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.

Trading Physical Stocks in Forex Brokers

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.

 

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.