The modern world is unthinkable without internet technology. Modern innovation processes have penetrated the worlds of commerce, service and service, learning and ordinary communication.

Investments are not left aside either. Now that you have access to the Internet, you can discover the great world of exchange trading, grasp the principles of the stock market and try your hand at the role of investor from the comfort of your own home. Even if you live in a small province of New Zealand, all you need is the Internet and a minimum starting amount of a few dollars.

Today we'll look at how to invest in Alcoa stock in New Zealand.

Alcoa Corporation is an American industrial corporation, a major producer of primary aluminium and aluminium raw materials. The company is the eighth largest producer of this metal in the world. It owns seven operating bauxite mines located in different parts of the world, and is one of the largest producers of bauxite. Alcoa's production capacity provides eight per cent of the world's alumina market.

The company is headquartered in Pittsburgh, Pennsylvania, USA.

The company had 13,800 employees as of 31.03.2020.

As of the date of this writing, Alcoa's share price stands at $35.62, an increase of 346.42 per cent over the same period last year.

You can find out more about the company on the official Alcoa website
You can find out more about the company on the official Alcoa website

How to invest in Alcoa shares in New Zealand?

Alcoa's initial public offering was in 1978.

Alcoa shares are traded on the New-York Stock Exchange (NYSE), where they are listed under the ticker AA.

In addition to the US exchange, Alcoa shares can be found on several other exchanges:

  • Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV);
  • Frankfurt Stock Exchange (FSE);
  • Berlin Stock Exchange (Berlin Stock Exchange);
  • Stuttgart Stock Exchange (SWB);
  • Swiss, Austrian and London Stock Exchanges.
Select "AA" ticker to find Alcoa shares on the platform

Choosing a broker

Buying shares in a company requires a broker to act as an intermediary in the market.

Choosing the right broker is one of the key conditions for a trader who wishes to trade successfully on the stock exchange. A broker is your advisor and guide in the stock market and his professionalism and expertise will have a big impact on the outcome of your trades. You choose a broker based on your capabilities, objective, strategy and goals.

Today, there are many brokers in the stock market who trade in different markets and offer different investment platforms, providing a wide range of services such as the ability to apply leverage to trade and the use of various tools for technical analysis and the like. To choose a good broker, consider the following things:

  • Reliability. Pay attention to the license, the period of work in the market, the reviews of the broker, the presence of a representative office in your region, rating, etc.;
  • Availability of the tools you need for trading. Every broker offers a certain set of instruments for operations on the stock market, such as different functions for buying ("stop loss", "multiplier", etc.), technical analysis indicators, availability of free demo account for training, etc. Also on the platform is predominantly a training section, where you can find all the necessary training information, and also a "news" section, which collects links to current news from reputable, verified sources of information about the company, whose shares are exposed on the online trading platform;
  • The amount of the minimum deposit. Please note, the minimum deposit amount is set on the platform. Investment online platforms designed for the average broker tend to have a low starting amount (usually $10), whereas highly professional platforms with experienced investors often have a high starting amount. Which platform to choose depends on your financial capabilities and experience;
  • Availability of feedback. Be sure to check if there is advice available, customer support is up and running, and if you can get answers to your questions 24/7;
  • Commission. Of course, of great importance is the amount of commission that the broker withholds for its services.
Buying Alcoa shares
Buying Alcoa shares

Trading platform online

The online trading platform is a great way to visualise and explore all the tools and trading techniques.

The first thing you will see are charts of stock price fluctuations. It is possible to select different periods for analysis, from a few years to a few hours.

In addition, there is an "indicators" tab, which contains tools for technical analysis of the behaviour of certain stocks on the investment market. Don't know what Bollinger Lines or Ichimoku Cloud are? Don't worry, the platform has video tutorials that will tell you in detail what they are and how to use these indicators for analysis in practice. Note that all these benefits, which we have mentioned, are completely free of charge to you, while offline advice from a stockbroker is usually always a paid service.

Alcoa share trading platform online
Alcoa share trading platform online

Investment methods

Depending on what goals you have set for yourself, your investment methods can vary.

