The modern world is unthinkable without Internet technology. We buy things online, study online, search for all the information we need, and make friends and simply communicate through the World Wide Web.

Progress has not gone unnoticed in the investment system either. Whereas previously the issue of how and where to invest money was of interest only to a small circle of influential investors with multi-million euro assets, the question of investment is now being asked by the wider population.

The approach to the way of investing has changed, as well as the methods and tools of investing. Now you can start trading in the stock market with a few dollars. And you don't need to visit a bank branch, the office of the company you are investing in, or the stock exchange. All transactions are available to you online, wherever you are.

In terms of investment purpose, people still prefer large companies, so-called market giants, whether in manufacturing, services, technology or other important sectors.

Today, we're going to look at investment options for Starbucks stock in Singapore.

Starbucks Corporation

Starbucks is an American coffee company and coffee shop chain of the same name. The management company is Starbucks Corporation. Starbucks is the largest coffee company in the world, with a chain of coffee shops in 75 countries (14,000 of them operate under license). Starbucks sells espresso and espresso-based drinks, other hot and cold drinks, coffee beans, teas, hot and cold sandwiches, pastries, snacks and items such as coffee machines, mugs and glasses. The company is headquartered in Seattle, Washington, USA.

Starbucks official website
Starbucks official website

For Americans, Howard Schultz's brainchild is said to be a 'third place', between home and work. Over the past few decades Starbucks has become one of America's icons, as famous as McDonald's. The company has also begun its overseas expansion.  And the history of Starbucks began back in 1971 in Seattle.

In 1971, the first Starbucks opened in Seattle's historic Pike Place market.

In 1971, three buddies: English teacher Jerry Baldwin, history teacher Zev Siegle and writer Gordon Bowker, who had known each other since their college days at the University of San Francisco, put together $1,350 each, borrowed another $5,000 and opened a coffee bean shop in Seattle, Washington, on September 30, 1971

1981 Howard Schultz (former chairman, president and CEO of Starbucks) visited the Starbucks shop for the first time. The first cup of Sumatra so impressed Howard that a year later he joined Starbucks.

In 1983, while travelling in Italy, Howard became so fascinated by the local cafes and imbibed the romance of the Italian coffee experience that he decided to start an Italian coffee tradition in the United States.

Briefly leaving the company to open his own coffee shop, Il Giornale, Howard returned in August 1987 to acquire Starbucks with the help of local investors.

He changed the brand of his Il Giornale coffee outlets to Starbucks, renamed the company Starbucks Corporation and began rapidly expanding his network.

From then until today, Starbucks has shown continuous growth and a consistently strong financial performance.

Today, the name Starbucks is synonymous with coffee all over the world.

The company's solid position, worldwide customer love, and strong performance have attracted the attention of investors.

At the time of writing this review, the share price of Starbucks was $111.81. Analysts forecast a further rise in the share price by the end of 2021.

Starbucks current share price
Starbucks current share price

How to invest in Starbucks shares in Singapore?

Starbucks shares began trading on the NASDAQ exchange in the summer of 1992 under the ticker symbol SBUX. In addition, Starbucks securities are traded on: Hamburg Stock Exchange, Frankfurt Stock Exchange, Düsseldorf Stock Exchange, Stuttgart Stock Exchange, Berlin Stock Exchange, Munich Stock Exchange, Hanover Stock Exchange and London Stock Exchange.

To invest in Starbucks stock, you need to choose a broker that works on these exchanges.

Choosing the right broker is one of the key prerequisites for a trader who wants to trade successfully in the stock market. A broker is your assistant and advisor in the stock market, and the outcome of your transactions will largely depend on your professionalism and expertise. You choose a broker based on your capabilities, goals, strategy and objectives.

