eBay (NASDAQ: EBAY) is a multinational e-commerce company that offers consumer-to-consumer (C2C) and business-to-consumer (B2B) sales through its website. The company was founded in 1995 and is headquartered in San Jose, California, United States.
Want to invest in one of the biggest names online? Here's how to buy eBay shares from the UK.
About the company
eBay overview
Originally reserved for auction-style sales, eBay has since branched out to include instant "Buy It Now" shopping, shopping via Universal Product Code, ISBN, and other services. The eBay platform is free for buyers to use, but sellers pay fees to list items and again when a sale is finalised.
Although eBay has many product categories, the top-selling is "Electronics & Accessories". By the end of Q1 in 2021, eBay had 187 million users worldwide across 190 different markets. More than half (57% in Q1 2021) of its revenues come from international operations, from its more than 1.7 billion listings.
The biggest chunk of eBay’s revenue (70% in 2020) comes from Marketplace transactions, through the online marketplace, its localised counterparts, and the eBay mobile apps. Marketing services and others (MS&O), in the marketplace and on classifieds as well as online StubHub ticket platform, make up the rest of the revenue.
Like most e-commerce companies, eBay has performed well during the pandemic, showing revenue growth and growth prospects during 2021. The company is no stranger to weathering difficult trading conditions. Its 1998 IPO made it a notable success during the nineties dot-com bubble.
On website
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk
eToro
Highlights
- Trade and invest in top financial instruments, including a wide selection of stocks.
- eToro is regulated by CySec, FCA and ASIC
- Your funds are protected by industry-leading security protocols.
On website
Hargreaves Lansdown
Highlights
- Offers easy-to-use trading platforms.
- Invest across 20 international exchanges in shares, funds, bonds and investment trusts.
- Dealing charges depend on how many trades you make each month.
On website
When you invest, your capital is at risk.
Lightyear
Highlights
- Invest in over 3,000 international ETFs and stocks in the EU, UK, US, and more.
- Simple and easy-to-understand pricing. Per order, Lightyear will charge 0.1% (up to $1 max) on US shares, £1 on UK shares, and €1 on EU shares.
- Earn interest* on uninvested cash, USD (4.50%), EUR (3.25%), GBP (4.5%), and HUF (8.25%) p.a. gross.
- No account-keeping fees.
*The interest rates are true as of 12.06.2023
* Finty will be paid a referral fee, including financial promotion if you open an account and deposit funds through some of the links on this page.
Pros
Cons
On website
Saxo Markets
Highlights
- It only takes five minutes to open your account online.
- Get ultra-competitive spreads and commissions across all asset classes.
- Get news, commentary and actionable trade ideas from their team of expert analysts.
On website
Wombat Invest
Please read the following disclaimer before applying.
Wombat Invest
Highlights
- Simple and straightforward investing app.
- Allows you to invest in ETFs (Standard ISA or GIA) and Fractional Shares (GIA only).
- Get a savings account and unlock 4.91 %AER (variable) paid daily.
- Open an Individual Savings Account and invest up to £20,000 each year.
Disclaimer: When you invest, your capital is at risk.
On website
80.9% of retail investor accounts lose money when trading CFDs
Pepperstone
Highlights
- Trade gold, silver, oil, and more.
- Enjoy industry-leading low spreads from 0.0 pips.
- Regulated by ASIC, BaFin, CMA, CySEC, DFSA, FCA, and SCB.
On website
Freetrade
Highlights
- With fractional shares, you can start investing from only £2.
- Choose from thousands of stocks from the London Stock Exchange, NYSE and NASDAQ.
- Access to a wide range of ETFs and Investment trusts.
Compare the best platforms for buying shares on Finty. Research broker fees, commissions, tradable assets, markets, and commodities, etc.
Step 1: Choose a broker
Find an online broker that allows you to access the US markets. There are many options that you can access from the UK. Next, consider the features that you want from a broker. These are some of the most important:
Commission-free trades
This feature is offered by many platforms that provide access to US stock markets. You can save money on share trading by not paying commissions.
Fractional share investment
Fractional share investment means you can buy a portion of a share, rather than the entire thing.
User-friendly interface
It doesn't have to be difficult to trade shares. Make sure you choose a platform that is easy to use. New investors can benefit from educational guides and the ability to open a demo account.
Research, analysis, and reporting
A platform with a strong research and reporting section will provide you with important information about eBay, such as company overview, price history and recommendations, and forecasts.
Step 2: Fund your investing account
To buy eBay shares, you will need to fund the account. Keep in mind that may take some time for your funds to clear into your trading account and you will not be able to buy shares until it does.
Step 3: Set your budget for investing
It might be a good idea to start with fractional shares as a first step. You can also make a profit regardless of shares dropping, as you can buy in at the average share price.
Step 4: Decide whether to invest in shares or via an ETF
Investing via an ETF is widely regarded as more diverse compared to investing your entire outlay on a single share.
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: Configure your order
You can choose from a variety of order types to customise when and how much you want to buy of each share. These are the different order types.
Market order
Market orders are orders that can be purchased or sold at the current market price. However, the price that you are looking for may not match the one you receive. You may order eBay stock at US$1430. The price of the eBay stock may drop to US$1427 or rise to US$1435 by the time the trade is executed.
Limit order
Execution-only orders for buy limit orders are executed at the price quoted or less. You may wish to buy eBay shares at US$1428 per share. You can submit a limit order for this amount. It will only be fulfilled if the eBay share price falls below US$1428.
Stop limit
This type of order allows you to sell your shares at a certain price if the share price starts dropping. Let's suppose you want to sell your eBay shares if the price falls to US$1430 per share. Your stop limit order is executed if the shares drop to this price.
Stop loss
This is another mechanism aimed at preventing you taking a hit on your shares if the price drops. You nominate a price at which you want to sell your eBay shares, for example, US$1425 per share. Your stop loss order will be executed if the price falls to that level but your order will be filled at the next available market price.
Step 6: Place your order
After you've chosen a broker and decided how you want to invest, you can place your order through that broker.
When you invest in shares, it is necessary to watch share price movements and follow the company’s performance.
Watch for developments in global e-commerce
You want to be watching how the e-commerce industry performs. What moves are large players, such as Amazon, Alibaba, and Walmart, making? How do they go about increasing their competitive edge? How are smaller competitors trying to catch up?
Competition
Amazon (NASDAQ: AMZN) is eBay's biggest direct competitor, but it does not offer an auction format. Its other key competitors are Alibaba (NYSE: BABA), Walmart (NYSE: WMT) and JD.com.
Popular eBay alternatives for sellers include Etsy (NASDAQ: ETSY), Bonanza.com, eBid.net, and iOffer.com. But anyone who wants to sell anything online, anywhere in the world, needs to understand how the three titans of online sales operate, which include Alibaba, Amazon, and eBay.
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.
