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How to Buy Facebook Stock

Looking to buy Facebook stock, but not sure where to start? Read our guide on how to buy Facebook shares today.
Kane Pepi
Author: Kane Pepi
Last Updated: May 14, 2020

Social media giant Facebook is now one of the largest companies on the NASDAQ. This means that you will have a significant number of online brokers to buy its stocks from.

Although the company is yet to pay any dividends, the blue-chip stock has proven popular with investors in recent years. Much of this is down to the platform’s number of monthly active users (MAUs), which now stands at more than 2.6 billion.

In this article, we explain the easiest way to buy Facebook stock, alongside the best three brokers to do this with. We also give you step-by-step guidelines on what you need to do to make an investment today.

On this Page:

    How to Buy Facebook Stock in 3 Quick Steps

    Don’t have time to read our guide in full? Below you’ll see three quick steps that you need to follow to buy Facebook stock right now.

    Step 1: Join an Online Broker

    eToro 5g stocks

    Choose a regulated broker that gives you access to the NASDAQ.

    Step 2: Deposit Funds

    Deposit funds with a debit/credit card, e-wallet, or bank account.

    Step 3: Buy Facebook stocks

    Search for ‘Facebook,’ choose how many shares, and click ‘Buy.’

    Where to Buy Facebook Stock

    With a market capitalization that now stands in the hundreds of billions of dollars, virtually every stock broker in the online space gives you access to Facebook shares. This can make it a challenge to find a platform that meets your needs, so we’ve narrowed our list of recommended stock trading sites down to just three. All of our pre-vetted brokers are heavily regulated, and allow you to buy Facebook stocks with an everyday payment method.

    1. eToro – Best Stock Broker for Worldwide Customers

    Launched in 2006, eToro is an online CFD, forex, and stock broker that hosts thousands of financial instruments. In the case of stocks, this includes more than 800 companies listed on several markets. On top of the main markets in the US and UK, this also includes stock exchanges in Japan, Australia, Canada, and Finland. In terms of buying Facebook stock, you won't pay any trading commissions at eToro.

    This is on the proviso that you do not apply leverage or short-sell the stock. The broker is licensed by a number of tier-one licensing bodies, including the FCA, CySEC, and ASIC. You will be able to open an account in just a few minutes, and deposit funds with a debit/credit card, e-wallet, or bank account. Although minimum deposits amount to $200, you can invest just $25 into shares like Facebook.

    This means that you can easily create a highly diversified portfolio of stocks. Outside of the stocks and shares department, you'll also get to trade ETFs, cryptocurrencies, indices, hard metals, and interest rates. If you like the sound of trading other instruments, but you have little to no experience, it might be worth using the eToro Copy Trading feature. This allows you to copy the trades of other eToro investors.

    Our Rating

    • Catered to newbie traders
    • 0% commission on ETFs and stocks
    • Supports heaps of everyday payment methods
    • Minimum withdrawal of $50
    • High spreads
    • MT4/5 not available
    75% of investors lose money when trading CFDs

    2. Plus500 – CFD Broker to Trade Facebook Stock

    While most of you might be looking to buy and hold Facebook stocks for a number of years, some of our readers like to engage in short-term trading. This means that you will look to make small, but regular profits by buying and selling stocks on a more frequent basis. If this sounds like you, it might be worth checking out Plus500. The UK-based broker hosts more than 2,000 stock CFDs, including that of Facebook.

    Sure, by trading CFDs you won't actually own the underlying asset, meaning there is no entitlement to dividends. However, Facebook is yet to pay a single cent in dividends, so you're not missing out. Crucially, by trading Facebook CFD stocks at Plus500, you will be able to apply leverage of upto 5:1. You will also have the ability to go 'short' on Facebook. This allows you to profit in the event Facebook stocks go down in value.

    In terms of fees, Plus500 does not charge trading commissions on any of its 2,000+ stock CFDs. Instead, it's only the spread that you pay. You can open an account by meeting a $100 minimum deposit, which you can do via a debit/credit card, bank account, or Paypal. When it comes to safety. Plus500 is regulated in several jurisdictions. This includes the UK, Australia, Singapore, and Cyprus.

