I’m very happy to show you the new collection of How To Invest In Stock Market For Beginners In Nz . There are many ways to make money in order to get rich. One of the best strategies is the stock market. If you want to start investing in this or this sounds something you’d like to try out then we can help you get started and teach you all the tips and tricks along the way. The stock market is not something that just anyone can take part in which means it’s a lot harder for beginners than it really should be. This guide should hopefully make things a bit easier if you’re someone who doesn’t know where to begin or you don’t know how to.
Invest In Stock Market For Beginners In Nz Making good money is as easy as 1,2,3 By Moiz Siddiqui started his Investing journey in 2015. Even though personally I have been investing in the stock market for a very long time now, there were a couple of things I didn’t know. And if you are a beginner like me, let me tell you a secret. There is really nothing to stress about. We all go through the same learning curve or most probably multiple ones. And that is just part of being a beginner investor. If you want to learn from my mistakes and save money and time, then you should definitely stick with me through this journey as we learn how to invest in stock market for beginners in Nz.
Table of Contents
Open an Account with Capital.com Today – Pay 0% Commission on Stocks
First and foremost, head over to the Capital.com website and click on the ‘OPEN ACCOUNT’ button. You’ll find it at the top-right hand of the page. You will then need to enter some personal information.
This includes your full name, home address, date of birth, New Zealand tax number, and contact details. You will also need to choose a username and a strong password.
Upload Some ID
Capital.com – and all regulated stock brokers for that matter – are required to identify each and every trader that registers an account. The process takes just a few minutes, and simply requires to upload a copy of your New Zealand passport or driver’s license and a recently issued bank account statement or utility bill Capital.com should be able to validate the documents straight away.
Deposit Funds
You will need to meet a minimum deposit amount of USD 20 at Capital.com (about NZD 28). Supported payment methods include debit cards, credit cards, Paypal, Skrill, Neteller, and NZ tank transfer.
Once your deposit has been processed – which is instant unless you are using a New Zealand bank account, the funds will be converted to USD. This comes at a small fee of 0.5%. Then, you can buy shares from multiple stock exchanges at the click of a button without needing to worry about exchange rates.
As soon as you have funded your Capital.com account, you can buy shares straight away. The platform lists more than 800 companies across several exchanges, so click on the ‘TRADE MARKETS’ button to have a browse.
Alternatively, if you already know which shares you want to buy, you can enter the name of the company in the search box at the top of the page. Once you have found the company you wish to invest in, click on the ‘TRADE’ button.
Then, you will see an order box pop up. This is where you need to enter the amount that you want to invest. By default, this is set as a dollar value – so if you want to buy $500 worth of shares, enter this into the box. If you want to base your investment on the number of shares, you can do this clicking on the ‘UNITS’ button.
Finally, click on the ‘OPEN TRADE’ button. And that’s it – you’ve just bought shares from the comfort of your home!
Don’t have time to research a broker yourself? If so, below you will find our list of the best New Zeland share dealing platforms of 2021. Each broker is licensed by one or more regulatory body, easily allows you to deposit and withdraw funds with an NZ debit/credit card, and gives you access to lots of international stock exchanges.
Capital.com is a new, modern and very cheap share dealing platform that’s our recommended choice for New Zealand trainers. Capital.com is a CFD trading platform, so you won’t be owning shares in the traditional sense, but for all intents and purposes it’s the same – you’ll even be entitled to dividends! It also means you can trade shares with up to 1:5 leverage.
Capital.com offers a fantastic range of over 2,400 shares, so you can trade all the top companies from around the world. There’s no commission to pay on share trades at Capital.com, and the spreads are some of the most competitive on the market. In addition to shares, Capital.com offers ETFs, indices, commodities and forex.
Capital.com offers a brilliantly user-friendly platform, both on web and on the mobile app, so it’s perfect for both beginners and advanced traders. The are great educational guides, news and features, webinars and even Capital.com TV!
This broker’s platform also has innovative AI-based functionality, meaning you get actionable trading ideas and other useful benefits. There’s also a strong range of charting and analysis tools.
Capital.com is a strictly regulated broker with numerous licenses, including from the UK’s FCA. It accepts a wide range of payment methods, and you can get started with a deposit of just USD 20 (around NZD 28)!
Pros:
- Over 2,400 shares
- No commissions and low spreads
- AI-based trading platform
- Low minimum deposit
- Licensed and regulated broker
Cons:
- CFDs only
The second option that is worth considering is that of Plus500. The platform specializes in CFDs, meaning that you will not be buying or selling shares in the traditional sense. On the contrary, you will trade instruments CFDs – meaning that you will not own the underlying asset.
