How to Invest in Apple Stocks
Trading is risky and you might lose part, or all, of your capital invested. The information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.
Many people who are looking to increase their wealth and accumulate capital will use some of their money for investments. Investing in Apple stock is a great way to begin investing in the stock market. You can buy Apple stock from your own trading account by selecting AAPL and simply choosing how much to invest.
Stock markets can be a great way to increase your capital and net worth while diversifying your investments or filling your investment portfolio.
Even though investing does carry a risk, there are some stocks that are popular due to the success of their respective companies. Apple is one of the most recognisable household names and is an ever-popular choice for the budding investor.
Apple is currently the largest company in the world and was the first company to reach both one and two trillion dollars in the stock markets. This phenomenal success is part of the reason so many people consider Apple a sound investment for their money.
What Is an Apple Stock Investment?
Investing in the stocks of a public company means buying shares of ownership for that company. This means if you decide to invest in Apple, you would own a small share of the company.
Stocks can become more or less valuable over time, depending on different variables. If your stock has become more valuable when you come to sell it, you will have made some profit on your investment.
In addition, stocks can also lose money by becoming less valuable, bringing your investments into a loss. Due to the volatile nature of the stock market, all investments in stocks and shares are considered risks. For this reason, you should never invest any money that you are not prepared to lose.
Many people use investments in the stock market as a powerful tool to achieve long-term financial goals and build wealth.
Wealth building is the process of accumulating wealth and increasing a person's net worth via investments, savings and income-generating assets. Many stocks, assets and investments will appreciate over time, meaning they will become worth more money and will, in turn, increase a person's net worth.
Should You Invest in Apple Stock?
Apple is an American tech company that designs and manufactures a range of gadgets. Most notably, the iPhone, iPad, iMac and Apple TV, alongside various software development projects, including iCloud and ApplePay. Apple also creates and distributes new software services, applications, and digital content.
Famous for the ground-breaking iPod – which led to the development of the iPhone – Apple is well known for its sleek design and clever innovation. They have some of the most expensive products on the market today.
Apple became the world's first trillion-dollar public company and has since hit a market cap of $2.1tn dollars. Despite the individual shares of Apple being low priced (depending on the day, they usually stay around £160), Apple is the largest company in the world – meaning they have a large number of shares.
Additionally, this means that investing in Apple is easier than investing in larger companies as the stock tends to be more affordable.
Prior to investing in Apple stock, it is wise to consider your options. Use our checklist below to make an informed decision about where you invest your money.
Research – Conduct your own research into the stock market. Consider factors that affect stock value and how you know when it is the right time to sell. Listen to professional people and understand that the nature of the market means that even the best investor can make mistakes and lose money.
Goals – Set goals for your investments: what are you looking to achieve? Are you looking to accumulate wealth, generate some income, or just practice investing and selling? Assess the level of risk you are willing to accept.
Pick your broker – Select the right trading platform for you. Research their pros and cons and consider factors such as exchange fees, platform commissions, and specialist investments.
Check your funds – Ensure that you have sufficient funds to make an investment, and never invest money that you are not willing to lose.
Place an order – Search for Apple on the stock exchange—they are listed as AAPL. Double check you have everything correct before you confirm the transaction.
Monitor your investment – Keep an eye on the status of Apple stocks. As the market fluctuates, you will need to decide if you are in for the long term or short term. Long-term investments can be more secure as they follow long-term trends instead of short-term lows and highs. Whatever your decision, review your account and adjust as needed.
Top Brokers to Invest in Apple Stocks
1. Plus500
Plus500 offers the option to trade Apple stocks through Contract for Differences (CFDs). As a global CFD broker, Plus500 provides a platform where traders can speculate on the price movements of Apple stocks without owning the underlying asset. Traders considering investing in Apple stocks via Plus500 should be aware of the risks associated with CFD trading. They should also consider Plus500's fee structure, which includes costs built into the spread and potential overnight fees for positions held open longer than a day. Additionally, traders can access the platform on both desktop and mobile devices, benefiting from its user-friendly interface.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Buy and sell Amazon stocks via CFDs with Plus500.