    Our Rating

    • Fast order execution
    • No commissions
    • Tight spreads
    • Stocks only available via CFDs
    • Its educational resources are sparse
    76.4% of retail investor accounts lose money when trading CFDs

    3. Stash Invest – Best USA Broker With Low Deposits

    Stash Invest is the ultimate online stock broker for those of you based in the US. In fact, not only is Stash Invest targeted exclusively to Americans, but newbie investors too. As such, the platform makes the Facebook stock trading process super-easy. In order to get started, you will be required to open an account and verify your identity. After that, you'll be asked to link your US checking account.

    Unfortunately, you won't be able to use a debit or credit card at the broker, which is a bit disappointing. On the flip side, Stash Invest allows you to deposit from just $5, so it's great if you want to begin with super-low stakes. Similarly, Stash Invest is a proponent of micro-investing. This means that you can buy stocks like Facebook from just 1 cent. So, a $5 deposit would allow you to diversify across 500 different companies!

    Stash Invest lists a total of 1,800 US stocks, so you've got plenty of opportunities to do this. With that said, it is a shame that Stash does not give you access to international markets, as everything is US-based. When it comes to pricing, Stash Invest employs a monthly subscription service. If you merely want to buy Facebook stocks and hold them for a number of years, you'll pay just $1 per month.

    Our Rating

    • $5 minimum deposit
    • Allows fractional stock purchases
    • Monthly fee from just $1
    • Limited number of shares hosted
    • No access to international stock exchanges

    How to Buy Facebook Stock from eToro

    Although we make constant reference to the ease in which you can buy Facebook stock online, the process might sound somewhat intimidating if you’re a first-time buyer. With this in mind, below you will find a Layman’s step-by-step guide on how to buy Facebook stock with our top-rated broker eToro. Feel free to use a broker of your own choosing, as the steps outlined below remain largely the same

    Note: If you don’t have an account with eToro, you’ll quickly need to open one before you can buy Facebook stock. On top of uploading a copy of your ID, you’ll then need to deposit some funds. End-to-end, it should take no more than 10 minutes.

    Step 1: Search for Facebook Stock

    As eToro hosts more than 800 different stocks across several markets, we would suggest entering ‘Facebook’ into the search box at the top of the screen. When you see the search result as displayed below, click on it.

    Step 2: Click on ‘Trade’

    Click on the blue ‘Trade’ button to go straight to the Facebook trading page.

    Step 3: Set-Up Order and Buy Facebook Stock

    You will now need to place an order to get your Facebook stock purchase finalized.

    This lets the platform know exactly what you want to do with your Facebook investment, such as:

    • Amount: This is the amount in dollars that you want to invest, and not the number of shares. As you can see from the screenshot above, we are buying $500 worth.
    • Set Rate: Leave this set as a market order to get the next available price on Facebook stocks.
    • Stop Loss: By default, the stop-loss option is switched off. If you want to exit the trade at a certain price, this will reduce your losses in the event Facebook stock goes down in value.
    • Take Profit: Much like a stop-loss, a take-profit order allows you to close your trade at a certain price, but when you are in profit.

    Finally, click on ‘Buy’ to complete your commission-free Facebook stock order.

    Why Invest in Facebook?

    Unlike fellow social media giant Twitter, it’s been up, up, and away for Facebook since its initial public offering (IPO). Priced at just $38 per share during its NASDAQ launch in 2012, Facebook is sitting comfortably above the $200 per share mark as of Q2 2020.

    Still not convinced? Below we have listed some of the reasons why you might consider adding Facebook to your stock portfolio.

    More than 2.6 Billion Monthly Active Users

    As of early 2020, Facebook now boasts 2.6 billion monthly active users (MAUs). The keyword here is ‘active’. In other words, these 2.6 billion users do not consist of fake or dormant profiles. On the contrary, these are users that actively log in and use the platform.

    Even more impressively, this figure represents a year-on-year increase of 11%. If you’re not convinced by the MAUs number, let’s look at the daily average users (DAU) figure instead. As the name suggests, these are people that log in to Facebook at least once per day. In total, this stood at 1.73 billion as of Q2 2020, which again, is staggering. 

    So how does this translate into real-world dollars and cents? Well, the overarching revenue model for Facebook is advertising. Crucially, the more and more people that actively use the site, the more opportunities this presents to monetize. Additionally, such a significant user base also allows Facebook to gather data, albeit, this is being closely scrutinized by governments as per its infamous privacy breach. 

