Summary
With the incredible rise of many tech stocks in recent years, many investors are looking for the next Tesla or Amazon. However, this perspective sometimes overlooks the potential of more seasoned businesses. Although the growth potential of these businesses is lower than that of hot tech stocks, they should still be addressed. These long-standing businesses are still viable investment options because they provide safety, regular dividends, and the possibility of high profits over the long term.
If you’re a customer, you might already know Microsoft. However, if you’re considering investing in a company, it’s always a good idea to take a step back and look at it with new perspectives. The operations, financial performance, sources of income, and dividend payments can be better understood by reading its annual and quarterly reports. You can buy the company’s stock on the NASDAQ stock exchange, so long as you find an online broker offering such a service.
When assessing how to buy Microsoft (MSFT) shares, looking for a regulated broker, fees and commissions, and leverage availability are always a good idea. With zero-commission trading, no matter how many shares you buy, you won’t have to pay any commission for the trade. The barrier to entry for investing in growth stocks is further lowered by the availability of apps that enable regular savings with the purchase of fractional shares. On top of that, brokers provide desktop platforms and offer mobile apps, enabling users to trade on the go.
In this guide, we will look into all the details about online brokers including their trading platforms, fees, and social reviews about Microsoft shares.
Setting your investment objectives (how much you want to invest, for how long, and if you are comfortable with the risks associated) is essential before opening an account.
If you are wondering how to buy Microsoft (MSFT) shares, the following are the steps you need to follow:
- Select an Online Stock Broker
- Create a Brokerage Account
- Deposit Funds
- Buy Microsoft Shares
- Manage your Microsoft Positions
Let’s weigh the pros and cons of buying Microsoft stocks before getting too deep into the specifics.
Pros
- Diversified Product Portfolio
- Dividend Payments.
- Strong Financial Performance
Cons
- Market Fluctuations
- Market Saturation
- Regulatory Risk
When assessing buying Microsoft shares, it’s advisable to look for the factors discussed below. By assessing these factors, investors can gain valuable insights into the company’s performance and future prospects, ultimately guiding them toward a more successful investment strategy.
Commissions & Fees
If you plan to buy MSFT shares frequently, it is a good idea to compare the rates offered by different brokers, as most brokerages charge a slightly higher transaction fee for buying US shares. Most brokerage accounts enable you to buy US shares, such as Microsoft shares. Unless the purchase is made with funds from a US dollar account, a foreign exchange fee (usually around 1%) will be incurred when buying shares in US dollars.
It’s important to weigh the expenses before making any commitments; most platforms will charge you a share trading fee, and some may even charge you an annual fee to hold your shares. Commissions are often based on the trade size, the investment type, and the broker’s fee structure. That means the overall commission charges rise according to the number of trades made. Fortunately, commission-free brokers like eToro make it possible to trade and invest in stocks with a minimal cash outlay. Likewise, Capital.com offers commission-free trading on stock CFDs. Traders may also be subject to share handling costs, trading fees, and non-trading fees, all of which are addressed in further depth in the article.
Stock Brokers Regulation
The emergence of online brokerage firms has made it possible for traders and investors all over the world to buy Microsoft shares easily. These brokers make it possible for investors anywhere in the world to buy equities listed on international markets. To prevent fraud and insolvency and to ensure that industry standards are met, regulatory agencies impose regulations. If you want peace of mind, you should only use platforms overseen by reliable regulatory authorities. Verifying a brokerage firm’s compliance with local regulations is a must if they operate in more than one country.
Remember to look out for regulators such as the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC) in Australia, Financial Sector Conduct Authority (FSCA) in South Africa, Cyprus Securities and Exchange Commission (CySEC) in Cyprus and other respected regulatory bodies across different jurisdictions.
Trading Platforms
Brokers’ trading platforms are a key consideration when deciding how to buy Microsoft (MSFT) shares. There are a plethora of excellent stock trading platforms and mobile apps available from many different stock brokers. If you want to trade with ease, choose a broker who offers both their own trading platform and support industry standard platforms like MT4 and MT5.
Traders can respond more quickly to market changes when using a broker’s specialized trading platform. In order to better serve the broker’s clientele, these platforms have been tailored to their unique requirements. In addition, you can use your online browser, desktop software, or mobile app to access these trading platforms. The best brokers provide their clients with easy access to their trading platforms via all three of these methods. Traders can benefit from tools like real-time market data and sophisticated charting by working with a broker who offers a robust trading platform. Consequently, they’ll have a better overall trading experience and a better shot at being profitable in the stock market.
Leverage Availability
Leverage on shares, also known as Contract for Difference (CFD) trading, can be an exhilarating yet high-risk strategy for investors. Traders can take a greater position in the stock market using leverage. This means that even a modest capital investment can enable traders to take a larger position in the market and greatly affect long-term returns. However, it also potentially heightens their possible losses.
