1. Rio Tinto Limited (LON:RIO)

Based in the heart of the UK, Rio Tinto Limited is a global powerhouse in various metals, but is particularly renowned for its focus on copper, consistently ranking among the top 150 companies worldwide.

The latest financial report showed a staggering 72% increase in revenue from 2020 to 2021, along with a record-breaking profit of $21.4 billion. As a company with a long history, Rio Tinto Limited has the capacity to return a significant portion of these earnings to investors in the form of dividends. Despite recent price increases, the stock still boasts a dividend yield of 10.56%.

From a technical analysis perspective, the stock's May 2021 high is currently acting as a resistance level. If buying pressure continues to drive the price above this level, the stock could reach historic highs, offering ample room for further upside momentum.

The stock maintains an average broker rating of "hold," reflecting the cyclical nature of the copper market, which cannot guarantee sustained performance. However, for anyone looking for exposure to the industry and potential significant returns, Rio Tinto remains an attractive choice.

2. Southern Copper Corporation (NYSE:SCCO)

Operating within the copper supply chain, Southern Copper Corporation's exploration and mining division is complemented by refining, smelting, and processing facilities, diversifying its revenue streams. It also has a solid foothold in assisting copper producers in developing the burgeoning renewable energy industry. Southern Copper Corporation has divisions that refine copper concentrates into anode copper, which is then further refined into copper cathodes.

Headquartered in Arizona, the company holds reserves in the United States but relies heavily on its operations in Peru, Mexico, Argentina, Chile, and Ecuador. Potential global logistics issues stemming from the heightened political tensions since early 2022 could pose a challenge for the company, but investors continue to buy the stock, thanks to strong copper prices.

3. Freeport-McMoRan Inc. (NYSE: FCX)

Freeport-McMoRan is a pure-play copper mining company, offering stock tools to track metal prices. The company's operations are significantly based in North America.

Electric vehicle manufacturers like Tesla and other renewable energy companies require stable metal supplies for their products, a demand that FCX meets. Unlike Rio Tinto and SCCO, FCX has surpassed its previous stock high from May 2021. This bullish signal is primarily driven by the strong performance of metal prices.

How to Buy Copper and Copper Mining Stocks

Commodity prices can be highly volatile, but despite the risks of price fluctuations, you can ensure that the broker you use to manage your account is trustworthy.

1. Choose a Broker

Interest in the mining industry has led to more excellent brokers offering copper mining stocks, increasing competition to the benefit of clients. Different trading platforms compete on pricing, additional services provided, and the number of markets available. Finding the right broker primarily depends on personal preferences, so trying out different brokers with a demo account might be a good idea. However, the foremost principle is to ensure that your broker is trustworthy.

Financial regulators establish oversight teams to monitor financial markets to protect retail traders. They issue licenses to companies that meet specific standards, and brokers approved by primary regulatory bodies, such as those listed below, are worth considering.

Primary US Regulatory Bodies:

- Securities and Exchange Commission (SEC)
- Commodity Futures Trading Commission (CFTC)
- National Futures Association (NFA)

Primary International Regulatory Bodies:

- Financial Conduct Authority (FCA)
- Australian Securities and Investments Commission (ASIC)
- Cyprus Securities and Exchange Commission (CySEC)

The regulatory protections applicable to your account depend on where you reside, so checking the terms of service is crucial. However, to obtain any regulatory license, brokers need to pass a series of tests, such as demonstrating that they segregate client funds from their own and have enough capital to sustain business viability.

2. Open and Fund Your Account

Registering an account is a fully online process that takes only a few minutes. Regulated brokers need to obtain KYC information to ensure compliance with client protection rules, and you, and only you, should have access to your account and the funds used for trading.

User-friendly features ensure that funding your account is also a straightforward process. The simplest and fastest way is to use debit and credit cards. Bank transfers typically take a few days to complete, but electronic payment services are another option.

3. Place Orders and Set Position Sizes

Once your account is set up and funds transferred, it's time to find the copper mining stocks you've researched and purchase them. You can do this by using the "search" function or filtering by industry.

Each copper mining stock's dashboard will include price charts, market news updates, and reports on company fundamentals. Purchasing stocks simply involves entering the quantity you want to buy into the corresponding data field and then clicking or tapping "place order." At this point, a portion of cash in your account will be converted into a stock position.

Limit orders can help you enter a position gradually at the best price. Simply set the quantity of shares you want to buy and the price level, and if the market trades at that price level, your order should be executed.

4. Set Stop Losses and Take Profits

Other order types to consider include stop-loss and take-profit orders. These orders are designed to aid risk management and allow you to instruct your broker to automatically close part or all of your position when the price reaches a certain level.

Stop-loss orders come into play when your trade starts to lose. They trim your position before losses become too large. Take profits, on the other hand, lock in gains. Some investors employing a buy-and-hold strategy choose not to use these order types as they can lock in positions that eventually profit and limit upside potential. Other risk management techniques include investing in a variety of stocks for portfolio diversification and trading in smaller sizes to ease pressure.

5. Execute Your Purchase

After building your order and clicking or tapping "place order," the value of the copper mining stocks you hold will fluctuate with real-time market prices. You'll be able to monitor your profits and losses (P&L) by accessing the portfolio section of the platform.

All of this can be done using either desktop or handheld devices, but regardless of how you access your account, the critical point after trading is to ensure that your orders are consistent with what you intended to buy. Online platforms are reliable enough, but human errors can occur, so it's best to correct them before market prices deviate too far from your entry point.