On December 9, Airbnb has finally completed its Initial Public Offering (IPO) and has become a publicly listed company. The most famous property online marketplace offered its shares at a price of $68 per share and opened the trading at $146 on the Nasdaq stock exchange. Meanwhile, the Airbnb stock fell to $130 per share, and some analysts even suggested that the stock jumped too high after its debut. But, this is why you do not listen to “analysts – Airbnb share continued its upward trend and is currently trading at $157 per share as of late December.
Nonetheless, Airbnb shares are going to be among the most popular and well-covered stocks in the market much like Netflix, Tesla, Amazon, and Apple. So, let’s find out what are the ways in which investors can buy Airbnb shares.
How to trade Airbnb stock
Well, trading Airbnb shares works the same as trading any other US-listed stock. Generally, there are two methods to trade its shares – directly via the exchange or via derivatives (i.e, CFDs). Obviously, the most recommended and reliable method is via a brokerage firm that connects you to the exchange. Though you might have to pay fixed trading fees, you’ll also get access to the level 2 order book, fast order execution, rebates, and dividend payments (if Airbnb will pay dividends in the future).
Some of the cheapest and most popular brokerage firms that offer US shares include:
- Ally Invest
- TD Ameritrade
- TradeStation (Best for day trading)
Trade Airbnb options
Another reason to choose one of the brokers above is that you’ll get access to Airbnb stock options. To do that, you’ll have to find one of the most recommended options trading platforms in the US – ETRade (for beginners), Interactive Brokers, or Trade Station (for professionals).
Trade Airbnb via CFDs
Another way to trade US stocks is via Contract for Difference, also known as CFDs. These are essentially a derivative market that allows two participants (usually the client vs the broker) to bet on the price of the asset without actually owning and delivering the asset.
There are pros and cons to trading CFDs, though the most crucial factor to take into account is that CFDs are very risky compared to regular trading via the exchange. Moreover, CFD trading is not permitted in the USA and in other countries worldwide so you’ll have to visit the brokers’ sites to see if you are allowed to open an account in your country.
The major advantage of CFD platforms is that they allow users to trade with high leverage and the registration process is not that complicated, especially comparing to the suggested brokerage firms above.
All things considered, if you are short on money and still keen to find a well-known CFD broker, these are probably the best you can find in the market:
- AvaTrade (Best for day trading)
- FP Markets
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