Facebook is an interesting company stock to invest in but the very basic question is, do you know to?
Simply follow this step-by-step guide on how to trade Facebook shares.
Industry: Internet Content & Information
Since its IPO back in 2012, Facebook has become one of the world’s largest publicly traded companies and among the most popular choices of investors so it’s not surprising to see the stocks of this American multinational corporation on most trader portfolios.
Facebook has enjoyed stellar growth thanks to long-held dominance in the social networking and digital ad markets. And despite numerous issues and concerns regarding user privacy and content, it remains through all market cycles.
Do take note:
You need to carefully weigh in your current financial situation and goals before trading stocks.
In this page, we’ll give you a simple step-by-step guide on how to trade Facebook stocks.
We’ll include some of the current top brokerages in the market today which have platforms where you can invest on this particular financial instrument.
And as a bonus, we’ll even include our own forecast and outlook on how this multinational technology company will perform in the coming months and years.
If you’re ready, then let’s begin!
Table of Contents
- Why Trade Facebook Stock?
- Facebook Stock Performance
- Facebook Stock Forecast
- How to Trade Facebook Stock?
- Frequently Asked Questions (FAQ)
- Best Brokers for Trading Facebook Stocks
Why Trade Facebook Stock?
Before trading or selling Facebook stocks, you need to be familiarized not only about this company but also about the factors that could influence its market value.
It is essential for you to understand Facebook Inc.’s company history and the core of its business.
To begin with…
Facebook’s major source of revenue comes from advertising.
Despite having over 2.5 billion active members, this massive user base is not their primary revenue stream.
Because of this huge global audience and the capability to create a highly targeted audience, companies are tapping into their platform to advertise their services and products.
And that was just the beginning…
Facebook offers various forms of advertising and this allows businesses to optimize their ad delivery in so many ways.
Aside from its social networking platform, the company also offers other popular products and services:
- Facebook Watch
- Oculus VR
Facebook had a slow start during its first year before it became one of the world's largest companies in terms of market capitalization.
The company's IPO launched at $38 on May 15, 2012 and on the same year, its value dropped significantly reaching a historic low of $17.73 but since 2013, it has already made a huge recovery.
- Copy investment portfolios of top Facebook traders
- Trade stocks commission-free
- Practice with a free demo account
- No overnight fees
- Risk management tools
Today, eToro is among the top and leading platforms for trading Facebook stocks.
It is an online brokerage company that has been operating since 2006 and is the pioneer in social trading via their advanced platform which currently has a network of over 10 million members.
You may continue reading below or read our eToro review to know more about this broker.
How can you actually use this?
This is beneficial regardless if you're a beginner or an experienced trader.
Via their copy trading platforms, you will be able to use the wisdom of the crowd if you're a newbie by following and copying the portfolio of top-performing investors.
On the other hand...
If you are an experienced trader, you will be able to share your knowledge as other traders follow and copy your portfolio.
And here's the kicker: zero commission
That means you won't incur any charges for markups, management, tickets or dealing when you open or close a stock position with this broker - a notable advantage since majority of brokerages impose much of these fees for trading or selling stocks.
They also have a next generation and thematic approach to investing called CopyPortfolios which comes in two types:
- Top Trader Portfolios - this bundles together groups of professional traders on the platform so you as a single trade can have the opportunity to invest based on their combined knowledge and experience.
- Market Portfolios - this focuses a particular sector so you can invest not just with one financial instrument but also with its key competitors in the market. So in this case, you can not only trade in Facebook stocks but also with other popular company shares in the technology sector under one selected market strategy.
Here's the best part:
It is a fully regulated broker as it adheres to the strict guidelines of different regulatory bodies including the following:
- CySEC – Cyprus Securities and Exchange Commission
- FCA – Financial Conduct Authority
- ASIC – Australian Securities and Investments Commission
- Competitive spreads for Facebook
- Trading with as little as $100
- Fast and reliable order execution
- Risk management tools
- Fully regulated by the FCA, CySEC and ASIC
Trading stock CFDs has become increasingly popular globally and one of the most prominent brands in this industry is Plus500.
If you want to know more about this broker in detail, you may read our comprehensive review here.
Now get this:
CFD transactions also enable stock traders to speculate on Facebook’s price action whether it will rise or fall.
Via Plus500's proprietary platform, you can trade on Facebook shares and even other company stocks from popular markets like Facebook, Microsoft, Alphabet (Google), Netflix and Amazon by opening Trade or Sell positions.
Here's another interesting feature: sector indices
Via these unique indices, you will be able to invest on a basket of stocks that are grouped by a specific market sector and capitalize on popular trading trends in the stock market with just a single instrument.
Aside from investing solely in Facebook stocks you can also explore trading opportunities via the NYSE FANG+ index futures CFD which is an an index of 10 next-generation tech companies including Facebook, Facebook, Twitter, Baidu, NVIDIA and more.
To top it off...
Plus500 operates with licenses from the following financial regulators:
- Plus500CY Ltd authorized & regulated by CySEC (#250/14).
- Plus500UK Ltd authorised & regulated by the FCA (#509909).
- Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
- Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
Facebook Stock Performance
Here's a fact:
But the success of this company cannot just be attributed to advertising but also because of its strategic acquisitions.
And did you know?
