PayPal is an online payment platform which makes the payment process safe and secure. By linking your bank account, debit card or credit card to your PayPal account, you can use the same for making online purchases. However, it acts as an intermediary between the bank and the merchant, keeping the payment information secure. In addition, you can also use PayPal: to buy stocks and make online purchases and rewards.
As a prospective investor, you must have thought of buying shares of a company which skyrockets within a couple of years. However, PayPal can be one of the top picks for buying shares. You can invest with PayPal and purchase shares of your favourite company. The article is all about how you can buy stocks through a PayPal account.
Overview Of PayPal
PayPal is an online payment system which dominates the digital payment scenario. The account has nearly 360 million active users from about 200 different countries. The traders and prospective investors can even buy stocks with PayPal. This digital payment process promotes four billion transactions in Q3 in 2020 alone.
PayPal, since 1998 has been giving alternatives to customers for sending and receiving money online. Along with this, you can do the following things through PayPal: buy stocks, send money, receive money and make online purchases. When using the PayPal account, you will not need your debit card or credit card for the same. In addition, you can make instant online purchases with this account.
Why Buy Stocks With PayPal?
PayPal is a US-based financial service company which is one of the most well-known online payment services across the globe. However, NASDAQ gives access to traders to buy stocks online with PayPal with low commission fees. There are several reasons why you should opt for PayPal as a medium to purchase supplies. These reasons are:
Safe And Secure Transactions
This digital wallet does not restrict you from sending and receiving money. Here are more thighs you can do with Paypal: buy stocks, make instant online purchases and get rewards. This digital banking provides an extra coating of protection to your online payments and sensitive data. It uses certain features for keeping the data secure, like, end-to-end encryption, two-factor account logins, email verifications and confirmations and many more.
Easy And Convenient
Purchasing shares has always been a tedious task if the platform is not supportive or lacks intuitiveness. However, you can buy stocks using PayPal quickly and conveniently without any hassle. It is the fifth most acceptable payment option after Visa card, Master Card, Discover and American Express. If you ever think of the question, can I buy stocks with PayPal? Then the answer would always be yes. It is a secure and handy payment system suitable for every online purchase and receiving money too.
How To Create An Account To Buy Stocks Using PayPal?
You can create a PayPal account from your laptop processor or mobile as well. Here are the steps you need to follow for making an account on the Paypal app directly:
- Go to PayPal.com or download the same from Google Play.
- Click on the sign-up button.
- Select the personal account option
- Add your mobile number and enter the security code on the next screen.
- Enter your first and last legal name, email address and a secure passcode
- Finally, add a debit card, credit card or bank account details to your PayPal account.
Can We Buy Stocks With PayPal For Free?
Creating a PayPal is free of cost. Along with this, most of the transactions and personal transactions are free. But, there are certain types of transactions which have a price. Let us go through these costs and transaction fees to buy stocks with PayPal.
Fees For Purchasing
There are no specific fees for making online purchases with the retailers who accept PayPal payments. No purchase fees are there as long as currency conversion is not involved. However, if you buy stocks with PayPal using a foreign currency, you might be charged a 3 to 4 per cent transaction fee.
Fees For Personal Transaction
The use of a PayPal account is not limited to sending and receiving money. Here is what you can do with PayPal: buy stocks, make instant online purchases, get rewards and get help in trading. In addition, PayPal has a special tab by the name of Friends and Family where you can make all sorts of personal transactions. However, there are no fees for domestic confidential transactions, but the account charges 5% on international transactions.
Fees For Withdrawing Money
To buy stocks with PayPal, there is no intermediary cost involved. There are no fees for transferring funds from your PayPal account to a local account. However, in case you want instant access to withdraw or transfer funds, you shall have to pay a 1% withdrawal fee. In addition to this, drawing a cheque from the PayPal account comes with $1.50 per withdrawal.
How To Buy Stocks With PayPal?
One of the fastest, secure and most convenient ways to enter into the trading industry is to invest with PayPal. You can effectively purchase shares through PayPal, provided the broker platform accepts the mode of payment you select. Here are steps through which you can buy stocks with PayPal without paying any trading commission or deposit fees.
