How to Buy Google Stock in Senegal
Google has created an empire with its online advertising business model. It's hard to tell at this point if their business model is maturing or if the growth potential is still in an 'unlimited' phase. The diversification of its business model, with its Android system, and so many recognized platforms such as YouTube, Gmail, Maps, Drive, among many others, ensures Google's growth for the upcoming years.
Google's share price continues to grow year after year, being one of the fastest-growing companies due to the variety of technologies developed by the computer giant. Alphabet is the trading name of the conglomerate of companies that includes Google. It has seen an exponential rise in revenue in recent years.
In this guide, we will explain how to invest in Google shares from Senegal with a display of some of the best available brokers, the incredible potential of this company and its value, the trends, and the fundamentals of investing in the world's favourite internet search engine.
How to buy Google stock from Senegal in 4 steps
Choose a broker to buy Google Stock (Make sure to choose a Brokers that doesn't restrict clients from Senegal since some of them do)
Open your brokerage account
Deposit money into your account
Buy Google stock, remember that it trades under the name Alphabet
Let's describe each one of these steps further.
Step 1: Choose a broker to buy Alphabet Stock
To buy Alphabet shares in 2022, you should consider a broker that, ideally, excels in several of these features:
Low Trading commissions: A good broker charges low or null commissions when opening and closing a trade and offers tight spreads.
Regulated by a Credible Government Agency: A regulated broker is the best chance you have to avoid dealing with the wrong people. Therefore, if a broker claims that they are regulated, do your diligence on them. As an example, if they claim to be ruled by the UK's FCA, check if it's indeed true. In general terms, always review the broker's website's footer; that's where they usually make their regulatory claims.
Simple Registration Process: We don't want to hustle. However, do not trust a broker with no registration process.
Good Tenure in Business: Being in Senegal means that you might get approached by a company that ends up being a fraud. This is a double-edged comment. A platform's tenure is not a safeguard that protects traders per se. However, tenure hints that a financial services provider being in business for an extended time overcame several market's ups and downs. Therefore, we consider that a provider's tenure of +10 years is indeed a good sign. On the other side, try to avoid ancient financial institutions (like traditional banks, for example); they will probably charge you more and lack the latest available trading technology.
Free e-Learning Material: If you are a beginner trader, it is always a plus if a broker offers a good set of free e-learning materials. Aim to attend every conference, webinar or free learning experience a broker provides. It will help you to get your trading knowledge up and running. Warning: The broker will try to sell you their products but separate the trash from the wheat.
A Good Set of Financial Instruments: Aim to open an account with a broker that offers many stocks trading in different stock exchanges. The bigger the offering, the better. We don't mean that you will end up trading leveraged futures on penny stocks, but instead, we imply that you will have different alternatives. You may be starting with Google shares, but you will want to diversify later. Also, a broker with a vast product offering implies a more prominent company (Since it must comply with additional and different regulations, laws and directives).
Top Brokers to Trade Google Stock in Senegal
Step 2: Open an account
Once you have chosen the broker you feel it's the best alternative you have, you will have to create an account. This process will feel like opening an account with one of your phone apps.
In most brokers, the process will be straightforward and will be completed on the same day, although in some instances, it may take a couple of days to verify your identity and financial background.
Step 3: Deposit money into your account
Once you have your trading account ready, the next step is to make the first deposit of funds. The minimum is usually around USD 100-200, or the equivalent in Euros, Aussie Dollars or Sterling. Funding your account can be completed via credit card, debit card, bank transfer or Paypal, as well as Skrill or Neteller. However, be aware that the broker might charge you an extra fee with some payment methods.
This deposit will provide you with the liquidity in the account to buy the equivalent in Alphabet shares. Adding funds is usually an instant process. In other words, you will have access to your capital when you authorize the operation (excepting a bank transfer, which could take up to 3 business days).
Step 4: Buy Alphabet Stock
You are in the last step to own shares of the largest search engine worldwide!
To do this, go to the broker's search engine, write Google, Alphabet (or its trading symbol GOOG) and select it. Usually, a small box will appear where you must fill:
The number of Alphabet shares you wish to buy.
The price at which you would like to execute the buy order if you would like the current price to drop a bit before you go in. Alternatively, you could go with the 'Market Order', which will execute the buy transaction at the current market's
Finally, execute the trade by clicking "Execute Trade", "Buy", or whatever message the order box displays. And, done. Congratulations, you now own Alphabet shares.
Further Step: Review your investment in Alphabet regularly
Once the trade completes, it is now time to monitor it regularly. Be up to date with Google's advertising news and the price's technical movements.
