AMC stock has seen its fair share of fluctuation on the NYSE since it went public in 2013. Even so, there are thousands of investors who hold long and short-term positions and trade a volume of 26 million shares over the course of 10 days, according to Yahoo finance. Let’s see how you can get in on the action and acquire some yourself.
4 steps to buy AMC stock;
- Pick a reputable broker
- Register and open your brokerage account
- Fund your brokerage account
- Buy AMC stock
These are the four simple steps you will need to follow if you want to purchase AMC stock. This article will outline and then detail what it is you, as a potential investor wanting to do this, will have to go through. We will look at all the steps involved and how easy it is, along with what factors you need to consider because trading carries risk.
How to buy AMC stock
It has never been easier if you are looking to get your hands on some AMC stock. Thanks to our world today, there is no more “broker” in terms of a “middleman” that you must go through to purchase shares and invest in a company like AMC. However, you will buy AMC stock through another “type of” broker.
Traditionally a broker is an individual who will act as an intermediary between you (the investor) and a securities exchange purchasing the shares (stock) in a company.
It is important to be aware that the term “broker” is also used synonymously with a firm. However, when most individuals, retail traders, and investors refer to a “broker” nowadays, they are referring to a company that lets you purchase assets directly yourself.
Moreover, you can now find most of these companies (brokerage firms) online, and all you need to do is to register an account with them, deposit some capital and start investing. This is how you will buy AMC stock nowadays.
Do all brokers allow you to buy AMC stock?
It should be understood that although you are able to buy shares from online brokers (in this case, shares for AMC), not all brokers will allow you to purchase stock for particular listed companies on specific exchanges.
This is because online brokers will only have access to specific exchanges. In the case of AMC stock, you will need to find a broker that has access to the NYSE (Ney York Stock Exchange). If they don’t, then you will not be able to buy AMC stock from them.
Which brokers allow you to buy AMC stock?
As we just touched on the fact that the broker you signed up with will need to have access to the NYSE in order for you to buy AMC stock. Don’t worry if you think only a limited amount of specific brokers will have access to this because there are many to choose from. Here is a list of the top five brokers that allow you to purchase and trade AMC stock;
- Interactive brokers
- Zacks Trade
- Mexem
- CapTrader
- ARMO Broker
Before we dive into the steps on how you can actually buy some AMC stock from one of the online brokers we listed above, let’s just give you a bit of detail on them in case you would like to consider one of them.
Interactive brokers
Interactive brokers is a discount broker based in the United States. It is listed on the stock exchange and is regulated by many authorities, including;
Zacks Trade
Zacks Trade is another broker that is based in the U.S. but allows international clients to open up an account. This company is a division of LBMZ Securities, and they are regulated by
Mexem
Mexem is a global stockbroker that is based in Europe. They are actually an Introducing broker of Interactive Brokers IE, and they are regulated by;
- The Central Bank of Ireland
CapTrader
CapTrader is another global broker based in Germany and another Introducing broker for Interactive Brokers IE. They are also regulated by;
- The Central Bank of Ireland
ARMO Broker
Armo is the last broker on the list, and this is another Germany-based international broker that is an Introducing broker of Interactive Brokers IE. They are also regulated by;
- The Central Bank of Ireland
It should be noted that these brokers allow you to buy actual shares, and this is not the same as trading shares as CFDs. While this is not the only aspect to consider, it is an important one, and additionally, you will be purchasing AMC shares based on a commission and not based on a typical trading spread.
It will help if you remember that when trading CFDs, you are not actually buying the stock but are making a “wager” in determining if the price of the share will go up or down.
For example, if you register with Capital.com (here is our review of them), you will not be purchasing actual shares when you open up a position. Rather you will be entering into a CFD contract with Captial making an assumption if the stock will go up or down based on your position (long or short). You will also not pay a commission here; rather, a fee will be deducted depending on the spread.
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Steps to buying AMC stock
- Pick a reputable broker
- Register and open your brokerage account
- Fund your brokerage account
- Buy AMC stock
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4 Steps to buying AMC stock
Now that you have a basic understanding of how buying AMC stock works, here is a detailed breakdown of what you will need to do to get it all done.
1. Pick a reputable online broker
We have covered that you will need to choose an online broker that has access to the NYSE in order to be able to get your hands on some AMC shares. However, there are more factors that you will also need to consider. These are namely;
- How reputable is the broker?
- Can you trade with the broker?
- Does the broker have fees (commissions)?
- What trading platform do they utilize that will allow you to purchase the shares?
- What other assets are you able to trade?
These are just some of the key questions you will need to ask yourself. For example, it should be your main priority to find a safe and reliable broker with which you feel comfortable investing your capital.
It will help you understand that depending on your region, citizenship, and residency, you may not be able to trade with particular brokers. So before you jump into anything, you should check to see if you can open up an account with them.
Another factor you will need to consider is how the broker makes money because you cannot trade for free. Brokers who deal in shares typically take a commission (this will be discussed later). Depending on the broker, these “fees” could be higher or lower than others.
You will also have to decide if you just want to invest in AMC stock or if you are looking to trade and invest in other assets. This also brings up the question of the broker’s available platforms and how easy it is to invest.
Some brokers have proprietary platforms. Some use the standard, which is considered to be MetaTrader 4 and MT5. Other brokers will just let you input the number of shares you would like to purchase. Depending on your needs, goals, and situations, these are all aspects that you will need to look into.