As of this writing, Facebook has already acquired over 80 companies and you probably heard some of them like the following:
Instagram: This photo and video-sharing social networking service became very popular since its initial launch back in 2010 but after 2 years, it was bought by Facebook for $1 billion making it one of the best business acquisitions in the history of Silicon Valley.
WhatsApp: This cross-platform messaging and Voice over IP service was acquired by Facebook in 2014 for $19 billion. Currently, it has over 2 billion users across the globe.
Oculus: This company is an established name in the VR or virtual reality industry and has also been acquired by Facebook for $2 billion and as a subsidiary, the tech giant is banking on the promise of virtual and augmented reality extending beyond entertainment.
Facebook's tremendous growth can also be attributed to its aggressive and strategic acquisitions over time and analysts see it as the company's way to diversify its portfolio and continue to expand.
Here's an updated table comparing Facebook's stock performance against other high-profile technology stocks:
|Name||Symbol||52 Week High||52 Week Low||Forward P/E Ratio|
Facebook is part of the big tech superstocks known as FAANG.
It's an acronym of the 5 publicly-traded stocks of US technology companies namely Facebook, Amazon, Apple, Netflix, and Google.
Facebook Stock Forecast
Is Facebook still expected to go up or is there a downward trend in the horizon?
Here's a brief summary of our outlook for Facebook and this is based on current market data and in-depth analysis.
These forecasts do not guarantee of future performance and involve risks and therefore, actual market outcomes and results may differ from what was forecasted due to variable factors and changing circumstances.
2020: A Positive Stock Trajectory
Amidst the disastrous effect of the COVID-19 pandemic, Facebook's shares remain to have a significant further appreciation potential.
The company's shares appreciated after it introduced its new feature called Shops to support small businesses that are impacted by the ongoing global pandemic.
It's ambitious plan to venture into the cryptocurrency space is finally gaining traction with its Libra global currency and financial infrastructure due to be launched by end of this year.
Political advertising is expected to further boost the company's revenues as the US presidential elections take place this November.
We expected Facebook's stock growth this year to be medium.
2021: Digital Payments Made Easy
Libra is just one of the many possible new digital payment methods that will be introduced to the market by 2021.
And here's some additional good news:
These payment gateways planned to be used across their services including the Facebook Marketplace, Messenger, Instagram and WhatsApp and this makes it a lot more convenient and safe to make transactions and spend your money online.
This merits a high FB stock growth forecast.
2022: The Boom of Augmented and Virtual Realities
Most tech companies are set to go full blast with augmented reality (AR) and virtual reality (VR) services by 2022 and Facebook is most likely to join the bandwagon with the aim of bridging the digital and physical worlds.
Face filters and other kinds of effects are widely used nowadays in messaging apps and even in gaming so it's not a surprise to see companies like Facebook expanding the AR/VR experience further to other services such as online shopping.
In 2022, we have a medium stock market growth outlook for Facebook.
How to Trade Facebook Stock?
Open an account with an online broker.
In order for you to trade Facebook stock and other company shares, first you need to open an account with a brokerage which offers a platform for trading.
Signing-up for an account only takes a few minutes to accomplish and after completing this process, you need to make a deposit so you can start investing.
Open your broker's trading platform.
Let's say you have opened an account with a specific brokerage and you have already funded it. The next step to do is to open their platform to start trading.
Look for the Facebook stock (symbol: FB).
After opening the platform, search for the Facebook stock by using the search bar and entering either "Facebook" or its stock symbol "FB".
Select Trade and set the amount.
Click on "Trade" and specify the amount that you wish to invest. You may also set several specific parameters depending the features that are offered to you by your broker.
Execute the order.
Initiate the trade by executing the order.
Should I trade Facebook stock?
That's an intriguing question.
What's interesting about this high-profile company is that it continues to find innovative ways to connect friends and family not only via its popular social networking platform but also via their growing list of services and this is what will drive this company's stock to ever higher valuations.
So are you are ready to trade Facebook shares?
If you are, we strongly recommend that you find a trusted and regulated brokerage firm to ensure the safety of your funds and bring you peace of mind.
Frequently Asked Questions (FAQ)
How Much is the Facebook Stock?
Here is the current stock market price of ( )
What Did Facebook Stock Start At?
Facebook had its initial public offering on May 18, 2012 and it started at a price of $38 per share.
Who Owns the Most Shares of Facebook?
Mark Zuckerberg is currently the largest shareholder of Facebook. He is the company's longtime chairman and CEO and holds over 400 million shares.
How Many Outstanding Shares Does Facebook Have?
Based on the latest statistics, Facebook's outstanding shares were 2.4 billion.
Where Can I Trade Facebook Stock?
Trading Facebook stocks can be done via an online broker. It is also worth considering online brokers which have platforms where you can trade Facebook CFDs(contracts for difference) allowing you to speculate on Facebook's rising or falling market value instead.
Best Brokers for Trading Facebook Stocks
Below are the most trusted and regulated brokers that we recommend for you to trade Facebook stock CFDs. Simply click on the Facebook Page button of your chosen broker and we'll take you straight to their stock trading page.
Min Deposit: $200
Regulation: CYSEC, FCA
Min Deposit: $100
Regulation: FCA, ASIC, CySEC
Min Deposit: $100
Regulation: CBI, ASIC, FSC, FSA, FSB
Min Deposit: $5
Regulation: IFSC, ASIC, CySEC