Physical stock trading offers a great opportunity to make profits from the equity market. This article would explore the possibility of trading physical stocks in a forex broker.
Gone are the days when buying physical stock was a complex and lengthy process, exclusive only to people that held connections with the financial markets. In the past, investors had to meet face-to-face in order to buy stocks and get certificates in exchange for money. Today, you can make money from the stock market without having to leave the comfort of your home or anywhere else you prefer.
To provide the best trading environment with plenty of opportunities for all clients, HF Markets has added access to new products available for investment. This includes a list of physical stocks such as Metaplatforms Inc., Tesla Motors, Amazon, Microsoft Corp, and many more. Here's everything you need to know about it.
Contents
Understanding Physical Stocks
Physical stocks refer to the shares of companies traded in regulated exchanges. Before online trading existed, companies used to hold out stock certificates to stock owners to certify their ownership percentage. The piece of paper used to be the only legitimate way to prove that you own shares in a company. However, stock certificates were a thing of the past, as electronic transactions have replaced the importance of paper certificates.
Today, stock owners do not need a paper certificate to prove their ownership. Even more, modern technology has made physical stocks possible to be provided by a broker for trading purposes via the broker's platform. They can easily buy stocks and get digital proof thanks to electronic records and Electronic Communication Networks (ECN). All you have to do is sign up to an online brokerage firm, create an account, and make a purchase. Just make sure that the broker provides physical stocks and accepts clients from your country of residence.
HF Markets Physical Stocks
HF Markets is a reliable global broker that has been around since 2010. Generally speaking, the broker is highly secure and trustworthy, considering that it is fully regulated in several countries, including Cyprus the UAE, the UK, Seychelles, South Africa, and more. HF Markets also offers a bunch of trading instruments, including physical stocks.
At HF Markets, physical stocks are available on MetaTrader 5 trading platform. Clients can easily get direct access to trade a wide range of physical stocks through a financial intermediary and enjoy the benefits in the long term. However, keep in mind that physical stocks are only available on USD-based accounts and individual accounts. Joint or corporate accounts are not allowed to trade physical stocks with the company.
Also, physical stocks are non-physical products that clients can only buy (no short-selling orders available). Here are the order types for physical stocks that you can place on the platform:
- Buy market order
- Buy stop order with expiration Good Till Cancel (GTC)
If you place an order and the monetary amount is not enough to buy one or more physical stocks, then you are allowed to buy a fraction of the stock. Some of the share prices start at only $5, so it is undoubtedly suitable for all types of traders out there. Aside from that, the fee structure is very affordable compared to other brokers.
There are no commissions and swaps, but you'll need to pay variable spreads depending on the market condition. The broker will also charge an inactivity fee of $10 per month following 90 days of no trading activity on the trading account and a data fee of $5 per month after 30 days of no trading activity. It is worth noting that no trading activity means that there are no rollover positions and no positions have been opened in the above-mentioned specific period.
The Benefits of Trading Physical Stocks on HF Markets
There are a number of advantages that you can get from trading physical stocks on HF Markets, such as:
- Get immediate access to real-time prices of stocks of the world's largest exchanges and invest in reputable companies. The dividend will automatically be transferred straight to your HF Markets account.
- More than 2000 physical stocks to invest via the famous MetaTrader 5 trading platform.
- Purchase a share starting from $5. You can decide to invest any amount and buy shares or fractions of a stock according to the amount in dollars that you decide to invest.
- Enjoy trading in a sophisticated environment with no additional commissions and swaps.
Apart from that, here is the detail of HF Markets trading conditions when it comes to physical stocks:
| 💲Minimum Investment | $5 |
| 💠Own the Underlying Asset | ✅ |
| ♻️Negative Balance Protection | ❌ |
| 👛Receive Dividends | ✅ |
| 💻Trading Platform | MetaTrader 5 (MT5) |
| 💱Swap Charges | ❌ |
| 💸Commission | ❌ |
| 🕓Available to Trade | Stock Market Hours |
| 💵Account Currencies | USD |
| 🔽Fractional Shares Available | ✅ |
In a Nutshell
Physical stock trading is a great opportunity to diversify your portfolio and make profits in the long term. To make a good investment in physical stock, the first aspect to consider is the cost involved. Choosing a broker that offers the lowest fees would be the best way to optimize your returns. Apart from that, it is also highly recommended to choose a broker with a good customer support team to help you solve any issue when trading.
HF Markets is a global Forex and Commodities broker that facilitates both retail and institutional clients. Previously known as HotForex in the brokerage industry, HFM has positioned itself as the forex broker of choice for traders worldwide through their various account types and trading tools. Furthermore, HF Markets allow scalpers and traders use Expert Advisors unrestricted.
19 Comments
Jan 18 2023
Is the physical stock designated by HF Market a share CFD or a common stock? I mean investing in shares, we can get shares and at least we have some ownership depending on the shares we paid. And we can be divided every year.
On the other hand, CFD means we don't get any ownership or shares, but in return we can trade and get benefit when stock price drops or high.
