In this guide, I will show you how to buy ETSY shares UK. Buying ETSY shares is quick and easy, and I will provide you with everything you need to buy ETSY stock. I will not only take you through the six steps of buying ETSY stock but also show you how and where to buy ETSY shares.
Also consider: Best stocks and shares to buy now
Remember, this is just a suggestive ETSY stock guide and doesn’t amount to or constitute investment advice. Investing in ETSY stock comes with a lot of risk to your funds, and nothing is assured.
- Choose a trading platform. If you’re unsure which one to choose, see my guide to the best trading platforms UK.
- Open an account. You will need your national insurance number, personal ID and bank details.
- Enter payment details. Fund your new trading account via a debit card or bank transfer.
- Search for the stock code on your trading platform. Search for “ETSY”.
- Research ETSY shares information. Your trading platform can show you the latest information for ETSY.
- Now buy your ETSY shares. Go ahead if you’re happy to buy ETSY shares.
ETSY (ETSY) Live share price
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
How to Buy Stock in ETSY: A Step-by-Step Guide
Not sure how to buy stock in ETSY? Ensure you have a device with a steady internet connection, a trusted payment method, and a passport or driving license. Once you have all these things, here is how to go about it.
Step 1: Choose the Right Online Stock Broker
The first task you need to accomplish is to figure out where to buy ETSY shares in the UK. You need to choose an online broker that allows you to access the London Stock Exchange as well as other popular exchanges. There’re many online broker platforms where you can buy ETSY shares, but not all of them meet your unique needs and requirements.
It is advisable to choose platforms that offer zero commission fees on stock transactions and have high levels of regulation. On top of that, the platforms should have dedicated trading apps to enable you to access your brokerage accounts from anywhere and at any time.
Aside from dedicated trading apps, high levels of regulation, and zero commission fees, you should also consider other features such as fractional shares, research and analysis tools, and a user-friendly trading platform.
Step 2: Create a Trading Account
Once you have selected a trusted online broker, you must create a brokerage account in order to invest in ETSY stock. To create a brokerage account, you need to access the main website of the broker and press the Sign Up or Join Now button.
Then, you’ll access the sign-up form that will require you to provide various details, including your name, email address, contact information, username, and password. After filling out the whole sign-up form, press the Create Account button to submit your application.
Your trading account should be active within a few minutes. Before using your trading account, you’ll need to verify it. The verification process is straightforward as it only requires you to upload the latest copy of your utility bill or bank account statement.
Step 3: Provide Payment Details and Deposit Funds
As soon as you receive an email from a broker that your trading account has been approved, you can deposit funds through one of the supported payment methods. The most popular payment methods that trading platforms in the UK support include Bank Transfer, Debit or Credit Cards, and electronic wallets like PayPal, Neteller, and Skrill.
If you want to start trading immediately after depositing funds, you should use either cards or e-Wallets. Deposits through these options are processed instantly or within a few seconds, providing you with the opportunity to start trading in no time.
Be sure to make an eligible deposit because each trading platform has a minimum deposit requirement that you must fulfil to invest in ETSY stock.
Step 4: Search for the ETSY Ticker Symbol on Your Online Stock Broker Platform
After depositing funds into your trading account, you can now buy shares. On the dashboard of your trading platform, search for the ETSY ticker symbol in the search bar, and you’ll be directed to the instrument page. You’ll find a Buy button on the instrument page that you need to press to access the order form.
The order form will require you to fill out some fields, which include the amount of cash you need to invest in ETSY shares. Once you have filled out the order form, press the Place Order button to complete the process.
If you want to view and modify your position, navigate to the portfolio section, where you can take profit orders and enter stop loss. You can close your position anytime you want.
Step 5: Research ETSY Shares Information
Even if ETSY Inc is one of the best-performing companies in the world when it comes to trading shares, it is still vital to research and know all the products and services it offers, its trading strategy and its financial situation before making an investment. Here are the most important things you need to get familiar with in terms of ETSY shares.
What is ETSY Inc?
ETSY Inc is an online marketplace used for marketing DIY goods, handmade and vintage items, as well as art and unique crafts. Founded by a group of friends steered by Robert Kalin, the online marketplace is currently one of the largest e-commerce platforms globally, with over 60 million users.
ETSY Share Price History
ETSY Inc was established in Brooklyn, New York, by Haim Schoppik, Jared Tarbell, Chris Maguire and Rob Kalin. The four individuals established this e-commerce marketplace for people who want to sell their crafts and goods. ETSY went public in 2015, with its shares trading at a price of £16 a share.
