How to buy eBay (EBAY) stock from Canada

By   |   Verified by Andrew Boyd   |   Updated 4th May 2022

How to buy EBAY stock
  • Ready to take a position in eBay stock?
  • See how brokers compete for your account.
  • Evaluate different order types.

The online retailer, eBay (NASDAQ: EBAY) was one of the first online marketplaces in the world. The company saw massive success in the first decade of its launch, but volume started dropping off as Amazon turned into an overwhelming market force.

However, trading eBay stock offers you plenty of opportunities to make money. This guide gives you everything you need to know about investing in this giant of e-commerce from Canada.

Company overview

eBay launched its IPO back in 1998 at $18 per stock. Founded in 1995, with headquarters in San Jose, CA, it had 30 employees and over half a million users when it went public. Today, eBay has more than 13,000 employees, with 2020 revenues exceeding $10 billion.

Where to buy eBay stock

CIBC Investor's Edge

On CIBC's website

CIBC Investor's Edge

Highlights

  • Free online trading for young investors 18-24 years old. No annual fee, no minimum balance, and $0 per online stock and ETF trade until 30 September 2022. Terms and Conditions apply.
  • Pay a flat fee of only $6.95 per online equity trade, with no minimums.
  • Invest in stocks, ETFs, options, mutual funds, GICs, fixed income and precious metals.
  • Trade confidently with industry-leading research at your fingertips.
Qtrade Direct Investing™

On Qtrade Direct Investing™'s website

Highlights

  • Almost $500 in commission-free trades. Offer ends on August 31st, 2022. Use the Promo Code 50TRADESFREE to avail of the offer. Conditions apply
  • Low trading commissions, easy-to-use platforms, and a wide selection of investment options.
  • Get transparent and competitive pricing.
  • Exceptional client service.
Wealthsimple Trade

Highlights

  • Commission-free stock trading. Wealthsimple invests your money across the entire stock market using Exchange Traded Funds (ETFs).
  • Manage your accounts from anywhere with an award-winning website and mobile app.
  • Get on track with a Wealthsimple Portfolio Review.
Scotia iTrade

Highlights

  • Experience trading with one of the lowest commission structures in the industry.
  • Manage your investments from your computer or mobile device.
  • Analyst resources, technical analysis, and investing ideas are available at your fingertips to empower you to direct invest.

Compare online stock brokers with Finty. Research fees, commissions, tradable assets, markets, etc.

Step 1: Pick a broker

If you want to buy eBay stock, you’ll need to do it through a broker. Here are the features and services you need to look for when selecting your preferred broker.

No-commission trading

With Robinhood’s commission-free model eating into the big discount brokers’ market stock, many firms have adopted the same zero-commission model. There is no reason to pay a broker commissions when there are a multitude of commission-free options.

Fractional stock trading

Fractional stock trading helps you manage account risk. For instance, if you've started with a $300 account balance, you should only risk 5% of the balance on any one company. Buying a single stock of EBAY stock will exceed this ratio. By buying fractional stocks, you can invest in many different companies, reducing your reliance on any one company for portfolio growth.

Quality trading platform

Brokers provide you with a trading platform for placing your trades and many of the platforms are basic, which is a good thing for new traders. However, as your experience grows, you may want to consider upgrading to DAS or Sterling for more advanced charting options. Make sure the broker facilitates the use of these independent trading platforms for your account.

Low account fees

Compare fee schedules between prospective brokers. Go with the firm that has the lowest transaction and account management fees.

Margin trading

Brokers offer traders cash and margin accounts when signing up for the service. With a cash account, you can only trade the balance you have in your trading account. If you use up all your buying capacity in one day, you’ll have to wait a day for the clearinghouse to process the transactions and refresh your balance.

With a margin account, your broker “loans” you money to keep trading and letting you access leverage. For instance, if you have a 3:1 margin ratio on your $300 account, you can purchase up to $900 of stock. However, trading on margin is risky, and you face the possibility of losing more than your starting account balance or having to deposit more money if a trade turns against you.

Real-time data and charts

Brokers provide you with a basic charting package for managing your trades. As a beginner, you’ll need to access live market data in your charts and Level 2 if you want to ensure the best trading experience. However, brokers and charting companies charge a fee for providing real-time market data.

Step 2: Fund your trading account

Brokers will accept initial deposits using debit cards and bank transfers. However, they won’t accept credit cards for account funding.

The first time you make a deposit or withdrawal, it takes the broker a few days to confirm your identity and process the transaction. Subsequent withdrawals and deposits will be much faster.

Step 3: Decide how much to invest

When you fund your trading account, be sensible with your deposit. Don’t use money you can’t afford to lose, such as that you need for day-to-day expenses or your monthly rent.

If you’re over-confident and deposit your life savings, you could be in for a rude awakening when a trade moves against you. Always think in terms of risk when you’re placing trades or funding your account.

Step 4: Choose to invest in a share of stock or ETFs

If you want to trade eBay, you have the choice of buying the stock outright or purchasing an ETF holding eBay stock. ETFs are vehicles containing stocks of several companies. By trading ETFs, you spread your risk across several stocks.

For exposure to eBay via an ETF, invest in Invesco QQQ Trust (QQQ), SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV), and Vanguard S&P 500 ETF (VOO).

Step 5: Set up your order

After choosing your asset, it’s time to place the first trade on your trading platform. Here are the order types you need to understand before you start trading.

Market order

This order type gets you into eBay stock at the next available price. However, you might end up paying more than you expect. For instance, you might want to buy at $50, but your order fills at $52, $55, or $57, as the market has moved, resulting in slippage.

Limit order

This order is preferred by professional day traders. You enter the price of $50 to buy eBay. When the price reaches this level, it fills your order. Although there’s no slippage, the downside is that your order might not fill, or fill partially, if there’s a spike in price action.

Stop limit

This order lets you sell at a predetermined price target. For instance, you enter eBay at $50, and sell at $60, locking in your profits.

Stop loss

This order prevents your account taking a catastrophic loss on any single trade. You set the stop loss at 10% to 15% below the entry price in eBay. If the price falls to this level, it triggers the stop loss, liquidating your position before you take any further losses.

Step 6: Place the order

To place your order for stock or ETFs, you’ll type in the ticker symbol and complete the fields for how many stocks you want to purchase and the limit price you’re willing to pay.

When you’re ready to transact, hit the buy button. Click the sell button to exit the position and realize your profits in your trading account.

Step 7: Monitor performance

eBay's stock moves when they report earnings. It’s best to trade around these reports, where you get the best volatility in price action. But their stock also moves when they announce new initiatives, for instance, when the company announced it will allow the sale of NFTs and also start accepting cryptocurrency for payments. 1 This kind of news will move the price of eBay, but so too might news around e-commerce competitors like Amazon (NASDAQ: AMZN), Etsy (NASDAQ: ETSY), and Shopify (NASDAQ: SHOP), presenting a viable trading opportunity.

Article source

1 TechCrunch. "eBay embraces NFTs, https://techcrunch.com/2021/05/11/ebay-embraces-nfts/". May 11, 2021.