2. Interactive Brokers
Interactive Brokers is a widely used brokerage platform known for its advanced trading tools and low-cost structure. They provide access to a wide range of investment products, including stocks, options, futures, and more. Interactive Brokers caters to both individual investors and institutional clients and offers comprehensive research and analysis tools.
3. Robinhood
Robinhood is a popular commission-free brokerage platform that gained popularity for its simplicity and accessibility.
They offer a user-friendly mobile app with zero commission trading for stocks, options, and cryptocurrencies. Robinhood is known for its easy-to-use interface and beginner-friendly approach, making it a popular choice for new investors.
4. E*TRADE
ETRADE is a well-known online brokerage platform that offers a range of investment products, including stocks, options, ETFs, and mutual funds. They provide a user-friendly interface, research tools, and educational resources to help investors make informed decisions. E*TRADE also offers competitive pricing and a robust mobile app for convenient trading on the go.
How to Invest In Apple
In order to invest in shares, you need to be a member of a trading platform. These online platforms will connect you to the stock markets with regulated brokerage.
There are a number of online platforms to choose from and each platform will have its advantages and disadvantages depending on investment circumstances.
Apple is listed on many stock markets due to its size, meaning that despite it being an American company, you should be able to buy Apple shares from many stock markets around the world. However, this will incur some extra charges if buying from outside the US NASDAQ exchange.
When selecting a trading platform, it is important to explore all of your options and to keep in mind which platforms will be best for you. Each platform will come with some conditions, including the following:
Commissions
Most platforms will take a small commission on any profits or purchases of shares in exchange for the use of the platform. These commissions will cut into investment profits but they are often necessary so that you can use the intended platform.
Some traders will not charge commissions at all and some won't charge any commissions on trades within certain countries. It is important to weigh up the options and to make sure that the commissions on the platform are suitable for you.
Most trading platforms will charge increased commissions on shares purchased in foreign stock exchanges, which is important to note as Apple stock investing is on the American NASDAQ market.
Country of Use
Some platforms only operate or will specialise for use in certain areas, such as Europe or North America. Check to see that your intended platform can be accessed in your area.
Ease of Use
Navigating the stock markets can be confusing, so some people will prefer to use platforms that are more suited for use for beginners as these platforms are often easier to use.
Daily Trade Limit
Some trading platforms will have a daily trade limit, meaning only a certain number of trades can be made per day. This is usually fine for the average investor looking to invest in long-term stock, but it is still worth knowing what the limit is so your money isn't stuck in shares until the limit resets.
Some people like to day trade – meaning they make multiple trades every day, so if you’re looking to get into day trades then daily trade limits would be a point to watch out for.
Cryptocurrency
There are a few platforms that will specialise in cryptocurrencies. If you have some investments in these areas already or are looking to get started, then these would be the trader platforms for you.
Transfer Bonus
Some trading platforms will offer a new transfer bonus when you transfer a certain amount of money from your general investment account. This is a great perk to look out for to get more for your money.
There are many trading platforms out there to choose from and depending on the types of investments you’ll be making, as well as your trading knowledge and skills, some platforms will be better suited than others.
Once you have found a trading platform, you’re ready to make your account. You will need your banking details alongside your information and your national insurance number.
Your national insurance number is needed as any profits that you may make on the stock market are subject to taxes.
Apple is listed as AAPL on the US NASDAQ stock exchange.
It’s worth noting that investing in Apple means buying stock from a foreign market (American NASDAQ Exchange) and will incur slightly higher commissions than buying from your national market, alongside an exchange fee for buying in dollars. It is worth looking into these commissions if you will be buying a large volume of stock on the US market.
