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How to Buy Netflix Shares UK for Beginners

Tobi Opeyemi Amure
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How to Buy Netflix Shares UK for Beginners

In a nutshell, to buy Netflix shares in the UK, choose a brokerage that offers access to US stocks, like eToro or Plus500. Open and fund your trading account, ensuring you complete a W-8BEN form to comply with US tax regulations. Then, search for Netflix stock ticker ‘NFLX’, decide on the number of shares or the amount you want to invest in, and execute the buy order.

In this guide, ‘How to buy Netflix shares in the UK’, I’ve selected key information and steps to help you navigate the process of investing in one of the most dynamic streaming companies.

You’ll gain insights into choosing the right broker and understanding the nuances of the UK market for a smooth investment experience.

This article was reviewed by Tobi Opeyemi Amure, a trading expert and writer at InvestopediaInvesting.com, and Trading.biz.

Quick Steps to Buy Netflix Shares Online

  1. Choose a Trading Platform: For beginners, it’s important to select a user-friendly trading platform, that offers educational resources, and provides robust customer support to meet your investment needs.
  2. Register Your Account: Complete the sign-up process by providing your personal information to set up your trading account.
  3. Payment Method Setup: Deposit funds into your account using methods like bank transfer, debit card, or credit card.
  4. Search for Netflix Stock: On your chosen platform, search for Netflix by using its stock code: NFLX.
  5. Conduct Share Research: Make use of the platform’s latest resources and information to research Netflix shares.
  6. Purchase Shares: Select the quantity of Netflix shares you wish to buy and place either a market order or a limit order, following the platform’s simple purchasing process.

Best Place to Buy Netflix Shares UK

In 2023, around 2 in 5 Brits (42%) invest and trade, up from 36% in 20211.

Choosing the best trading platform for investing in Netflix shares is crucial for newcomers in the market.

Having worked in the retail investment sector in London over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest UK stock brokers in the market.

Using my experience in this field, I’ve picked two of the best places to buy Netflix shares in the UK.

Factors such as fees, commissions, usability, trading platforms available, research tools, educational materials, and additional features were considered.

Both of the platforms I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA) or similar.

1. eToro – Overall best place to buy Netflix stock UK

eToro – Overall best place to buy Netflix stock UK

eToro stands out as a top choice for UK investors looking to buy Netflix shares. It’s a multi-asset trading platform that offers commission-free trading on stocks, including Netflix, making it a cost-effective option.

The platform supports fractional share ownership, allowing investors to buy a portion of a Netflix share, which is ideal for those with a smaller budget.

One of eToro’s key strengths is its user-friendliness and suitability for both beginners and experienced traders.

Opening an account is straightforward, with a minimum deposit requirement of only £50, and the platform supports various funding methods, including debit/credit cards and bank transfers.

eToro’s safety is also a significant advantage, as it is regulated by the FCA and covered by the FSCS, ensuring a secure investment environment.

eToro’s social trading feature is particularly noteworthy. This unique aspect allows users to copy the trades of experienced investors, offering an invaluable learning tool for beginners.

Furthermore, eToro provides a range of analytical tools, including ProCharts and market sentiment indicators, to aid in making informed investment decisions.

For those seeking a diversified portfolio, eToro also offers a variety of other assets, such as forex, commodities, cryptocurrencies, and index fund ETFs. The platform’s mobile app enhances the trading experience, allowing users to manage their investments on the go.

While eToro is a robust platform with many benefits, it’s important to be aware of potential currency conversion fees and other associated charges.

eToro’s combination of low fees, ease of use, social trading features, and a wide range of investment options makes it an attractive platform for UK investors interested in buying Netflix shares.

Read my complete eToro review.

Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.

2. Plus500 – Good for trading Netflix CFDs

Plus500 – Good for trading Netflix CFDs

Plus500 stands out as a preferred platform for UK traders interested in trading Netflix stock CFDs (Contract for Difference).

As a well-established CFD broker, it offers a user-friendly native app for both iOS and Android, enhancing the trading experience for on-the-go investors.

