How to Buy Samsung Shares UK in 2022 – A Beginner’s Guide
Samsung electronics and appliances can be found in virtually every home. This South Korean electronics giant makes everything from televisions and ovens to smartphones and tablets. In fact, Samsung controls nearly 19% of the global smartphone market and produces around 300 million phones each year.
Want to buy Samsung shares but don’t know how to get started? In this guide, we’ll explain the basic of how to buy shares of Samsung in the UK and compare some popular brokers.
Where to Buy Samsung Shares
The easiest way for most UK traders and investors to buy shares of Samsung is to go through a licensed and registered brokerage. A broker will match your purchase order with a sale of Samsung shares from another investor on the London Stock Exchange and then hold the shares in your account.
Alternatively, you can buy and sell contracts for difference (CFDs) for Samsung shares through a CFD broker.
Looking for a trustworthy, low-cost UK share broker? Here is a good option that you can use:
Plus500 is one of the popular brokers if you want to buy CFDs instead of shares. The platform offers trading on hundreds of shares for companies around the world, and you can apply leverage up to 20:1 to increase the size of your positions.
This broker doesn’t charge any trade commissions for buying and selling share CFDs. It also keeps the spreads impressively low, which is a huge plus if you’re trying to minimize the cost of share trading. Watch out for an inactivity fee, though, which is charged if you don’t place a trade for more than three months.
Plus500 doesn’t include any social trading features, but the trading platform does have a lot else to offer. Account holders get access to price alerts, an economic calendar, and some basic technical charts.
Our Rating80.5% of retail investor accounts lose money when trading CFDs with this provider. Sponsored ad
Why Do People Invest in Samsung?
Samsung has established itself as one of the largest consumer electronics producers in the world. The company produces kitchen appliances, home entertainment systems, computers, smartphones, and much more. In total, Samsung produces more than $200 billion US in revenue each year.
A popular thing about investing in Samsung is that the company has so many branches and divisions. With this one company, you get exposure to the tech industry, the shipbuilding industry, construction, consumer goods, and more.
This diversification has also been a major revenue driver for Samsung. If the company’s profits from selling home appliances were to drop, for example, that could be compensated for by a rise in smartphone or shipbuilding sales.
Samsung also re-invests a significant portion of its revenue into research and development. That’s helped this conglomerate stay at the forefront of emerging fields like smartphone technology, virtual reality, and artificial intelligence.
Smartphone development has already paid off in a big way for Samsung, but technologies like VR and AI could pave the way for future growth in the company. While even Samsung can’t predict future market trends, this company has the resources to invest in whatever the next big technology is.
About Samsung Shares
Company and Share History
Samsung, which means “three stars” in English, was founded by Lee Byung-chul in Seoul, South Korea, in 1938 as a trading company. The business was largely focused on food processing, fabrics, insurance, and retail until the 1960s, when it entered the electronics market along with the construction and shipbuilding industries. The company has been publicly trading on the Korean Stock Exchange since 1973.
Most consumers are familiar with Samsung Electronics, just one of Samsung’s many subsidiaries and the world’s largest consumer electronics company by revenue. But, Samsung Heavy Industry is also the world’s second-largest shipbuilding company and Samsung Engineering is the world’s 13th largest construction company. Samsung even operates a theme park in South Korea.
Samsung is so large that the company makes up nearly one-fifth of South Korea’s total GDP. It’s a multinational company with large presences in North America, Europe, and numerous countries in Asia.
Samsung Share Price
Samsung trades on the Korean Stock Exchange in Seoul. However, Samsung shares are available on the London Stock Exchange as global depository receipts. These enable you to buy the shares just like you would for any UK company, except that you’re really buying a derivative that represents shares on the Korean Stock Exchange. There is no difference in the process or price in practice.
The price of Samsung shares has steadily increased since the tech boom in the late 1990s. At the start of the 21st century, Samsung shares were trading for just under £4 per share. The price increased steadily to around £17 per share by the end of 2015, and then it nearly doubled in less than two years. Samsung hit an all-time high of £40.60 in February 2020, before dropping to its current price of £37 per share in the wake of the coronavirus pandemic.
How to Buy Samsung Shares
To demonstrate how to buy Samsung shares through a broker, we’ll walk you through the process. This is one of the popular stock brokers for buying Samsung shares because you can choose between buying them outright or trading CFDs.
If you want to use another investment platform, don’t worry. The process for buying Samsung shares is largely the same across different UK brokers.
Step 1: Search for Samsung Shares
Stock brokers usually offers trading for more than 800 global shares. To search for Samsung shares, enter ‘Samsung’ in the text bar at the top of the page and click on the company when it appears in the drop-down menu.
Step 2: Click on ‘Trade’
From the Samsung share page, click on ‘Trade’ to open a new order.
Step 3: Buy Samsung Shares
Now you’re ready to enter your order for Samsung shares. There are several things you’ll need to decide on before entering your trade.
- Amount: How much money do you want to invest in Samsung? You can enter an amount in US dollars or specify how many shares you want to buy by clicking the ‘Units’ button.
- Set Rate: You can either buy Samsung shares at the current market price or enter the maximum amount you’re willing to pay. If you enter a price, your order to buy shares will only be fulfilled if the price of Samsung drops below your maximum price.
- Stop Loss: A stop loss is triggered if the price of Samsung shares drops below the price you enter. If that happens, the platform will automatically sell all your shares to limit your maximum loss.
- Take Profit: This is the price at which you would like the platform to sell your shares so you can realize a profit. You may want to leave this empty if you are investing in Samsung for the long term.
When you’re ready to complete your purchase, click ‘Trade’ to buy Samsung shares.
Samsung is a massive, highly diversified company that exposes you to a lot of different market sectors. When you buy Samsung shares, you can collect a sizable dividend each quarter and know that you’re investing in a company that is actively developing tech to continue its leadership role in that industry.
Does Samsung issue a dividend to shareholders?Yes, Samsung pays out a significant portion of its profits to shareholders in the form of quarterly dividends. You are eligible for dividends if you hold Samsung shares or Samsung Global Depository Receipts, but not if you trade Samsung CFDs.
Can I invest in specific divisions of Samsung?Some subsidiaries of Samsung, such as Samsung Electronics, are publicly traded companies in their own right. You can buy shares of Samsung Electronics, then, which is different than buying shares of Samsung. Note that the prices of these subsidiaries’ shares move independently of Samsung shares, so you’ll need to do your research.
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