How to Buy Facebook(Meta) Shares in the UK – Beginners Guide

If you are looking forward to buying Facebook Shares now known as Meta Platforms, Inc. (FB) but have no idea of how to achieve your goal then you are at the right spot. In this article, we will give you detailed information on how you can buy Facebook shares(Meta Platforms, Inc. (FB)), whether you should buy it or is it a good time to buy Facebook Shares. We will also tell you the best trading platforms that you can use to buy Facebook Shares by staying within your budget. So, without further ado let’s jump straight into our topic.

How to buy Facebook Shares Uk

Facebook(FB), Meta Platforms, Inc. An Overview

Facebook- logo

Facebook, now known as Meta Platforms, Inc. (FB) is the world’s most popular social media platform in the world with over 1 billion active users globally every day. The gatekeeper to the advertising industry, Facebook experienced great times since its IPO in 2012. But, the year 2018 is marked as the worst year for Facebook because of user privacy and fake news. It was also involved in permitting the site to use by criminals and terrorists. As a result of this, the company’s revenue plummeted by 20 per cent, which is known as the biggest drop ever for the stock.

Facebook is among those few companies that have risen in the fall of 2020. 

2020 is known for devastating the stock markets globally due to the corona pandemic. The rise of Facebook in 2020 does make sense as the whole world was under lock-down and the only way we could meet each other was virtually and that’s exactly what Facebook was developed for.

Buy Facebook Shares Uk - Price Chart

Why buy Facebook Shares? 

Before you buy shares of any company, it is very crucial to do some background research and determine whether you should add that particular shares to your portfolio or not. When buying shares of any company there are a variety of things that you should consider such as how it has performed in the past, what are the future expectations, what have it paid to its shareholders and many more.  Therefore it is very important to do your research before jumping straight to any decision. Below we have listed a few points that you should consider before buying Facebook Shares. 

  • Meta Platforms Inc formally known as Facebook is much more than just Facebook, this social media giant has many Hundred Billion Dollar valuation subsidiary firms that it owns such as WhatsApp and Instagram as well as including up-and-coming startups. The most interesting thing about investing in Facebook shares is that it has the resources to continue its acquisition policy that means it has the potential of diversifying away from its core business model. The company has recently completed a $2.3 billion takeover of Oculus, the leading virtual reality company and is planning to work on the Meta Universe.
  • Another important thing to consider here is that this social media giant has more than 2.6 billion active users. This huge sum matters because Facebook’s true potential lies in its core business model, that is advertising. So, that means its main revenue comes in the form of targeted advertising and the brands pay Facebook to advertise their services and products to the people who would actually be interested in buying the product. 
  • Another thing to consider here is that the company Facebook since its initial public offering in 2012, has remained a high profile company and has been following an upward trajectory. Well, that doesn’t mean the journey was smooth, it sure had some ups and downs but it managed to rise positively. In 2020 during the corona pandemic when the stock market collapsed, Facebook Shares reached their all-time high. That means, if you have invested £1000 back in 2012 when its share price was worth $38 per stock then In may 2020 your investment would be worth more than £5,233.
  • Another important thing to consider here is that just like other largest companies in the world such as Amazon and Google, Facebook has never paid any dividends to shareholders and there is no guarantee that it ever will. That means if you choose to invest in Facebook the only way you will be able to make money is in the form of capital gains.

Is Facebook under or overvalued?

Valuing Facebook shares isn’t a piece of cake, it is very equal to boiling the ocean. However, below we are listing down a few metrics that are commonly used by analysts.

P/E ratio

Facebook’s P/E ratio is the trailing price/earnings ratio of roughly 29x that is calculated by dividing the current share price by its per-share earnings over a period of 12 months. This ratio is very high when compared to the P/E ratio for the NASDAQ 100 that is 27.29 at the end of 2019. Therefore, it means that the shares are simply overvalued

PEG ratio

Facebook’s PEG ratio or price/earnings to growth ratio is the ratio that is calculated by dividing the P/E ratio by its growth. If the calculated ratio is lower in value then it means the shares offer better value and if the calculated ratio is higher in value then it means the shares offer worse value.

EBITDA

Facebook’s EBITDA is earnings Before interest, taxes, depreciation and amortization is a measure of overall financial performance which is widely used to determine its profitability.

Best trading platforms to buy Facebook Shares 

Now that you have decided to buy Facebook shares, you need to find the best trading platform that works the best for you. And, finding a perfect trading platform can be very time consuming and with thousands of platforms around it can be very hectic. There are many metrics that traders need to consider like regulation of the platform, payment methods, deposits and withdrawals fees and many more. That’s why to save you your time and energy we have listed down the best trading platforms that offer Facebook shares.

eToro- Commission Free Trading Platform

eToro- Best Facebook AShares trading platform

eToro is the world’s finest trading platform that offers a variety of financial assets for investment including, Cryptocurrencies, Commodities, Indices, and Shares. It offers 800+ Shares globally. This platform allows you to trade stocks that are listed on the London, New York and Tokyo exchanges.

buy Facebook Shares Uk - Etoro Platform

When talking about shares it offers a variety of options, including Facebook shares. On this platform you are allowed to apply the leverage of up to 1:5 and even you can buy assets traditionally. 

