Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading 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.

How esports stocks took over the virtual world

Esports stocks: a huge screen at an esports tournament.

Esports, or electronic sports, is where players compete in sports or competitions through video games. Following a huge rise in both popularity and industry revenue in the 2010s, investing in esports companies and trading on esports stocks has become increasingly popular.

The rise and rise of esports stocks

This world of competitive, multiplayer video gaming has its origins in amateur organised competitions. Esports recognition began in Asia, with South Korea first licensing professional gamers in 2000. In the 2010s, esports became an extremely important sector of the video gaming industry, as online streaming platforms such as Twitch (now owned by Amazon) and YouTube grew. By the late 2010s, esports had an audience of millions all around the world.

With professional sports leagues and teams collaborating with video game companies, esports fandom has grown increasingly along with its reputation and industry investment. As its popularity and viewership greatly increases, traditional sports leagues have taken an interest. The National Basketball Association (NBA) has collaborated with video game holding company Take-Two Interactive Software and created the first esports league to be managed by a professional sports league, while Major League Soccer (MLS) followed suit in 2018 by joining forces with EA Sports and establishing eMLS.

It’s not just teams, but athletes who are getting involved. Basketball legend Michael Jordan invested over $20m in franchise aXiomatic Gaming, which owns the popular esports organisation, Team Liquid, while NBA superstars Steph Curry and Andre Iguodala teamed up off the court to invest in esports organisation TSM, who compete at a professional level in League of Legends and Fortnite. NFL Hall of Fame legend, Steve Young, was also involved with investing in TSM, and NFL wide receiver, Odell Beckham Jr., together with basketballer Kevin Durant, made significant investments in Vision Esports.

How to trade on esports with CMC Markets

Using our Next Generation trading platform, you can choose an alternative method by trading on the underlying price movements of stocks with spread bets and CFDs. This allows you to trade on margin, which means that you only need to place a fraction of the full trade amount, giving you exposure to the share market. It is important that you understand the risks of this process, so read more about leveraged trading. You can start trading on esports stocks by opening an account.

Top esports stocks to watch in 2021

The shares listed below are some of the top esports stocks based on market capitalisation and overall stock value. All of the following instruments can be traded on our Next Generation trading platform through spread betting, which is a tax-efficient** way of speculating on the price movement of the underlying assets, and CFDs, which allow traders to buy or sell a number of units for an instrument, with the difference in price being exchanged at the end of the contract. Open an account to start trading on the below stocks.

  • Electronic Arts (EA)
  • Activision Blizzard (ATVI)
  • Take-Two Interactive (TTWO)
  • Tencent Holdings (TCEHY)
  • Huya (HUYA)

For more information, see our full esports stocks article.

**Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.