This does come with its advantages – such as being able to trade stock CFDs with leverage. In the case of Plus500, you will be offered leverage limits of 1:5. In the case of dividends, if you have an outstanding buy position this will be reflected in your account. If you have a sell position, there will be a negative adjustment.
Similarly, stock CFDs at Plus500 allow you to short-sell companies. For example, if you think that the value of IBM shares will go down, the platform allows you to speculate on this. If stock CFD trading is what you are after, Plus500 lists more than 2,000 companies from several international markets. You can quickly open an account from the comfort of your home, and minimum deposits start at just £100 (about NZD $200).
Plus500 accepts multiple NZ payment methods, including debit/credit cards, bank accounts, and Paypal. Finally, Plus500 is heavily regulated and its parent company is listed on the London Stock Exchange. Below you will find details of its regulatory position:
Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL 417727, FMA in New Zealand, FSP 486026; Authorised Financial Services Provider in South Africa, FSP 47546.
Pros:
- Commission-free CFD provider – only pay the spread
- Thousands of financial instruments across heaps of markets
- Ability to trade stock CFDs with leverage of up to 1:5
- Takes just minutes to open an account and deposit funds
Cons:
- CFDs only
- More suitable for experienced traders
IG is one of the most established share dealing platforms in the online brokerage space. Not only does it offer traditional shares and stock CFDs, but you will also have access to a fully-fledged spread betting facility. If it’s conventional shares that you want to buy, IG allows you to do this from just £8 (about NZD $15) per trade.
If you buy or sell more than three trades in a single month, this goes down to just £3 (about NZD $5.50). This makes IG hugely competitive in the fee department – especially when you factor in its tight spreads. In terms of tradable markets, IG lists more than 10,000 companies.
Not only does include major exchanges in the UK, US, and Japan – but heaps of less liquid markets. Crucially, this allows you to mitigate your long-term risks by investing in hundreds of different companies. If you like the sound of IG, minimum deposits start at £250 (about NZD $490). The broker supports NZ debit/credit cards and bank accounts.
Pros:
- Trusted broker with a long-standing reputation
- Good value share dealing services
- Leverage and short-selling also available
- Spread betting and CFD products
- Access to dozens of international markets
- Great research department
Cons:
- Minimum deposit of £250 (NZD $490)
- US stocks have a $15 minimum commission
In a time not so long ago, buying shares in New Zealand was a somewhat cumbersome task. This is because you would need to open an account with a traditional stock broker, and subsequently discuss your share dealing requirements with them over the phone.
Not only was this a time-consuming process, but the manual demands of using a conventional stock broker would result in hefty fees. Fast forward to 2021 and it is now possible to buy shares in New Zealand from the comfort of your home.
But before you buy shares, you need to learn about how the market works and find how to find the right stock broker. Let’s take a look at everything you need to know before you buy shares online.
When a company decides to take things to the next level, it will make the transition to a PLC. In doing so, it will hold what is known as an ‘Initial Public Offering’ – or IPO. This allows the company to raise outside capital – which is often in the billions of dollars.
For example, when Uber went public in 2019, it raised $8.1 billion. In return, those that invested in the company received shares. When you purchase shares, this means that you own a ‘share’ of the company. This means that you own a small percentage of the firm – proportionate to the amount you invest.
In turn, you will be entitled to dividends. The shares will then go up and down in value – with prices dictated by market forces. In other words, the value of shares is based on supply and demand. That is to say, as more people buy the shares, the price will increase. If there are more sellers than buyers, the opposite will happen.
When it comes to tradable markets, this will ultimately depend on the type of stock broker that you decide to sign up with. For example, the likes of Capital.com and IG give you access to stock markets of all shapes and sizes. Whether its shares listed in the UK, US, Canada, or Japan – these platforms have you covered. With that said, you need to check what stock exchanges your chosen broker hosts before opening an account.
The overarching purpose of buying shares is to grow your money. This can actually come in two forms – capital gains and dividend payments.
Capital Gains
Capital gains refer to the profit you make when the value of the shares goes up. For example:
- Let’s suppose that you buy 100 shares in Nike at $80 per stock
- This means that your total investment amounts to $8,000
- Four years later, Nike shares are now priced at $120 per stock
- You are happy with your gains so you decide to sell the shares
- You made $40 per share ($120-$80), and at 100 shares – this amounts to a profit of $4,000
Conclusion
Investing in the stock market is a great way to make your money grow over time. With a bit of knowledge and a lot of diligence you can build up a portfolio that will grow over time, typically outperforming the cost of inflation. In this guide I’m going to cover how to invest in the stock market, including finding the right broker for you, choosing your investments and setting up automatic investment plans. If you’re looking for a more simple approach then you can sign up to my 7-day course on how to invest in the stock market and take my hand-held approach for getting started in the market today.