Today, there are many brokers in the stock market in Singapore, which operate in different markets and offer different investment platforms, providing a wide range of services, such as the ability to use leverage in transactions and the use of different tools for analysis, technical and others. To choose a good broker, pay attention to the following aspects:

  • reliability. Pay attention to the existence of a license, period of operation in the market, reviews of the broker, presence of a representative office in your area, rating, etc.; 
  • availability of tools necessary for your work. Every broker offers a set of tools for trading, like different functions for buying ("stop-loss", "multiplier", etc.), indicators for technical analysis, availability of a free demo account for training, etc. In addition, the platform primarily has a training section, where you can find all the information you need to learn, and a "news" section, which contains links to current news from reputable, verified sources about the companies whose stocks are displayed on the online trading platform;
  • minimum deposit size. Pay attention to the minimum deposit amount set on the platform. Online investment platforms, designed for the average broker, usually have a low starting amount, while highly professional platforms, which employ sophisticated investors, usually have a high starting amount. The platform you choose will depend on your financial capabilities and your experience;
  • availability of feedback. Be sure to check if you can get chat advice, if your customer service is up and running and if you can get your questions answered 24 hours a day;
  • commission. Of course, the amount of commission a broker withholds for its services is important.

From 2004 to 2010, the company did not pay out any dividends but used all of its profits to grow its business. After 2010, Starbucks has been paying dividends on a quarterly basis. Along with the share price, the size of the payouts, which exceed 1.6% p.a., have been increasing.

Starbucks trading floor on the platform
Starbucks trading floor on the platform

Another fairly common form of investment is derivatives trading. 

By investing in CFDs, you have the opportunity to win in either direction of asset price movements. If you firmly believe that the purchase price of an asset will rise, you open a long position.

If you believe that the purchase price of an asset will fall drastically, you enter into a market position, which can be known as a short position. When investing in CFDs many online platforms allow you to use a multiplier, i.e. leverage, which you can use to increase your trade size. Remember that using a multiplier is not technically difficult, but the process is fraught with the possibility of losing a large sum of money. So make sure you have a good understanding of how the multiplier function works.

Find the company using the ticker symbol SBUX
Find the company using the ticker symbol SBUX

How to buy Starbucks shares in Singapore?

So, to get started with Starbucks shares, the first step after choosing an online broker is to register on the online investment platform. Registration is a simple and straightforward process that takes no more than five minutes and does not require you to provide more information than your name and email address. Use your current email address as once you have registered you will need to confirm it routinely and you will later receive email reminders of possible transactions that are not executed on the platform, news that you can subscribe to on the platform, close a trade or open a market, etc.

Registration form on the platform
Registration form on the platform

After registration the system will ask you to open a demo account. Using a demo account is necessary when you do not have enough knowledge and experience to invest. The account is completely free, and the dummy amount, which the system automatically credits to the demo account for test operations, is more than enough to teach you how to invest without any real risks. You can also extend the dummy amount as many times as you like, until you feel confident enough to fund the real account with real money.

Start your activity by training on a demo account
Start your activity by training on a demo account

In order to get real funds in the future, you will need to fund your real account by depositing funds into it. Typically the minimum starting amount is low, at a few dollars. You can upload funds to your account using any of the payment systems listed on the site. You can also use the same systems to withdraw your earnings in the future.

To invest in Starbucks stock, select the ticker symbol SBUX on the platform. After selecting the ticker, the system will prompt you to view information about the asset, i.e. current price, purchase and trading conditions. Here you can see links to the latest company news from reliable sources.

Top up your account online
Top up your account online

How to start investing in Starbucks stock in Singapore?

So, let's take a step-by-step look at how to invest in Starbucks stock in Singapore. The first step is to choose a broker with a good reputation. The World Wide Web is simply full of information about Starbucks itself as an investment target, about brokers providing investment services, and about its shares. So, study the offerings of the brokerage market and choose a reliable broker online. Pay attention to the broker's experience in the investment business, its image and its reviews. Find out about the fees that the brokerage company charges for providing services and the tools you can get when you sign up on their website.

In fact, the second step is the registration itself. As mentioned above, registration is an elementary step that doesn't require any special skills or knowledge. But you will need more knowledge and skills when you want to enter the great world of investing. Then step by step you can fund your account, buy shares, trade and withdraw your profits.

Hopefully, the last step - making a profit - is always present in your scheme. For this you should always improve your knowledge of investing. Over time, you will be able to gain experience in trading and develop your investment strategy with regard to market behaviour.

We hope that one day you will become an experienced stockbroker and successful investor and that you will have enough knowledge and skills to advise future investors.

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