2. Register and open your brokerage account
Once you decide to go with an online broker, you will need to register and open up an account with them. This process is fairly straightforward and won’t require much time. It is similar to opening up any other online account that requires you to verify yourself. You will typically have to provide the following information;
- Name and Surname
- Email address
- Phone number
- Country of residency
- Photo of your ID or driver’s license
- Proof or residence
- A bank statement
- Income tax information (depending)
Registration will typically not take more than 5 minutes, and you will need to verify your account via email. After you have done that, you will be able to log in and proceed to the next step, which is funding your account.
3. Fund your brokerage account
Funding your brokerage account is even easier than opening one. Once you have logged into your account with the details you were provided, there will be a section in the terminal (portal) that will allow you to fund and withdraw.
You will need to use “cash” to fund your account, and depending on the broker, they will have multiple ways in which you can do this. The easiest method that all brokers will offer is the ability to fund your account with a debit or credit card. Another common option is direct wire transfer.
However, depending on your broker, they may have other (and multiple) options that allow you to do this, which include (but are not limited to);
- PayPal
- Skrill
- Perfect Money
4. Buy AMC stock
Now that you have funded your account, the last thing that is left for you to do is to actually purchase the AMC shares.
You will need to use the associated platform that your broker allocates to you. Depending on the platform, different options in terms of opening up a position will be available for you. However, all brokers should (and typically will) have the option to have these types of orders and features;
- Stop loss
- Take profit
- Market order
- Limit order
Although it is beyond the scope of this article to go into detail on how these precisely work, we will give a brief description.
A “stop loss” allows you to sell your shares if they drop below a certain price, while a “take profit” will automatically sell your shares when they reach a certain target (profit). Market order means you will purchase the shares at the current market price, and a limit order means you can set a price at which you wish to buy the shares (in this case, AMC shares), and when the shares reach that price, you will automatically buy them.
Once you have filled in these criteria (or chosen the ones you wish to use) and decided how many shares you would like to purchase, the last step is to hit the “buy” button, and that’s it. Your broker will process the transaction and purchase the shares on your behalf.
What other factors should I consider before buying AMC Stock?
Now that we have detailed the process of how you should go about buying your AMC stock, you will want to take into account a couple more elements. Remember that all trading comes with risk, and opening up a position or buying shares doe not necessarily mean you will make money.
These are some of the factors you should consider when wanting to and when considering investing in any way.
Researching AMC stock before you invest
Before you buy AMC stock, you should do your research into the company and then into the stock price. This includes looking at its forecast (we do analysts predict the price of the share to go). If you are not a day trader and are not looking to learn technical analysis, then you should be looking at the companies fundamentals which include its;
- Financial statements
- Filings and annual reports
These can usually be found on their investor relations page here. Remember that AMC was founded in the 1920s, and there have been significant fluctuations in its price since it became publically traded in 2013. Thus, it is important to understand the company in terms of its financial situation regarding growth and stagnation.
Check your stock regularly based on your investment plan
It’s not enough that you have bought your stock. Remember that you will now need to monitor it and see if it goes up (which is what you are hoping for). Depending on your “goal” with the stock, you will need to watch it closely or not that much.
For example, if you plan to buy and then hold the stock as an investment for the long term, you won’t need to check up on the stock every day. In some cases, long-term investments are sometimes left for many years and even decades.
Conversely, if you have some information suggesting that the stock is about to shoot up in price, you may only be planning to buy the stock before it climbs, and then you would want to sell it quickly when you have made a profit. This means you will need to watch the stock closely on a day-to-day basis.
Either way, you will need to manage and watch your investment.
Consider broker account minimums and fees
Brokers are not free, and some charge a substantial amount to trade and register. This means if you are only looking to buy a couple of shares in AMC stock, then it may not be worth finding a broker that is expensive.
However, most brokers will typically have low fees in terms of commission, and you can expect something along a fee structure of what we detail below when it comes to buying AMC stock;
- $0.005 to $0.01 per share
- Minimum of $1 to $3
- Maximum 1% to 2% of trade value
See if fractional shares are an option
Some brokers will offer what is called fractional shares. This means that instead of buying shares as a whole (in increments of at least 1 share), you can purchase fractions of one share, which is directly proportional to the amount of capital you invest.
This means you don’t have to worry about the value of the shares; rather, you can simply invest what you have.
Look at the account types a broker offers
When you open your account, your broker will likely have different accounts you can choose to open. Depending on what they are, you will need to decide which best suits your needs and investment styles.
Some options can include IRAs (Individual Retirement Accounts), or they may offer taxable brokerage accounts for more short-term investments.
Decide how much to invest
Another main element you will need to consider is how much to actually invest (how many shares to buy). Remember once again that all trading comes with risk, and you should never invest more than you can afford to lose.
You should also understand that if you are looking at investing as a long-term goal and setting it up as a retirement fund, you will need to continuously invest more capital. You will also need to ensure that you have enough equity to make the investment worthwhile.
Conclusion
We discovered that buying AMC stock is quite straightforward, and for the most part, you do not need to have any trading or investing experience to do so.
The main step is to find a reputable broker lined with your goals and one that offers the best options for your investing goals. After that, you will simply need to register, deposit your funds and buy the stock.
Remember that you can invest in different ways, and you should consider what suits you best, i.e., do you want to buy actual shares or want to trade CFDs and perhaps trade that way?
Always remember that besides understanding how simple these steps are, there are many other factors that you will need to consider because trading carries risk.
