Summary: Utilizing the newest technological advances to reinvent aspects of traditional financial services, fintech companies develop and improve how we handle the flow of money with perks such as digital payments, blockchain, and robo-advisors. This guide will present the 3 best fintech stocks and show how to buy them using a regulated brokerage like eToro.
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What are fintech stocks?
About
Fintech companies usually conduct operations and achieve their goals through various software platforms and apps. One of their greatest allures is the “democratization” of finances, which means that the average person has a much easier time doing basic financial tasks and has better access to the available fiscal features with fewer costs. Therefore, investing in the best fintech stocks can have a beneficial effect on global finances.
These companies operate in several domains, including:
- Peer-to-peer lending;
- Digital payments;
- Blockchain;
- Robo-advisors.
3 best fintech stocks to buy this month
After concluding exhaustive research, we give you our choice of the top 3 fintech stock picks for this month:
Note
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
1. PayPal (PYPL)
PayPal Holdings, Inc. (Nasdaq: PYPL) is an American multinational fintech company widely recognized as one of the leading global payment platforms. Acting as a digital alternative to traditional checks and money, PayPal is vital to many Internet vendors, auction sites, and online users worldwide.
Founded in 1998 as Confinity, PayPal went public in 2002, only to be acquired by eBay. In 2015, the parent company spun off PayPal, making it independent again. PayPal earns revenue through transaction fees and retains its massive user base through its ubiquitous presence online. It is a constituent of the Nasdaq-100 and the S&P 100 indices and, therefore, one of the best fintech stocks to buy this month.
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PYPL stock price today
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2. Block (SQ)
Block, Inc. (NYSE: SQ) is an American fintech company providing breakthrough solutions within digital payments, mobile financial services, and point-of-sale systems. Its flagship product, Square, enables smartphones and tablets as point-of-sale registers for small- and medium-sized businesses, among other fiscal possibilities. Additionally, it operates Cash App, a mobile payment service.
Founded in 2009 as Square Inc., Block maintains an operational network of nearly 4 million merchants and about 51 million users as of 2023. It constitutes the Russell 1000 index component.
Note
SQ stock price today
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3. Adyen (ADYEN)
Adyen N.V. (Euronext Amsterdam: ADYEN) is a Dutch multinational fintech company that provides innovative solutions and seamless payment experience for businesses. The company’s platform offers electronic payments like credit cards, debit cards, wire transfers, and bank transfers.
Adyen’s platform serves as a payment gateway and payment service provider, allowing customers a one-stop financial solution that can be particularly attractive in contrast to the traditional financial sector. As one of the best fintech stocks to buy this month, ADYEN is a frequently traded AEX index component.
Note
ADYEN stock price today
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Where to buy fintech stocks
The general public is free to invest in fintech stocks with an online investing platform, and our preferred choice for this is eToro. Enjoying widespread popularity with over 30 million registered accounts, it stands out for its robust features, including:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- Charting tools;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Pros and cons of buying fintech stocks
Pros
- Improved financial access: Fintech can provide increased access to financial services, especially in underserved or unbanked areas. Mobile banking, digital wallets, and other fintech solutions can provide financial inclusion to a broader spectrum of population;
- Innovation and disruption: Fintech companies deliver innovative solutions and disrupt traditional financial services. This reshuffle in the market can create new opportunities and improve efficiency within the industry;
- Efficiency: Fintech companies utilize advanced technology and software to streamline processes, minimizing costs and boosting efficiency, which improves financial outcomes for both businesses and consumers;
- Data-driven operations: Fintech companies rely on data analytics and AI to make more informed and data-driven decisions. This level of available information can lead to better risk management and improved customer experiences;
- Global reach: The best fintech companies operate globally, allowing investors into their stocks to diversify their portfolios across different markets.
Cons
- Competition and market density: The fintech domain is getting increasingly competitive, with numerous startups and established names entering the market. This rising density can lead to market saturation and make it challenging for new entrants to gain a presence;
- Regulatory challenges: Fintech operates in a tightly regulated industry, and regulation changes can significantly impact these companies. Maintaining stability in the midst of evolving regulatory challenges can be difficult;
- Cybersecurity: As fintech depends on digital platforms and the internet, there is an increased risk of cyber threats. Security breaches can compromise sensitive financial information, leading to reputational damage and economic losses;
- Technology dependency: Fintech companies run on technology, and any disruptions, such as system failures or cyberattacks, can severely affect their operations;
- Market volatility: Fintech can suffer from rapid changes and fluctuations. Economic downturns or shifts in investor sentiment reduce the valuation of fintech companies.
If you are interested in additional investing in the fintech sector, consider checking out our other fintech-related guides:
- How to buy SoFi Technologies stock;
- How to buy LendingClub stock;
- How to buy Robinhood stock;
- How to buy Affirm Holdings stock;
- How to buy Payoneer Global stock;
- How to buy Wise stock;
- How to buy Global Payments stock;
- How to buy Stripe stock.
Common mistakes to avoid when investing
Make sure to avoid these common investing mistakes:
- Lack of research: Research the best fintech stocks in detail, along with the market state of the finance and technology industries, before investing;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about fintech stocks
What are fintech stocks?
Fintech stocksrepresent shares in companies that apply cutting-edge technology to traditional financial services to make processing funds more efficient, streamlined, and profitable.
Is it safe to invest in fintech stocks?
Buying individual stocks always carries a degree of risk, and fintech stocks are not exempt from this rule. Perform your own research and follow the guidelines provided in this article before you spend any money.
How to invest in fintech stocks?
Investing in fintech stocks is straightforward; you must register an account with a regulated online brokerage like eToro, transfer some funds, and buy the shares.
What are the best fintech stocks to buy this month?
Some top fintech stocks to invest in this month include PayPal, Block, and Adyen.
