Wish is a US-based online marketplace that connects buyers and sellers from around the world. If you want to invest in this newly-listed stock, you will need to buy shares in its parent company – ContextLogic. In this guide, we walk you through the process of how to buy Wish shares online in the UK without paying a single penny in trading commission.
Don’t have the time to read our guide in full and instead want to buy Wish shares right now? Here’s a quickfire guide on how to buy Wish shares with Capital.com – a 0% commission CFD broker.
- Step 1: Open an account with Capital.com – Opening an account at Capital.com takes less than 5 minutes and will simply require you to enter your personal information and contact details.
- Step 2: Upload ID – Capital.com will ask you to upload a copy of your passport or driver’s license as per UK brokerage regulations.
- Step 3: Deposit – While your ID is being verified, you can proceed to make a deposit. The minimum at Capital.com is just £20 and you can instantly deposit funds with a debit/credit card or e-wallet.
- Step 4: Buy Wish Shares – To buy shares in Wish – enter the name of its parent company into the search box – ‘ContextLogic’. Next, click on the ‘Buy’ button and enter your stake. Confirm the buy order to complete your Wish share CFD purchase!
Take note, by purchasing Wish share CFDs at Capital.com – you won’t need to own the underlying stocks. In turn, you will pay 0% in commission and 0% in stamp duty tax!
Step 1: Choose a Stock Broker
Wish and its parent company ContextLogic is listed on the NASDAQ. This is a popular stock exchange based in the US. Even though you’re based in the UK, the investment process is still straightforward.
Plus, when choosing the right stock broker, you can buy Wish shares in a cost-effective way. To point you in the right direction, below we list a selection of trading platforms that give you access to Wish shares.
Capital.com is a regulated CFD broker that gives you seamless access to Wish shares. As you will be speculating on CFDs, you won’t actually own the underlying Wish shares. You will, however, still benefit in exactly the same way – should the shares rise in value. For example, if Wish shares increase by 50% – as will your CFD buy order.
At Capital.com, you can buy Wish shares in the form of CFDs without paying a single penny in trading commission. There is no requirement to pay any stamp duty either and all deposits and withdrawals are free. If you only have a modest amount to add to your Capital.com account, the provider also allows you to buy Wish share CFDs with leverage of up to 1:5. In simple terms, this means that a £500 balance would allow you to place a buy order worth £2,500.
If there comes a point where you think that Wish shares are likely to go down in value, Capital.com also supports short-selling. This allows you to profit in the event Wish shares decline. We also like Capital.com as it covers thousands of other stocks from a wide variety of markets. For example, you can buy share CFDs that are listed in the US, Canada, Japan, Australia, Russia, Hong Kong, and more. If you’re keen on a number of UK-based shares, Capital.com supports the London Stock Exchange and the AIM.
If you are new to CFD trading, Capital.com only requires a minimum deposit of £20 – which you can fund with a debit/credit card or e-wallet. Once you open an account – which should only take you a few minutes, you can also trade via the free demo account facility. This offers a risk-free way of getting to grips with online trading without needing to make a deposit. In terms of safety, Capital.com is regulated by the FCA and your money is covered by the FSCS.
- Extensive educational content for new traders
- No commissions
- Tight spreads
- Up to 1:30 leverage (major forex pairs) and less on other assets
- AI assistant identifies your weak points
- Excellent charting and analysis interface
- £20 minimum deposit
- Cannot build custom investment strategies
- CFDs only
75.26% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
If you feel somewhat intimidated about trading CFDs at Capital.com - then you might want to consider Fineco Bank. Unlike Capital.com. Fineco Bank allows you to buy Wish shares outright - meaning that you are officially a stockholder. In order to get started, you first need to open an account with Fineco Bank - which can take a few days.
This is because the broker is required to manually verify your ID documents. Nevertheless, once your account is set up, the minimum deposit is just £100. You will need to perform a manual bank transfer as Fineco does not accept debit/credit cards or e-wallets. In terms of the fees involved when you buy Wish shares, Fineco charges a flat fee of $3.95 per trade - which is around £2.80.
In addition to this, Fineco Bank also charges an annual platform fee of 0.25%. This is multiplied by the amount of money you have invested with the broker. If you are looking to create a diversified portfolio of stocks, Fineco Bank gives you access to thousands of other shares. This includes multiple UK and international exchanges and also includes ETFs and mutual funds. Fineco is authorized and regulated by the FCA and you also benefit from the capital protection of the FSCS.
Your money is at risk.
Wish is an online marketplace that allows merchants and consumers to connect with each other - no matter where the parties are based. The firm is owned by its parent company ContextLogic - which completed its IPO process as recently as December 2020.
As you will be investing in an up-and-coming growth stock - it's important that you do your research before you buy Wish shares online in the UK.
What is Wish?
Launched in 2010 - Wish is an online marketplace that allows buyers and sellers to connect in real-time. based in the US, the platform is now home to over 500 million users from all over the world.
In many ways, Wish is similar to the likes of Amazon - whereby merchants can list the items that they wish to sell and consumers can then make a purchase with their debit/credit card. In turn, Wish will facilitate the transaction between buyers and sellers.
With that said, many of the products listed on the Wish website for sale are super-low items that were produced in China. As a result, Wish is popular with consumers that want to purchase affordable items as opposed to well-known brands. And unlike Amazon, Wish doesn't sell anything directly. Instead, all sales are provided by third-party merchants.
Wish is one one the youngest companies listed on the NASDAQ - with the e-commerce website initiating its IPO as recently as December 2020 through its parent company ContextLogic. Those that decided to engage with the initial fundraising campaign paid a price of $24 per share.
This gave Wish an initial valuation of $14 billion. Unfortunately, the IPO didn't go to plan for Wish - as the shares opened on the NASDAQ at a lower price of $22.75. With that said, shareholders then enjoyed a brief upward swing - with Wish shares peaking at $32.85 at the end of January 2021.
75.26% of retail investor accounts lose money when trading CFDs with this provider.
This represents gains of over 36% in just over a month of trading. However, since peaking, Wish shares have entered a downward trend. At the time of writing in June 2021, the shares are now priced at just $11.
This is a slight recovery from the $7.52 all-time lows it hit just a few weeks prior. Based on an initial listing price of $24 - this means that existing Wish shareholders are now looking at a loss of 68%. On the flip side, this potentially offers a chance to buy Wish shares online in the UK at a major discount.
Wish has only been trading a public stock for a little over half a year - so the firm does not pay any dividends. As you likely know, it can take many years for newly listed shares to introduce a dividend policy. As such, if you do decide to buy Wish shares, you will need to focus on capital gains.
As you will be investing in a company that has only been around for just over 11 years - you need to perform lots of independent research. Below we discuss some of the main considerations you need to make before you buy Wish shares in the UK.
Before getting to the fundamentals - let's start with the obvious. If you were thinking about investing in the Wish IPO but missed the boat - this is a good thing. After all, you would have paid $24 per share when the firm went public in December 2020.
However, at the time of writing, the shares are now priced at just over $11 each. In comparison to its IPO price, this means that you are effectively buying the shares at a 54% discount.
As a short-to-medium term target, an upside of 118% would be required for WIsh shares to get back to the $24 level - which wouldn't be beyond the realms of possibility.
Most companies generate their most sizable growth levels in their early days of operating. This is why firms like Wish are referred to as growth stocks. Looking at the figures, Wish increased year-on-year revenues in 2019 by 10% and then 24% in 2020.
On the one hand, this does represent attractive growth. However, in comparison to some of its competitors, this is minute. In fact, Amazon - a company that first went public 24 years ago, reported growth of 50% last year in its third-party seller division.
When Wish first went public, the firm listed its shares at $24 each - which equated to a market valuation of $14 billion. Based on current prices, this valuation has shrunk to just under $7 billion. In broader terms, this is actually a fairly small market capitalization - especially when you look at other e-commerce and online marketplaces that are publicly listed.
eBay, for example, carries a market capitalization of $45 billion. You then have Etsy - which only went public in 2015, which carries a valuation of $21 billion. With this in mind, if you believe that Wish represents an undervalued stock - the upside potential is huge.
If you have carried out plenty of research on the e-commerce company and want to buy Wish shares right now - you will need to open a brokerage account. The process is pretty much the same across most platforms - albeit, we are going to show you how to get started with FCA-regulated provider Capital.com.
Step 1: Open a Trading Account
Visit the Capital.com website and look for the 'Trade Now' button at the top of the page. You will then see a pop-up box appear like in the image below.
After entering your email address and choose a strong password, click on the 'Continue' button. Next, you will be asked to enter the following information:
- Full Name
- Registered Address
- Date of Birth
- Telephone Number
- National Insurance Number
You will also need to bypass a quick KYC (Know Your Customer) process. This simply requires you to upload a copy of your passport or driver's license.
Step 2: Instantly Deposit Funds
You can now make a deposit into your Capital.com account. If you want to buy Wish shares without delay - opt for an instant payment method.
This includes a debit/credit card or e-wallet. The minimum deposit is just £20 - which is great for those of you who want to trade with small amounts. There are no fees to deposit funds at Capital.com - which is another bonus.
Now that you have money in your Capital.com account you can buy Wish shares. In order to go to the relevant trading page, enter the name of its parent company into the search box - ContextLogic.
When you see the result pop up like in the image above, click on the 'Buy' button.
You can now complete your buy order by entering your stake. For example, if you want to stake £50 - enter this into the 'Amount' box.
Additionally, if you want to boost the size of your stake, Capital.com offers leverage of up to 1:5. If this is something you want to do, select your multiple and make sure you understand the risks of leverage.
Finally, confirm the order to complete your Wish share CFD purchase!
Make no mistake about - Wish is firmly a growth share and thus - both the risks and potential rewards are much higher in comparison to established blue-chip stocks.
If, however, Wish is able to replicate the recent success of other e-commerce platforms like Etsy, now could be the best time to get involved. After all, based on a current share value of $11, you can enter ther market at a much lower price than the $24 IPO valuation.
In summary, if you're looking to gain exposure to a growth stock that is potentially undervalued - Wish could be the right equity for you. The cheapest and most simple way of entering the market is to buy Wish shares via a CFD instrument. In doing so, you will pay 0% commission when using Capital.com and you can even apply leverage of up to 1:5.
75.26% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.