How to Buy Ford (FORD) Stock

Invest in Ford stock today with Interactive Brokers as your trusted online brokerage.

You might already know that one of the best ways to invest is via the stock market. You probably also know that the Ford Motor Company makes up a large, important part of American history. (After all, Henry Ford was the first major industrialist to enact 8-hour workdays and ushered in the age of mass production.) 

Think Ford might be a perfect fit for your portfolio? We’ll explain how to buy Ford stock in our step-by-step guide.

How to Purchase Ford Stock

Purchasing Ford stock requires a little bit of research before you get going. First, choose a reliable broker to buy and sell shares. The most important characteristic of a reliable stock trading broker is the financial regulatory rules it conforms to. Check on fees, reviews of the platform, accessibility and devices for trading, research offerings and ease of use.

Three of the biggest online stock trading brokers are Ally, E*TRADE and Schwab. These U.S-based brokers conform to all U.S. regulatory requirements. Another indication of high reliability and strong company goals is the fact that all 3 brokers are listed and publicly traded on a stock exchange.

Step 1: Choose a Brokerage

Decide which qualities you want in a broker. Looking for low fees? High-quality market research? Platform diversification? Do in-depth research so you know which broker offers exactly what you want and need. That way, you can choose the broker that works best for you. 

Step 2: Open a Trading Account

Go to the official website of the brokerage agency you’ve chosen and click on the “Open an Account” button. Next, choose your preferred account type, and this part will require some personal information, like your full name and address. Some brokers will ask you to prove how much money you have in order to make sure you aren’t risking money you can't afford to lose.

You’ll need to confirm your email by clicking on a link in a message you’ll be able to find in your inbox. You’ll need to confirm your account by sending an identification document to prevent financial fraud.

Step 3: Deposit Funds in Your Account

Next, go to your broker’s website and deposit funds. You’ll be able to choose from various payment methods to complete the transaction. Remember, don't deposit and trade with funds you cannot afford to lose. 

Step 4: Access Your Trading Platform

Navigate to the platform from your browser and log in with the account information provided by your broker. 

You’ll need to download an installation file from the website of the broker if you prefer to use the desktop version of the platform. Launch that file and go through a standard installation process, which will create a .exe file on your desktop. Launch the trading platform and log in with your account information. 

Download the mobile trading app of the broker, launch the app and log in with your account information. 

Step 5: Buy Ford Stock

Open the market watch of your trading platform and look for Ford, Ford Motor Company or F,  which is Ford’s stock symbol. Double click it when you find it and this will open a trading box.

Choose how many shares you want to buy. Make sure you follow risk management rules. Never invest all your money in a single trade and never risk more than 1% to 2% per trade. You can control your risk with a stop-loss order, which limits any potential losses. 

Finally, apply it to the fields in the trading box and implement the trade. 

Best Online Brokers

Ready to buy ford stock? Take a look at our curated list of top brokers below.

A Brief History of Ford

Ford Motor Company (NYSE:F) is a multinational corporation founded in 1903 by Henry Ford. The company is headquartered in Detroit, Michigan, and over the years, expanded to include Lincoln, Jaguar, Volvo, Land Rover, Aston Martin and Mercury. 

• Although Ford Motor Company only owns Ford and Lincoln now, it still has some of the highest sales in the United States and is on par with General Motors (NYSE:GM) and Fiat Chrysler (NYSE:FCAU). 
• Ford turned into a penny stock during 2008’s financial crisis. Inch by inch, Ford turned it around and by 2015, had record profits. 
• Ford’s leadership in the hybrid vehicle market has enhanced its future possibilities. Ford expanded its mobility unit in 2018 by purchasing 2 transportation software companies, Automatic and TransLoc.
• Even so, the F-150 is the best-selling vehicle in America (and has been for almost 40 years.)
• After discussions with the heads of General Motors and Fiat Chrysler in March of 2020, Ford agreed with the Detroit Auto Workers union to partially shut down its factories on a rotating basis due to the COVID-19 pandemic. The company then reported a loss of $2 billion in the first quarter of 2020 on a 15% drop in sales. 
• The stock came back after the shutdowns to reach a 52-week high of $13.62 and report 2020 revenues of $127.14 billion and a gross profit of $6.12 billion. 

Price chart of Ford Motor Company stock. Source: TradingView. 

Pros and Cons of Ford Stock

Ford is one of the most intriguing financial assets in the automotive industry, and here, we’ve listed both the pros and cons of owning Ford Motor Company stock.

Pros 

• Strong brand recognition and legacy: Ford is one of the oldest and most recognized automobile manufacturers in the world, established in 1903. The company's strong brand loyalty can be a significant asset, as evidenced by the fact that Ford has a more than 30% market share in the American pickup truck segment alone. This brand power enables a stable revenue stream, making it a potentially solid investment.
• Investment in electric vehicles (EVs): Ford has committed over $22 billion towards electric vehicle development by 2025, aiming to capitalize on the growing EV market. According to forecasts, global electric vehicle sales are expected to increase from 2 million units in 2020 to 26 million by 2030. This shift positions Ford to benefit from future industry trends, potentially leading to significant stock price appreciation.
• Strong dividend payments: As of 2023, Ford has been known for offering dividends, with a current yield of around 4%. This means that if investors buy $10,000 worth of Ford stock, they could earn roughly $400 annually. Consistent dividend payments can provide a source of passive income, offering financial security to investors.

Cons 

• Economic sensitivity: The automotive industry is highly susceptible to economic downturns. For example, during the 2008 financial crisis, Ford experienced a massive decline in revenue, leading to a significant dip in stock prices. If a recession were to occur, it could lead to reduced consumer spending on vehicles, negatively impacting Ford's profitability.
• Intense competition in the automotive sector: The automobile market is facing fierce competition, especially from new entrants in the EV sector, like Tesla, and established competitors like GM and Toyota. The fact that Tesla delivered over 930,000 electric vehicles in 2021 alone shows the intense competition Ford faces. If Ford cannot keep up with technological advancements and consumer preferences, it risks losing market share, which could adversely affect its stock performance.
• Supply chain challenges: The automotive industry is currently grappling with supply chain disruptions, particularly regarding semiconductor chips. This shortage has significantly impacted production levels for many automakers, including Ford, which announced delays in vehicle deliveries. Such supply chain issues could hamper Ford’s ability to meet consumer demand and subsequently impact stock performance.

Is Ford Stock the Best Option for You?

Ford is one of the pioneers in the automobile industry and it’s no wonder investors have always been drawn to it. If you want to diversify your portfolio by holding shares from the automotive market, Ford may be a good choice for you. 

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