How to invest in Coca-Cola from Australia

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🪙Instruments: Stocks like Coca-Cola, crypto, forex, commodities
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How to buy

If you live in Australia, a great way to invest in Coca-Cola shares is, definitely, this popular broker.

eToro*, one of the main brokers around the world, is registered and licensed, among others, by the Cyprus Securities and Exchange Commission, and therefore complies with all the regulations of the European Union, the most demanding in the world.

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: you have received an email from eToro, click on “Verify my email” 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.

How to make your first trade

When eToro has confirmed the receipt of your credit, you just have to search for “Coca-Cola” 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 buy Coca-Cola shares?

The Coca-Cola Company is the U.S.-based transnational corporation that produces and markets the Coca-Cola beverage. Although more properly, the original Atlanta-based company produces concentrated syrup which it distributes to bottlers around the world.

Coca-Cola's history

In the year 1886, the pharmacist John Pemberton sought to produce in his laboratory a medicine for stomach problems. It was then that he produced and began to market a drink that combined coca leaves and kola nut at 5 cents per glass.

Soon, Pemberton's drink became a success and his accountant, Frank Robinson, came up with the name Coca-Cola and the logo. In 1891, together with another pharmacist named Asa Candler and his brother, as well as the accountant, The Coca-Cola Company was founded. And two years later, in 1893, the trademark was registered at the Industrial Property Registration Office.

In 1897 Coca-Cola exit the United States for the first time and in 1989 the first agreement was signed to bottle Coca-Cola for the entire North American territory. According to this agreement, The Coca-Cola Company would produce the concentrated syrup and the bottlers would make the beverage and would also be in charge of sales and distribution.

Coca-Cola's business model

We already know that The Coca-Cola Company produces the concentrated syrup that it distributes to bottlers around the world. What we have not mentioned is that the bottlers operate as a franchise system, but with exclusive territories.

Thus, in Latin America there is only Coca-Cola FEMSA and in Western Europe Coca-Cola European Partners. This is just to give an example, since there are other bottling companies that make sure Coca-Cola is present all over the world.

With this simple model, Coca-Cola went from being a beverage in a pharmacy to the largest and best known beverage company in the world. To the point that on average, everyone sees at least three Coca-Cola advertisements every day.

Best of all, Coca-Cola's marketing is always a marvel. Although it also makes use of popular beliefs such as its unknown formula that supposedly only two people in the company know about. Or the fact that it contains coca leaves in its formula.

About this we can say that it is impractical and almost impossible that only two people know the formula in such a big company. Besides, it is known that in 1903 coca leaves were replaced by caffeine, so no, it does not contain coca leaves.

And from all this what can be concluded is that, just as humanity will not stop growing, Coca-Cola will not stop growing either.

Reason for using this broker , for these reasons:

  1. It's uncomplicated and easy to use
  2. It offers other people successful investment strategies so you can emulate them
  3. Accepts “shorting” or short-selling
  4. You can leverage
  5. There are tons of possibilities for investments

Official main site: www.etoro.com *

eToro is the best option today to invest in Coca-Cola from Australia.

“Social trading”, a relatively new way of investing by replicating techniques and moves from other experienced investors, has become trendy because of eToro.

If you are still a rookie or haven't gained much investment experience, eToro is great for you. You can rest assured that you are making a smart investment since the site replicates those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques with the community, eToro pays for it.

It is also worth mentioning how accessible is the platform, perfect for beginners who are starting in the investment world.

Financial assets you can trade in eToro

You already know about stocks, there are other financial assets you can trade with .

What are ETFs?

What do you know about Exchange-traded funds or ETFs? They are passively managed funds, known for combining the benefits of stocks and mutual funds: they can be exchanged at any moment in the market, but have much more diversity and the rates are significantly lower.

Index Funds

This is the best option for people who can invest in the long term, especially for beginners, because it is inexpensive, diversified, and the risk is lower.

Contrary to common perception, very few investors can beat their benchmark return (yes, you have probably heard of investors who obtain huge profits).

But besides Warren Buffett and a couple more, not everything is as good as it sounds: when someone brags about having beaten the market, they have probably done so for a short period, or charges so many commissions that it ends up being better for you to index (whit minimal commissions). Besides, if something happened in the past it doesn't mean necessarily that it will happen again in the future.

Index funds offer solutions for that: they usually beat active managers in the long term, and the rates are lower than you imagine.

Currency market

What is known as Forex trading consists in the exchange of currencies. It is the conversion of one currency to another, and the aim is, evidently, to make a profit out of this.

If you decide to exchange euros and dollars, you speculate how many dollars it will take to buy a euro, expecting that the first currency (the euro) will increase compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you exit when it is worth 1.15: that difference is yours once you sell again.

As you may have deduced, this type of trading usually implies large resources, because prices rarely increase that much, or using much leverage, which is a bit like skating on thin ice. In case you are new to the world of trading, it is not a good idea to begin with the currency market, because it is very risky and intricate.

eToro allows trading with the most usual currency pairs but remember that this market functions through CFDs, therefore you will not be the owner of the underlying asset.

Commodity market

The major benefit of trading with commodities is that their price varies less than that of other assets. Actually, their stability is what makes people often invest in raw materials, to take refuge from possible inflation or market volatility. Nonetheless, the prices of commodities are defined by their demand. Therefore, if a generalized fear of inflation provokes higher demand, the prices will also rise.

