How to Buy Disney Stock in May 2022
Want to buy Disney stock? Forced to temporarily close its theme parks, the super-brand weathered some tough times over the pandemic. It now faces pressure in the competitive streaming sector. Its stock price is at a 52-week low; so is it time to pounce on Mickey Mouse and grab a bargain? With our overview of the strengths and weaknesses of Disney stock, we find out below.
What’s more, we give you the details on how to buy Disney stock safely and cheaply. We review two top regulated brokers where you can buy Disney stock with zero commission and learn about stock investing as you go. Let’s begin with a quick overview of how easy it is to buy shares online:
Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.
Step 1: Choose a Stock Broker
Online there are a bewildering choice of stockbrokers. How do you know which one to buy Disney stock with?
The best stock trading platforms usually offer:
- Thorough Regulation
- Zero Commission on Stock Purchases
- Tight Spread Fees
1: Thorough Regulation
Regulation by a sove
reign financial body means that a broker is doing business by the book. Regulation will not save your funds if the markets go south. But it does mean that you are dealing with a firm that is crossing its Ts and dotting its Is.
In the US, regulation often means that investors are covered for compensation claims to some extent in the event of a company going bust.
- Regulation with the Securities & Exchange Commission (SEC).
The SEC is the definitive regulatory body in the US when it comes to financial assets.
- Regulation with the Securities Investor Protection Corporation (SIPC).
This gives you compensation coverage up to $500,000.
- A broker that keeps investor funds in a Tier 1 bank covered by the Federal Deposit Insurance Corporation (FDIC).
This gives you compensation coverage up to $250,000.
Both brokers we review below — eToro and Webull — feature a robust complement of regulation in the US and beyond.
2: Zero Commission on Stock Purchases
Commission is a trading fee that brokers often charge. It is a percentage fee of your transaction that the broker claims for themselves.
For example, if you were to buy one of the best new stocks with a broker, the commission fee for that stock might be 2%. That means that, if you buy $100 of stock, you will be charged $2 by the broker.
Note that commission fees usually apply to selling as well as buying stock. But, with the two top brokers we review below, no commission fee at all is charged when you buy Disney stock, or any other stock.
3: Tight Spread Fees
Like commission, spread fees are a trading fee. All brokers, including the ones we review below, charge spread fees. That’s because a spread fee covers the cost of your transaction.
A spread fee can be a little tricky to understand because it isn’t a fee that is charged separately. It is, strictly speaking, a difference in price that will affect your trade.
Here’s how a spread fee works:
- At any given time with a broker, there is a difference between the price you can buy a stock at (sometimes called the ‘bid’ price), and the price you can sell it at (sometimes called the ‘ask’ price).
- This difference is called the spread.
- The spread fee is this difference divided by the buying price, expressed as a percentage.
- You want this percentage to be as low as possible!
Spread Fee Example: Disney Stock
Spread fees differ from broker to broker. So keep an eye out for what is on offer. In broker eToro’s Watchlist tool, you can get a clear overview of stocks and their spreads. Here is the listing for Disney stock:
- The Disney Sell price (S) = $104.16
- The Disney Buy price (B) = $104.48
- The Disney Spread = $104.48-$104.16 = $0.32
- The Disney Spread Fee = $0.32/$104.48 x 100 = 0.3%
This means that, after you have bought and sold Disney stock and taken a profit (or a loss), eToro will have claimed 0.3% of what you have made (or lost).
As the Disney stock price goes up and down, the spread fee offered by brokers will generally (but not always) stay the same. This depends on liquidity ie. how much stock is being traded. For a big stock like Disney, liquidity is generally not a problem.
eToro offers particularly tight spreads on NASDAQ stocks.
1: eToro — Where to Buy Disney Stock at Zero Commission
Launched in 2007, eToro has over 25m investors worldwide. Over 600,000 of them follow Disney stock and use the Disney homepage on eToro to keep track of Disney news, stats and research.
You can buy as little as $30 of Disney stock (which is just under a third of a share) with this broker at a spread fee of just 0.3%. Unlike many other brokers, eToro does not charge commission on stock purchases.
3,000+ stocks are offered by eToro in all, with 900+ of them traded outside the US on 15+ worldwide exchanges like the London Stock Exchange, the Hong Kong Stock Exchange and the Paris Euronext. In terms of sectors there is a great range, encompassing the best tech stocks, family favourites like Disney and the best new stocks too.
On top of its stock offering, eToro provides ETFs (Exchange-Traded Funds), commodities, indices, forex and crypto. If you are a beginner, we recommend you look into how to trade ETFs in particular, as these allow you to minimise your risk by buying shares of different companies at once.
Apart from its reassuringly-high levels of regulation both inside the US and beyond, what makes eToro stand out is its commitment to beginner investors.
The eToro interface is really easy to use and uncluttered. A Watchlist allows to keep an eye on hot stocks at a glance. Best of all, eToro offers two powerful Social Trading tools: CopyTrader, and Smart Portfolios.
CopyTrader allows you to copy other, more experienced, traders for free. And eToro’s Smart Portfolios, crafted by experts, allow you to invest in a strategic selection of shares from different companies in one go (similar, but not the same as, ETFs).
What We Like about eToro
- Buy Disney stock at 0% commission and just 0.3% spread fee
- 25m+ verified users
- Regulated by the SEC, FinCEN and FINRA in the US
- One of the best demo trading accounts
Read More : How to Buy Disney Stock in May 2022