The classic method of investing for the long term is to buy shares in a company with the aim of making a profit in the future. This can be safely described as a method of investing for the purpose of earning passive income in the future.

In doing so, you must analyze whether the company will make a profit in the future, what the prospects for its development, because the long-term investment - it is an investment in the future earnings of the company. Therefore, consider how likely it is that the product or service provided by the company in which you are investing will be in demand in a few years, whether the company intends to expand its activities in the future, what are the market trends in this area, and so on. This investment option is considered to be the safest but not the most profitable as you will not get a profit for a long time. It is more of an investment with a long-term perspective, and only justifies itself if the investor has a lot of capital.

ALCOA CORP pays dividends 5 times a year. Payments have ranged from $0.03 to $0.09 per share, which is how much the company last paid to its shareholders, on 26 November 2016.

Information on Alcoa's current share price
Information on Alcoa's current share price

It is also possible to trade in derivatives, known as CFDs.

A CFD is a financial instrument that allows the seller and the buyer to settle without delivering the underlying asset, paying each other the difference between the value specified in the contract and the actual quote. Futures, shares, precious metals, indices and others are used as underlying assets in the case of a contract for difference. You may earn on the falling as well as on the rising of the market. The main task of the investor in this case is to forecast fluctuations of the market prices for the underlying asset. It means he has to guess where the price will be in some time.

CFD (contract for difference) on shares allows the use of leverage, you can profit from interesting investments even with small capital. However, you should bear in mind that trading with leverage involves a higher level of risk and is not suitable for all investors.

Information on the trading conditions for Alcoa shares
Information on the trading conditions for Alcoa shares

How to buy Alcoa shares in New Zealand?

If a broker is right for you, the next step is to register on their online investment platform. Generally, registering on the trading platform is no more complicated than registering on a normal social network. You will need to enter your first and last name and your email. That is all, you can log in to the investment platform and start your investment activity from the comfort of your home!

Go through a simple registration process
Go through a simple registration process

After you register, the system will prompt you to open a demo account. Using a demo account is necessary when you do not have enough knowledge and experience for investing. The account is completely free and open-ended, and the dummy account has more than enough money for you to practice investing without any real risks. In addition, with full use of the dummy amount, you can restore it as many times as you like until you feel confident enough to fund the real account with real funds.

Choose a trading account
Choose a trading account

When you will feel confident and ready to risk real funds to be able to make real profit, replenish the real account with USD 10 or more. Then make real trades with real money.

Remember, real money is a real risk. So start with small amounts and risk wisely.

Top up your account online
Top up your account online

How to start investing in Alcoa stocks in New Zealand?

So, the scheme of how to start investing in New Zealand is quite simple.

You study the market to begin with. Determine for yourself whether you are ready to invest in this company, considering its image, direction of the divestment, share price and the like. If it's a long-term investment, consider whether the product or service the company provides will be in demand in a year or two.

Next, find a broker who works with the stock of that company. It is now possible to invest in Alcoa shares from almost any country because of the availability of internet investing. After monitoring brokerage companies that trade Alcoa stock, choose one that offers many quality instruments but invites moderate fees for the services provided.

Once you have registered on the broker's online investment platform, don't neglect the demo account training. This is a great opportunity to get your skills up to speed.

By trying out different methods of investing, using a demo account, you can develop your own trading strategy. Of course, even if your methods are successful, you will not be able to manage your funds on a demo account, but there is zero risk in this case.

Check out the education section. Investing is a whole science, it encompasses the economic laws of trading, the ability to understand a company's financial statements, the ability to analyze the behavior of stock prices, understanding the impact of global economic and political processes on the movements of the stock price charts. It is therefore extremely foolish to neglect training. Trading platforms offer video lessons and printed materials for learning, which we strongly recommend.

Pay attention to the technical indicators available - they will help in analysing the value of the stock. Previously developed and scientifically proven valuation methods will not be superfluous. Choose the one that works best for you and use it in your work.

Follow the news and keep abreast of all political and economic developments in your country and in the world, as this also affects the share price.

We hope that you will have a positive experience and become a successful investor in the market quite soon.

The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose