Summary: DraftKings is a major player in the online sports betting market and a potentially profitable stock for gambling-oriented investors. This guide will show you how to buy DraftKings stock and explain every step of the process using a regulated online brokerage like eToro.
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About DraftKings
Founded in 2012, DraftKings has become a dominant presence in the online sports gaming and betting industry. The company allows users to create fantasy lineups in dozens of sports like football, basketball, and baseball, allowing them entry into the competition for cash prizes based on the players’ performance.
In addition, DraftKings gained a foothold in the sports betting market, capitalizing on the legalization of sports betting in several states since the 2018 ruling. Clients can use the DraftKings app with a user-friendly interface and advanced features to place bets on various sports events. The company’s detailed sports coverage has also added significantly to its popularity.
How to buy DraftKings stock: step-by-step
In April 2020, DraftKings became a publicly traded company through a reverse merger with SBTech and Diamond Eagle Acquisition Corp. Since the event, the general public can freely invest in DraftKings by buying its shares (DKNG).
You can do this in a straightforward process with these five steps:
Step 1: Choose a broker
Before you can buy and sell DKNG or any other stock, you need to enter the stock market. The easiest way to achieve this is to go through a stock brokerage.
To securely buy DraftKings stock (DKNG), we recommend the following:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
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.
Various brokerages have different strengths and weaknesses. However, a couple of factors will help you determine your choice regardless of your preferences:
- Range of offerings: Your investing service should have DKNG available, but also pay attention to the availability of other assets like different commodities, various stocks, forex, and derivative assets like options, CFDs, and futures. Having them listed already will be of use when you decide to diversify your portfolio;
- Cost: No-minimum accounts and 0% commission fees for stocks and ETFs are the norm today, so ensure you do not take anything less favorable;
- Regulation and security: Your investing platform must adhere to the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations. Confirm the presence of two-factor authentication (2FA) policy and similar security measures;
- Fractional stock trading: Platforms that enable fractional stock trading allow you to buy stocks by the dollar amount, which suits those with limited capital or traders seeking to pursue the dollar-cost averaging approach.
Step 2: Open and fund your account
After choosing a brokerage, proceed to register your account and go through the verification. You should receive an email with a few simple instructions. The next step afterward is to transfer some funds to your account to purchase DKNG stock.
Payment options usually include a bank transfer, debit or credit card, and a third-party transaction service such as PayPal (PYPL). Choose the method you feel most comfortable with.
Step 3: Decide how much you want to spend on buying DraftKings stock
Needless to say, deciding on the appropriate amount of money to invest is vital to the investing process and perhaps more complicated than it seems at first glance. In the worst-case scenario, exceeding your budget limit will affect your life dramatically.
To help you prevent this, answer these two questions:
- Will the quality of my life deteriorate if the investment process does not deliver?
- Do I have an emergency fund that covers at least three months of daily expenses and no outstanding high-interest debt?
Also, the right amount of money depends on your investing approach, risk tolerance, and preferred investment timeline.
Note
Step 4: Place your order and buy DraftKings stock
Investors have to place a trade order to buy DKNG shares, which is done in these four simple steps:
- Step 1: Log into your brokerage account and navigate towards the company’s ticker stock symbol DKNG;
- Step 2: Type in the amount of stock you want to buy;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Step 5: Monitor and manage your investment
Regular maintenance and monitoring are necessary for your stock portfolio for maximum chances of success.
Furthermore, you must frequently research the stock and the state of sports betting in the company’s business domain. Moreover, keep informed about the legal status of sports gambling, the new technologies that gain traction in the market, and the general level of sports DraftKings covers.
DKNG stock price today
Pros and cons of buying DraftKings stock (DKNG)
Pros
- Growth potential: DraftKings occupies a prominent spot in the rapidly expanding online sports betting industry, which offers significant growth opportunities as more states legalize sports betting and open new markets;
- Dominant player: The company is dominant in its industry, boasting a strong brand presence and a lion’s market share. The leading role provides sustained revenue and significant profitability;
- Diverse assets: DraftKings has branched out into various industries of the sports betting and online gaming sectors, diversifying its revenue streams and making the business less volatile;
- Technological advancements: DraftKings has made a reputation for embracing digital technologies that boost user engagement and improve user experience, giving it an edge over the competition.
Cons
- Fierce competition: The sports betting and online gaming industry is markedly competitive. Just the news that ESPN entered online betting made DraftKings stock price fall by 10%;
- Legislatory challenges: Changing regulations decisively affect the sports betting industry. DraftKings’ success depends on the continued legalization of sports betting in the U.S., with potential delays or halts severely damaging its growth prospects;
- Volatility: Emerging industries tend to be volatile, and online sports betting is no exception. DraftKings’ stock price can be subject to rapid fluctuations.
Common mistakes to avoid when buying DraftKings stock
Make sure to avoid these common investing mistakes:
- Lack of research: Research the stock in detail, along with the global market and sports betting industry, before investing anything;
- Lack of strategy: Clearly 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 how to buy DraftKings stock
How to buy DKNG stock?
You can invest in DraftKings by buying DKNG stock with a third-party investing service such as eToro.
How do you choose the right brokerage?
Choosing the right brokerage depends mainly on your investing approach, but you should generally stick with regulated platforms with a firm reputation and a wide assortment of investment assets. An example of this is eToro.
Should I invest in DKNG stock?
The answer depends on factors such as your investing habits, personal traits, and sports betting industry status. Besides the stock, consider the performance of online betting and fantasy sports, as this will determine DraftKing’s stock price.
How do I sell my DKNG stock?
Go to your online brokerage account, find DKNG, type in how much stock you want to offload, and press the ‘sell’ button.
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.