Open A Trading Account
Create a trading account on your preferable trading platform’s website; for that, we suggest ABInvesting. Add the necessary personal information along with the creation of a username and password. Some brokerage accounts open quickly, while some take time, around 2 to 3 days, to do a background check.
Verify The Trading Account
As a part of the verification process, you might have to upload a photo along with a scanned copy of your residence as residential proof. However, when it comes to buying stocks with PayPal, you have to verify your account.
Make An Initial Deposit
Once the account is verified legally, you can access the deposit option as a trader on the platform. Furthermore, you have to choose PayPal as the payment option for purchasing the shares of any company.
Buy Stocks Using PayPal
As soon as you make the initial deposit, you can browse through the shares you wish to purchase on the trading platform. However, this digital platform is not only meant for sending and receiving money, and you can perform the following things on PayPal: buy stocks, make instant purchases and help in trading. Once you select the stock to purchase, enter the position size in the order box. Click on the buy button and wait for the proceedings.
Features To Look Out When You Buy Stocks With PayPal
There are several features you can avail yourself of and consider when you purchase stocks through PayPal. Let us discuss what these features are:
Speedy Deposit Method For Share Investors
When you think of how to buy stocks online with PayPal, you might notice that the deposits are pretty instant. In comparison to this, traditional banking methods like ACH transfer and wire transfer take around 3 to 7 days to clear the investment and trading procedure. So naturally, you might lose out on the preferred stock at the most suitable price by then.
Secured Payment Type
When you invest with PayPal, you will not need to provide any sensitive information on the trading platform mentioned on the card. Besides this, PayPal offers end-to-end encryption and two-factor authentication for secured payment. Moreover, while purchasing, you can track it through real-time transaction processes. In addition to this, this digital platform does not reveal any banking information to the broker in question. As such, it has become a fast way of investing online.
Most Convenient Way To Finance Investments
As we are dealing with how to buy stocks with PayPal, there is no need to enter payment card details. All the essential information needed for financing the purchase of stocks is already there in the PayPal account. It is stored in the account and encrypted to avoid hacking.
- The traders can invest with PayPal in just a few minutes.
- Users can click on the deposit option and then further select the PayPal option.
- That will automatically lead you to the PayPal transaction window, from where you can pay the stock price after reviewing the prices.
While deliberating where to purchase stocks with PayPal, you must check on what fees you might have to pay. The prime advantage of using PayPal is that some brokers waive the deposit fees.
Where To Buy Stocks With PayPal?
Once you’ve decided which shares you want to purchase, you must think about which broker can fulfil your requirements. Learning how to buy stocks online with PayPal is simple. Different trading accounts have different trading fees. Therefore, each one is different from the other. Here are some brokers who support PayPal as a payment method for purchasing stocks of different companies.
- Interactive brokers
- Cap Trader
- ARMO Broker
How To Reduce Risks When You Plan To Buy Stocks With PayPal?
Any investment comes with a certain amount of risks. However, if you plan to invest with PayPal, it does not make much difference.
Review the below-mentioned tips that can help you minimise the risks associated with investing and purchasing stocks.
Unfortunately, in today’s market, tons of brokers sit on the edge of the market to steal your funds. The automated investment algorithms and binary option ads which generate higher returns are a warning to get suspicious. Hence, you should go for brokers who are reliable and run down through several tests of reliability.
You can check out the broker ABInvesting, which has quite a name in the market and provides you with a platform so that your funds are safe and secure.
Diversification Of Portfolio
When you plan to buy stocks with PayPal, you must be thinking about how you can spend your entire funds in just one or two shares. Under any citation, if PayPal goes bust, then you might lose all your invested money. For diversifying the portfolio, buying shares of just one company is not sufficient. It means that you have to put your eggs into different baskets instead of one.
The Bottom Line
In this article, we have offered a simple guide on how to buy stocks with PayPal. As long as your preferable trading platform accepts your mode of payment as PayPal, you shall find it convenient and fast for entering the stock market. However, there are a few alternatives to PayPal, and these are Cash App, Venmo, and Skrill. In addition to this, Paypal is not merely restricted to sending and receiving personal or business money. You can do a lot with PayPal: buy stocks, make instant online purchases, get rewards and allow Paypal to be your pal while trading.