ADVANTAGES


 

  • Regulated and reliable broker

  • Wide range of financial products

  • Social and collaborative trading to copy the best traders

DISADVANTAGES

  • Conversion fees on deposits and withdrawals in euros

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

The eToro CFD forex broker is very popular with traders for several very legitimate reasons:

  • Its social trading platform which allows even beginners to get started in trading with peace of mind using a community sharing network, copy trading tools to replicate orders placed by more experienced investors;

  • Competitive brokerage fees, especially in forex;

  • A Zero Commission policy on the acquisition of securities on the stock market, including Apple shares;

  • A very intuitive and easy to use online platform;

  • Very interesting catalog of financial assets (more than 2000 references) with leverage on forex CFDs, shares, crypto (Bitcoin), indices and ETFs, commodities;

  • Choice of investing for the long term (stocks and ETFs) or for the short term by trading CFDs upwards or downwards;

  • Many payment methods: credit card, bank transfer, digital wallet, Paypal;

  • Broker regulated and licensed in more than 150 countries around the world.
     

That is why in our opinion, it can be very wise to choose to buy Apple shares through this broker. Some investors mainly regret the absence of a PEA account to take advantage of the tax advantages associated with it and a lack of certain technical analysis tools (advanced chart on the stock market study, financial indicators) that professionals may have need. 

The online platform offers several reading modes with a real-time view of Apple's stock price with all price changes and news related to Apple's stock value. For CFD trading, this is ideal with sub without leverage depending on the desired level of risk.

Step 3: Deposit funds

Once again, the conditions for depositing funds may vary but follow a certain identical route.

To summarise, the customer goes to the section reserved for managing the balance of his account. He clicks on Deposit then determines the amount to be transferred to his trading balance. The minimum deposit is different depending on the broker:

  • 200 dollars for eToro (or equivalent currencies like the euro);

  • No minimum deposit for XTB;

  • $100 (or equivalent currencies) for AvaTrade on the standard account.
     

Then he selects one of the payment methods authorized by the broker. The most common are:
 

  • Visa and Mastercard credit cards;

  • The bank transfer;

  • Paypal (eToro);

  • The digital wallet type Skrill and Neteller.
     

The lead time varies according to the means chosen. Instant for credit card, Paypal and digital wallet. From 1 to 3 working days for the bank transfer. When funds are available, it is then possible to make an investment in one of the available financial products, including the AAPL share.

Step 4: Buy Apple stock.

 

It is very easy to buy Apple Stock (AAPL) with eToro. As we indicated above, the online platform offers 2 investment options:

  • Either trading CFDs to take advantage of the rise and fall of the share price, with the application of leverage to increase profits;

  • Or the direct purchase of a physical title with a medium / long term projection with the hope of a significant capital gain.
     

To put it simply, in the context of a CFD, the trader does not own the AAPL stock but only speculates on the rise or fall in the price of the security over fairly short periods. In the other case, the investor becomes the owner of each part of the company purchased with all the associated rights including the collection of dividends if the company pays them when profits are recorded.

This differentiation is automatically integrated into the eToro ordering interface. After clicking on Invest, the client can:
 

  • Either choose to buy with a leverage X 1, which instantly switches the order to the wallet reserved for physical stocks without any commission;

  • Either position a leverage greater than 1 and indicate its willingness to trade a CFD with the associated fees.
     

It is worth remembering that the broker eToro offers risk management tools when placing a CFD order. The client can choose to set up Stop Loss and Take Profit, which are custom limits that allow positions to be automatically closed when a certain level is reached. Stop Loss for the lowest level to limit losses. Take Profit for the highest level to ensure profit collection.

Why choose Apple stock? 

 

In this section, we will try to indicate how it makes sense to buy AAPL shares and keep them in your portfolio for a while. For this, we will give some factual and easily verifiable elements as well as financial data relating to the health of the company.

