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How to Buy Samsung Shares in 2020 – A Beginner’s Guide

Want to add Samsung to your portfolio? This guide will cover everything you need to know to buy Samsung shares in 2020.
Michael Graw
Author: Michael Graw

Last Updated: July 6, 2020
How to buy Samsung shares
How to buy Samsung shares

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, so it’s easy to see why people investors look to buy Samsung shares.

Want to buy Samsung shares but don’t know how to get started? In this guide, we’ll explain how you can buy shares of Samsung in the UK and compare the top brokers you can use for the job. We’ll also take a closer look at the prospects for Samsung’s share price to help you decide whether now is an opportune time to buy.

Table of Contents

    3 Quick Steps to Buy Samsung Shares

    Can’t wait to buy Samsung shares? Follow these three simple steps to get started:

    Step 1: Find an online broker

    eToro to Buy Tesco Shares

    Choose a top broker that allows you to buy Samsung shares, such as eToro.

    Step 2: Deposit Money

    Deposit funds to your brokerage account

    Add funds to your brokerage account using a debit/credit card, e-wallet, or bank transfer.

    Step 3: Buy Samsung Shares

    Samsung Logo

    Search for Samsung shares, enter how much you want to invest, and click ‘Buy’.

    75% of retail investors lose money when trading CFDs with this provider.

    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. With CFD trading, you get financial exposure to Samsung’s share price without actually owning any shares yourself.

    Looking for a trustworthy, low-cost UK share broker? Here are five good options that you can use to buy Samsung shares:

    1. eToro - Leading Social Share Trading Broker

    eToro is an extremely popular broker for buying shares of companies. What sets it apart from other brokers is that it’s also a social network for investors and traders. You can see what shares other traders are buying and selling and start discussions about what companies are hot right now. In addition, eToro offers copy trading, so you can automatically mimic another trader’s positions!

    eToro enables you to buy shares of more than 800 global companies, including Samsung. You can either buy shares outright to collect dividends or trade CFDs and apply leverage to your position, so the choice is yours.

    One of the best things about eToro is that this broker offers 100% commission-free share trading. The only fee you pay to buy Samsung shares is the spread, which is just a fraction of one percent per trade. eToro does charge withdrawal and inactivity fees, but these are transparent and reasonable.

    To get started on eToro, you need to make a $200 minimum deposit, or you can try out the platform via the demo account. If you want to buy Samsung shares on your mobile, you can do so on the eToro app. As an FCA-licensed broker, you can be sure that your funds and personal details and kept safe and secure when you trade with eToro.

    Our Rating

    • Social Trading: Interact with and copy other investors
    • Many Companies: Trade shares for 800+ global companies
    • 100% Commission Free: Just pay the spread for share trading
    • Trusted Broker: FCA License
    • Non-trading Fees: Inactivity fees
    75% of retail investor accounts lose money when trading CFDs with this provider.

    2. Plus500 - Low-Cost Share CFD Trading

    Plus500 is one of the best 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 Rating

    • Leverage: Trade at up to 1:30 for share CFDs
    • Low Spreads: Keep share trading costs down
    • Price Alerts: Never miss a trading opportunity
    • Inactivity Fee: Charged after three months without trading
    80.5% of retail investor accounts lose money when trading CFDs with this provider.

    3. Capital.com - Share Broker with Excellent Education Resources

    Capital.com is a highly advanced broker, but it’s also a great option for rookie traders. The platform includes an educational app that guides new traders through the process of share trading. Plus, there are guides for forex trading, commodities trading, and cryptocurrency trading if you want to expand your horizons.

    This broker doesn’t charge any trade commissions for buying and selling shares, and it offers highly competitive spreads for most asset classes. There’s no withdrawal fee, and the inactivity fee is only charged if you don’t trade for an entire year.

    We particularly like the trading platform at Capital.com, which is available for web and mobile. You get access to more than 75 technical indicators, drawing tools, and risk management options. The brokerage also has its own AI-based trading bot to help you find ideas. The only thing you can’t do with Capital.com is backtest your trading strategy.

    Our Rating

    • Trader Education: Access guides for share trading and more
    • Low Fees: No withdrawal fee and low inactivity fee
    • Excellent Charting: Access more than 75 indicators
    • No Backtesting: You need to test your trading strategy elsewhere
    There is no guarantee you will make money with this provider.