So I'm confused, what does HF Market physical stock mean. Because stocks are available at forex brokers, not only stocks but all of their products are CFD based
Jan 18 2023
Pangeran: Don't be confused, dude. The HF market actually offers stocks to invest in and thus physical stocks are not CFDs. So, you can get assets and dividends!
If you read carefully, there is a sentence in the article that can tell if the stock market is really for HF market products:
Meanwhile in CFD, you wont get any of this, and as you said, you can do the long and short option without any ownership or digital proof. In other word, you can get the profit either the price drop or high
Jan 18 2023
Gabriel Sebastian : I am also confused when I read this article. I even open the broker's review on this website to make sure that share is available to invest in HF Market. I am really Suprise that broker Forex offers share as their product. It's just like WOW, I don't need to sign up at share market or other application, just do it in HF Market which can trade many instruments and share as well.
But, for the conditions that I can join trading share in HF Market, is there any conditions or just open the account to do the share's trading? Thank you! Hopefully the conditions are not burden to me.
Jan 18 2023
Anthony Dion Lay : There are no conditions to trade shares on the HF market. Just open a personal account like: cents, micro, premium, zero spread etc. But for Europe trader, or account with other than US Dollar such as Euro and Poundsterling can't trade share in HF Market. So you need to have a USD account to be able to trade shares on the HF market.
Actually, I'm not really interested in sharing. Honestly, stock profits are limited because you have to wait until the price is higher than the price you are buying. Stock CFDs, on the other hand, you can trade freely with both long and short positions. You don't need to wait for the price to rise, so trading is flexible. you can read the details and benefits of CFD in here : is stock CFD a Good Investment?
Jan 18 2023
The HF market share can be proof that this broker has a wide range of trading instruments available for trading. So not just Forex, Commodities or CFDs. It also proof HF MArket as reliable brokers too, no doubt of that because it can access the share market. But I hope that in the future, HF Market can add cryptocurrency trading as a trading tool. So I don't need to change brokers if I want to trade crypto. Yes, I hope it can be released so that HF Market is more advanced than other brokers in wide range of trading instruments
Jan 21 2023
After reading the article, I realized that when trading stocks on the HF market, you have to pay a spread. but why? I think forex and stocks are very different tools. Forex, on the other hand, is a commodity trading based CFD where no assets are actually exchanged, and brokers charge spread, right? And spread is the difference between ask/bid value if I called it right. Meanwhile stocks are another case. There is no two ways trading, only can be done with long position. And you get A proof of ownership can be obtained from the company in which the shares were purchased. So why do brokers still charge spreads?
Jan 21 2023
Basically, brokers charge a commission when you buy stocks. why? Because they deliver your orders to the stock market, and you pay them a commission for their feedback. The spreads charged by brokers are similar to commissions. Remember, when you buy US stocks, you don't need to go to New York, right? Or when you buy some Shanghai Stocks, you don't need to go to China, right? You just click order stock at home and brokers will do the rest.
Also, stocks aren't a very liquid market, so you can't trade them back and forth. Therefore, most stock traders use swing trading and position trading methods. He also called himself an investor rather than a trader. On the other hand, scalping and one-day trading can be done on exchanges, but there is a limit to making a profit unless you buy low and sell high. So, instead of spreads, I called them "spreads", which the broker charges as a commission.
Jan 21 2023
Aaron Brown: Thank you for your explanation, dude. Like you said about stocks, you said the stocks in the market are not very liquid, why is that happening? I heard that forex is more flexible and profitable than the stock market. Also, the stock market can be more speculative than forex. Is it right? and Why stocks market can do the 2 ways trading? that is always confusing me after all.
Jan 21 2023
Michael:
Stocks Market can do the 2 ways trading? Nope, it is imposibble.
First, FX is the forex that the pair has. Example: If you were trading EUR/USD and placed a long/buy position, you would have used USD to convert to EUR. Therefore, when EUR/USD rises, the euro strengthens against the US dollar, and you can profit by selling the euro back to the dollar. Ordering a Sell/Short position can do the opposite. It also applies to other his CFD trades where there is a buyer and a seller. For this reason, forex is a highly liquid market. Learn more about Forex here. Getting know about Forex
In the meantime, the stock market offers only one-way trading. Here's a simple example:
Your friend owns a company and has been asked to buy their stock in order for you to become the owner of the company. As a matter of course, if the value of the company increases, the investment ratio will increase, and if the company value decreases, the investment ratio will decrease. Also, the company has a major owner-to-principal owner relationship, so the stock has limited hands.
After you buy their stock, the company pays you a dividend each year based on the percentage of stock you own. Then he saw that the price of the stock was going up, so he decided to sell the stock and made a profit. Stocks are like physical assets, like buying something and selling it at a higher price to make a profit.
Speculative or not, both markets have speculan but more risky is Forex because the market is very liquid.
Jan 21 2023
Dude, forex is more profitable because not only can forex be bought and sold to make a profit, but time market forex works.The forex market is open for 5 business days, Monday through Friday, and sometimes is open 24 hours a day from Sunday night to Friday night.
The stock market, on the other hand, is only available during working hours. So, while you can't trade stocks while at work, you can trade at any time with forex trading.
Mar 25 2023
How does the process of trading physical stocks through HF Markets compare to trading stocks through other brokers or exchanges, and what are the advantages and disadvantages of using HF Markets' platform for stock trading? Specifically, how does HF Markets' stock trading offering differ from other online stock trading platforms, and what are the key features and tools that HF Markets offers to traders? Additionally, what are the fees and commissions associated with trading physical stocks through HF Markets, and how do these compare to fees charged by other stock trading platforms or brokers?
Mar 25 2023
What are the key factors that traders should consider when ing individual physical stocks to trade through HF Markets, and how can traders use fundamental and technical analysis tools to evaluate potential stock investments? Specifically, how do macroeconomic factors, such as interest rates and inflation, impact the performance of individual stocks and stock markets as a whole, and how can traders use this information to make informed trading decisions? Additionally, what are some common technical analysis tools and strategies that traders can use to identify trends and patterns in stock price movements, and how can these tools be integrated into HF Markets' trading platform to facilitate more effective stock trading?
Jun 29 2023
@Likon Chy: Hey there! In my opinion, you need to get these steps.
Remember, comprehensive research, risk management, and continuous monitoring are essential for successful stock trading.
Apr 26 2023
I hv a lot of questions in my head. I recently trade forex for several months, n the result is quite ok. Not too impressive, but I'm happy cause I can get additional income. So I considered to adding stocks to my portfolio. Then I found this article. What is the process for trading in physical stock with HF markets? I need a more detail info including any requirements, docss and fees per transaction. Plus... how does it differ from trading in stocks electronically? Is it wise to adding stocks to my trading activity? Or should I just stick to forex trading? Please drp ur opinion gz~
Jun 28 2023
@Marion: In simpel terms, trading physical stocks with HF Markets requires opening an account and submitting documents for verification. You'll buy actual shares of a company, becoming a shareholder with entitlements like dividends. There may be fees involved, such as commissions and stamp duty charges. Electronic stock trading, on the other hand, involves speculating on price movements without owning shares. It offers flexibility, margin trading, and wider access to stocks. Whether to add stocks depends on your risk tolerance and investment goals. Stocks provide diversification but carry risks. Do thorough research, stay updated, and consider company fundamentals. Consult a financial advisor or do more research for informed decisions. Good luck with your trading journey!
Nov 21 2023
Hey there! I'm a bit tangled up trying to understand how stocks work with this broker, HF Markets. So, just to clarify, HF Markets is a broker, right? Normally, brokers don't get into the nitty-gritty of physically trading stocks where you actually own a piece of the company.
I'm curious about the differences between trading physical stocks and the ones brokers like HF Markets offer, which I guess are more like CFD stocks. What's the lowdown on the pros and cons of each? Also, does HF Markets let you trade actual stocks where you own a slice of the company, or is it more like the CFD scene? And one more thing, just to be clear, HF Markets does offer physical stock trading, right? I'd love to get the full scoop on what they've got going on.
Nov 23 2023
Hey there! HF Markets, also known as HotForex, primarily operates as a forex and CFD broker, traditionally excluding the trading of physical stocks that would grant ownership in a company. However, recent information in the article suggests that HF Markets now provides access to both CFD and physical stock trading. So, it will become plus point to open live account in HF Market.
Now talk about the different product stocks in there, the distinction between these types of stocks centers around ownership, where physical stocks offer advantages like voting rights and dividends, while CFD stocks involve speculative trading without actual ownership. CFDs often come with higher leverage and the potential for profit from falling prices through short selling. The decision between the two depends on individual preferences and goals, with physical stocks being more suitable for long-term investors seeking ownership benefits, while CFD stocks offer faster profits but come with higher risks for those inclined towards active trading.
Feb 18 2024
As per the article detailing the guide to trading stocks on HF Market, it mentions the available order types for physical stocks on the platform: the Buy market order and the Buy stop order with Good Till Cancel (GTC) expiration.
I'm interested in understanding what exactly the Buy stop order with GTC entails and how it distinguishes itself from other buy stop market orders. Moreover, I'm curious to know if it's beginner-friendly. Additionally, if I'm planning to engage in long-term stock trading, what would be the recommended buy stop order for me?
Feb 21 2024
Hey there! The Buy stop order with Good Till Cancel (GTC) expiration, as described in the article on trading stocks on HF Market, provides traders with the option to enter a buy order at a specified price above the current market price. Unlike a Buy market order, which executes immediately at the prevailing market price, the Buy stop order with GTC remains active until it is either executed or canceled by the trader. This order type is particularly useful for traders who anticipate a price breakout above a certain level before entering a position.
In terms of beginner-friendliness, the Buy stop order with GTC may require a bit more understanding and caution compared to a simple Buy market order. Beginners should ensure they grasp the concept of stop orders and how they differ from market orders before utilizing this order type.
For traders engaging in long-term stock trading, the recommended buy stop order would depend on their specific strategy and risk tolerance. Generally, a Buy stop order with GTC could be suitable for long-term traders looking to enter positions at predefined levels, especially if they expect a significant price movement in the stock.