Plus500 is regulated by the FCA, ensuring a high level of security and investor protection, with additional regulation in other key markets.

The platform is known for its commission-free trading across a wide range of stocks, including major markets in the UK, the US, and globally. This makes it a cost-effective choice for trading Netflix CFDs.

With the leverage options up to 1:5, traders have the potential to maximise their trading capital, though it’s essential to be aware of the increased risk that leverage brings.

Plus500 offers unique tools like ‘Insights’, an analytical feature providing in-depth trade analysis and market sentiment, which can be crucial for making informed trading decisions.

Additionally, the platform includes advanced trading tools like predefined stops and limits, helping traders manage risks effectively.

The platform supports a broad selection of over 2,000 CFDs, catering to diverse trading interests and strategies. This includes not only stock CFDs but also commodities, ETFs, indices, and options. Plus500’s proprietary trading platform is tailored for active traders who seek competitive pricing and excellent customer support.

However, potential traders should note the absence of the MetaTrader platform and the minimal educational resources. Plus500 also charges an inactivity fee if the account remains dormant for a certain period.

Plus500 stands out for its extensive range of CFD options, advanced trading tools, and secure trading environment, making it an excellent choice for UK traders interested in trading Netflix stock CFDs.

As with all trading platforms, it’s crucial to understand the associated risks and fees before engaging in CFD trading.

How to Buy Netflix Shares in the UK – Step-by-Step Guide

Here’s a simple step-by-step guide to help you invest in Netflix shares.

1. Select a broker

Start by choosing a broker that suits your needs, such as eToro, Plus500, or IG. Consider factors like fees, ease of use, and customer support. Ensure the broker offers access to US stocks, including Netflix (NFLX).

2. Create your account

Set up your brokerage account online. Provide necessary personal details like your name, address, and National Insurance number for identity verification. This process is typically straightforward and can be completed via the broker’s website or app.

3. Fund your account

Deposit funds into your brokerage account. This can usually be done through a bank transfer or by using a debit or credit card. The amount will depend on your investment plans and the broker’s minimum deposit requirements.

4. Complete a W-8BEN form

As a UK investor buying US stocks, fill out the W-8BEN form. This form reduces the withholding tax on US-sourced income, such as dividends from Netflix shares.

5. Choose a tax wrapper

Consider using a tax-efficient wrapper like an ISA or SIPP for your investment, depending on your goals and financial situation. These can offer tax savings and potentially enhance your investment returns.

6. Research Netflix shares

Before purchasing, research Netflix thoroughly. Look at its market capitalisation, earnings reports, liquidity, and recent company performance. Understanding Netflix’s position in the market and its competition is crucial.

7. Buy the shares

Purchase Netflix shares using your broker’s platform. Search for Netflix’s ticker symbol ‘NFLX’, decide on the number of shares or the investment amount, and place your order. You can choose between market orders and limit orders based on your strategy.

8. Monitor your investment

After buying the shares, actively monitor your investment. Stay updated on Netflix’s performance and market trends. Set up alerts for price changes and be prepared to adjust your investment as needed.

9. Be aware of fees & taxes

Understand the fees charged by your broker, like commission, account maintenance, and FX fees. Also, consider the tax implications, such as Capital Gains Tax, which may apply to your investment in Netflix shares.

Frequently Asked Questions About Buying Netflix Shares in the UK

Here are some answers to some of the most asked questions regarding purchasing Netflix stock in the UK.

Can I buy Netflix shares in the UK?

Yes, you can buy Netflix shares in the UK. To do so, choose a brokerage that offers access to US stocks and open a trading account. Ensure you complete a W-8BEN form, which is necessary for UK residents investing in US stocks. After setting up your account and deciding on your investment amount, you can proceed to buy Netflix shares through the chosen platform.

Should UK investors buy shares in Netflix?

UK investors considering purchasing Netflix shares should weigh several factors. Firstly, Netflix’s position as a leading streaming service provider offers potential for growth, driven by its expansive content library and global subscriber base. The company’s ongoing investment in original content and expansion into new markets signal opportunities for long-term growth.

However, investing in Netflix also involves risks. The streaming market is highly competitive, with numerous players vying for market share. This competition could impact Netflix’s future growth and profitability. Additionally, Netflix’s stock can be affected by market volatility and broader economic conditions, which could influence investment returns.

Currency exchange rates are another consideration for UK investors, as buying US-listed shares like Netflix will involve currency conversion, potentially affecting the investment’s value in GBP terms.

Is it safe to invest in Netflix?

Investing in Netflix, like any stock, carries inherent risks and uncertainties.

While Netflix is a major player in the streaming industry with a strong subscriber base, its stock can be affected by factors like market volatility, intense competition in the streaming sector, and shifts in consumer preferences.

Investors should assess their own risk tolerance and investment goals when considering Netflix. Conducting thorough research and possibly consulting with a financial advisor is advisable to understand the potential risks and rewards of investing in Netflix.

How to sell Netflix shares?

  1. Log in to your brokerage account where you hold Netflix shares.
  2. Navigate to the trading section and search for Netflix’s stock ticker, ‘NFLX’.
  3. Enter the number of shares you wish to sell and choose the type of sell order (e.g., market, limit).
  4. Review and confirm the transaction details.
  5. Execute the sale order and monitor the execution status.

Why invest in Netflix?

Investing in Netflix can be attractive for several reasons. As a leading player in the streaming industry, Netflix has a substantial global subscriber base and is known for its strong brand and extensive content library.

The company’s continuous investment in original content and expansion into new geographical markets present the potential for growth and market dominance.

However, the streaming market is highly competitive, with new players entering frequently. This competition can impact Netflix’s market share and growth rate. Additionally, changes in consumer viewing habits and technology trends can also influence Netflix’s performance.

Financially, Netflix has shown significant revenue growth, but it’s important to consider its spending on content creation and acquisition. This high expenditure is a key factor in Netflix’s business model, which focuses on long-term growth over immediate profitability.

What to consider before investing in Netflix shares?

Before investing in Netflix shares, several key factors need to be considered. Firstly, understand Netflix’s Business Model, particularly its focus on streaming services and content production. This helps in assessing the company’s potential for growth and sustainability in a competitive market.

Next, evaluate Netflix’s Financial Performance by reviewing its revenue growth, profit margins, and subscriber growth trends. While Netflix has experienced significant growth, it’s important to consider its high content acquisition and production costs.

Market Competition is another crucial factor. The streaming industry is highly competitive, with many companies vying for market share. This competition can impact Netflix’s future growth and profitability.

Currency Exchange Rates also play a role for UK investors. Since Netflix is a US-based company, fluctuations between the GBP and USD can affect investment returns. Understanding these currency risks is important for international investments.

Lastly, consider your Investment Goals and Risk Tolerance. Netflix might be suitable for those seeking growth and willing to accept higher volatility, but aligning the investment with personal financial goals is essential.

How to buy Netflix shares UK for beginners?

  1. Choose a Broker: Select a UK-based broker that offers US stock trading, including Netflix shares.
  2. Create an Account: Sign up for an account with the broker, providing necessary personal details.
  3. Verify Identity: Complete the identity verification process as required by the broker.
  4. Deposit Funds: Transfer money into your brokerage account, often possible via bank transfer or debit card.
  5. Complete W-8BEN Form: Fill out this form to declare non-US residency for tax purposes.
  6. Research Netflix: Understand Netflix’s business model, financials, and recent stock performance.
  7. Decide Investment Amount: Determine how much you want to invest based on your budget and risk tolerance.
  8. Place Order: Search for Netflix’s ticker symbol ‘NFLX’ and place a buy order for the desired number of shares.
  9. Review and Confirm: Double-check the order details and confirm the purchase.
  10. Monitor Your Investment: Regularly track the performance of your Netflix shares and stay informed about market changes.

What are the risks of investing in Netflix shares?

