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Best Microsoft Stock Trading Brokers

When it comes to tech giants, the first name that pops into most users’ minds is Microsoft. Founded in 1975 by Bill Gates and Paul Allen, the company has become a world leader producing and selling a huge range of products, practically anything from personal computers to cloud computing systems for space equipment. Microsoft’s main competitors are Apple Inc. and Amazon.com Inc. for which separate articles are provided on tradingpedia’s website.

Quite logically, the growth we just hinted at above accumulates significant earnings. Despite the turbulence in recent years due to the Covid pandemic and military conflicts around the world, Microsoft stocks retain good levels and financial analysts’ predictions are optimistic.

How Microsoft Stocks Trading Works for Traders and Brokers

How Microsoft Stocks Trading WorksOperating on such a large scale inevitably requires a colossal amount of capital and one way to raise it is through selling shares to the public. Given the high interest in the brand, Microsoft stocks are within the portfolio of most today’s trading brokers. If you are a trader who is about to start dealing with MSFT, it is a good idea to familiarize yourself with the ins and outs of the process and then select a reliable brokerage platform.

In brief, MSFT trading involves buying and selling shares in the company and gaining profit from the daily price changes. Unlike investors who apply long-haul strategies, traders closely monitor short-term price fluctuations and try to sell high or buy as low as possible. Microsoft stock brokers have adopted similar though not identical pricing policies that comprise spreads, commissions, trading and non-trading fees. Both proprietary and third-party platforms are used as well as different account types, so it will be to your advantage to research the broker beforehand.

We bring to your attention 5 basic steps around which to build a successful MSFT trading experience:

  1. Open a brokerage account. If you are unsure which trading broker corresponds to your level of expertise and trading manner, you can take a look at the below reviews of Top Microsoft Stock Brokers.
  2. Determine a trading budget and never deviate from it. Only invest money that you do not need for covering daily expenses.
  3. Learn how to use the different order types. They are mainly classified as market orders and limit orders.
  4. Practice with a demo account. This recommendation applies even if you are an experienced trader, but you will operate with this broker for the first time.
  5. Measure your results to see your strengths and weaknesses and thus be able to adjust your strategy if necessary.

Top 10 Bitcoin Trading Brokers

choosing a brokerSince you ended up here, then you are planning to improve your financial status by buying stocks in Microsoft. To do so, you need to open an account with a brokerage company that will give you access to the NASDAQ since this is the main exchange MSFT is traded on. We have selected precisely that type of trading brokers by looking at their main characteristics and the trading conditions they provide.

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Microsoft stocks FAQ

1. Does Microsoft pay dividends?

Yes, the company rewards its shareholders with quarterly dividends. At the time of writing, the respective amount is $0.62 per share (0.93% dividend yield).

2. Does Microsoft perform stock splits (when)?

Microsoft stocks went public in 1986 and since then there have been nine stock splits. The latest such event was a 2-for-1 common stock split on January 16, 2003.

3. Who owns the most shares of Microsoft?

Currently, the Top 3 institutional holders of MSFT shares are The Vanguard Group, Inc., BlackRock Fund Advisors, and SSgA Funds Management, Inc. As far as physical persons are concerned, Satya Nadella, Bradford L. Smith, and Jean-Philippe Courtois own the greatest number of shares.

4. What is the difference between investing and trading?

Both investing and trading are methods of profit making in the financial markets although they are rather dissimilar. What is characteristic about investors is that they aim at large returns via buying and holding a certain amount of stocks for months or even years. Stock traders operate in a different way. They execute much more frequent transactions trying to take advantage of market fluctuations on a daily, weekly, or monthly basis.

5. How many MSFT shares are currently available?

As per the latest information published on NASDAQ’s official website, there are 7,479 million total shares outstanding. Institutional ownership amounts to 70.21%.