HSBC is one of the world’s top financial institutions and the largest bank in Europe. HSBC’s reach is truly global. In 2020, it was the world’s 6th largest bank by market capitalization and total assets.
Based in London, it is listed on several stock exchanges. It boasts dual primary listings on the London Stock Exchange and the Hong Kong Stock Exchange. It has secondary listings on the Bermuda Stock Exchange and the New York Stock Exchange.
If you are looking for exposure to a large bank, HSBC ticks all boxes. It is a constituent of the FTSE 100 and Hang Seng indexes.
Having been around since 1866, HSBC has seen plenty of ups and downs. On the dark side of its history, it was involved in many high-profile money laundering scandals. It allegedly helped the Sinaloa Cartel launder its drug money, among other missteps of similar scale.
- 0% commission on US stocks
- Fast withdrawal
- FCA, ASIC, CySEC Regulated
- 2000+ assets
68% of retail CFD accounts lose money
How to Buy HSBC Stock
Assuming you don’t want to trade financial derivatives like CFDs based on HSBC’s stock price evolution, you need to find a solid, reputable broker that gives you good trading conditions and a low commission. Here you can find the best stock trading apps from reputable brokers in the UK.
When looking for a broker, you must consider many variables. Your citizenship status determines the brokerages and services that you can access. Depending on your status, you may get some services at a high cost or none at all.
Also, consider your investment goal. Are you looking to make a sizeable one-time purchase of HSBC stock, or do you want to make regular purchases over a longer period?
If you want to buy HSBC stock as a long-term investment, you should probably consider a tax-advantaged account that can better protect your money. An IRA might work well in this respect.
Choose between discount brokers and full-service ones. The former only offer basic services. The latter do research and help you manage your portfolio. If you have your mind set on HSBC stock, then you probably don’t need your broker’s research and trading recommendations.
Only deal with regulated and reputable stock brokers.
HSBC offers brokerage accounts you can use for stock trading. The bank lets you dabble in bonds, options, ETFs, and mutual funds as well.
Should You Buy HSBC Stock?
Can an HSBC stock purchase land you in profit, and how long might it take? If you consider yourself a momentum investor, HSBC stock may be a good choice.
The financial health of the organization is good, as are its prospects. Together, these factors point to the possibility that HSBC stock could outperform the market.
In the short term, a fundamental factor likely to impact the HSBC stock price is the bank’s withdrawal from the Russian market. Many financial companies world-over are looking to reduce their exposure to Russia and the economic fallout of the Russia-Ukraine war. In line with this trend, HSBC has been in talks to sell its Russian lending business to Expobank.
HSBC is shifting its focus to Asia, more precisely to China, Hong Kong, and India, where it is planning to re-launch its private banking business.
Looking for more interesting stocks to buy? Read this guide.