Glencore (LON: GLEN) is an Anglo-Swiss multinational mining and commodity trading company. It is one of the world’s largest public companies with mining and production facilities in locations around the world. Glencore produces metals, minerals, coal, natural gas, crude oil, and agricultural products.
For exposure to the commodities market, scroll down for more about buying Glencore shares in this step-by-step guide.
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Step 1: Pick an online broker
There are numerous brokers to choose from, each with a different set of features to consider.
If Glencore is what you want to invest in, you’ll need a broker with access to the London Stock Exchange since that’s where they are listed.
Other features to consider when making your decision include the brokerage fee, stock market access (apart from the LSE), what instruments you can trade, and whether you can buy fractional shares (so you can access some of the more expensive shares). A polished user interface also makes a difference since not all brokers are designed for the average investor.
You can quickly compare broker fees and features here on Finty.
Step 2: Fund your account
After opening your trading account, you need to transfer funds to it to trade with.
Some brokers have a minimum deposit, but this is generally quite low since they want to make it as easy as possible for new users to trade. Depending on the funding method used, it may take up to a couple of days for your money to clear into your account.
Keep in mind that if you can buy fractional shares, you can be more flexible with how much you want to transfer since you don’t have to buy whole shares.
Step 3: Decide how much to invest
With the introduction of fractional investing, it’s possible to buy a fraction of a share rather than the whole unit. In addition to making expensive shares accessible, fractional investing makes it much easier to diversify your investments across multiple companies.
Whether you want to buy a fraction of a share or the whole share, set a budget. Avoid the fear of missing out. Share valuations rise and fall, so you may be able to buy more at a later date for less.
Step 4: Choose whether to purchase shares or an ETF
ETFs are a kind of diversified investment with exposure to a group of companies that are typically focused on a specific theme - for example, mining and natural resources. Being diversified, ETFs are less volatile but tend to have slower growth.
ETFs that have exposure to Glencore include iShares Core MSCI EAFE ETF (IEFA), Global X Copper Miners ETF (COPX), and Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU).
Step 5: Configure your order
Market orders are the most basic form of order. Once submitted, the broker will execute the transaction at the next available price (which can vary).
Most brokers can configure more complex orders. For example, you could set up an order that will be executed only when the price hits a certain target.
Step 6: Place your order
Once configured, submit your order to buy your Glencore shares.
Glencore shares are listed on the London Stock Exchange (LON: GLEN) and the Johannesburg Stock Exchange (JSE: GLN).
As well as tracking the price of your shares, keep an eye on any news stories that mention Glencore or its main competitors. How positive or negative those stories are can have an impact on the share price.
The company's results, press releases, and announcements are also good sources of information. What people who work for the company are saying is another way to learn more.
Monitoring what their main competitors are doing will help too. They are Rio Tinto (LON: RIO), Alcoa (NYSE: AA), BHP Billiton (LON: BHP), and Anglo American (LON: AAL).
Global supply and demand is the main driver for the raw minerals Glencore mine. Wars, trade disputes between countries, tariffs, the move towards green energy, the electrification of vehicles, and the general state of the global economy all have a bearing on Glencore’s price.
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