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How to buy Baker Hughes shares

Apr 2019
Top 2 brokers to buy Baker Hughes shares
Interactive Brokers
Saxo Bank

Introduction

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 Baker Hughes 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 Baker Hughes fully online.

While we do not specifically advise to buy Baker Hughes shares, this article explains in layman's terms how you can buy shares in companies in general, taking Baker Hughes as an example. Whether your first share to buy should be Baker Hughes 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.

How to buy Baker Hughes shares
Overview of Baker Hughes

Baker Hughes is a US Energy company, traded on the NYSE under the BHGE ticker. It's valued at $27.0 billion and it is famous as a GE company with an international industrial service and one of the world's largest oil field services companies. 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). Baker Hughes's market cap was around $27.0 billion at the time of writing, which is March 2019.

All of this doesn't mean that Baker Hughes 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 Baker Hughes shares
Steps of buying Baker Hughes shares

Okay so for your own reasons you have decided you'd like to buy Baker Hughes. That's a good start. Let's see what lies ahead of you before you can officially state that you are a shareholder of Baker Hughes! The process is rather similar for any company shares and again, we only take Baker Hughes as an example.

Step 1: find a good online broker

One of the characteristics of an online broker is the exchanges they have access to. Not all brokers allow you to buy shares of Baker Hughes, simply because they don't have access to the NYSE. Needless to say, you need a broker that gives you access to this exchange.
The next important thing with a broker is that it should fit you as well. Not all brokers allow every citizen to open an account with them; some brokers are super expensive if you just want to buy a couple of Baker Hughes shares every once in a while, some brokers can be absolutely free. You can actually get great recommendations on choosing the right broker using our questionnaire:

Find my broker

When recommending a broker, we take into account different factors, like the broker's fees, trading platform, accessible markets to trade, and how easy it is to open an account. Safety is also highly important, but since we recommend only safe brokers, you do not have to worry about it.

Step 2: open your brokerage account

After finding your online broker, you need to open an account. This is much like a regular bank account and opening one is usually a fully online process. At some brokers it's as quick as opening a new Gmail account, at some brokers it takes a couple of days until they do some background check on you. Instead of storing money on it you will store your shares on this though, so you definitely need this to buy Baker Hughes shares and to store them.

Step 3: deposit money to your account

You will pay cash to buy those Baker Hughes stocks. This cash first needs to be sent (deposited) to your broker. This is usually super easy and quick, actually even easier than opening your brokerage account.
The most common way you can deposit your money is bank transfer and using credit/debit card. At some brokers, you can deposit to your investment account even from different electronic wallets like Paypal, e.g. at eToro.

Step 4: buy the Baker Hughes share

You have the account, the cash, and the share target. The last step is to press the buy button! You log in to your online brokerage, search for Baker Hughes share, insert the number of shares you wish to buy, and click buy, which will initiate the purchase of shares (in trading lingo: execute the buy order).

A couple of hints around this: when placing an order, you can choose from different order types. The market order buys at the actual market price, while the limit order allows you to specify the exact price at which you want to buy the share.

Step 5: review your Baker Hughes position regularly

You are not finished after you purchased your Baker Hughes stock. Now it is key to monitor your investments. This basically means following your investment strategy. If you bought the Baker Hughes share for holding it for a longer term, you might participate in the annual meeting and collect all the news and information about the company.

If you plan to sell it shortly after you see some increase in the price, you might use different position management tools. E.g. you can set the target price at which you want to sell the share with a profit, or use the stop-loss to set a price at which you want to sell the share to avoid further losses.

Now that you have mastered the 5 steps of buying shares, take a moment to look at the top 5 brokers we have selected for you.

How to buy Baker Hughes shares
Best 5 brokers for buying Baker Hughes shares

Interactive Brokers Interactive Brokers is a US discount broker. IB is listed on stock exchange and regulated by several authorities, like the top-tier FCA and SEC. Visit broker
Saxo Bank Saxo Bank is a Danish investment bank. It is regulated by more than 10 financial authorities, including the top-tier FCA. Visit broker
DEGIRO DEGIRO is a Dutch discount broker established in 2008. It is regulated by the Dutch FMA. Visit broker
Tradestation TradeStation is a US stockbroker regulated by FINRA, the top-tier US regulator. Visit broker
Robinhood Robinhood is a US-based zero commission broker. It is regulated by FINRA, the top-tier US regulator. Visit broker

How to buy Baker Hughes shares
Fees for investing in Baker Hughes stocks

You have to count with different kind of fees when you are trading with Baker Hughes 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 Baker Hughes shares at our recommended five brokers

Baker Hughes stock fees
Interactive Brokers Saxo Bank DEGIRO Tradestation Robinhood
USA $0.005 per share, min $1, max 0.5% of trade value $0.01/share; min $9.90, but using VIP pricing the minimum can be as low as $3 $0.004 per share + €0.5 $0.01 per share; min $1 Free
US stock fees class Low High Low Low Low

How to buy Baker Hughes shares
How to reduce risks

Investments always come with some risks, investing in Baker Hughes 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 Baker Hughes goes bust, you lose all your invested money.

How to manage it: buy other shares as well, not only Baker Hughes 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 Baker Hughes shares
Bottom line

How to purchase Baker Hughes shares online?

Just follow these five easy steps:

  1. find a broker
  2. open your account
  3. fund the account
  4. buy the share
  5. review your position

It may look tricky for the first time but all you need to do is progress step-by-step.

AUTHOR

Gergely Korpos
Gergely Korpos
Co-founder, CPO
Gergely's aim is to bring more clarity into personal investing. He has 10 years of experience in financial markets with GE Money, KPMG and MOL. He concluded thousands of trades as a commodity trader and financial portfolio manager
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