Etsy – the US-based online marketplace that specializes in craft and vintage products – has increased its share price value by a considerate amount since its 2015 IPO. The shares are listed on the NASDAQ exchange – so you’ll need to find a suitable broker that offers US stocks – should you wish to invest. In this guide, we walk you through the process of how to buy Etsy shares in South Africa with a regulated and low-cost broker.
If you’re looking for a quickfire walkthrough on how to buy Etsy shares in South Africa right now – follow the steps below.
- Step 1: Open an account with Capital.com – Head over to regulated broker Capital.com – which allows you to buy Etsy shares via CFD instruments on a 0% commission basis.
- Step 2: Verify your Account – Verify your identity by uploading a copy of your government-issued ID.
- Step 3: Deposit – Meet the minimum deposit threshold of $20 via a debit/credit card or e-wallet.
- Step 4: Buy Etsy Shares – Finally, search for Etsy, enter your stake, and confirm the order.
Your Etsy share purchase is now completed. You can close your position at any given time during standard market hours.
Step 1: Choose a Stock Broker
If you want to buy Etsy shares in South Africa – you need to open an account with a broker with NASDAQ access. You also need to ensure that your chosen broker offers competitive fees and that it supports your preferred deposit method.
In the sections below, you will find a selection of the best stock brokers that allow you to buy Etsy shares in South Africa.
1. Capital.com – Overall Best Broker to Buy Etsy Shares in South Africa
We found that Capital.com is the overall best broker to buy Etsy shares in South Africa. This popular online broker specializes in CFD instruments – meaning that you can speculate on the future value of Etsy without needing to own the underlying stocks. All you need to do is open an account with the platform and meet a minimum deposit of just $20.
Once you have set your account up, Capital.com gives you access to thousands of share CFDs across multiple stock exchanges. This does, of course, include the NASDAQ – meaning that you can buy Etsy shares with ease. If you are super-confident about the price of Etsy shares increasing – you might consider adding leverage to your position. Capital.com offers up to 1:5 for retail clients and more if you are a professional trader.
Outside of its stock trading offering, Capita.com also offers markets on ETFs, indices, commodities, and cryptocurrencies. You can also engage in forex trading – with the platform supporting over 138 currency pairs. In terms of fees, Capital.com does not charge any trading commissions – meaning that when you buy Etsy CFDs, you only need to cover the spread. This means that Capital.com is one of the best-priced brokerage sites to buy Etsy shares in South Africa.
What we also like about Capital.com is that the platform provides an extensive selection of investment educational material. This covers webinars, trading guides, economic calendars, and videos. Safety is also assured at Capital.com – not least because the CFD broker is regulated by the FCA and CySEC. If you want to start trading at Capital.com right now – the broker supports instant deposits via debit/credit cards and e-wallets. You can also use the platform via the Capital.com trading app.
- Trade Etsy shares with 0% commissions
- Free demo account
- Suitable for both beginners and pro traders
- Zero inactivity fees
- Thousands of international shares available
- Multiple funding options
- Low minimum deposit amount
- Only offers CFDs
67.7% of retail investor accounts lose money when trading CFDs with this provider.
2. Avatrade – Best Broker to Buy Etsy Shares in South Africa with Leverage
The next option to consider in your search to buy Etsy shares in South Africa is Avatrade. Much like Capital.com, Avatrade takes regulation and customer care very seriously. In fact, Avatrade is authorized and regulated in six different jurisdictions – including South Africa.
In terms of buying Etsy shares, you will be doing so via CFDs. Once again, this means that you will be able to apply leverage to your trades – with limits typically being capped at 1:5 on stocks and 1:30 on forex. You will also benefit from a 0% commission policy and super-tight spreads. There are no fees to deposit or withdraw funds at Avatrade – which is an added bonus. On top of Etsy shares, Avatrade offers a significant number of alternative markets.
This includes hundreds of other shares from several international exchanges, alongside cryptocurrencies, indices, ETFs, forex, and commodities. The minimum deposit to get started at Avatrade is just $100 – and the platform accepts Visa, MasterCard, bank transfers, and more. Once you are set up, you can choose from a variety of trading platforms – which includes both MT4 and MT5. You can also use the Avatrade web trading platform or download the provider’s native mobile app.
- Suitable for experienced traders
- Zero commission trading
- User-friendly platform
- Trade Etsy shares with leverage
- Regulated and licensed to operate in South Africa
- Supports MetaTrader 4 and 5
- Offers numerous deposit options
- Only offers CFDs
Your capital is at risk.
Etsy – like all stock investments, gives you the chance to grow your wealth over the course of time. You do, however, also need to remember that there is no guarantee that you will make any money when you buy Etsy shares in South Africa.
With this in mind, it’s sensible to perform lots of research on the company before proceeding with your investment.
What is Etsy?
Launched in 2005, Etsy is an online marketplace that matches buyers and sellers of vintage and craft products. For a vintage item to be eligible for sale, Etsy requires the product to be at least 20 years old.