During the first day of trading, ETSY’s share price almost doubled to £31 but quickly dropped to trade between £10 and £20 until 2018. In the same year, ETSY’s share price soared by around 132% as a result of better than estimated earnings results as well as the increasing platform’s popularity across the world.
While 2019 was a disappointing financial year for the e-commerce company, its stock was on fire in 2020 as well as in 2021. So far, it has gained over 260% in sales. The escalation in ETSY share price was primarily driven by its excellent performance during the Covid-19 pandemic, just like most e-commerce platforms in the internet retail industry.
As indicated in the first quarter report, the company attained an increase of more than 120% in revenue. One of the main reasons for the massive increase in revenues was the sale of about £340 million worth of home-produced masks due to the pandemic.
ETSY Stock Fundamentals: EPS, P/E Ratio and Market Cap
The market capitalisation of ETSY is above £10 billion. Its P/E ratio stands at around 83.07, indicating that shareholders are willing to pay a high share price due to high growth projections in the coming years. Also, it shows that the current market price of ETSY is overvalued.
ETSY Stock Dividend Information
Does ETSY pay dividends? Currently, the company doesn’t pay dividends. This isn’t surprising since it retains all of its earnings for growth and expansion. ETSY informs on its main website that it does not plan to pay dividends in the near future. However, if you want to buy stocks and wait until the company starts to distribute dividends to shareholders, you can go ahead and make your investment.
Step 6: Buy ETSY Shares
After finding out as much information as possible about ETSY, including past performance, market cap, dividend and share price history, you can decide whether or not to buy shares. If you’re not sure, you can seek personal advice from experts in the internet retail industry.
There’re various types of orders that you can place when it comes to buying ETSY stock. The main ones are:
A limit order provides you and other investors with the opportunity to buy shares at a given price. If you want to ensure you are buying at a specific pound amount, you should place this type of order.
A market order involves buying stocks at lower share prices and selling them at higher prices. In most cases, market orders are sufficient.
Once you have selected your order, press or click on the Open Trade button. Your broker will place the order of your choice. If you need more help in terms of buying ETSY stock, you can look for personal advice from internet retail industry experts or watch helpful video tutorials online.
A Short History of ETSY
ETSY is an American electronic commerce firm focused on craft supplies and vintage or handmade items. These items are categorised into a massive array of categories which include furniture, home décor, bags, clothing, jewellery, toys, art, craft tools and supplies.
Any items described as a vintage need to be 20 years and above. The platform follows the open craft fairs tradition, providing both new and advanced traders with the opportunity to list their goods for a small fee of up to £0.20 per item. ETSY was established in 2005, and it has been under the management of various CEOs, including Robert Kalin and Maria Thomas.
Over the past few decades, the company has managed to acquire various firms in the internet retail industry, including A Little Market in June 2014 and Blackbird Technologies in 2016. In July 2019, ETSY acquired Reverb, a musical instruments-based marketplace. In June 2021, the company purchased the Depop shopping app, a worldwide fashion resell marketplace.
ETSY runs two-sided online marketplaces that link buyers and sellers in the United Kingdom, the United States, Australia, Canada, India, Germany, and France, among other countries. ETSY is the company’s primary marketplace that links entrepreneurs and artisans with millions of consumers globally.
The company also offers various payment and promotion services. All shops that operate as divisions of the company use ETSY payments, which have proven to be among the best in the industry.
Factors to Consider Before Buying ETSY Stock
You need to consider various factors before you can buy ETSY stock. Here are the elements you need to consider.
It is advisable to find an online brokerage platform that offers commission-free trading. There is no reason to spend even a cent on commissions with a massive array of discount brokers providing you with many commission-free trades. Always find a top-rated commission-free trading site and sign up with it before buying ETSY stock.
Low Account Fees
Many investors and share sellers primarily look for brokers with low account fees. Before investing your hard-earned money, take time to compare the fees of different brokerage websites where you can trade shares.
Check out the charges for monthly account usage, inactivity, transaction and stamp duty fees. Make sure they are friendly enough before you can buy shares.
Fractional Share Trading
An ETSY share will take up a significant portion of a small brokerage account. As a result, your entire account is at risk with one trade which isn’t a good idea. Fractional share trading makes it inexpensive to take a position in an expensive stock without having to expose you to excessive risk levels.