    4. FinmaxFX - Mobile Share Trading with MT5

    FinmaxFX offers CFD trading on around 180 global shares. If you want to diversify your portfolio down the road, you can also trade forex, cryptocurrencies, commodities, and indices with this broker.

    This broker integrates with the popular MetaTrader 5 software to enable you to buy and sell CFDs. Helpfully, you can access the platform through mobile trading apps for iOS and Android as well as through your desktop. MetaTrader 5 supports fully custom technical indicators and strategy backtesting, making this a powerful trading platform for advanced share traders.

    FinmaxFX doesn’t charge any commissions for share trading, but the spreads are slightly higher than what you’ll pay at other share brokers. On top of that, the platform charges a fee of up to 3% for withdrawals depending on the transfer method you use. The inactivity fee also kicks in after two months without trading and can be rather hefty.

    Our Rating

    • MetaTrader 5: Offers strategy development and testing
    • Mobile Apps: For iOS and Android
    • Leverage: Trade share CFDs at up to 1:20
    • Account Fees: Withdrawal and inactivity charges add up
    There is no guarantee you will make money with this provider.

    Why 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.

    But is Samsung worth investing in? Let’s take a look at some of the reasons that analysts are bullish about this company’s prospects.

    Diversification

    One of the best things 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. Investing in Samsung shares is a lot more like investing in a diversified fund than investing in most other individual companies.Samsung smartphone lineup

    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. It’s unlikely that Samsung’s business drops across the board all at once, so the company is relatively insulated from industry-specific downturns.

    Dividend

    Another plus to buying Samsung shares is that if you hold them outright, you’re eligible for a dividend. Samsung pays out a dividend yield of around 3% each quarter, which can add up to a lot of money if you plan on investing for the long term.

    Samsung’s dividend payouts have been very consistent. While nothing is guaranteed, there’s no reason to think that the company will cut its dividend in the near future.

    Future Growth

    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.

    Don’t expect a huge jump in share price – Samsung’s most explosive growth is likely behind it. However, this company could see a slow and steady increase in its share price for years to come.

    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. Samsung's share price

    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 from eToro

    To demonstrate how to buy Samsung shares through a broker, we’ll walk you through the process using eToro. This is one of the best stockbrokers for buying Samsung shares because you can choose between buying them outright or trading CFDs. On top of that, eToro is 100% commission-free and offers competitive spreads for share trading.

    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

    eToro 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. Samsung share page on eToro

    Step 2: Click on ‘Trade’

    From the Samsung share page, click on ‘Trade’ to open a new order.Search for Samsung on eToro

    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.

    Buy Samsung shares on eToro

    • 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, eToro will automatically sell all your shares to limit your maximum loss.
    • Take Profit: This is the price at which you would like eToro 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.

    We recommend setting a stop loss with every share trade. We also recommend against using leverage if you are relatively new to buying and selling shares since this increases your risk.

    When you’re ready to complete your purchase, click ‘Trade’ to buy Samsung shares on eToro.

    Should I 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. Samsung may not be poised for explosive growth, but this stability and the continued slow growth it may bring can appeal to a lot of investors.

    Want to buy Samsung shares? We recommend doing so on eToro, due to its zero commission, copy trading tools and the fact that it allows you to both buy shares and trade CFDs. Simply click the link below to get started!

    eToro: Buy Shares with 0% Commission

    Our Rating

    • Buy over 800 global shares
    • No commission and tight spreads
    • Social and copy trading tools
    • Accepts PayPal
    • FCA regulated
    75% of retail investor accounts lose money when trading CFDs with this provider.

    FAQs

    What is the advantage of trading share CFDs?

    The advantage of trading share CFDs as opposed to buying shares outright is that you can trade with leverage. Leverage enables you to multiply the effective size of your position. So, if you have $100 in your trading account and apply 10:1 leverage, you can buy $1,000 worth of Samsung share CFDs.

    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.

    A-Z of Shares

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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.
    Michael Graw

    Michael is a writer covering finance, new markets, and business services in the US and UK. His work has been published in leading online outlets and magazines.

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