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How to buy GameStop stock online: Beginner guide to investing in GME shares

How to buy GameStop shares online

Are you thinking about buying GameStop stock and you want to know whether it is a great move? Well, today’s guide will provide you with everything you need to know about buying GameStop shares. 

But before we take you through the steps on how you can buy GameStop stock online, let’s give you a brief overview of the company. 

A brief overview of GameStop

GameStop is famous for selling video games, electronics, and other game-related products. Since the company launched its operations in 1984, it has continued to expand its activities and now has over 5000 stores worldwide.

Whether you should buy some of the company’s shares depends on a number of factors, both short and long-term. A growing interest in the company’s shares sent GME price rallying in January 2021. And even though the price later settled, the attention the company garnered during the period has continued to fuel bullish expectations in the company’s stock in the long term. 

Unfortunately, due to poor performance at the peak of the Covid 19 pandemic, the company was forced to close nearly 450 locations. While GameStop has struggled to replicate the buzz generated in 2021, the company is working to expand its digital operations. In recent times, GameStop has indicated an interest in launching an NFT marketplace, where it would sell tokens associated with the digital products it sells. 

How has GameStop Performed over the years?

While GameStop was launched in 1984, it became a household in 2021 after the subreddit/WallStreetBets encouraged investors to buy into the company shares. At the start of the year, the company share traded just below $20. But by January 2th 2021, the company stock traded above $350 a share, a move many hedge funds never imagined would play out. Despite the pullback in price, GameStock shares are still trading above $100 a share. 

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The bullish move in GameStop shares was inspired by hedge funds, who took a short position on the company stocks, while independent retail investors kept on pilling money into the company’s stocks. This move eventually played out in the favor of independent retail investors, resulting in huge price increases. Eventually, many hedge funds lost a lot of money, especially big names like Melvin Capital hedge funds, which reportedly lost billions of dollars. 

Before the bullish move, which sent the price of GameStop shares skyrocketing, the company was not doing so great. This explains why hedge funds continued to short the stocks. Being a primarily brick-and-mortar retail store, GameStop has continued to trail online-based businesses operating the same model. And the Covid 19 pandemic meant that the company had to shut down some of its stores. The company is standing today because of the interest it garnered from independent retail investors. 

Is now a great time to buy some GameStop shares?

This is one question many potential investors have been asking since early 2021. Just so you know, GameStop has continued to garner attention. Investments from top names like Rayan Cohen contributed immensely to pushing the company’s stock higher. But before you invest in GameStop stock, ask yourself what approach you’ll be taking. Are you in this for the short term or long term?

If your strategy is to trade GameStock stock in the short term, then it’s best you take advantage of market fluctuations. If that’s the case, you should polish your knowledge by reading stock charts and spending some time on technical analysis. Also, you want to pay attention to the latest news and analysis, especially because GameStop shares move pretty fast. Knowing this will ensure you don’t miss out on important moves. 

If you plan on investing for the long term, then you won’t be worried about the day-to-day fluctuations of GameStop stocks. You’ll be more focused on the company’s future prospects. That said, it’s still important to undertake some fundamental analysis. Doing this will help you determine if investing in the company is worth it or not. 

Step-by-step process of buying GameStop stock

After reading our overview of the company, we are sure you are ready to buy some of GameStop’s shares. And because we want to make the entire process easy for you, we have put together a step-by-step process you can follow. Read on for all the details. 

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Find a good online broker 

Before you can buy GameStop shares online, you’ll need to choose a reliable broker offering the company’s stock. Thankfully, this isn’t so difficult as there are many reliable online brokers like Plus500, Fidelity, eToro, Admiral Markets, and AvaTrade, who let investors buy GameStop shares. But before choosing a broker, make sure you consider their trading fees, how accessible they are, their trading platform, and how easy it is to open an account. Also, you want to pay special attention to the security provided. 

Open a brokerage account

Having decided on the brokerage to use, the next thing you need to do is sign up for an account. The process is pretty much like opening a regular bank account. And since the process is digital, you can complete the entire process on your phone. With brokers like eToro, it only takes a few minutes to register an account. 

Fund your trading account

You’ll need your account funded before you can buy GameStop stocks. Thankfully, the process is super easy. And with most online brokers supporting multiple payment methods, you can fund your trading account using several methods including debit/credit card, wire transfer, PayPal, or other popular electronic wallet payment methods. 

Buy GameStop stock

With your account now funded, it’s time to buy GameStop stocks. And the process is super easy. Once you login into your account, search for GameStop shares. Once you find the company’s stock ticker GME, choose it and enter the number of shares you’d like to buy. With that out of the way, you can click the buy button, this should trigger the purchase of GameStop stocks. 

Tips: When placing your order, you’ll need to choose different order types depending on what works for you. If you select market order, then it means you have decided to buy GameStop stocks at the current market price. On the flip side, if you think the price might pull back a bit, you can choose the limit order, which lets you specify the exact price you’d want to buy the share. 

Regularly review your GameStop position

We know it feels great to have bought some GameStop shares. But that isn’t all you need to do. After buying the company’s shares, you’ll need to monitor your investment. By monitoring, what we simply mean is following your investment strategy. Assuming you bought GameStop stocks and intend to hold your position for the long term, it’s important to participate in the annual meeting of the company and get a hold of all news and information about the company. 

On the contrary, if you are in for the short term and plan to sell your shares as soon as it appreciates a bit, you might want to explore different position management tools. For instance, you can tweak the target price at which you’d like to sell your share. You can also use the stop-loss option. This option allows you to set a price you want to sell your shares to avoid further loss. 

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How to buy GameStop stock on eToro

Now that you know how to invest in GameStop stock, we want to use this opportunity to show you how you can buy GameStop shares on an exchange like eToro. And just so you know, the process is pretty straightforward and only takes a couple of minutes. Here, check out how anyone can buy GameStop stock on eToro. 

Create an eToro account

If you don’t already have an account with eToro, you’d have to open one to be able to buy GameStop stock. As we earlier reiterated, the process is simple. If you already have an account with eToro, you can simply log in. 

During the signup process, you’ll be required to provide basic information like name, email address, and phone number. Nonetheless, to fund your eToro trading account, you’ll need to provide additional info so the broker can verify your identity.  

Complete your eToro profile

If you’re opening your account for the first time on eToro, you’d be required to complete your profile. For customers who have an existing account, you can skip this process. Completing your profile only takes a couple of minutes and is a requirement by most brokers as per AML and CTF regulations. With your profile now complete, you can proceed to other aspects. 

Fund your trading account 

After completing your eToro profile, you’ll need to fund your trading account to be able to buy some GameStop stocks. We love eToro because they have a low minimum deposit requirement. To start trading on the eToro platform, you’ll need to make a minimum deposit of $200 or it’s equivalent in other currencies

And just to add, eToro supports up to 8 popular deposit methods including PayPal, wire transfer, UnionPay, credit or debit cards, Neteller, Skrill, and WebMoney. So, funding your account is super easy.  

Tip: If you’re not fully convinced or you don’t feel ready to invest real money, you can test the waters with eToro’s virtual portfolio feature. This option lets you trade your favorite stocks without putting in real money. And as you gain experience and feel more comfortable, you can switch to a real portfolio. 

Buy GME or GameStop stock

With your eToro account now funded, you can proceed to buy GameStop stocks. While eToro lets you buy GameStop shares seamlessly, you can also decide to short it. Keep in mind that the direction you decide to take is based on current market sentiments or direction. Here is how you can buy GameStop stock on eToro. 

Navigate to eToro’s unique search bar which sits at the top of the screen. Enter the ticker name associated with GameStop stocks: GME. Hit the trade now button to place your order. A new window should pop up, allowing you to make changes to different parameters. It’s that easy. 

 

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