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How to buy
For those who live in Australia, the best way to invest in Apple shares is, definitely, 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.
Then check your email inbox: you have received an email from eToro, click on the button 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 Apple rising while you wait for your transfer to be done.
How to make your first trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Apple” 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.
What does Apple do?
Apple is a technology company whose business model includes the design and manufacture of electronic products, software and online services. It also includes the commercialization of these products, since the company itself owns more than 400 stores worldwide.
Since its founding and the success of Apple II in 1976 until today, Apple went from being a garage company to what it is today: one of the top 5 and largest companies in the technology sector along with Google, Facebook, Microsoft and Amazon. Apple being the first company to reach a market capitalization of more than 1 trillion dollars.
Apple products and innovation
Being Apple a technology company, it has a serious commitment to innovation. That is why year after year we see how Apple creates new products or improves existing lines. Just look at the evolution of the iPhone, iPad or Mac, to which we can add the Apple Watch and Apple TV.
In addition to this and framed in its business internalization model, Apple developed its own processor called Apple M1 which will be used in all its devices, thus eliminating the dependence it had on chips manufactured by Intel.
With the Apple M1, the company has promised that all its devices will make a quantum leap, starting with Macs. Although it is certain that they will then start using their Apple M1 in all other devices.
The secret of Apple's business
In addition to what was exposed in the previous point, much of Apple's success is given by its marketing strategy. This strategy goes from the most basic: creating the need for the product; to the most important: building customer loyalty.
Apple takes the latter to the point that its customers are its best marketing and there is no need to give much explanation about this. After all, we all know an Apple user who recommends and defends to the death all Apple products.
The success of Apple products and the Apple brand is fully reflected in its stock price. This is how Apple's share price went from $ at the time of its IPO, to the prices we have today.
And given the nature of Apple as a company, it is only natural that its share price will continue to rise over time.
eToro, our favorite platform
- User-friendly and simple
- It takes strategies from experienced traders so you can emulate them
- Allows “shorting” or short-selling
- You can trade leveraged
- It is possible to invest in countless of different products
Main site: www.etoro.com *
eToro is the best option to invest in Apple from Australia.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become popular thanks to eToro.
If you are a novice user or do not have much investment experience, eToro is great for you, since it automatizes your investment by repeating strategies from those who have been doing it for years and making profits. And for those skilled investors willing to share their techniques with others, eToro rewards your knowledge with money.
Another advantage is how easy the platform is, which turns out perfect for new users that are just learning all about the trading world.
What are CFDs?
If you already registered on eToro, you probably noticed that the acronym CFD appears frequently. We will come back to it, but you should know first that CFDs on eToro are only possible when you go short or select leverage above x2 (although this is not even available on the platform).
In case you are thinking about day trading cryptocurrency or other trading practices, we will also address terms such as going short and leverage.
With CFDs you can bet on eToro even if you are not “in the black” or having a negative balance. In a hypothetical case: you believe that the Apple will go down, so the logical thing is to think “if it is going to depreciate (go down in price), I simply refrain from getting in and I'll go in when it has gone down”. But if it really falls, it might mean extra money for you.
You can accomplish that by “going short”. More or less, it works like this:
- They lend you, let's say, 100 units of Apple, valued at a total of $ 5,000 (these are completely fictional figures)
- You make $ 5,000 by selling the 100 units
- The Apple devaluates from $ 50 to $ 30
- You purchase all 100 units one more time, but now they are worth $ 3,000
- You give back the 100 units
- The difference is yours, so, you will have earned $ 2000
It is far more simple than it may seem. Just take into account that by trading in Apple on eToro, with CFDs you can earn money when you anticipate downs.
What types of financial assets can you trade in eToro?
We already know about stocks, there are other financial instruments available in this broker.
This is the best option for people who can invest in the long term, mostly for those who are starting to trade, because it is less expensive, diversified, and safer.
Unlike a lot of people think, benchmark returns are very difficult to beat and very few fund managers have done it, apart from some famous cases.
If a fund manager brags about having beaten the benchmark, they probably have done it for a chor period or on a specific occasion, or perhaps the fees are so high that indexing would be a better decision.
With index funds, you don't have to worry about that: although in the long term, they regularly beat active managers, and the commissions are lower than you imagine.
Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for merging the benefits of stocks and mutual funds: they can be exchanged regularly at market price, but have much more diversity and considerably lower fees.
The major attraction of trading with commodities is that prices are more stable than those of other assets. In fact, their stability is what makes people often invest in raw materials, to take refuge from market volatility or inflation. However, the cost of raw materials is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Take into account that, unlike shares, commodities don't pay dividends. So, the only potential further earnings would come from a future sale of the asset.
Raw materials are generally classified into two types: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products like sugar, cocoa, soybeans, among others.
What is known as Forex trading consists in the trading of currencies. Put differently, is the conversion of one currency to another, and the aim is, evidently, to obtain a benefit out of this.
If you decide to exchange euros and dollars, for example, you speculate how many dollars it will take to buy a euro, expecting that the euro will rise compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when their price is 1.20 USD, that margin will be yours.
You may be thinking that this form of trading requires investing considerable amounts, and you're right, because fluctuations are usually minimal, and often you will need to use a lot of leverage (which is an important risk). Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
eToro allows exchanging the most common currency pairs. However, remember that in Forex trading sales are made through CFDs, therefore the underlying asset won't be yours.
When trading cryptocurrencies, there are different possible methods or strategies, such as day trading or buying and holding, for naming just a couple.
My recommendation for those who are beginning to invest is something in the middle: when you open your Apple position, place a stop-loss order 15-20% below the maximum price, and forget about the operation.
Therefore, if for example you buy a cryptocurrency at $ 10, it rises to $ 20, and after that it falls to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will obtain a pretty good profit.
I know it's tempting to look to sell when the cost is at its highest, but unless you're a fortuneteller, that's impossible. The mentioned strategy is much more down-to-earth and it can give great results.
Later on, you will be able to apply more sophisticated strategies, such as going short or using leverage.
How does eToro work?
We mentioned before that one of the best features of eToro is that the platform is very friendly and easy to use. You don't need to read a lot or have previous knowledge to start trading.
If you have used any of the most popular social networks today, like Twitter or Linkedin, you can perfectly use eToro's interface.
We will explain, roughly, the registration process and the different sections that you will find.
You will have to provide some personal data (like full name or address, for instance) when registering.
Before you end up with the sign-up process, you will also have to answer some questions about your previous trade experience.
But don't feel like you are taking an exam. The only intention is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's review the different tabs of the interface.
“Set Price Alerts” allows you to set alarms on the price of certain securities. It is a very useful tool for when you want to purchase an asset which price is decreasing, but it seems to you that it has not finished falling yet.
In “News Feed”, investors interact and share opinions, tips, and other valuable information.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we already mentioned the different financial instruments that are available on eToro:
- Exchange-Traded Funds
- Raw materials
- Index funds
In “People”, you will find eToro users and their historical performance. This is where the term “social trading” makes sense since you can duplicate with just one click the movements of your preferred investors.
You can search for those users that best suit your interests: by average profits, types of assets or risk level, for instance. Just indicate the amount of your investment and eToro itself will be in charge of replicating the movements of the selected investor, in proportion. This means that if you have $ 1000 and the investor puts 10% of his or her balance in an asset, the platform will invest also 10% of your funds (in this case $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
The benefit of copying to CopyPortfolios instead of individuals is that this way the risk will be more diversified. The different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry is going to have success in the future? Then look, because surely there is a CopyPortfolio about it.
Frequently asked questions
* 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.