Investing in Netflix shares carries certain risks that potential investors should consider. Market Volatility is a primary factor, as Netflix’s stock can experience significant price fluctuations influenced by market trends, technological changes, and company-specific developments. These fluctuations can impact investment value, especially in the short term.

Competition in the Streaming Industry is another key risk. Netflix faces intense competition from a growing number of streaming services, which can affect its market share and profitability. The constantly evolving landscape of the streaming market poses challenges to maintaining a dominant position.

Operational Risks related to content production and licensing also play a role. Netflix’s heavy investment in original content is crucial for subscriber growth but also involves significant financial commitment and execution risk.

Additionally, Currency Exchange Rate fluctuations can impact UK investors, as investing in a US-based company like Netflix involves currency conversion from GBP to USD. This can affect the investment’s return in GBP terms.

Investors should weigh these risks against their investment goals and risk tolerance. Staying informed about industry trends and Netflix’s performance is crucial for making a well-informed investment decision.

Is it worth buying one share of Netflix?

Deciding whether to buy a single share of Netflix depends on various factors. The price of one Netflix share may be high for some investors, but many brokerages now offer fractional shares, enabling you to invest in a portion of a Netflix share. This option makes investing in Netflix more accessible, especially for those with limited funds.

For investors looking to diversify their portfolio or start with a small investment, buying one or a fractional share can be a practical choice. It allows participation in the potential growth of a leading streaming company without requiring a large initial outlay.

However, it’s important to consider transaction fees, as they can have a more significant impact on smaller investments. Such fees, depending on the brokerage, can proportionally reduce the overall return, especially when investing in a small number of shares.

What’s the best time to invest in Netflix stock?

Determining the best time to invest in Netflix stock involves analysing several key factors. Market Timing is crucial, and investors often consider buying during market dips or when Netflix’s stock is perceived as undervalued. However, accurately predicting the perfect market timing is challenging, and adopting a long-term investment perspective might be more beneficial.

Monitoring Netflix’s Financial Reports and industry news is essential. Significant events like earnings releases, new content launches, or strategic company announcements can impact the stock price and provide insights into potential investment opportunities.

Understanding Broader Market Trends is also important. Factors like changes in consumer entertainment preferences, streaming market competition, and overall economic conditions can influence Netflix’s stock performance. Aligning these trends with your investment goals and risk tolerance is key to making informed decisions.

What’s the minimum required investment for Netflix?

The minimum investment required to buy Netflix shares depends on the stock’s current market price and the policies of your chosen brokerage.

With the introduction of fractional shares by many brokerages, investing in Netflix has become more accessible, allowing you to purchase a part of a share for a significantly smaller amount than the full share price. This means that even with a limited budget, you can start investing in Netflix shares.

It’s also important to consider any additional fees or charges that your brokerage might apply, which can include transaction fees, account maintenance fees, or currency conversion fees, especially for UK investors dealing with US stocks.

These fees can impact the overall cost of your investment, particularly when investing smaller amounts.

Final Thoughts

Buying Netflix shares in the UK is an accessible and potentially rewarding venture for investors.

By choosing the right brokerage, understanding the steps involved in the process, and considering options like fractional shares, you can confidently invest in one of the most prominent streaming service providers.

FAQs

Does Netflix pay dividends?

No, Netflix does not pay dividends to its shareholders. The company has historically reinvested its earnings back into the business, focusing on growth and expansion, rather than distributing profits as dividends to its shareholders.

What’s the cheapest way to buy Netflix stock?

The cheapest way to buy Netflix stock is through online brokerages that offer commission-free trading. Platforms like eToro are a popular choice for this, as they allow investors to purchase Netflix shares without incurring commission fees. Furthermore, eToro supports fractional share investing, enabling investors to buy a portion of a Netflix share with a smaller amount of capital. However, it’s important to be aware of other potential fees, such as currency conversion fees, especially for UK investors trading in US stocks.

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Sources:

  1. https://www.finder.com/uk/investment-statistics ↩︎

Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”.

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