Summary: One of the most convenient ways to trade Netflix shares in Australia is with a reputable and regulated trading platform like Plus500, which allows investors to speculate on the price movements of stocks, including Netflix, using Contracts for Difference (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
What is Netflix?
Netflix is a publicly traded company. Its stock is listed on the NASDAQ under the stock ticker NFLX.
How to trade Netflix shares in Australia: A Step-by-step guide
Let’s explore the three-step process for trading Netflix shares in Australia:
Step 1: Create a trading account
The first step in trading Netflix shares in Australia involves opening an account with a reputable trading platform. Our preferred platform for trading Netflix shares in Australia is Plus500, a well-established and reputable platform licensed by the Australian Securities & Investments Commission (ASIC). On Plus500, you can trade Contracts for Differences (CFDs), derivative instruments that allow you to speculate on the price movements of an underlying asset without owning the asset itself.
Notable features of Plus500 include:
- Free demo accounts;
- Fast and reliable order execution;
- No commissions and tight spreads;
- 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.;
- Fast and secure withdrawals;
- Leverage of up to 1:30;
- Real-time quotes;
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
Here’s a brief overview of how to set up an account to start trading Netflix shares in Australia:
- Research and choose a platform: Begin by researching and selecting a trusted platform that provides access to the stock market. Consider factors such as fees, trading tools, customer support, and the platform’s user-friendliness. Ensure that the chosen brokerage is regulated and authorized to facilitate stock trading;
- Sign-up: Visit the platform’s website and initiate the account registration process. You’ll be required to provide personal information, including your name, contact details, and often your financial background. It’s essential to accurately fill out the required fields;
- Identity verification: Most reputable brokerages adhere to Know Your Customer (KYC) and anti-money laundering (AML) regulations. As part of the verification process, you may need to submit identification documents, such as a passport or driver’s license, and sometimes proof of address, like a utility bill;
- Account security: Enhance the security of your trading account by enabling two-factor authentication (2FA) or any additional security features offered by the brokerage. This helps protect your account from unauthorized access;
- Deposit funds: Once your account is successfully registered and verified, you’ll need to fund it. Brokerages typically offer various deposit methods, including bank transfers, credit/debit cards, and online payment platforms. Choose the deposit option that suits your preferences and transfer the desired amount of money to your trading account;
- Platform familiarization: Take some time to get acquainted with the trading platform. Explore its features, study stock market data, and understand how to execute orders.
Step 2: Trade NFLX
Once your trading account is set up and funded, you’re ready to trade. Here’s how to proceed:
- Look for Netflix: Within the trading platform, search for Netflix by its stock symbol, NFLX. Locate the CFD option among the available choices for trading;
- Determine your position: Decide whether you want to go long (buy) if you anticipate Netflix’s stock price will rise or go short (sell) if you expect it to fall. Make this choice based on your market analysis and trading strategy;
- Choose your position size: Determine the number of Netflix shares you want to trade. The size of your position should align with your risk tolerance and the amount of capital you’re willing to commit to the trade. Be mindful of the available capital in your trading account;
- Set leverage: Consider your desired leverage, which allows you to amplify your exposure to Netflix stock. Leverage can increase both potential gains and losses, so use it cautiously;
- Set risk management parameters: Implement risk management measures, such as setting stop-loss and take-profit orders. These orders automatically close your position when Netflix’s stock price reaches specific levels, helping manage potential losses and secure profits;
- Execute your trade: Once you’ve defined your CFD position size, chosen leverage, and set risk management parameters, execute your Netflix CFD trade. Confirm the trade on the brokerage platform; the order will be processed in real-time.
Step 3: Monitor your position
Once your Netflix CFD position is open, closely monitor the stock market’s price movements and your trade’s performance. Here’s what to do:
- Keep a close eye on Netflix’s stock price and market developments;
- Be prepared to adjust your trading strategy based on changing market conditions;
- When you achieve your trading goals or decide to exit the trade, close your Netflix CFD position. Your profit or loss is determined by the price difference between when you opened and closed the position.
Additional fees
When engaging in CFD trading, it’s important to be aware of specific fees that may apply to your trades. These include:
- Overnight funding: Applied when you hold a position beyond a specific time;
- Currency conversion fee: Charged for trades in a currency different from your account’s currency;
- Guaranteed stop order: A unique risk management tool that ensures your position closes at a specific rate, but it may result in a wider spread;
- Inactivity fee: Some brokers may impose an inactivity fee if your trading account remains unused for an extended period.
Netflix stock price today
Pros and cons of trading Netflix CFDs
Pros
- Leverage: CFDs offer leverage, allowing traders to control larger positions with less capital, potentially amplifying profits;
- Diversification: Trading Netflix CFDs enables diversification within your portfolio, as you can speculate on Netflix’s price movements without owning the underlying asset;
- Short selling: CFDs allow traders to profit from falling prices by going short, which can be valuable in bearish market conditions;
- Hedging: Investors can use Netflix CFDs to hedge against potential losses in their portfolio, providing a risk management tool.
Cons
- Leverage Risk: While leverage can amplify gains, it also magnifies losses, potentially resulting in losses exceeding the initial investment;
- Complexity: CFDs can be complex financial instruments, and understanding their mechanics and risks requires a learning curve:
- Fees: CFD trading platforms may charge various fees, including spreads, overnight financing costs, and commissions, which can impact profitability;
- Short-term focus: CFD trading often involves short-term speculation, making it less suitable for long-term investors.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQ about how to trade Netflix in Australia
Can I trade Netflix shares in Australia?
Yes, you can trade Netflix shares in Australia through regulated platforms offering CFD trading services.
How do I trade Netflix CFDs in Australia?
To trade Netflix CFDs, you need to open an account with a CFD broker or trading platform like Plus500. Once your account is set up and funded, you can choose whether to go long (buy) or short (sell) on Netflix. If the market moves in your favor, you profit; if it moves against you, you incur a loss.
Do I need to own physical Netflix shares to trade them?
No, you do not need to own physical Netflix shares to trade them. CFDs allow you to speculate on Netflix’s stock price movements without owning the actual shares.
What fees should I consider when trading Netflix stock CFDs?
When trading Netflix CFDs, consider fees charged by the platform, including spreads, overnight and inactivity fees, and potential commissions.
Where to trade Netflix shares in Australia?
You can access CFD trading via trading platforms like Plus500.
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
