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How to trade or invest in water
Discover how to trade or invest in water with us, Australia’s No.1 CFD/FX trading provider.1
Start trading today. For account opening enquiries call 1800 601 799 between 9am and 6pm (AEDT) weekdays or email newaccounts.au@ig.com.
Ready to starting trading or investing in water? Follow these steps:
1. Choose whether to trade or invest
Learn about the differences between CFDs and share trading.
2. Identify a share or ETF through your own analysis
Carry out your own technical and fundamental analysis to identify a share or ETF that you’d like to take a position on.
3. Open an account and place your trade or investment
Open a trading account to speculate with CFDs, or open a share trading account to take direct ownership.
If you’d like to learn more before you start trading or investing in water, here’s our full guide:
5 steps to trading or investing in water
Learn about the water industry
The water industry is concerned with the supply of water to both residential and industrial properties. This includes the supply of drinking water, waste water, sewage works and water distribution systems. In many respects, water is part of the utilities industry – and access to water is regarded as a basic human right.
That said, water is currently facing a different set of challenges to the rest of the utilities industry. That’s because it’s in high demand due to the inherent nature of human life, but there are growing concerns about a supposedly increasing scarcity of clean, readily usable water. This is especially true with a growing global population, and the water industry will face ever-increasing pressure in the coming years to ensure that peoples’ daily water needs are met.
Discover why people trade or invest in water
Water trading and investing is how people are looking to capitalise on the increasing uncertainty surrounding the water industry and the future of water security. The idea behind trading or investing in water is that access to a commodity that’s so essential for life on Earth might become harder to obtain in the coming years.
Let’s put this into perspective with an example. China is set to have a 25% annual water deficit by 2030. This is one supposed reason for the country’s occupation of the Tibetan plateau – the glacial meltwater from which feeds the Yellow and Yangtze rivers in China, as well as the Brahmaputra and Indus in India. Control of the plateau secures a greater certainty of a steady water supply.
Water is one of several thematic opportunities that’ve gained popularity in recent years – and people are interested to see exactly what this industry has in store. Other thematic investing opportunities include 5G, electric vehicles and artificial intelligence.
- Shares
- ETFs
| Trading | Investing |
| Speculate on share prices rising or falling with CFDs. | Buy the stocks outright and benefit from any upward movement in their price. |
| Trading | Investing |
| Speculate on ETF prices rising or falling with CFDs. | Buy shares in an ETF outright and benefit from any upward movement in the ETF’s price. |
- Water shares live market prices
- Water ETFs live market prices
Prices above are subject to our website terms and conditions. Prices are indicative only. All shares prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and conditions. Prices are indicative only. All shares prices are delayed by at least 15 minutes.
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Choose whether to trade or invest in water
| Trading | Investing | |
| Markets | Water shares and ETFs | Water shares and ETFs |
| Method | Trading derivatives like CFDs | Investing with a share trading account |
| Time frame | Short to medium term | Medium to long term |
| Initial capital required | Deposit (margin) | Full value of investment |
| Returns | Profit from long and short positions | From capital appreciation and dividends |
| Commission charges | Commission on share CFDs, margin rate varies. | Buy and sell shares and ETFs from zero commission for US and UK shares (0.7% FX fee applies)2 and from $5 commission for AU shares3 |
| Risk | Leverage can magnify both your profits and losses as they’ll be based on the full exposure of the trade, not just the margin required to open it. This means losses as well as profits could far outweigh your margin, so always ensure you’re trading within your means. | Limited to the initial outlay |
| Style | Day trading, swing trading, trend trading and position trading | Passive and active investing |
Trading vs investing in water
Trading and investing are similar terms that are sometimes used interchangeably – but there are some important differences between them.
‘Trading’ means that you’re speculating on the price of something rising (going long) or falling (going short) using derivatives like CFDs. These are leveraged products, which means they enable you to get full market exposure for an initial deposit – known as margin. But, it’s worth mentioning that leverage can increase both your profits and your losses.
‘Investing’ means that you’re taking direct ownership of water company shares or shares in water ETFs to benefit from prices rising. Leverage isn’t available for investments, so you’ll need to commit the full cost of the position upfront. But, this also caps your maximum risk at this initial outlay.
Identify an opportunity through your own analysis
Competent analysis can be the difference between making a profit or incurring a loss. It’s important that you do both fundamental and technical analysis before you open a position on a water stock or ETF.
- Technical analysis looks at chart patterns, technical indicators and historical price action
- Fundamental analysis is based on the fundamentals of a company, including its net revenue and profit and loss statement
Interested in analysis? Find out more at IG Academy
Pick your platform and place your water trade or investment
Our award-winning trading platform is available on desktop or our mobile app.4 You’ll get in-platform news and analysis from our team of experts, as well as Reuters newsfeeds, plus you’ll receive access to a range of technical indicators to help in your chart analysis.
Step-by-step guide to making a water stocks or ETFs trade
Here’s a screenshot of our trading platform and five steps to show you how to open a water position using CFDs.
- Search for and select your opportunity
- Choose ‘buy’ to go long or ‘sell’ to go short
- Put in your position size
- Set your stops or limits to help manage your risk
- Place your deal and monitor your position
Step-by-step guide to making a water stocks or ETFs investment
Here’s a screenshot of our investment platform, with some steps that take you through how to open a water investment in stocks or ETFs.
- Search for and select your opportunity
- Choose ‘buy’ to open your investment
- Put in your position size
- Set your order type
- Place your deal and monitor your position
If you’re not ready to take a position on the live markets yet, we’ve also got free educational courses at IG Academy to help you get the most out of your time on the markets. If you’re not ready to trade with a live account, maybe you’ll want to try our demo – which gives you $20,000 in virtual funds to help build your confidence.
1 Number 1 in Australia by primary relationships, CFDs & FX, Investment Trends November 2024 Leveraged Trading Report..
2 Note for multi-currency accounts: These figures apply to clients who opt for the default setting of 'instant currency conversion'. Clients who choose to convert currencies manually will pay commission of 2 cents per share with a minimum charge of $10 on US stocks and, for European markets, we charge £10 / €10 per trade or 0.1%, whichever is higher. Other fees and charges may apply.
3 If Australian-listed, there is a standard rate of A$5 per trade or 0.05% for trades above A$10,000. Other fees and charges may apply. Please visit our Share Trading charges and fees webpages for the full list of fees.
4
Best Finance App, Best Multi-Platform Provider and Best Platform for the Active Trader as awarded at the ADVFN International Financial Awards 2024.
Contact
New clients
1800 601 799
newaccounts.au@ig.com
Existing clients
1800 601 799
newaccounts.au@ig.com
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Disclaimers
- CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any interest in the underlying asset. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Please consider the Margin Trading Product Disclosure Statement (PDS), Risk Disclosure Notice and Target Market Determination before entering into any CFD transaction with us.
- The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
- Please ensure you fully understand the risks and take care to manage your exposure.
- The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs.
- This website is operated by IG Australia Pty Ltd. IG Australia Pty Ltd is located on Level 32, Queen & Collins, 376-390 Collins Street, Melbourne, VIC 3000. ABN 93 096 585 410, Australian Financial Services Licence No. 515106. Derivatives Issuer Licence in New Zealand FSP No. 684191, NZBN 9429047618251.