You will need to decide your exit strategy. In other words, the triggers and period you want to keep the position open or closed. Are you a long term investor? a short-term trader? The previous questions are the primary consideration you have to have when thinking about your exit strategy. In the case of making a short-term trade, you will need to be aware of the news and technical movements daily, but if you want to take the long-term trade, you will need to be mindful of the essential info, such as quarterly results.
You can decide at any time what to do with your shares. Therefore, you will be able to manage your trade and change it at any time according to your convenience.
If, for example, you had planned to keep the stock for an extended period, but after a few days, the stock rises a high percentage, you can decide whether to sell them at that time or continue with your investment strategy and keep it longer.
Remember to set goals, both for-profits and losses, and secure your capital. To do this, use the Take Profit and Stop Loss tools and modify them according to the target price you want to win or the maximum loss you want to bear.
Now that you've mastered the required steps to buy Alphabet stock take a moment to learn more about the company.
Why invest in Google?
The company was founded in 1998 by Larry Page and Sergey Brin, two students from the American University of Stanford, having its origins in a car garage where the search engine began. The group's business model focuses primarily on advertising through the sale of visibility spaces to companies.
The company had a several milestones (as an investment) that are worth mentioning:
In June 1999, the computer giant held its first fundraiser for Google, bringing in $25 million from venture capitalists.
In August 2004, it was listed on the Nasdaq stock exchange under the symbol GOOG.
In 2006 the company acquired YouTube.
By 2015, Google had become a company valued at more than 70 billion dollars and became a subsidiary of the Alphabet conglomerate.
By April 2018, the company crosses the threshold of 100 billion in advertising revenue.
In 2021, Alphabet's stock rallied almost 70% this year, lifting the company's market cap to close to $2 trillion.
For investors and financial analysts, it is well known that the American giant is almost in a monopoly situation in the world of search engines. Its main competitors, Yahoo or Bing, seem unable to challenge its absolute market lead.
But in addition to the famous search engine, Google is also a technological giant with multiple skills in very different areas. From the browser (Google Chrome), your mobile system (Android), office suites (G Suite), your email (Gmail), cloud storage (Google Drive), financial markets (Google Finance), among others. As a result, the American giant affects many aspects of our daily lives.
The previous list is not exhaustive because the number of products and services offered to users is extreme. Such a variety of the alternatives provided by this company means that Google shares and their growth potential could drive its share price even higher.
The company also leans heavily on acquiring other companies for further growth. For example, Alphabet also owns YouTube, Android, Picasa, Waze, Classroom, Photos, Maps, and many more.
Owning a share of Google already represents a specific form of diversification in the tech industry since the company operates in many sectors.
Pros and Cons of Buying Alphabet Stock
In this section, we show you the pros and cons of investing in Alphabet to have more information about why to buy its stock:
Almost ten consecutive years making all-time highs in its price
A top-3 company by capitalization volume in NASDAQ
Incredible Customer loyalty
No competitor seems to be in a position to beat Google from its monopolistic situation
Google knows everyone's secrets, that's a very powerful thing.
Potential hazard of being divided as a company or as a product (Google's Search Engine) by a regulator
Big rivalry with the Chinese market
Frequently Asked Questions
Is Alphabet traded on the New York Stock Exchange?
Alphabet trades in New York, but not in the NYSE; instead, the Stock trades in the Nasdaq Exchange (Focused on Tech companies).
Are Alphabet shares suitable for my portfolio?
Although Alphabet is not the cheapest stock, there is a debate on both sides of the spectrum that Alphabet will not sustain its current rate or be subject to a price and earnings contraction. In any case, the medium-term prospects seem optimistic for most analysts. Alphabet is a great company to own on anyone's portfolio.
Can Investors from Senegal invest in US Stocks?
Of course, buying shares from American companies is not restricted to US citizens. Yet, it is essential to check how this will affect your local tax position.
Does Alphabet pay dividends to its shareholders?
Alphabet doesn't pay dividends now, preferring to reinject profits into its productive apparatus. However, this has never been an issue for shareholders, given the continued growth the IT giant is experiencing in the financial markets.
Is it a good idea to buy Alphabet stock if I'm new to investing?
One of the rules of investing in the stock market says that you should buy what you know: choose shares of companies that you understand and are familiar with. Picking stocks of companies with solid fundamentals or strong balance sheets is another rule. And, of course, diversifying your investments or making sure you don't put all your eggs in one stock is also a hypothesis we should follow.
What is the best broker to invest in Alphabet's stock?
The previous list that we added to this article gives you several options. They are all good alternatives. Decide based on your situation.