Steps of buying Alibaba shares
Best 5 brokers for buying Alibaba shares
Fees for investing in Alibaba stocks
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Like most of us, you have probably imagined buying shares of a company that skyrockets in a couple of years in value, making you enough money to travel and chill for the rest of your life. Maybe even Alibaba was among your top picks for buying its shares, or it will be. In reality, investing is a bit more complex than waiting for the birds flying into your mouth ready roasted, but hey, you have to start somewhere right?
The good news is that unlike back in the days, today you can buy shares in companies like Alibaba fully online.
While we do not specifically advise to buy Alibaba shares, this article explains in layman’s terms how you can buy shares in companies in general, taking Alibaba as an example. Whether your first share to buy should be Alibaba or not it’s for you to decide. We strongly suggest to contact investment advisors as this article is not meant to be investment advice under any circumstance.
If you are interested in our guide about how to buy shares online, click here.
https://youtu.be/1kBHZTK7BSE
How to buy Alibaba Stocks & Shares to Invest in BABA
Overview of Alibaba
Alibaba is a Hong Kong Consumer Cyclical company, traded on the NYSE under the BABA ticker. It is famous as a Chinese multinational conglomerate specializing in e-commerce, retail, Internet and technology. If you’d like to buy its stocks you need to find a broker that gives you access to the NYSE because that’s the main exchange it’s traded on (hang tight, we’ll get into this in a bit).
All of this doesn’t mean that Alibaba is a good company or a bad one. As part of this example you might want to get reminded of what you are considering investing in though.
Let’s see the steps now!
How to buy Alibaba Stocks & Shares to Invest in BABA
Steps of buying Alibaba shares
How to Buy Alibaba Shares: A Complete Beginner-Friendly Guide
So, you’ve decided to invest in Alibaba—great choice to start your investing journey. Before you officially become a shareholder, let’s walk through the key steps you’ll need to follow. While Alibaba is used here as the example, the same process applies to most publicly traded companies.
Step 1: Choose the Right Online Broker
One of the first things to check when selecting a broker is which stock exchanges it provides access to. Not every platform allows trading on the NYSE, which is where Alibaba is listed, so you’ll need one that does.
Beyond access, the broker should match your personal needs. Some platforms may not accept clients from certain countries, while others might charge high fees for occasional investors. On the other hand, some brokers offer very low—or even zero—commission trading.
When evaluating brokers, key factors to consider include fees, platform usability, available markets, and how easy it is to register. Security is also essential, but if you stick to well-established brokers, this shouldn’t be a concern.
Step 2: Open Your Brokerage Account
Once you’ve selected a broker, the next step is setting up your account. This process is similar to opening a bank account and is typically completed online.
Some platforms allow you to get started within minutes, while others may take a couple of days due to identity verification procedures. This account is where your shares will be stored, making it a necessary step before purchasing Alibaba stock.
Step 3: Fund Your Account
To buy Alibaba shares, you’ll need to deposit money into your brokerage account. This step is usually quick and straightforward—often even easier than the registration process.
Common deposit methods include bank transfers and credit or debit cards. Some brokers also support e-wallets like PayPal, giving you additional flexibility when funding your account.
Step 4: Buy Alibaba Stock
With your account funded, you’re ready to invest. Log in to your brokerage platform, search for Alibaba, choose how many shares you want, and place your order.
You’ll typically have different order types available:
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Market order: executes immediately at the current market price
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Limit order: allows you to set the price you’re willing to pay
Understanding these options can help you control how your trade is executed.
Step 5: Track and Manage Your Investment
Purchasing the stock is just the beginning. It’s important to regularly monitor your position and stay aligned with your investment strategy.
If you’re investing for the long term, you may want to follow company updates, earnings reports, and industry trends. If your approach is more short-term, you can use tools like:
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Take-profit orders to secure gains
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Stop-loss orders to limit potential losses
Now that you’re familiar with the full process, you’re ready to take the next step and explore top-rated brokers that fit your investing style.
How to buy Alibaba Stocks & Shares to Invest in BABA
Best 5 brokers for buying Alibaba shares
| Interactive Brokers | Interactive Brokers is a US discount broker. It is listed on a stock exchange and regulated by several authorities, including top-tier ones like the FCA and the SEC. | Visit broker |
| Alpaca Trading | Alpaca Securities LLC is US-based broker providing commission-free API stock trading. The company is regulated by the top-tier SEC and FINRA: | Visit broker |
| TradeStation Global | TradeStation Global is an introducing broker of Interactive Brokers. This practically means that assets and cash are held with Interactive Brokers, but services like fees and customer support are provided by TradeStation Global. TradeStation Global is regulated by the top-tier UK FCA. | Visit broker |
| Zacks Trade | Zacks Trade is a US discount broker that also allows international clients to open an account. Zacks Trade is a division of LBMZ Securities, which is regulated by SEC and FINRA. Customers are protected by the SIPC scheme, up to $500,000 (including a $250,000 limit for cash). | Visit broker |
| Saxo Bank | Saxo Bank is a Danish investment bank. It is regulated by several financial authorities globally, including the top-tier UK FCA. | Visit broker |
How to buy Alibaba Stocks & Shares to Invest in BABA
Fees for investing in Alibaba stocks
You have to count with different kind of fees when you are trading with Alibaba shares.
Commission is a fee, based on the traded volume or a flat fee per trade. For example, 0.1% of €10,000, $5/trade or $0.005/share.
Needless to say, these are different at each broker. Let’s see the fees of trading with Alibaba shares at our recommended five brokers
| Saxo Bank | Fusion Markets | CMC Markets | Interactive Brokers | Capital.com | |
|---|---|---|---|---|---|
| EURUSD spread | 0.8 | 0.0 | 0.7 | 0.1 | 0.6 |
| GBPUSD spread | 1.3 | 0.2 | 0.9 | 0.3 | 1.3 |
| AUDUSD spread | 0.8 | 0.0 | 0.7 | 0.1 | 0.6 |
| EURCHF spread | 1.4 | 0.6 | 2.5 | 0.4 | 2.2 |
| EURGBP spread | 1.4 | 0.3 | 1.1 | 0.2 | 1.5 |
How to buy Alibaba Stocks & Shares to Invest in BABA
How to reduce risks
Investments always come with some risks, investing in Alibaba is no difference. Please take the time to review the following tips from BrokerChooser that help you minimize your risks. You can also read more about market risk and other types of risks over here.
Avoid the scams
Risk: unfortunately, there are tons of scam “brokers” that are trying to steal your money. When you are faced with binary option ads and automated investment algorithms that generate outstanding returns, start to get highly suspicious. In these cases, the best thing to do is to immediately turn these ads down.
How to manage it: when buying shares online, go with our broker selection. We have an active account with the brokers we selected and we test them regularly.
Diversify your portfolio
Risk: spending all of your savings on one or two shares. If Alibaba goes bust, you lose all your invested money.
How to manage it: buy other shares as well, not only Alibaba to diversify your investment portfolio. This practically means buying more different shares and not putting all your eggs in one basket. The ideal number of shares in a portfolio varies somewhere between 20 and 30.
How to buy Alibaba Stocks & Shares to Invest in BABA
Bottom line
How to purchase Alibaba shares online?
Just follow these five easy steps:
- find a broker
- open your account
- fund the account
- buy the share
- review your position
It may look tricky for the first time but all you need to do is progress step-by-step.