- Want to buy Aston Martin shares for exposure to the luxury sports car sector?
- Work out which of the trading options is right for you.
- Find out how Aston Martin is performing in comparison to their direct competitors.
Aston Martin (LON: AML) is an iconic British sports car manufacturer. They have been making luxury sports cars and grand tourers since 1913 and selling them internationally ever since.
Read on for more details about buying shares in Aston Martin.
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Step 1: Find a broker
Aston Martin is listed on the London Stock Exchange, which your broker will need access to if you're interested in purchasing their shares.
When comparing brokers, it is important to consider factors such as the commission and foreign exchange fee charged. These fees can make a difference, especially on smaller trades.
Other factors to consider include available trading instruments (shares, funds, bonds, commodities, etc.), stock market access, and whether they support fractional share investments.
If you're not sure about investing, having the ability to create an account with a demo account so that you can test your skills could be an excellent feature.
Step 2: Fund your account
You can add funds to your account with a bank transfer or debit card. Certain brokers accept credit cards or PayPal in addition.
If you have a time-sensitive trade in mind, be aware that the time it takes for funds to reach your account will vary depending on the method used.
Step 3: Decide how much to invest
Values of shares fluctuate on a daily basis and there's no guarantee that you won't lose money on a trade. Therefore, it is not advisable to put in more money than you can afford to lose without putting yourself into financial difficulties.
You can buy more shares periodically over time when your budget permits, a strategy that reduces your exposure to price volatility and can average down the price paid per share (if you buy at lows).
Step 4: Choose between buying shares or investing in an ETF
Investing in an ETF can give you exposure to the growth of a specific sector or market. For example, there are ETFs that focus on the car industry and engineering industry. Since ETFs are managed and diversified, they are generally regarded as less risky than investing in a single company alone.
ETFs that hold Aston Martin shares include Invesco Global Opportunities Fund (OPGIX), Fidelity Mid-Cap Stock Fund (FMCSX), and Fidelity Advisor New Insights Fund (FNIAX).
Step 5: Configure your order
A market order is the most basic type of order available, which allows you to purchase shares at the current market price (which could be slightly lower or higher than the price quoted).
Most brokers have a type of order that will be executed automatically when certain conditions are satisfied. These trigger orders can be used to buy or sell, meaning you can use them to take profit if the price has gone up or sell to protect profit.
In addition, some brokers support recurring orders, which can be configured to purchase shares on a regular basis, e.g. monthly.
Step 6: Place your order
Once you have configured your order, submit it to buy your shares.
Monitoring the price of your Aston Martin shares is essential, but so is keeping an eye on what is said about them in the press. News stories, company results, and announcements can all impact the price of your shares.
It also makes sense to keep an eye on what is going on in general with the luxury car market. While there is always a market for luxury cars, it is not impervious to economic downturns. Access to the Chinese market — where Aston Martin has experienced rapid growth — is of paramount importance to the company’s performance (as it is with many other car manufacturers).
Take time out to also read news stories about Lotus Cars, Maserati which is owned by Stellantis (BIT: STLA ), Jaguar which is owned by Tata Motors (LON: OLDA), and Bentley Motors, owned by VW (ETR: VOW3). These companies sell the type of cars Aston Martin’s core customer base also enjoys driving.
Disclaimer: We put our customer’s needs first. The views expressed in this article are those of the writer’s alone and do not constitute financial advice. Advertisers cannot influence editorial content. However, Finty and/or the writer may have a financial interest in the companies mentioned. Finty is committed to providing factual, honest, and accurate information that is compliant with governing laws and regulations. Do your own due diligence and seek professional advice before deciding to invest in one of the products mentioned. For more information, see Finty’s editorial guidelines and terms and conditions.