How to invest in 3M from Australia

Recommended Broker πŸ‡¦πŸ‡Ί
⭐⭐⭐⭐⭐
πŸ‘ŒDifficulty Low
☒️Commissions Zero
πŸ’²Minimum deposit 200$
πŸͺ™Instruments: Stocks like 3M, crypto, forex, commodities
βš–οΈRegulated by: Cyprus Securities and Exchange Commission (CySec), United Kingdom's Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
🌐 Official website: www.etoro.com *
* Your capital is at risk.

How to buy

If you live in Australia, a great way to invest in 3M shares is, without any doubt, this popular broker.

eToro*, one of the main brokers around the world, is registered and licensed, among others, by the United Kingdom's Financial Conduct Authority (FCA).

We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in your language, accepts users from Australia, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.

How to sign up, step by step

The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.

Now check your email: you should have received an email from eToro, click on the link and your account will be verified.

Once on eToro, you just have to click on “Deposit funds”, in the page menu.

There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:

As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.

If you have a choice, we do not recommend bank transfer because it takes longer, and it can be very frustrating to see the price of 3M rising while you wait for your transfer to be done.

How to make your first purchase

When eToro has confirmed the receipt of your credit, you just have to search for “3M” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.

*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Should I invest in 3M?

Minnesota Mining and Manufacturing Company, better known as 3M, is one of the most diversified companies in terms of products. To the point that, according to their own website, they have more than 100,000 product patents that they can provide to customers.

It was founded in Minnesota in 1902 as a small mining company, as can be inferred from its name. However, since the company did not achieve the expected success, they decided to move from mining to producing the abrasives that the industry needed.

And from then on, the company followed a path in which, as they define it, they never stopped inventing products and innovating. So, following this path, they went from inventing the first tough sandpaper in 1920 to iconic products such as the Scotch-Brite sponge.

Their product portfolio is truly immense and they are all dedicated to niche markets, devising a solution for every problem. However, these can be categorized into abrasives, adhesive tapes, safety equipment, household products, window films and oddly enough, healthcare equipment.

3M as an investment

About this company we can find information on the official website registered since 1920, which tells us that this company has a long history on the New York Stock Exchange. Which in turn reflects the growth and expansion of 3M as a company.

As it grew from a small company in a small town in Minnesota to a presence in 100 countries and more than 88,000 employees worldwide, its stock market share went from a rock bottom price to the value it is at today.

3M's historical performance is something that any company would like to have and, of course, any investor would like to achieve. The best part is that 3M stock not only has a great performance year after year, but it also pays dividends quarterly to its investors.

Dividends are the portion of a company's earnings that are distributed to shareholders, so a company that pays dividends is a company that generates profits. And 3M's dividends are particularly high, even more so when you consider its share price.

For the past several years, 3M has been paying annual dividends to its shareholders in the range of $5 to $6 per share. This makes it one of investors' favorite dividend stocks.

What are Contracts for Difference?

If you have entered eToro before, you must have noticed that the initials CFD appear frequently. Before we come back to this, we must say that CFDs on eToro are only possible if you are short-selling.

We will also refer to concepts like leverage and “going short”, in case you are considering day trading cryptocurrency or other more advanced practices.

The good thing about eToro is that it lets you bet both “in the black” and “in negative”. For instance, you believe that the 3M will go down, so perhaps you think that it is better to wait until it does and then go in. Nevertheless, if it actually falls, you can earn some money out of that.

You can do that by “going short”. Here's how it works:

  • You obtain from a loan 100 units of 3M, valued at a total of $ 5,000 (these are completely imaginary numbers)
  • You make $ 5,000 by selling the 100 units
  • The 3M goes from $ 50 to $ 30 (as you presumed, the price decreases)
  • You buy the 100 units again, but at their current price, $ 3,000
  • Now you return the 100 units
  • There: the $ 2000 difference is yours

It all seems more complicated than it really is. Just bear in mind that by trading in 3M on eToro, you can make a profit if you foretell downs in the price.

Assets you can trade in eToro

Besides stocks, there are way more financial instruments available in eToro.

Exchange-Traded Funds

ETFs or Exchange-Traded Funds are similar to index funds. We can say that ETFs are halfway between stocks and funds: they are publicly traded and therefore can be bought and sold at any moment at market price. But their main benefit is that they are more diversified compared to stocks, and their commissions are much lower than those of an actively managed fund.

About Index Funds

If a long-term investment sounds like something you would do, and you won't need to take back your money in five years or maybe a decade, index funds can be the best choice. This type of investment is also great for beginners since it is more secure.

You may think differently, but beating the benchmark is far from being a piece of cake and very few fund managers have done it, apart from some famous cases, like Warren Buffett's.

If a fund manager brags about having beaten the index, they probably did it for a short time or on a specific occasion, or perhaps the fees are so high that indexing would be a better decision (with minimal commissions).

The good thing about index funds is that they solve these two issues: their rates are insignificant and in the long term they almost always beat active managers.

Commodities or raw materials

The major advantage of trading with commodities is that prices are more stable than those of other assets. In fact, their intrinsic stability is what makes most people trade with commodities when facing market volatility or inflation. Nonetheless, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.

Note that, unlike stocks, commodities don't pay dividends. Thus, the only prospective income would come from a sale of the asset.

There are two main kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; and the latter are agricultural resources, like cocoa, soybeans, rice, or sugar, among many others.

Forex trading

Forex or currency trading allows obtaining profits by exchanging one currency for another.

If you decide to exchange the EUR/USD pair, you speculate how many dollars it will take to buy a euro, with the expectation that after buying the first currency (the euro) it will raise its price compared to the second (the dollar), to make a profit by selling it. Let's say you entered when a euro is worth 1.10 USD and you close when the price has gone up to 1.15: that margin is yours once you make the operation.

You may be thinking that this form of trading requires high investments, and you're right, because variations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is risky and complex.

You can trade with almost every currency on eToro. Nevertheless, consider that this market functions through CFDs, so you will not own the real asset.

Payment methods on eToro

Among the payment options accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. Making a deposit on eToro is so simple: go to “Deposit funds”, set an amount and select the payment method you prefer.

Evidently, for security policies, you should be the holder of the account or the credit card.

The minimum you can deposit is $ 200 and there is a limited amount if you are not verified, so if you want to trade with larger sums, contact Support previously to verify your account.

The platform accepts transfers in any currency, but you will have to pay a fee for the conversion to USD. That is why we recommend, if it is in your hands, using USD directly.

Trading strategies

There are different methods or ways for crypto trading, like day trading or buying and holding, for naming just a few.

My suggestion for those who are beginning to invest is going halfway between the two options: placing a dynamic stop-loss (15-20% under the highest price) when you open your 3M trade and wait for it to work its magic.

This means that if, for instance, you acquire a cryptocurrency at $ 10, it reaches $ 20 and then decreases to $ 12, your position will be closed at $ 16-17 and you will have earned a considerable profit.

I know it might sound more appealing to sell when the price is at its highest, right before corrections, but unless you're a fortuneteller, that's impossible. The above strategy is much more down-to-earth and it can give great results.

Eventually, you will be prepared for using more advanced investment strategies, like short-selling or using leverage.

Virtual portfolio

For those who still don't have much experience in investing, a demo account can be very helpful. Just assure yourself that the virtual mode is set and you can start trading with fictional funds.

This is a great tool for those who are new to this world and want to give it a few tries before trading with real funds. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do your operations, not only with 3M, but you can also work with a diverse portfolio with all the different instrument ​​that are available on eToro.

If your first attempts don't go as planned and you lose your funds, you can always ask eToro support to replenish $ 100k of virtual balance. You'll probably do better on the second attempt.

Nevertheless, remember that you need to be prudent for trading, and using a practice account can have an adverse effect. It is not the same to risk your own money than to operate with a false balance which loss does not suppose any drama.

Evidently, if you intend to invest in the medium or long-term, with earnings almost guaranteed just by duplicating an index, it doesn't make sense that you invest in the virtual mode and wait for years. On the contrary, short or medium-term operations are ideal to try out with the demo mode.

Frequently asked questions

How much is the minimum deposit?
Only 200$.

When will I be able to take out my funds?
Whenever you want. Simply end your 3M position, click on “Withdraw Funds” and you will the money very soon.

What deposit methods are accepted?
Available payment methods are: Bank Transfer, Credit Card, PayPal, Neteller, Rapid Transfer, Skrill and Klarna / Sofort Banking.

* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.