Summary: Alibaba is one of the world’s largest e-commerce and technology conglomerates, and it’s often referred to as the Amazon of Asia. The most convenient way to trade Alibaba shares for Australian investors is through a reputable brokerage like Plus 500, which offers BABA stock CFDs.
Recommended Multi-asset Broker for Online CFD Trading
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Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange
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Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more
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Low cost investing - No commissions and tight spreads.
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Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.
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Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals
About Alibaba
Alibaba Group Holding Limited (NYSE: BABA) stands as a prominent Chinese multinational conglomerate. Founded in 1999 by Jack Ma, the company is renowned for its e-commerce prowess, as it operates an array of platforms, including Alibaba.com, Taobao, and Tmall. Beyond e-commerce, Alibaba has extended its influence into diverse sectors such as cloud computing, digital entertainment, and fintech.
Alibaba holds a substantial position in the global market under the ticker symbol BABA on the New York Stock Exchange, which makes it an enticing prospect for investors seeking international opportunities.
How to buy/sell Alibaba shares in Australia: Step-by-step
Alibaba is a publicly traded company listed on the NYSE under the ticker symbol BABA. If you’re an Australian investor looking to trade BABA stock CFDs, you can follow our step-by-step guide below:
Step 1: Choose a broker
The first and most crucial step in trading Alibaba CFDs is selecting a reputable brokerage firm that aligns with your investing strategy. To do so, you should consider the following factors:
- Regulation: Ensure the broker is regulated by the Australian Securities and Investments Commission (ASIC) to protect your interests;
- Fees: Compare brokerage fees, including commission charges, spreads, and any additional fees for trading international stocks;
- User interface: Choose a broker with a user-friendly platform that suits your needs, whether you’re a beginner or an experienced investor;
- Research tools: Look for brokers that provide research tools and resources to help you make informed investment decisions.
With this in mind, our go-to brokerage for Australian investors is Plus500, a fully regulated platform that offers a myriad of useful trading features, such as:
- Free demo accounts;
- Multi-asset CFDs on more than 2,000 financial instruments, including stocks, Forex, crypto, ETFs, commodities, and more;
- Mobile trading;
- Convenient deposit options via PayPal, Visa, Mastercard, etc.;
- Free withdrawals.
Note
Recommended Multi-asset Broker for Online CFD Trading
-
Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange
-
Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more
-
Low cost investing - No commissions and tight spreads.
-
Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.
-
Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals
Step 2: Register and fund your brokerage account
Now that you’ve selected a broker, it’s time to create and fund your brokerage account:
- Registration: Visit the broker’s website and sign up for an account. You’ll need to provide personal information and identification documents, as required by regulations;
- Verification: The broker will verify your identity, which may take some time. So, be prepared to provide necessary documents, such as your passport or driver’s license;
- Fund your account: Transfer funds into your brokerage account using various payment methods, such as bank transfers or credit/debit cards. Ensure you have enough funds to cover your desired investment in Alibaba shares.
Note
Step 3: Place your order
With your brokerage account set up and funded, you can place an order to trade Alibaba stock CFDs. In case your brokerage of choice ends up being Plus500, you can do the following:
- Log into your account;
- Locate Alibaba stock CFDs by searching for it using its ticker symbol, BABA;
- Specify the number of CFDs you want to trade;
- Choose the order type, such as limit, stop-loss, etc.;
- Double-check all details to make sure everything is in order;
- Finalize your purchase by clicking on the Buy button.
Alibaba stock price today
Pros and cons of trading Alibaba
Pros
- Diversification: Investing in a global giant like Alibaba can diversify your portfolio and reduce risk;
- Growth potential: Alibaba’s presence in various industries offers growth potential in both the short and long term;
- Dividend potential: While Alibaba doesn’t currently pay dividends, its future earnings may allow for potential dividend payouts.
Cons
- Regulatory risks: Chinese companies, including Alibaba, face regulatory uncertainties that could impact their operations;
- Geopolitical risks: Trade tensions between China and other countries could affect Alibaba’s international business;
- Competition: The e-commerce and tech industry is highly competitive, and Alibaba faces competition from both domestic and international rivals.
Common mistakes to avoid when investing in Alibaba
To ensure a successful speculation, you should avoid these common mistakes:
- Not doing research: Failing to research Alibaba’s financial health, market trends, and competition can lead to poor investment decisions;
- Overlooking risk: Understand the risks associated with investing in Chinese stocks and be prepared for market volatility;
- Not diversifying: Avoid putting all your funds into a single stock, even if it’s a well-known company like Alibaba. Diversify your portfolio to spread risk.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Alibaba shares in Australia
Can Australian investors buy Alibaba shares?
Yes, Australian investors can buy Alibaba shares through a registered brokerage firm like Plus500.
Is it safe to invest in Alibaba shares?
Like all investments, investing in Alibaba shares involves risks. It’s, therefore, essential to do your research and consider your risk tolerance.
How can I stay updated on Alibaba's performance?
You can monitor your investment through your brokerage account, which should provide real-time updates on Alibaba’s stock price and performance.
Does Alibaba pay dividends?
Alibaba doesn’t pay dividends. However, this could change in the future, so it’s essential to check the company’s latest financial reports and announcements.
Recommended Multi-asset Broker for Online CFD Trading
-
Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange
-
Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more
-
Low cost investing - No commissions and tight spreads.
-
Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.
-
Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals
