Buy Ant Financial Shares: Discover How in This Guide
Published: October 10, 2020 by Valentina
Perhaps the name Alipay is more familiar to you; in any case, this company was born as a payment system of the Chinese giant Alibaba and is now about to go public. Buying Ant Financial shares can become one of the best trading opportunities in the coming months. Let’s find out why in this guide.
OnlineTradingCourse is the leading site in evaluating upcoming IPOs. In order to prepare for this event, we have studied the company’s finances, its recent returns and the future potential of the stock.
Ultimately, to buy Ant Financial shares, we must follow these steps:
- Choose a broker
- Start with the Demo account without risks
- When you have enough experience, you can move on to investing for real
The first step concerns the choice of the Broker and we start from here. To buy Ant Financial shares, you will need a CFD Broker like eToro, which allows you to trade safely and without paying commissions. Here are the main brokers suitable for investing in Ant Financial shares:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Ant Financial: What is it?
Ant Financial, also known as Alipay and currently renamed Ant Group, is a company that is part of the holding company of the Chinese giant Alibaba.
It is a gigantic startup, a famous unicorn valued at over 150 billion dollars.
In 2015, shortly after the change of name from Alipay to Ant Financial, this Chinese financial company started raising financing from the major Chinese merchant banks. After these loans, the company’s value has been estimated at $ 45 billion.
Subsequently, the Chinese company began acquiring several companies in the sector to develop its network. Among the most important, we mention the purchase of MoneyGram for 880 million dollars.
It is estimated that 58% of online payment transactions in China go through Alipay, which in 2019 revealed a net profit of 2.6 billion dollars.
Ant Financial IPO
In August 2020, Ant Group, formerly known as Ant Financial, filed documents to publicize a double listing on the Shanghai and Hong Kong stock exchanges.
The offering could far exceed the $ 29 billion raised by Saudi Aramco’s initial public offering, which was listed last year on the local stock exchange, Tadawul. If Ant Financial continues at this pace, it will become the largest IPO in history.
The company is aiming for a public valuation of $ 225 billion, but let’s find out how it got so valuable.
Ant Financial: Business Model
Alipay was launched in 2004 and the legendary CEO of Alibaba created a separate payments division for his colossal ecommerce ten years later and called it: Zhejiang Ant Small & Micro Financial Services Group, later just Ant Financial Services Group.
This separation was used precisely to make this branch of the company independent, which means that it could grow and develop even completely detached from Alibaba and its marketplace.
Ant Financial’s main product is Alipay, the most popular digital payment app in China, that has captured over 50% of the country’s mobile payments.
The business model is based on a very solid and continuously expanding platform which, in addition to providing a digital payment network, offers companies and ecommerce a leading platform in the sector.
Last year, Ant Financial reached 1.2 billion users, almost exclusively in Asia, although the financial company is signing numerous agreements to expand its market to other countries.
How to buy Ant Financial shares
To buy Ant Financial or Ant Group shares, as it will probably be called for the IPO, you have to wait for the stock exchange listing, which will take place in short.
Subsequently, the simplest way to invest in markets so “distant” from us – remember that the listing will take place in Shanghai and Hong Kong – is to use CFD brokers, that allow you to trade any security in total safety.
CFDs (contracts for difference) are regulated contracts that offer two main advantages:
- The ability to invest both up and down (short selling)
- They don’t charge commissions
On CFD trading platforms, we operate in this way:
- To buy Ant Financial shares, you need to buy the corresponding CFD and you will earn money if the stock prices go up.
- To invest on falling Ant Financial stock prices, you need to sell the corresponding CFD and you will earn if the prices go down.
Once the desired profit has been reached (up or down), just close the operation and all the profit will be net, without adding commissions.
Obviously, to make these operations, you must first wait for the listing on the stock exchange, but in the meantime, you can choose the platform you want to use.
Buy Ant Financial shares with the best platforms
These trading platforms are the softwares that are offered to investors by CFD brokers. To choose the best platforms, we must make some evaluations and verify that the brokers have these indispensable requirements:
- They must be safe. This depends on the licenses and authorizations held by these intermediaries, which are issued by entities such as FCA or CySEC.
- They need to offer great services and possibly even training and investment support.
We have evaluated the main operators in the sector and our best choices to buy Ant Financial shares fell on the platforms made available by these CFD brokers: eToro, ForexTB and IQ Option.
eToro: Intuitive platform to buy Ant Financial shares
eToro represents the most famous online broker in the world, its diffusion has reached and exceeded 7 million active users, far ahead of every competitor.
