How to buy stocks in Ireland
Greetings, and welcome to nextmarkets guide to how to buy stocks in Ireland. At nextmarkets, we are passionate about stocks, shares and investing and want to educate as many people as possible about these areas of financial ventures.
The following guide is a condensed insight into how you can buy stocksF, good reasons to buy stocks, where to buy stocks in Ireland and the best stocks to buy in Ireland for you and your investment goals. So, read on to learn all there is to know about buying stocks in Ireland!
What are stocks
With many people wanting a way to make their savings go further, the world of investing in stocks and shares has become more popular and there are now more ways to invest in stocks and more companies offering stocks than ever before.
This venture is not risk- free and if you are hit with some unfortunate luck, you may actually lose money. While it is not always possible to foresee such events, you can arm yourself with information and tips to help you make the best decisions when choosing to invest, which can reduce the occurrence of losses.
Why do people buy stocks?
But before we get into tips on mitigating risk with stocks and brokers, let’s look at why people buy or invest in stocks in the first place. Remember, these are what we would call ‘good’ reasons to invest in stocks but your reasons may differ.
Savings/retirement
Many people invest in stocks in their 20’s or 30’s with a long-term plan towards a retirement fund or savings pot. And should you choose a broker who can select a suitable stock for you to invest in, this is a pretty straightforward way to save capitol via investing and stocks.
Many older people approach brokers to help them invest too, with the aim being towards putting money aside for their children or grandchildren after they have gone. Again, this is a long-term plan but based on time scales, there may be a need to see a higher return faster which, once again, can be done successfully if you choose the right broker.
Passive income
If you want to have a bit more money at the end of the month to go towards home refurbishments, savings or heck, just a holiday, this investing type is known as a ‘passive income.’
It can be either short or long-term and can top up your monthly earnings nicely if the right stocks are chosen.
Inflation
Ah, the dreaded or beloved word to economists everywhere!
Should you have savings with a bank, then they will be prone to potential fluctuation due to inflation rates. If the economy is in a bad way, then you run the risk of losing money.
But, depending on the investment type you purchase, you can lower the damage caused to your savings by inflation, and thus save money in the long term. A preferred way to do this is by purchasing precious metals, such as gold or silver bars or bullion.
Stock types
OK, in the world of stocks, there are more than a few types to choose from and generally speaking, when you are looking to invest in stock, your broker will be able to give you a better idea of which type is the best suited to your amount of investment and your investment plan.
To save a bit of time in this section, we will discuss 4 of the more common types of stock that you can buy in Ireland.
Common stock
This represents a partial ownership in a company and allows you the right to receive a proportional share of any remaining assets if the company dissolves.
So, if you wanted to buy Apple Stock, or buy Facebook stock, you would become a shareholder of these companies and if they went under, you would receive a percentage of their value.
Preferred stock
This is slightly different to common stock; were you to buy Netflix stock under this system, should Netflix go under, you would get back a certain amount of money, as opposed to a share or percentage.
Domestic stock
Stocks are often categorised based on where the company’s headquarters are located, and so, if you are based in Ireland, you cannot buy Amazon stock as a domestic stock. But, when building a portfolio, almost all brokers will suggest to begin with domestic stock.
International stock
But, if you wanted to buy Google stock while living in Ireland, you could do this under the laws of international stock. Most stocks are considered international and trade across the different trading exchanges, so it is worth asking your broker about the laws regarding international stocks.
Ways to buy stocks
Apps: Suffice to say, there are countless mobile apps that can show you how to invest in stocks in Ireland, based on the money you have available and your areas of knowledge. Many offer 24/7 support and also provide you with educational videos, articles and blogs to help you build your confidence around investing. Just click and go!
You will probably have to pay fees for different exchanges and transactions, but in the era of the smartphone, this is fast becoming the preferred method of how to buy shares in Ireland.
Brokers or brokerage: If you are new to the world of buying stocks in Ireland, you may not feel confident enough to do the transactions, especially using a stock trading app in Ireland!
You can use a stock broker in Ireland or a brokerage firm to help you manage your investments. This can be particularly helpful with different investment and stock types, such as CFD trading in Ireland or foreign exchanges.
Need advice on trading and buying stocks? You may want to contact different brokers or brokerage firms to help you solidify your investment plan and to make investment choices on your behalf, if you aren’t sure where to begin.
Stock purchasing in Ireland
There are many different types of stock to invest in and, depending on your level of skill in this area, you may prefer to do this via a stock trading app in Ireland or with the help of a broker.
Depending on the underlying reason as to why you want to purchase stock, you may find it easier to invest in one preferred stock type but remember, a good stock portfolio is one that has diversification.
If you want to protect your savings against inflation, or just want a passive income, buying stocks may be the way to go!