6 major reasons support our opinion that an investment in Apple shares should be closely studied in the constitution of its long-term strategy:

  • The value of the title has been rising sharply for years. Despite some notable variations, including a significant drop during the health crisis of 2020, the Apple group is not giving up anything and is demonstrating its great financial strength by continuing these technological deployments, which has enabled it to benefit from a growth of + 123% on the March 2020 (trough) and July 2020 (peak) quarter. Many opinions agree on the sustainability of this upward trend;

  • The 5 splits (operated in 1987, 2000, 2005, 2014 and August 2020) have largely contributed to the expansion of the market capitalisation (in billions of dollars) of Apple. Indeed, if it had not taken place, it is considered that a single action would now be worth nearly 28,000 USD. The group has chosen to make its shares more accessible and popular;

  • The COVID pandemic has demonstrated how strong the brand is. During the 2nd quarter of 2020, more than 11 billion dollars were collected. The annual annual turnover reached nearly 60 billion or + 11% compared to the previous year. Finally, it is worth noting that Apple has a cash flow of more than 30 billion USD, which gives it all the necessary resilience in the event of a hard blow;

  • The Apple group has always marked its commitment to new technologies. This is why there is no shortage of projects for the decades to come: deployment of innovative solutions of connected objects, robotics project. This strategy has already proven its worth with the range of products and accessories to wear (Apple Watch for example) as well as multiple services (iCloud for storage and sharing of data, iTunes for music, etc.);

  • Apple dividend stock is a real boost to any portfolio of stocks. It keeps increasing and falls regularly (every quarter the best years);

  • Finally, the deployment of 5G is surely what will promote a new economic boom for Apple. The latest iPhone 12 already includes 5G compatibility. This places the brand in an excellent position for the future of nomadic telecommunications and associated services.
     

Apple Company Information

 

Now let's go over some figures that demonstrate without too much doubt the solidity of the technological group and the opportunity to be seized to buy AAPL shares. The following figures relate to the third quarter of 2020:

information on apple company
  • iPhone sales around the world: approximately $26 billion;

  • Associated services: 13 billion USD;

  • Mac (iMac and MacBook): $7 billion;

  • iPad: $6.5 billion;

  • Accessories: 6.45 billion USD;

  • Share value up 1585% in 10 years;

  • Dividend per share = $3.28;

  • Present on the NASDAQ (American Tech Companies Index) in the form of an ETF;

  • Unit price in July 2021: approximately $142.

Apple stock dividends 

Investing in the stock market in physical securities represents the opportunity to make a bet on the future by planning to realise a capital gain during the sale of shares owned in the medium or longer term. After a technical analysis, it is possible to assess the potential of a title. AAPL clearly shows that it is worth buying stocks since all the signals are turning green. A bit like Bitcoin for several months.

The other advantage of investing in an Apple stock is that the company does not hesitate to reward its shareholders by paying them regular dividends when it announces profits. This has been the case very often for several years. Financial health is very good, therefore shareholders benefit directly. 

Dividends from Apple stocks can quickly turn into passive income when you own a fair amount of stock. As stated just before, the dividend per share is valued at approximately $3.28 in the last quarter of 2020. An investor in possession of a portfolio of 100 AAPL securities collects $328 in each dividend payment period. If growth continues like this, this amount may passively increase. Market capitalisation will also emerge stronger.

In addition, for traders who prefer to secure their investments, it is possible to favour the purchase of ETFs where Apple shares are present. The easiest way is to focus on the tracker reproducing the NASDAQ 100 index, being careful to choose a distributing ETF. The dividends may be lower but the risk exposure spread over all the companies in this index.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

FINAL CONCLUSION, SHOULD YOU BUY APPLE STOCK?

It would be impossible and unreasonable for us not to give a positive opinion to the plan to buy Apple shares. Without possessing qualities of expert analysis, it is quite obvious that the Apple group is doing very well. It is the bearer of innovative projects and in the era of time. Its great resilience during the health crisis of 2020 demonstrates its unfailing strength. Its turnover continues to increase. Its dividend payment policy is very attractive.

We would tend to recommend integration into a long-term wallet, even if the good volatility observed over time allows us to consider making some profits in the form of CFDs in a short period of time.

It is necessary to properly establish your investment strategy upstream to get the most out of an Apple share and to prefer a broker that charges the least possible brokerage fees. For example, eToro and its zero commission policy is a choice, in our opinion, rather wise that it is for the small holders as the largest portfolios. Each capital gain and dividend is not weighed down by costly costs.