- Would you like to buy Anglo American shares for exposure to the mining and natural resource sector?
- Learn about choosing a broker and the different types of orders.
- Understand how market conditions and other factors impact the value of their shares.
Anglo American (LON: AAL) is a mining company with global operations. The company produces 40% of the world’s platinum, which is an essential metal in electronics, medical equipment, and more. Other resources they extract include thermal coal used to make steel, diamonds, and several of the metals used in batteries.
Read on for more about how to buy Anglo American shares.
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Step 1: Choose a broker
Anglo American is listed on the London Stock Exchange, which your broker must have access to if you are to buy shares in the company.
When comparing options, check what commission and foreign exchange fee the broker charges as well as features like market access, tradable instruments, whether they have fractional share investment, etc.
You can compare brokers side-by-side here on Finty.
Step 2: Transfer funds to your account
You can add funds with a bank transfer or debit card. Although less common, some brokers will also accept credit cards and PayPal.
The length of time it takes for funds to clear depends on the method used. Note that your broker may require a minimum deposit amount, but it’s usually so small to be inconsequential.
Step 3: Decide the amount you'll invest
Share prices can go up and down, so you should only ever invest what you can afford to lose.
Avoid the fear of missing out. You can buy shares in the future when you have the funds to do so.
Step 4: Choose between shares or an ETF
Instead of buying shares of the company, you can put your money into an ETF with exposure to Anglo American. Since ETFs are diversified across multiple companies, they typically experience lower price volatility.
ETFs that include shares of Anglo American include iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU). Mining themed ETFs with Anglo American include FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) and iShares MSCI Global Metals & Mining Producers ETF (PICK).
Step 5: Configure an order
Depending on the broker you use, you can configure many different kinds of order.
A market order is the most straightforward, requiring virtually no setup. Once executed, you’ll get shares at the next market price.
If you have a strategy, then you’ll probably want more options in terms of configuration. Some brokers have highly customisable orders that can be triggered by events, meaning you can buy or sell when Anglo American hits a price target.
Step 6: Place your order
When you’re happy, submit your order to be executed.
It is important to keep track of how well your Anglo American shares are performing so you can make an informed decision about whether you should hold or sell them.
Follow news stories that mention Anglo American, the mining industry, and demand for natural resources.
You can also monitor what their main competitors are doing. Track how Rio Tinto (ASX: RIO) and the BHP Group (BHP) are performing as well as the likes of Impala Platinum (JSE: IMP), Sibanye-Stillwater (JSE: SSW), and Northam Platinum (JSE: NPH).
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