In a similar nature to eBay, Etsy makes money every time a product is sold on its platform. This consists of a small $0.20 listing fee alongside a 3.5% commission on the final sale price. As per its most recent published figures, Etsy is now home to over 81 million active buyers.
Etsy Share Price
Although Etsy was first launched in 2005, it wasn’t until 2015 that the e-commerce firm went public. During its IPO, you would have been able to buy Etsy shares at a listing price of $16. Fast forward to earlier 2021 and Etsy shares hit an all-time high of $251.
This means that in just under six years of trading, Etsy shares had increased by over 1,400% – compared to its original IPO price. In particular, Etsy had a tremendous time on the stock markets in 2020. For example, the shares were priced at just $31 in March 2020 – and closed the year at $177.
67.7% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
This translates into gains of over 470%. Since their prior all-time high of $251, Etsy shares have since cooled off. At the time of writing in late June 2021, the shares are trading at $184. This does, however, give you the opportunity to buy Etsy shares in South Africa at a discount. If their shares do recover back to the $251 level – this would require an upside of 36%.
Etsy Shares Dividends
Like many tech-related stocks listed on the NASDAQ – Etsy has not paid any dividends to date. In fact, management itself notes that the company does not “anticipate paying dividends for the foreseeable future”. This is because Etsy aims to reinvest its retained profits back into the growth of the company.
Are Etsy Shares a Good Buy?
In considering whether or not to buy Etsy shares in South Africa – it’s important to look at the fundamentals of what could drive its future stock price. As such, the sections below looks at what factors you need to assess before proceeding with an investment.
Niche Product Line
Although there are many e-commerce platforms competing for the same marketplace, it could be argued that Etsy hosts a niche line of products. In fact, it is believed that the majority of vintage and craft items found on the platform cannot be found elsewhere. This in itself gives Etsy an edge over its competitors – as the platform is now the go-to marketplace for this particular niche.
In addition to its niche product line, Etsy notes that in the first quarter of 2021 – more than 90% of sales were conducted by repeat customers. In turn, this has resulted in over 81 million active buyers that regularly use Etsy.
As per its most recent annual report, Etsy had a much better year than the markets had anticipated. For example, net income rose by more than 260% year on year, with revenue doubling to over $1.7 billion.
In terms of active buyers, this increase by 91% year on year, with new customers increasing by over 100% to 9.6 million. The number of individual and merchants also saw a rapid increase to 4.5 million – or 70%. All in all, these figures illustrate that Etsy is still a solid growth stock to consider.
Etsy Could be Undervalued
Undervalued stocks allow you to purchase shares at a price deemed lower than their true intrinsic value. Perhaps, based on several key metrics, Etsy falls within this category.
For example, the shares were trading at 75x earnings when the firm published its 2020 year-end results. However, at the time of writing, this figure now stands at 62x. Secondly, Etsy shares are trading at 26% lower than they were earlier in 2021 – where the stocks hit highs of $251.
As a result, if you think that the long-term outlook for Etsy looks promising, it could be worth entering the market whilst you can still make a purchase at a discount.
We’ve covered everything that needs to be considered when thinking about how to buy Etsy shares. If you want to proceed with an investment right now – the next step is to open an account with your chosen share trading platform. To show you how easy this part of the process is – we are going to walk you through the required steps with Capital.com.
Step 1: Open a Capital.com Account
Visit the Capital.com website, click on the ‘Trade Now‘ button, and follow the on-screen instructions by entering your personal information. This will include basic details like your first and last name, home address, date of birth, and contact details.
Step 2: Verify your Account
As a regulated entity, Capital.com is legally required to ask for a copy of your government-issued ID. This is to ensure the platform complies with KYC laws.
Step 3: Fund your Account
The minimum deposit at Capital.com is extremely low at just $20. You can choose from a variety of payment methods to benefit from this low minimum – including a debit/credit card or e-wallet. If you wish to transfer funds from your South African bank account, this is also an option but the minimum increases to $250.
Step 4: Search for Etsy Shares
At the top of the screen, you will see a search box. Enter ‘Etsy’ and click on the result that pops up.
Step 5: Buy Etsy Shares in South Africa
You can now proceed to buy Etsy shares at Capital.com without paying any commission. All you need to do is enter your stake and confirm the buy order.
And that’s it – you’ve just bought Etsy share CFDs! You can exit your position at any time during standard market hours by placing a sell order.
Etsy had a tremendous 2020 – with the e-commerce smashing through estimated revenue and operating income targets set by Wall Street. Although the stocks have taken a slight hit in Q2 2021 – this does present a discounted buying opportunity. Plus, with a market capitalization of $23 billion – there is plenty of upside potential left with this growth stock.
Etsy is now one of the hottest stocks in the US – so it makes sense that being able to invest from the comfort of your home is a simple and straightforward process. If you want to buy Etsy shares in South Africa, Capital.com is the best broker for the job.
It will take you just a few minutes to get set up with this top-rated platform and the minimum deposit is just $20. You’ll be able to buy Etsy CFDs without paying any commission and you’ll also have access to leverage of up to 1:5!
67.7% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
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