Generally, online platforms offer leverage for retail clients ranging from 1:2 to 1:10 – depending on the jurisdiction they operate in. For instance eToro provides leverage of 1:5 to its Australian clients while it provides 1:10 leverage to its Seychelles client. Similarly, Capital.com offers its European clients leverage of 1:5 to buy Microsoft shares.
Microsoft Stock Performance
Since its first public offering in 1986, Microsoft stock has soared, reputedly making thousands of employees into millionaires thanks to their foresight in accepting stock options as part of their remuneration. You might be curious about Microsoft’s stock performance over the past few years. First, let’s evaluate the company’s stock market performance before we get into buying Microsoft stock.
Shares of Microsoft are worth an impressive $332.29 per unit as of May 26, 2023. We see a significant growth of around 163.62% over the course of five years when we compare it to the share price of $126.24 on May 6, 2019. This shows a noteworthy growth in Microsoft’s stock value during this period.
Microsoft Past Dividends
Microsoft stock has proven to be a reliable investment option by consistently returning profits to shareholders. The stock is already attractive, but the company’s steady expansion and future innovations bode well for the business.
In 2003, the firm began dispersing dividends at a starting rate of $0.08 per share. Moreover, the company has an annual dividend yield of 0.82% and a quarterly dividend amount of 0.68 USD. As at the time of writing this article, the latest ex-dividend date for Microsoft was May 16th, 2023. On June 7, 2023, Microsoft will distribute a dividend of $0.68 per share to stockholders who own MSFT shares as of this date. For the quarter ending March 31, 2023, Microsoft common stock dividends paid amounted to $14.746 B, a year-over-year increase of 9.21%.
When it comes to buying shares in Microsoft, there are multiple options available through online brokers, including their proprietary or third-party trading platforms. The trading experience can be improved by using the various tools provided by these platforms. It’s important to note that most online brokers offer trading platforms that are optimized for both desktop and mobile devices.
Desktop Trading Platform
Online brokerages provide clients with tailor-made trading platforms. When trading MSFT shares, for instance, eToro’s global clientele can use the company’s robust web-based platform, which supports various trading tactics. The sophisticated features of the platform facilitate the development and implementation of numerous trading strategies for stocks. Capital.com, which also provides users with a robust online trading and investment platform, is another place investors may get their hands on Microsoft stock. Its proprietary platform offers customers access to a broad range of technical indicators and the option to personalize charts.
In addition to their platforms, many brokers make MetaTrader 5 (MT5) available to their clients. These systems are well-liked by beginners due to their straightforward design and lightning-fast processing times. Without any effort, you may find any number of pieces of information about an asset, such as its current price, thanks to the User Interface. The online platform’s broad range of trading instruments contributes to its credibility among international traders.
Mobile Apps
Mobile apps have completely transformed trading in the financial markets. With the rise of smartphones and tablets, online brokers have responded by offering robust and user-friendly mobile trading apps to buy shares, such as Microsoft shares. Thanks to these mobile apps, traders can keep tabs on the market and make transactions regardless of where they happen to be. These mobile apps provide traders with the tools they need to stay connected and seize trading opportunities wherever they may be.
Capital.com, for instance, provides a cutting-edge mobile app that streamlines the process of purchasing shares by including technical analysis tools, price alerts, and order restrictions. In similar lines, the infamous eToro offers a state-of-the-art mobile trading platform to its consumers all over the world. Traders who want to use platforms other than MT5 can do so via the mobile apps provided by a growing number of brokers. With tools like in-depth technical analysis, insights into market activity, and a selection of order forms, these mobile apps make trading simple and straightforward. This makes it so that traders can have a fully functional trading experience on their mobile devices.
Money needed for day-to-day living costs should not be invested in the stock market. After you’ve taken care of urgent expenses, you may put your extra cash to work for you in the stock market. In this regard, it is important to analyze the broker’s cost structure before signing up when thinking about how to buy Microsoft shares.
Trading Fees
Investors and traders buying Microsoft stock must pay various fees and commissions, including spreads, commission, and swap fees. To keep a trade open overnight, brokers will charge you a fee known as an overnight, rollover, or swap cost. The spread is another type of trading cost. It is the difference between the final transaction cost of buying or selling a share of stock at the bid or ask price. Buying shares through a broker may incur an extra commission of up to 1% if the firm is not a commission-free broker.
Non-Trading Fees
Aside from trading fees, there are non-trading fees that brokers may impose. For instance, inactivity fees may apply depending on the broker and the kind of account if no trades are made for a certain period. Some brokers charge custody fees to safeguard their clients’ stock portfolios. A withdrawal fee may be charged depending on the broker and the withdrawal method. When buying Microsoft shares in a currency other than the account’s base currency, customers may be subject to currency exchange fees. Finally, fees may be associated with funding your brokerage account, though these will change from broker to broker and method to method.
About Microsoft (MSFT)
In 1986, Microsoft had an initial public offering (IPO) of 300,000 shares held at $21 per share. It’s interesting to know that, due to inefficiency in inventory management, Microsoft lost its initial public offering, and its stock price dropped by roughly 70% on the first day of trade. However, over the following years, Microsoft managed to make substantial improvements and witnessed a remarkable surge in the value of its shares.
Microsoft is listed on the NASDAQ under the symbol “MSFT.” To buy Microsoft shares, you will require a broker that provides access to the NASDAQ, the primary exchange on which they are traded. Microsoft is an established player in the tech industry, thus the company has already gone through its rapid expansion phase and established itself as the market leader and one of the world’s largest businesses. As of May 2023, the market capitalization of Microsoft stands at $2.467 trillion. As of writing, Microsoft boasts an impressive share price of $332.29 USD. Moreover, the company currently has 7.441 billion shares outstanding. It is worth noting that the share price of Microsoft is influenced by various factors. These include the company’s financial performance, market conditions, technological innovation, and the competitive landscape.
Even though we’ve covered everything you need to know to acquire MSFT shares, it’s still a good idea to gauge public opinion before committing. Here are some valuable tips shared by users on Reddit and Quora about how to buy Microsoft (MSFT) shares.
Reddit is a community forum where users can ask questions, share opinions, and vote on various topics. We discovered many Reddit discussions in which people were discussing whether buying shares in Microsoft as an investment was a good idea. The sentiments of most users regarding the share were positive.
In one of the posts, this user, “Walden Walkabout,” looked happy with his investment in MSFT. He said that it is my biggest position because it keeps growing. He added that he sold some of his shares but regrets it now. He decided not to sell MSFT and just keep it for a long time.
Another user, “stocksnhoops,” commented that Microsoft along with other tech stocks is great for a long-term buy-and-hold portfolio.
Quora
In contrast to Reddit, Quora is organized around questions and answers, with users posting questions and receiving answers from other users. In addition to asking questions and receiving replies, Quora users can rate the answers they receive. Quora users, like Reddit users, can upvote or downvote answers. We found multiple Quora conversations regarding it, and users learned a great deal from these forums about Microsoft shares. On the social platform, the users’ sentiments were generally positive regarding MSFT shares.
Upon asking whether I should buy Microsoft stocks, this user commented and encouraged me to go ahead. He added you don’t have to invest in the stock’s performance sometimes but in the goodwill and the market presence of the stock. And Microsoft is one of them. He said they are one of the leading tech giants, so invest and trust the business. Give it some time to get a good return on the investment.
Bottom Line
When considering how to buy Microsoft (MSFT) shares, you should do your research to be sure you’re making a good investment. Consider the broker’s regulatory status, trading costs, and trading platforms before signing up with them to handle your share transactions. Check with your broker to see if share CFDs, as opposed to actual shares, are an available investment choice.
Brokers often provide clients with access to either their own trading platform or a popular industry standard such as MetaTrader 5. There are benefits and drawbacks to both approaches and different traders will have different preferences depending on their experience and objectives. Also, don’t forget to check the broker’s fee, online reviews, Microsoft stock performance and dividend history before you start investing in it.
In light of its great performance and vast potential in areas like artificial intelligence (AI) and gaming, the answer to whether one should buy, hold, or sell Microsoft stock resides in the company’s good performance and future prospects.
Q & A
On April 4, 1975, Bill Gates and Paul Allen founded Microsoft in Redmond, Washington.
No, Paul Allen co-founded Microsoft along with Bill Gates.
Bill Gates is the largest shareholder of Microsoft.
For the fiscal year 2022, Microsoft’s yearly revenue was $198.27 B
Microsoft had its Initial public offering (IPO) on March 13, 1986.
At the start of 2023, Microsoft share price was $239.82.
The average percentage increase in Microsoft shares over the last ten years is approximately 85.01%
To buy MSFT shares, select an online stock broker and then create a brokerage account. Next you need to deposit funds and buy Microsoft Shares. After buying, manage your Microsoft Positions.
Yes, you can buy Microsoft shares through online trading brokers, no matter where you are.
Depending upon your investment goals and portfolio, you may buy Microsoft shares.
With its consistent growth over the years and strong innovation and profitability, many investors consider Microsoft shares a good buy.
You can invest as little as you want in Microsoft shares with fractional shares. Note that not all brokers offer fractional shares.
Microsoft shares are listed on the NASDAQ exchange.
Yes, many online trading brokers, such as eToro, allow users to buy fractional shares of Microsoft.
Yes, you can trade Microsoft stocks as CFDs.
eToro, Admiral Markets, and Think Markets are some of the best brokers to trade Microsoft shares.
Yes, you can buy Microsoft shares as a beginner. Many online brokers have user-friendly platforms that provide real shares for investors.
Depending upon the broker, you may or may not incur any commission on buying Microsoft shares.