    Social Media is Often Viewed as the Most Effective Form of Advertising

    In the wake of the coronavirus pandemic, a global recession is sure to hit the pockets of those that rely on advertising income. This is especially the case of traditional print media and television space. With that being said, Facebook likely won’t fell the full brunt of a tightening of marketing budgets, not least because of the sheer size of its data pool.

    In other words, marketers will feel more comfortable dedicating budgets to advertising channels that directly target end-users. Facebook can do this with ease – much to the sophistication of its every-growing algorithm.

    Acquisitions Continue to Grow

    Much to the delight of shareholders, Facebook has engaged in a huge diversification strategy in recent years. This ensures that the company does not rely exclusively on the revenues it generates from Facebook advertising. Major acquisitions include Instagram and Whatsapp – which collectively boast hundreds of millions of active users.

    We should also note that Facebook has acquired dozens of other companies – most of which you may not have heard of. These are up-and-coming tech firms that are still in their infancy, so the upside potential is huge. The key point here is that Facebook was holding surplus of $50 billion in cash reserves in late 2019. This means that the company is well-armed to continue its long-term acquisition plan.

    About Facebook Stock

    Company and Stock history

    It’s been nothing short of a remarkable story for Facebook since its inception in 2004. In what started at as a developer’s pipedream has since turned into one of the largest companies in the world. In fact, the social media giant has since attracted 2.6 billion users globally – with 1.73 billion of those logging in to their account at least once a day. When you factor in the 1.4 billion users that Facebook is missing out on in China, these numbers are mind-blowing.

    In terms of the company’s journey as a PLC, Facebook first went public in 2013. Opting for the tech-orientated NASDAQ exchange, Facebook shares were originally marked-up at $38 per share. This valued the company at just over $16 billion. Fast forward to Q2 2020 and those very same shares are now worth just over $200. This translates to a market capitalization of over $583 billion – subsequently making it the fourth largest company on the NASDAQ. To put these numbers into perspective, a $5,000 investment in Facebook during its 2020 IPO would now be worth over $21,000.

    Interestingly, although the social media giant has been growing non-stop since its inception, Facebook is yet to pay a single cent in dividends. Maybe it never will, especially if Amazon is anything to go by. With that said, many from within the industry argue that Facebook is still worth a fraction of its full potential – so a continued upward trajectory in its share price is more than feasible.

    In terms of the negatives, the overarching worry for investors is that of Facebook’s regulatory concerns. Much of this centres of the platform’s privacy breaches – which went as high as Congress and the European Commission. Similarly, with Facebook poised to launch its very own cryptocurrency this year, those plans were quickly derailed by several governments. Not only are policymakers concerned with the company’s privacy weaknesses, but the cryptocurrency project is potentially a major conduit for money laundering abuse.

    Should I Buy Facebook Stock?

    If you’re looking for a solid dividend-paying company with a clear direction, Facebook might not be for you. On the flip side, if you’re the type of investor that is happy to focus on long-term capital gains, there’s much to like about the social media platform. At the forefront of this is the 2.6 billion monthly active users that Facebook now boasts – which is a ‘mere’ 11% increase from the year prior.

    This translates into an unprecedented amount of potential in ad revenues – especially when you consider the sheer quantity and quality of data that the platform holds on its users. When you factor in that Facebook has since acquired over 70 companies (including Whatsapp and Instagram), there really is no knowing just how high its stocks can go.

    With that said, if you do decide to add Facebook stock to your portfolio, we would suggest using our top-rated broker eToro. By going through the quick process of opening an account, uploading your ID, and depositing funds – you could be in possession of Facebook stocks in a matter of minutes!

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    FAQ

    What is Facebook's all-time high stock price?

    Facebook stocks last hit their all-time high price as recently as January 2020. Amounting to $224 per share, this isn't too far away from its Q2 2020 price of $204. This is very impressive when you consider the wider impact that the coronavirus has had on the markets.

    Does Facebook pay dividends?

    No, much like its fellow social media counterpart Twitter, Facebook is yet to pay any dividends. Instead, the company has rewarded investors with a post-IPO stock increase of more than 400%.

    Who is Facebook's biggest shareholder?

    Still do this day, founder Mark Zuckerberg is still Facebook's largest shareholder - by a country mile. At the time of writing, this stands at just under 30%, which is worth tens of billions of dollars!

    How much were Facebook stocks originally?

    When Facebook went public in 2012, it originally priced its shares at $38.

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    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Kane Pepi

    Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.

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