What Is American Express (AXP)?
BY TIO Staff|November 1, 2021
Trade a multinational financial services corporation
American Express (AMEX) is a financial services firm whose primary product is credit cards and related services. The company operates in more than 100 countries and has fostered strategic partnerships with large third-party card issuers such as Wells Fargo, Bank of America and HSBC.
In addition to payment card services, AMEX offers additional financial services including travel-related perks and memberships, merchant acquisition and fee/transaction services.
The company makes frequent appearances in some of the world’s eminent “top brand” lists, and in 2020 was ranked 9th most powerful brand by Tenet. In 2021, it was ranked 20th by Forbes in its annual survey of “World’s Most Admired Companies”.
It is the world’s 4th-largest card network based on cards in circulation on purchase volume, with around 114 million customers.
American Express History
The company was founded in 1850 as an express mail delivery service out of Buffalo, New York. Two of its original founders, Henry Wells and William Fargo, also went on to create the US bank Wells Fargo.
The company began offering money-order services in 1857. In 1988, the company introduced and invented the traveller’s cheque, after Fargo returned from a trip to Europe where he had found it impossible to obtain cash. The traveller’s cheque quickly transformed the company into a global business. It was the first company in the world to issue embossed plastic cards in 1959.
Where Does American Express Operate?
American Express is headquartered in Manhattan, New York City and has operations in more than 100 countries. In the American continents, AMEX holds major offices in the US, Brazil, Argentina and Mexico. In the Asia-Pacific region, it maintains a local presence in Hong Kong, Shanghai, Sydney, Tokyo and Mumbai. In Europe, it is present in London, Rome, Stockholm and across the continent.
American Express Recent Performance
AMEX blew away estimates when it reported earnings for Q3 2021, while quarterly updates from the company have delighted investors during the pandemic and beyond. American Express is also one of the favourite stocks of Warren Buffet, ranking third in Berkshire Hathaway equity positions. The company has traditionally attracted high-net-worth individuals, and more recently has turned its attention to younger customers who the company sees as future users of its products for the coming decades.
In Q3 of 2021, AMEX reported that millennial and Gen-Z billed business skyrocketed by more than 48% year on year. This segment of its customer base is drawn by its travel perks, experiences, exclusive events, and recent focus on benefits for streaming and food delivery.
How Can I Trade American Express (AXP)?
American Express is a tradable asset under the ticker AXP on TIOmarkets MT4 or MT5. Like all other assets listed on our platforms, you can choose to long or short on AXP.
You can also trade the Dow 30 index (DOW), which includes AXP as a constituent company.
What are the best trading conditions for American Express (AXP)?
As we’ve seen with the recent pandemic, the stock markets can be prone to large swings up or down based on economic turmoil, recovery and economic conditions.
Execution speeds: Slow order execution speeds can lead to a big difference between the price you see when you click to open a trade, and the actual price your order is opened at. This difference between prices is called “slippage”.
At TIOmarkets, we have some of the fastest execution speeds you can find, resulting in minimal slippage and more orders filled at the price you clicked.
Leverage: Normally, a large amount of starting capital is required to invest seriously in stocks and indices, because only a small amount of stocks is not likely to yield the kind of results most traders are seeking.
High leverage can greatly increase both the risk to your investment and the potential returns.
If you are comfortable with a high level of risk in return for higher potential gains, you may want to seek a leverage ratio that is commensurate with your investment goals.
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & OFAC. The Company holds the right to alter the aforementioned list of countries at its own discretion.
15 Swing Trading Mistakes and Key Lessons
You want to learn how to become a successful swing trader? Then learning from others’ common swing trading mistakes is the first step. So you want to try out swing trading. And you think tha...
Naked Forex Trading ‒ Should You Try a Price Action Trading Strategy?
Naked Forex trading ‒ which is also referred to as price action trading ‒ is a style of trading not often brought up in contemporary trading conversations. It involves buying and selling curr...
Does Day Trading Make Sense? | Can you Succeed as a Day Trader?
There is a bit of speculation on whether day trading makes sense as a strategy. This short-term trading style has its perks but is it feasible to practice for an extended period of time? Can ...
[missing - riskW]