Real-Time Data and Charts
You will get charting with your favourable investing platform. But the market data can delay by a maximum of up to fifteen minutes. In order to get the correct day trading live market data, you will have to pay for full access.
Margin trading enables you to purchase a considerable amount of ETSY stock using your brokerage platform’s money. It offers one of the best ways to grow a small brokerage account.
However, Margin trading is risky, especially if you’re a newbie, and you could lose the whole of your account balance plus profits if the price action goes against you. So you should consider this vital aspect before you can buy ETSY stock.
Where and How to Buy ETSY Stock
Many platforms allow investors to buy ETSY stock in different ways, which include trading CFDs and spread betting. The two are leveraged products that offer ETSY sellers the opportunity to get massive market exposure with smaller initial deposits. Popular in the UK stock markets, spread betting and trading CFDs are leveraged products fundamental to index, forex and equity markets.
Contracts for difference are derivative contracts between financial institutions and investors in which traders take a position on an asset’s future value. Trading CFDs allows shareholders to place cash on whether the market price will fall or rise. There’s no physical delivery of tangible goods or securities with contracts for difference.
However, the contract itself features transferable value while it’s in action. In simple terms, contracts for difference is a tradable security that’s established between brokers and investors who are exchanging the difference in the original trade price and value when the trade is reversed or unwound.
With spread betting, you can speculate on the price movement of different financial instruments like fixed income securities, commodities, forex and stocks. In simple words, investors place a wager on whether they think the market price will fall or rise from the time the bets are accepted.
Also, they have the opportunity to choose the amount of money they are willing to risk on their wagers. Spread betting is promoted as a commission- and tax-free activity that allows stakeholders to speculate in different markets. The wager itself isn’t transferrable to any other investor.
How to Find the Right Brokerage Platform
One of the biggest challenges that investors encounter in the world of stocks is finding the right brokerage platform in the market. Many investors find it challenging to pick a brokerage site since they don’t know the key features to look out for when looking for the right broker platform.
Investors who choose the best platforms always consider some key elements, including the availability of assets, licenses and regulations, the company’s past performance, user recommendations, payment methods and customer care support.
Ensure each platform you open an account with is regulated and licensed by the Financial Conduct Authority or any other popular regulatory organisation.
Is ETSY Stock Over- or Under-Valued?
To know if ETSY stock is overvalued or undervalued, you need to use three main vital metrics, which are Earnings per Share (EPS), Price/Earnings Ratio (P/E Ratio) and Quick Ratio. To obtain EPS, you need to take the company’s profit and divide it by the number of shares outstanding.
The earnings per share show the amount of profit that ETSY makes within a given period. P/E ratio is the price of ETSY share divided by the company’s EPS. The P/E ratio shows the ETSY’s value in the current market.
A quick ratio is obtained by taking assets that can be liquidated in three months plus money divided by the firm’s liabilities. The Quick ratio is important as it shows the ability of the firm to pay all of its debts in a period of three months from now.
ETSY Stock: Buy or Sell
The share price of ETSY has been increasing in the past few years. The main concern is whether the share price will keep up with the growth and increase further. Many independent advice providers inform their clients that the value of ETSY shares will only continue to increase.
If you agree with their argument, it might be the right time to buy ETSY stock. Another reason that can make you buy ETSY stock is that the firm is here to stay.
Additionally, the company’s massive growth over the past few years shows that it can expand to new markets across the universe and boost its dominance as one of the largest platforms for selling unique goods and items.
With that in mind, the ETSY stock is worth considering if you’re looking to invest in the internet retail industry. For now, experts expect a slight pullback prior to a re-test of the all-time high price at a later date this year.
How Can I Buy ETSY Stock in the UK – With Zero Commission?
You can buy ETSY stock in the UK with zero commission on a licensed brokerage platform that provides full access to United States stocks. But keep in mind that you have several key aspects to keep into consideration, which I mentioned earlier in this guide. Pick a site that provides you with the opportunity to buy ETSY stock directly from the exchange.
The ETSY stock has been among the big winners, with a return of about 260%. The main reasons that make the ETSY stock worth your funds and cash are:
- ETSY is growing quickly
- ETSY is rapidly expanding to other markets and provides a massive array of payment services
- Lower sellers fees compared to other platforms in the same sector
FAQs about ETSY Stock
Is it good to Buy ETSY Stock?
What is the good Price to Buy ETSY Stock?
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.