Holding stocks in the US means that your stocks will be subject to foreign exchange rates, meaning if the pound weakens against the dollar, your shares will be worth more in sterling, and vice versa.
Invest in Apple Stock via Funds
Many people favour direct investment in specific companies as they can be very lucrative and profitable. Investments like these can build people's skill sets for future investments on the stock exchange, and some even come with specific shareholder perks.
However, investments like these come with an increased risk of stock volatility and unseen drops in share prices.
Apple stock investing can come in a few forms, and investors can find alternate investment options in the form of funds, investment trusts or ETFs (Exchange Traded Funds) that hold Apple shares.
A fund is a pooled investment in a ready-made portfolio of shares in a number of different companies. These are managed by fund managers—experts in the financial field who can spread the fund across a large number of companies in different industries.
Funds offer investors instant diversification of their one investment, spread across several different sectors. They give investors a buffer against market swings by offering a broad mix of assets. They can also offer exposure to high-value stocks.
The downside of funds is that investors will be charged more management fees to compensate the fund managers who are running them.
What Are the Risks to an Apple Stock Investment?
As with all investments, buying shares in Apple can carry risks.
The Future of Apple
Investing any money in Apple stock is a risk. If you’re looking to invest in Apple stocks, then you should start by looking at the company's growth and its expected future plans.
Looking forward, Apple is facing some problems with the costs of living in the current climate. This challenge is likely to limit consumers' spending and will cause people to be much more cautious with upgrades by holding onto their Apple products for longer.
Rising interest rates will put a squeeze on advertising budgets alongside some stiff competition from other tech and software giants in the markets. With this being said, Apple is forecasting continued revenue growth, although the growth rate is expected to decelerate across some divisions.
Questions to Ask Yourself Before You Invest
Should I take financial advice? Taking professional advice is almost always a good option, especially if you are a beginner in the financial world or are feeling out of your depth. Financial advice will come with a fee but could save some very costly mistakes.
Am I comfortable with the level of risk in question? You should always understand the appropriate level of risk that you are taking and be aware that any stock market investment can result in a loss. Would you be comfortable if you lost the money you are investing?
What’s my investing budget? Are you investing an appropriate amount? Can you afford to lose it? It’s all too easy to fall prey to the potential money you can make, but make sure you are not being blind to the potential that you could lose. Make sure you can afford to lose any money that you want to invest and you won't be left without enough money to pay your bills.
Do I understand the company in which I’m looking to invest? Do your research into the companies that you want to invest in. Are they growing and making investments in themselves? Or are the bankers knocking on their doors and talking about bankruptcy?
Am I protected if my platform provider or adviser goes out of business? Always ensure you have an “out”. If your trading platform goes out of business or your fund manager goes bankrupt, what happens to your money? Is it insured? Are you covered to get it back?
General Risk Factors
Apple does not monopolise technological innovation; in fact, Apple has many competitors to its technological success. Other competitors could come out with new products or disruptive technologies to rival Apple or affect their share values.
In addition, Apple can dedicate a large portion of success to its key individuals, specifically the visions of success and future innovation that come from its CEO and other key executives. If these people leave, the company may dip in popularity, which would have an effect on the market position.
Other company-specific risks can include supply chain disruptions, customer preference changes, and regulatory changes to name a few. These can all have a negative effect on stock prices by either halting manufacturing supply lines or causing a decrease in demand for Apple products. It is important to keep up to date with news on Apple to ensure you can get a clear picture of what is going on.
Global factors can affect all stock markets. Geopolitical events, environmental concerns and industry events alongside recessions, currency fluctuations, inflation, and interest rates can influence macroeconomic factors. These can all have an indirect effect on Apple's revenue, profitability, and share prices.
Buying US shares comes with an added risk of foreign currency fluctuations, if the pound strengthens against the dollar, your shares will be worth less in sterling.
Frequently Asked Questions
How to invest in Apple?