The platform is further regulated by the FCA, ASIC and CySEC. Even the platform is accessible to US traders as it is also registered with FINRA. Except you will be required to pay a 0.5% fee on all your deposits and $5 on every withdrawal. It is the cheapest brokerage platform in the UK.

For beginners, eToro provides the copy trading feature. This feature allows you to copy ongoing trades of expert traders. You can also use the copy portfolio feature, which allows you to diversify your investment portfolio. Unlike other platforms, account creation on this platform is not time-consuming. It takes only a few minutes to create an account on eToro. Once you are done with creating an account you are then required to fund it to start your trading journey. For the convenience of its user’s, it accepts various payment methods for making a deposit such as Debit/Credit Card, Bank account, e-wallet e.t.c. The fee attached to the platform is an inactivity fee of $5, which is understandable and also the spreads are relatively low. The platform also offers a mobile application for the convenience of its customers. This trading platform also offers 24/7 available customer support which other free platforms don’t offer.

buy Facebook Shares Uk - trading Platfotrm

Pros 

  • Beginner-friendly 
  • Regulated by  FCA, ASIC and CySEC 
  • Copy-trading and CopyPortfolio feature 
  • Offers a variety of financial assets 
  • Accepts debit/credit, bank account, e-wallet
  • Fractional trading 
  • Offers 800+ shares
  • Offers Facebook shares

Cons 

  • Not suitable for advanced learners

Plus 500- Trade through CFDs

Plus 500- CFDs trading patform

Another brokerage platform that we have on our list is plus 500 that gives access to a variety of different financial assets through CFDs including Facebook Shares with a spread of 1.25 or 0.07 % and 0.5 minimum deposit. On this platform, you will get access to the shares of nearly 500 companies. Moreover, it allows you to apply the leverage of up to 5:1 on Alphabet shares. The platform is fully packed with advanced charting packages, an economic calendar, risk management tool and price alerts service.

The platform is regulated by the FCA.

 Hence it makes sure that all of its traders’ funds are not compromised at all. Its parent company is listed on the London Stock Exchange. The account creation on this platform is not time-consuming. All you are required to do is to enter your few basic details, undergo a verification process, make a deposit and that’s all. To deposit on this platform you can either use debit/credit cards, bank transfers or PayPal. 

Pros 

  • Regulated by the FCA
  • Access to a wide range of investment assets 
  • Leverage of up to 5:1 for retail customers
  • Easy and fast account creation
  • Offers short selling 
  • Price alert feature 
  • Offers mobile application
  • Offers Facebook shares

Cons 

  • CFDs only 
  • Not beginners-friendly

IG- Best platform for diversification

IG- Best Trading Platform

Another amazing platform that gives you access to Facebook Shares is IG and it also allows you to apply Leverage. That means you don’t have to worry about investing more even if you don’t have huge sums in your pocket. It is regulated by FCA, which means you don’t have to worry about the safety and security of your funds.

The platform gives you access to over 12,000 assets and allows you to apply the leverage of up to 1:200 on forex pairs like EUR/USD, EUR/GBP, EUR/GBP, EUR/JPY, and USD/JPY. That means with an account balance of just $300, you could potentially trade with $60,000. What attracts the traders most to this platform is that it gives access to over 80 currency pairs. 

This trading platform is highly suitable for those who are looking forward to trading forex but don’t have enough money. 

The account creation on this trading platform is also super easy. However, you do need to pay an entry-level fee of £8. But the good thing is that if you trade regularly then this entry-level fee will be reduced to £3. Once created an account you will be required to make a minimum deposit of $250 on this platform to initiate trading. This minimum deposit isn’t the fee of this platform but the working capital that is needed by the investors to start investing journey.

Pros 

  • Well reputed UK Broker 
  • Offers more than 12,000 traditional assets
  • Offers leverage and short selling
  • Offers spread betting and CFD products
  • Offers educational tools 
  • Offers more than 80 pairs 
  • MT4 is supported 
  • Offers Facebook Shares

Cons

  • $15 commission on US stocks 
  • $250 minimum deposit amount

How to buy Facebook shares?

Facebook Shares can be bought in two ways either by trading derivatives or by share dealing. If you choose to buy Facebook Shares by trading derivatives such as CFD or spread betting you get to speculate on the price movements of Facebook Shares without getting any direct ownership of the shares you have invested in and also get an advantage of applying leverage. 

On the other hand, if you choose to buy Facebook Shares by share dealing then that means you are investing in shares and getting direct ownership of the shares. That means, if the price of the shares goes up, you will make a profit and if the price of the share goes down you will make a loss.

How to buy Facebook Shares through a trading platform? 

