How to Buy Ikea Stock [2024]

Summary: If you’re asking yourself how to buy Ikea stock, you can stop right now. Ikea is a private company, meaning that you can’t invest in it directly. Nevertheless, you can still gain exposure to the same industry by investing in its alternatives. A convenient way to do so is through a reputable brokerage platform such as eToro.

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About Ikea

Ikea is a household name for those seeking affordable, stylish furniture and home goods. Founded in 1943 by Ingvar Kamprad in Sweden, the company has grown into one of the world’s largest furniture retailers, with stores in over 50 countries. Known for its flat-pack furniture and minimalist designs, Ikea has a loyal customer base nowadays and a strong brand presence across the globe.

Who owns Ikea?

Despite its widespread popularity, Ikea remains a private company, owned by a foundation, the Inter Ikea Foundation. This ownership structure is unique and serves the express purpose of protecting Ikea’s independence and long-term vision. As a private company, Ikea does not offer shares on public stock exchanges like many other corporations.

How to buy Ikea stock: Step-by-step

While Ikea stock is not available for purchase on public exchanges, you can still invest in the furniture industry. Here’s a step-by-step guide on how to do so:

Step 1: Research alternatives

If you’re interested in investing in furniture stocks but can’t buy Ikea shares directly, consider researching other companies in the same industry. Look for competitors or suppliers that may offer publicly traded stocks. Some solid examples include:

• Wayfair Inc. (NYSE: W): Wayfair Inc. is an American e-commerce company that specializes in home goods and furniture. Founded in 2002, Wayfair offers a vast selection of products, competitive pricing, and convenient online shopping experiences to customers worldwide;

• Williams-Sonoma, Inc. (NYSE: WSM): Williams-Sonoma, Inc. is a leading specialty retailer of high-quality home products, including cookware, furniture, and home accessories. Established in 1956, Williams-Sonoma operates multiple brands, each catering to different segments of the home goods market, and maintains a strong reputation for craftsmanship and customer service.

Step 2: Choose the right broker

To invest in publicly traded furniture stocks, you’ll need to open an account with a brokerage firm. When choosing a broker, consider factors such as trading fees, account minimums, research tools, and customer service. Our chosen broker is eToro, a widely popular platform that offers numerous solid features, such as:

• Commission-free stock trading;
• Access to over 2,000 stocks from 17 different exchanges;
• The option to purchase fractional shares;
• Charting tools;
• A user-friendly platform that simplifies the trading experience.

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.

30+ million Users

Get Started

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Step 3: Fund your account

Once you’ve selected a broker, you’ll need to fund your brokerage account. Most brokers offer various funding options, including bank transfers, wire transfers, and electronic transfers from other brokerage accounts. You should, therefore, simply follow your broker’s instructions to deposit funds into your account.

Step 4: Place your order

After funding your account, you can place an order to buy shares of the furniture stocks you’ve selected. Use your broker’s trading platform to search for the stock symbol of the company you want to invest in, enter the number of shares you wish to purchase, and specify the type of order (e.g., market order or limit order). Finally, simply review your order details and submit the trade.

Pros and cons of buying Ikea stock

Pros

• Exposure to a growing industry: The furniture industry is expected to continue growing as consumer spending on home furnishings increases;
• Diversification: Adding furniture stocks to your investment portfolio can diversify your holdings and reduce risk;
• Potential for capital appreciation: If furniture companies perform well, their stock prices may rise, leading to capital gains for investors.

Cons

• Economic downturns: Furniture sales are sensitive to changes in the economy, and a recession could negatively impact consumer spending on home furnishings;
• Competition: The furniture industry is highly competitive, with numerous companies vying for market share. Intense competition could affect profitability and stock performance;
• Supply chain disruptions: Furniture manufacturers rely on complex supply chains, and disruptions such as raw material shortages or transportation delays could impact production and sales.

What to avoid when buying stocks

When buying stocks, it’s essential to avoid common investing mistakes that could undermine your investment returns. That said, some common pitfalls to watch out for include:

• Emotional investing: Making investment decisions based on emotions rather than logic can lead to poor outcomes. Avoid reacting impulsively to market fluctuations and stick to your long-term investment strategy;

• Lack of diversification: Concentrating your investments in a single stock or sector exposes you to higher risk. Diversify your portfolio across different asset classes and industries to mitigate risk;

• Ignoring fundamentals: Focusing solely on short-term price movements without considering a company’s fundamentals can be detrimental. Pay attention to factors such as earnings growth, revenue trends, and competitive positioning when evaluating stocks;

• Overtrading: Excessive buying and selling of stocks can result in high trading fees and taxes, eroding your investment returns over time. Adopt a disciplined approach to investing and avoid frequent trading unless necessary.

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 Ikea stock

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.

30+ million Users

Get Started

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.