November 16, 2020

How to buy BDR on Facebook?

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Do you want to invest in Facebook shares? BDRs can be an alternative to start. See how to buy BDRs on Facebook in this article.

According to data published by Brand Finance, since 2020, Facebook is the seventh most valuable brand in the world. Not surprisingly, its shares are among the most sought after by those who want to invest. Spaniards find two ways to invest in the company: buying shares directly from foreign brokers or acquiring a BDR from Facebook.

For those who are not sure how this process works, what BDRs are and where they can be purchased, we have prepared this content. Go ahead and learn how to buy your BDR from Facebook. 

What is a BDR?

Anyone who is already familiar with the stock and investment market should be familiar with the term BDR. Others, however, are not sure what this acronym means, why and how it is used in the financial market. 

Basically, a Certificado de Depósito Españaeño (BDR) is a certificate that represents the shares of foreign companies. These certificates are traded on the B3 (Spanish stock exchange) and not on US stock exchanges such as the NYSE or NASDAQ. 

This is a way for a Spaniard to invest in shares of foreign companies, but without having to open a brokerage comma account in another country.

You only have one account with a broker in Britain. However, these certificates are part of the shares that brokers buy and resell only in a percentage to investors. 

What does this mean? When you buy a Facebook BDR, for example, you are not buying the stock itself, as it belongs to the broker.

What you are buying is a certificate that represents part of that share. That is, although it is easier, a BDR does not offer the same earnings as a Facebook share.

In any case, it is an alternative for those who do not intend to invest in dollars at this time and maintain an offshore account. 

How to buy BDR on Facebook?

The acquisition of BDR from Facebook requires the investor to follow a few steps. The first is to open an account with a broker of your choice.

You can choose according to the rates charged by each company. These amounts can vary according to the broker, being charged in a fixed way, in real or as a percentage of each transaction. 

There are also brokers who do not make this type of collection, so it is worth analysing each case. 

The next step is to send the amount you wish to invest to the broker. This can be done by bank transfer. From your account at a financial institution to the broker’s account.

In general, banks charge for this transaction. Check the amount charged so you are not caught off guard at the time of purchase. 

This is because if the bank charges between £15 and £20 to make the transfer and the broker charges a fee to make the BDR purchase, you will have to send more than the necessary amount. For example, is the goal to buy £5,000 in BDR? Then the shipment must be higher than this amount. 

Otherwise, by the time the money falls into your brokerage account, you will have less than the amount sent. 

Finally, access the online trading system (local broker) or contact the broker’s trading desk to report the quantity or value in BDR you wish to purchase. 

Do you want to save on money transfers to your broker? Use online sending. Send your money quickly and pay lower fees than banks charge.

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