Reddit IPO: how to buy Reddit shares
You can get exposure to Reddit’s shares with us today. Find out how with the world’s No.1 trading provider.1
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
Why trade Reddit shares with us?
Buy Reddit shares on the day of the IPO
Buy and own Reddit shares on the day of the listing
Invest in Reddit from £0
Buy Reddit stock for £0 if you've traded 3+ times in the previous month. Otherwise £10 commission
Trade on the Reddit share price
You can also trade on Reddit using spread bets or CFDs with us
Share dealing
Reddit stock is now available to buy on our platform. Just search for 'Reddit Inc'. You can buy Reddit shares from zero commission with us if you've traded 3+ times in the previous month. Our standard rate is £10.
Learn more about share dealing with us.
Trade on the Reddit share price
You can also trade on the Reddit share price using derivatives. You can choose to use either CFDs or spread bets to speculate on stock price movements.
What you need to know about the Reddit IPO
Our analysis on the Reddit IPO
By Angeline Ong and Axel Rudolph
Reddit is aiming for a valuation of some £6.5 billion when it lists on 21 March 2024.
Reddit already has tens of millions of users. The company has never made a profit, but sales grew 20% in the last year, showing Reddit can attract advertisers.
The IPO, in New York, is four to five times oversubscribed. This means the social media platform might well hit its valuation target, and share price target of around $31 to $34.
That doesn't mean the stock will continue to rise, but the fact it's highly oversubscribed at its IPO bodes well for the short-term.
Reddit relies heavily on search engines like Alphabet's Google for customer acquisition, and volunteers around the world to moderate its content.
This means regulators will be watching Reddit more closely, especially when it's a public company.
The difference between trading and investing in the Reddit IPO
Trading Reddit shares with us means that you’ll be speculating on the price movements of the company’s shares with spread bets or CFDs. Since you won’t own the underlying assets, you can speculate on both rising and falling share prices.
Spread bets and CFDs are leveraged products, which means that you can open a position with a deposit – known as margin. Trading with leverage can increase both your profits and your losses, because they’re calculated using a position’s full market exposure, not just the margin requirement to open it.
Learn more about the impact of leverage on your trading
Investing in shares works differently. Leverage isn’t available, so you’ll need to provide the full cost of the position upfront. This’ll give you direct ownership of the shares, and you’ll earn a profit if the share price rises above the price at which you opened your investment.
You’ll also receive shareholder rights, like voting privileges if the company grants them. Plus, you’ll be eligible to receive dividends according to how many shares in the company you own.
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*Demo accounts are only available for spread betting and CFD trading.
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*Demo accounts are only available for spread betting and CFD trading.
Open a share trading account in minutes
Open a share trading account in minutes
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
With 50 years of experience, we’re proud to offer a truly market-leading service
How do IPOs work?
IPOs work by having a company put its shares up for sale to the public. Some common reasons for this include seeking to raise capital for business growth, decreasing or settling debts, positioning itself to better attract and retain talent, or increasing liquidity.
The IPO process starts off with a detailed audit of the company by an external resource – it must be conducted taking all the company’s financials into consideration. Next, a registration statement needs to be prepared by the business and filed with the appropriate exchange commission. If the commission grants approval, the company can then list a set number of shares at a price determined by an investment bank.
Explore what IPOs are or find out how to trade pre- and post-listing
FAQs
What are the risks of trading an IPO?
All trading activity is risky – IPOs come with additional risks, including:
- Missing important company information that might impact share prices, eg pending legal cases and intellectual property that is not patented
- Little to no trading track record to base decisions on
- Elevated market expectations that do not materialise
- Companies not meeting their target market cap
- Before committing to any trade, it is important that you have all the facts that you need. In the case of trading IPOs, you can use company prospectuses, admission documents and other information to stay up-to-date. By staying informed, you can avoid risks that could affect your position in a trade.
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1 Based on revenue (published financial statements, 2023).
2 We do not offer grey markets on all IPOs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP 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. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
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