Many traders or even novices wonder how to buy global stocks of major companies such as Google, Facebook, Tesla, Amazon, Alibaba, Twitter, Netflix, and many more.
If you are starting in the process of buying global stocks, we will give you the two best ways to do it:
Buy Global Stocks – Individual Stocks
If you are only interested in buying stocks of a specific company, you can buy stocks of that company directly. And here, we are not only referring to the companies mentioned above but from any company in the United States or other countries that you have analyzed and want to add to your investment portfolio.
You can buy individual global stocks from each company, but you must have the budget to do so.
You cannot buy half a share if your capital is minimal. Where stocks of the largest companies are too expensive for many:
It is a good idea to buy individual global stocks when you analyze its performance well before you start investing in it. This may not be the best strategy for many because the risks increase as long as the exposure is only to one company.
It is recommended to diversify your investment portfolio with more companies or switch to investing in stock indices to help you achieve the diversification you desire.
Diversification is carried out in the investment portfolio through several assets (stocks – bonds – gold).
With Axia Investments, you can buy individual stocks of the largest companies in the world.
Also, in Axia, it will ensure the possibility of investing in the top 10 technology companies in the US through a single index called FAANG.
The world’s top 10 technology companies
Those who do not want exposure to one company and want to have in their portfolio the most important technology companies in the world can buy global stocks by buying in the FANG + index.
FAANG is an acronym for Facebook, Amazon, Alibaba, Netflix, and Google (Alphabet). In addition to these tech giants, the index also includes stocks of Chinese companies Baidu and US stocks of major companies such as Nvidia, Tesla, and Twitter.
The fantastic tool offered by Axia Investment Company for buying global stocks with the FAANG Index is the CFD (Contract for Difference). This tool provides traders and investors the opportunity to profit from price fluctuations without holding the underlying asset.
This investment time is riskier but allows you to choose both short and long positions on the instrument, which means that you have a chance to profit when the price goes down (by choosing a short position) or when the price goes up (by choosing a long position).
Annual returns for the FAANG+ Index The yearly returns of the Nasdaq 100 exceeded the annual returns by about ten percentage points. Between September 19 in 2014 and January 18, 2019, the yearly total return was 23.48% for the FAANG+, while for the Nasdaq 100, it was 13.64%, and for the S&P 8.99%.
The New York Stock Exchange launched the FAANG Index on September 26, 2017. The companies included in the FAANG Index have contributed 90% to the S&P 500 since the beginning of 2015.
The total capitalization of only four index companies increased by $630 billion, while the rest of the companies included in the S&P 500 increased their capitalization by only $45 billion. Thus, the progress of the S&P500 in recent years depends mainly on the strength of the companies that make up the FAANG Index.
Recommendation: In a CFD instrument, the risk is higher due to the leverage. So please make sure of your financial capabilities and your level of risk tolerance before investing and buying global stocks through the instrument, and do not invest money that you cannot afford to lose.
Recommendation: Before creating any real account to invest in stocks or indices CFDs, test the demo account at Axia Investments to see how you deal in the markets before you start with real money.