With thousands of trading platforms, we are here taking eToro as an example to make you understand how to buy Facebook Shares because it is our favourite trading platform for various reasons. Following is a step by step guide so that you get a crystal clear understanding of how to purchase Facebook Shares through eToro. 

Step1: Create an account

The very first step to buying Facebook shares is to create an account on the official website of eToro. To do so you are required to fill in a registration form by entering in your basic details such as your name, phone number, e-mail address, and setting a strong password. After entering all of your details make sure to accept terms and conditions. 

eToro Step1- Sign up

eToro will ask you to verify your identity by uploading some of your documents, don’t worry as your documents are truly safe on this platform. However, you don’t need to undergo verification until you deposit more than $2,250 or you request a withdrawal. 

Step 2: Fund your account 

Now that you have successfully registered on this platform you are now all set to fund your account by making a minimum deposit of £160. This funding amount isn’t the fee of the robot but the working capital that is needed by the traders to execute trades. eToro offers several payment methods for the convenience of its traders, you can choose whatever method you feel more comfortable with. The payment methods supported by eToro are Debit/Credit Card, PayPal, Skrill, Nettler, and Bank Transfer. 

Step 3: Make your purchase

Now that you have successfully registered and funded your trading account, you are now all set to buy Facebook Shares. To do so, all you are required to do is to enter ‘Facebook’ into the search engine at the top of the page and once entered click on the result that appears in front of you. Then click on the ‘Trade Button’, enter your desired amount and then click finally on ‘Open Trade’ to buy your Facebook Shares. On this platform, you can buy or sell Facebook shares as long as your transaction involves a minimum of £40. You also have the privilege to apply Leverage and you can also set a stop loss or take profit level for your trade using the order form.

Keep it or sell it?

Whether you decide to keep or sell the share, the very first thing you should do is to ensure whether the company and the share have the potential to perform well in future or not. That means, before you decide to buy or sell Facebook shares, you must first analyze it fundamentally and technically.

To analyze the company and share fundamentally, you are required to evaluate its intrinsic value by considering the company’s overall economical, financial and management conditions. 

To analyse the company and share technically you are required to consider the company’s past prices and volumes instead of considering its intrinsic value. Technical analysis is done to identify current and future trends and patterns in the company’s share.

If you decide to buy a share then you must also consider how many shares you should buy. To help you out on this matter many trading platforms offer their users a share calculator. By using it you can calculate how many shares you should buy, well if your chosen Platform doesn’t offer this feature then you can calculate it on your own by using the formula: 

Total Amount Desired to Invest/Price Per Share

Conclusion 

Before you jump into buying Facebook shares or any shares, you are first advised to do some research on how the company has performed in the past, and what you can expect from it in the future. From all the depth in research, we have concluded that if you are the type of trader who is looking for retirement income and can be a investor for a long term then investing in Facebook Shares is a pretty good option for you. Despite how badly Facebook crashed in 2018, it managed to catch back its upward trajectory. It is among those few companies that have risen in the fall of 2020, the corona pandemic. And, when looking for a long term investment a Trader will definitely choose an asset that has the potential to stay positive even in crashing times. 

If you are willing to buy Facebook Shares, then we recommend you to make a purchase from our most trusted broker, eToro. This trading platform has what you look into a trading platform, from regulations to affordable fees.

FAQs

  1. How much does it cost to buy Facebook shares in the UK? 

This hugely depends on the trading platform you decide to buy Facebook Shares from. Each and every platform has its own fee structure depending on various factors. For example, if you choose the trading broker, eToro you won’t be obligated to pay any shared cost dealing fee at all.

  1. What are the dividends paid by Facebook? 

Facebook Just like other world’s largest companies, Google and Amazon do not pay any dividend, neither it had in the past nor will they ever pay in the future. That means if you choose to invest in Facebook the only way you will be able to make money is in the form of capital gains.

  1. How much were Facebook shares when it first went public? 

The social media giant, Facebook first went public in 2012 and chose to be listed on the NASDAQ. At the time, Facebook shares were priced at $38 per share with a market valuation of $16 billion.

  1. What is the minimum number of Facebook shares that I can buy? 

This also depends on the platform you are deciding to buy shares from. Currently, Facebook shares are priced at $340.53, which doesn’t sound affordable at all. But, thanks to the trading platforms such as eToro which allows fractional ownership that means instead of buying a whole share you can buy a part of it. Therefore you can buy a part of Facebook shares on eToro for as low as $50.

  1. How much do I need to pay for a conversion fee to buy Facebook Shares in the UK? 

When buying Facebook shares in the UK then in most cases you will have to pay a conversion fee as the company is listed on the NASDAQ exchange. Listed on NASDAQ means the price of the share is listed in US dollars. That means, to buy it in a country other than the US, you will have to convert the currency first. 

Well, how much you need to pay as a conversion fee depends on the trading platform you are choosing to purchase Facebook Shares. For example, if you choose eToro your deposits will get converted to US dollars as soon as you deposit funds.