Investing in Apple stocks is a simple process, requiring some investment money and an account on a trading platform. Investors can simply select the required Apple stocks (APPL) and select the amount they want to invest.
Any investment in the stock markets comes with a risk and a word of caution. Investors should take care to research all of the relevant risks and ensure they are only investing money that they are comfortable with losing.
Is Apple a good company to invest in?
Apple is the largest company on the stock market and the first company in the world to reach a worth of one trillion dollars and then two trillion dollars. Apple has been manufacturing, designing, and releasing new products consistently over its lifetime, and despite the current global economic situation, they're forecasting growth for the future.
Whilst Apple is a strong contender for a good company to invest in, all investments on the stock market are risks. So any investor should make sure to do proper research or seek some advice from a financial professional before investing.
Who owns most of the Apple stock?
Most Apple shares are owned by institutional investors, which make up around 60%. Around 40% are owned by retail investors. Apple insiders own a small percentage.
The largest investor in Apple is Vanguard, representing 8.33% of the total stock ownership, representing a value of $232.91bn dollars.
How many Apple shares are there?
The total number of Apple shares changes from year to year. Currently, the total stands at 15.847 billion.
Is Apple stock cheap?
Apple stock is relatively cheap to buy compared to its major competitors. Apple stock investing is accessible as each individual share sits around £160, depending on the day.
Relative to Apple's total value (or market cap), its share price is low, this just means that its number of shares is very large.
How much will Apple shares be worth in 5 years?
The share price for Apple stock investing has been projected to increase, analysts anticipate Apple shares to reach $510 by 2030.
Whilst no one can predict what the stock market will do, Apple themselves have forecast projected growth for the future.
Is Apple a safe long-term investment?
Many analysts and investors consider investing in Apple stock to be a safe long-term investment. Apple is included in many large funds and investment trusts managed by fund managers and financial experts.
Apple also has had overall positive growth over the last thirty years, and while no one can predict the future of the stock markets, many anticipate continued growth in the future.
What is the best online broker to buy Apple shares?
If you’re wondering how to invest in Apple stocks, then you will need an online broker or more specifically, an account with an online trading platform.
There are many trading platforms to choose from, and each will come with its own pros and cons, so Apple investors should consider how they want to trade and which platforms will be the best for this.
Different platforms offer different benefits, such as; zero/low commissions, zero trade limits, reduced fees for buying stock in different countries, specialising in cryptocurrency, or just being easy to use. Investors should consider the different benefits of each platform when they’re choosing who to go with.
Do I get dividends from Apple shares?
Yes, investing in Apple will pay you dividends. The latest performance figures from Apple show that dividends are worth $0.23 per share.
What is the minimum deposit required to buy Apple shares?
There is no minimum limit to investing in the stock market itself, but you should remember that many trading platforms will carry fees and charges for use. If not taken into consideration, these may affect the total profit on small investments.
Some trading platforms will have a minimum deposit or investment limit, this should be checked by those who would prefer smaller investments or small weekly/monthly payments.
What is the most user-friendly trading platform to buy Apple shares?
There are many different trading platforms that potential investors can use to buy Apple stock, and some are specifically user-friendly for those who are just beginning an investment journey or who are not too confident in using apps and the internet.
One of the more user-friendly trading platforms is Trading 212.
What are the main things to consider before buying Apple stocks?
Before deciding to buy Apple stocks, you should consider taking professional advice, think about your investment budget, research the company, and ensure your money is protected.
Final Thoughts
Apple products are hugely popular worldwide, and many people are investing in Apple stock due to the positive growth rates of the company.
Additionally, Apple stock investing is a straightforward process. After selecting your desired trading platform and creating an account, you will need to select AAPL and simply decide how much to invest.
Just be sure to trade wisely. The stock market is a gamble, so always make sure that you do your own thorough research. It is often best to seek the professional help of a financial advisor before investing in the stock market, and never invest any money that you’re not prepared to lose.