Its trading platform is intuitive, clear, and very fast, but despite its apparent simplicity, it is a very precise software rich in technical analysis indicators.
To buy Ant Financial shares (or sell them), following the IPO, you will need to click on “Invest”, decide whether to buy or sell the stock, and decide how much to invest in the single operation.
The security of eToro is guaranteed by the FCA license for the UK, but the broker has also a considerable number of authorizations valid throughout Europe.
The feature that has made eToro so popular is an automated and patented trading tool. It’s called Copy Trading and it allows you to copy the operations performed by the best traders in the world (on eToro) automatically and for free.
Copy Trading works like this:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders:
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading Signals to buy Ant Financial shares
ForexTB has always tried to differentiate itself from its competitors. In fact, it has achieved considerable success thanks to the training and operational support it offers for free.
In terms of training, this broker has created a trading course in ebook format. The course is considered among the best on the market and allows you to learn the basics of online trading without excessive complications. The course is free and can be downloaded with the link below:
The operational support for which ForexTB has become popular is the Free Trading Signals that the broker sends to its investors. They are precise trading indications developed by Trading Central and have achieved a 70% success rate.
ForexTB offers two free trading platforms to broaden the choice of users:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Investing in Ant Financial shares after the IPO will be very simple: Just select the stock, click on sell or buy, and decide how much to invest in the operation.
IQ Option: Buy Ant Financial shares with 10 Euro
IQ Option has managed to differentiate itself from the competition thanks to a feature that many novice traders were looking for: The minimum deposit of only 10 Euros.
Buying Ant Financial shares (following the listing on the stock exchange) will be therefore really cheap, because only 10 euros will be enough to open a real account to invest in the stock.
The choice of such a low threshold is to lower the obstacles that usually discourage less experienced traders, who do not feel like risking large amounts but love trading for real.
The IQ Option platform is very modern, full of truly professional indicators and operating tools. The Demo account is still available, because it can be useful for practicing with virtual money.
Moreover, to improve investor knowledge, IQ Option has created an educational area where you can access different free courses in order to deepen every detail of online trading.
Buy Ant Financial Shares: Advantages
Alipay users conduct more than 100 million mobile transactions every day on Alipay, which shares the market with a large competitor called WeChat Pay, from Alibaba’s rival Tencent (TCEHY). However, there the market is huge and there is room for both.
Another great advantage of Ant Financial (or Ant Group) is the ownership of numerous investment funds, including the $ 170 billion giant Yu’ebao.
Ant Financial’s mission is to make payments easy all over the world and therefore it is aiming for a global development that will probably lead to a huge economic return for investors as well.
Ant’s public offering also stands out from the numerous IPOs that are pending listing, such as Airbnb, Deliveroo, and DoorDash, because the latter are not yet profitable while Ant Financial has increased profits for several years.
In its IPO presentation, Ant Group reveals $ 3.2 billion in profit in the first half of 2020 ($ 10.5 billion in revenue), showing year-over-year growth of 1,000%. And this extraordinary profit came during a global pandemic!
Ant Financial Competitors
Ant Financial’s main competitors are the major electronic payment platforms. Here we list the most important:
- LianLian Pay
- Asia Pay
Ant Financial shares forecast
Analysts are reluctant to make a prediction on a stock not yet listed, but expectations of those who are about to buy Ant Financial shares are really high.
The growth of this company is constant and after the listing, with the strong injection of liquidity that will result, it is very likely that the stock will start a strong and lasting growth trend.
Buying Ant Financial shares is certainly a long-term investment and could become one of the most attractive profitable investments of the next few years.
In this guide, we analyzed the company, its current profitability and the stock’s prospects after the IPO. Given the size of the company, Ant Financial’s listing will likely become the largest IPO in history and certainly one of the highest growth potential stocks.
To prepare to buy Ant Financial shares, you need to choose the broker and start practicing in the Demo version, without risking money.
When you feel ready, you can make the minimum deposit required by the chosen broker and trade on real markets. Here are the official links to access the Demo accounts of the best trading platforms:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Access the IQ Option Demo account for free with this link
After the IPO yes, as soon as Ant Financial is listed, it will be tradable like any other stock.
CFD brokers are the best way to invest in stocks without paying commissions.
eToro’s platform is the most intuitive and suitable for this type of investment.
The outlook for Ant Financial (or Ant Group) after the IPO is very positive.