Take into account that, unlike stocks, commodities don't pay dividends. So, the only potential further earnings would come from a future sale of the asset.

Raw materials are commonly categorized into hard raw materials, which include precious metals as gold, silver, or copper, as well as industrial metals, and oil; and soft raw materials, which are basically agricultural goods, like soy, cocoa, corn, or rice, for instance.

eToro payment methods

Among the payment options that you will find on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is very easy. Just go to “Deposit funds”, type the amount and choose a payment method from the previous ones.

(Consider that you should be the account or credit card owner, for security policies).

You can start with a $ 200 deposit, and there is a limited maximum for unverified accounts. So, if your intention is to deposit larger sums, you will need to verify your account previously.

Finally, know that you can make the transfer in any currency because eToro converts it to USD, although it charges a fee, so it is preferable to make the transfer directly in USD.

How does eToro work?

We mentioned before that eToro is very easy to manage. Anyone can start using it without previous experience or long explanations.

You won't have any problems with the interface if you have used any of the most common social networks.

We will talk about how to register and the different tabs you will find on the platform.

When you open your account, you will have to fill in all the information that eToro asks for: first and last name, address…

Additionally, you will see that they ask you some questions about your experience as an investor.

But don't feel like you are taking an exam. The objective is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.

Let's get to know the fundamental sections of the page.

In “Set Price Alerts” you can put alarms on the price of certain securities. You just have to click on the three points at the end of the line and you will be able to program a price alarm. It is a very useful tool for when you are after a security that is falling, but it seems to you that it has not finished falling yet.

The section “News Feed” allows users to interact and share their experiences and knowledge.

“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the kinds of assets that are available on eToro:

  • Cryptocurrencies
  • Exchange-Traded Funds
  • Shares
  • Commodities
  • Forex trading
  • Index funds

The term “social trading” comes to life within “People”: there, you can copy the strategies of any investor you choose with just one click. You'll be able to see all their profiles and historical performances.

Using the search box, you can find the users that best suit your interests: by risk level, types of financial assets, average earnings… You just have to choose the amount you want to invest and eToro will replicate the movements of the selected investor, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your balance in the same asset.

Finally, there are three main kinds of CopyPortfolios: Top Trader, Market, and Partner.

fondos
Remember that in some cases, you might prefer copying to CopyPortfolios than to other investors, since the former offer more diversity. There are all kinds of portfolios that you can recognize easily and are classified by sectors. So, if you suspect a specific sector, like biotechnology or oil, will prosper in the future, you can look for that specific portfolio and do your investment.

What is social trading?

eToro was the first platform that proposed social trading, and this new concept became very successful. Lots of other brokers copied this idea, but eToro is still the best one.

But the merit of the platform is that they did not limit themselves to transferring the logic of the social network to the trading world. They could have made the umpteenth social network in which users discuss investing, but they wanted to go further: the major contribution of eToro was to allow traders to imitate the moves of skilled investors, and to reward them latter for their ideas.

When you enter eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.

CopyPortfolios

“CopyPortfolios” contain a collection of financial assets of a certain sector. Let's say that you consider that the gaming industry is going to prosper shortly but you don't know which stocks to select, you just have to pick the CopyPortfolio “InTheGame”, which includes Google, Microsoft, NVIDIA, Nintendo, Logitech, among others.

You should know that in the past twelve months, CopyPortfolio has generated returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss order and click on “Invest”.

Copy People

But it is also possible to copy other successful investors of the platform. It is really simple: you can find them with “Copy People” and just replicate their moves.

You will see in the profile of users: the type of assets they trade with (currencies, cryptocurrencies, raw materials, shares…), their risk profile (a higher risk implies higher possibilities of earning more or losing more money), as well as their trading history.

Copying other people's investments can be very interesting and helpful, but you should also make the most out of the platform's community, read what other users think, and learn from their experience. If your goal is to end up living from trading, it is a good place to absorb a lot of knowledge.

Investment strategies

There are many methods to operate cryptocurrencies: from purchasing and waiting to day trading using price fluctuations in your favor.

In case you don't have much experience in investment, I suggest a middle point: when you open your Coca-Cola position, set a stop-loss order 15-20% below the maximum price, and let the rest happen on its own.

For instance, if you buy a cryptocurrency when its price is $ 15, then it rises up to $ 25 and decreases again to $17, the stop-loss will close your position at $ 21 or $ 22. Hence, you will get a satisfactory income.

Perhaps you are wondering: why not selling when the price is at its peak? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and is more realistic.

Later on, you will be able to apply more complex strategies, such as going short or using leverage.

Trading with leverage

If you are not familiar with the term “leverage”, we'll describe it briefly. When trading, it's the capacity of increasing your investment without putting more money. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.

Leverage and the importance of “Take Profit” and “Stop Loss”

Let's say that you are sure that Coca-Cola will raise its price, and you want to “go long”. You have $ 1,000, but you actually can invest more and make more money.

There's the possibility of asking for a loan, but it is a process that takes time, and when you receive the money, Coca-Cola might be already so expensive (if your guess was right) that investing wouldn't be convenient anymore.

Using leverage, you can get that amount of money really easily. It's like a loan, but much better: you will get it from eToro, which allows you to invest a lot more than you have on the platform. Before trading, you will be able to choose between the different leverage options as in the screenshot below:

apalancamiento

With other assets, the ability to leverage is greater. This is because leverage is most used for short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works:

  • If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 are a “loan” from eToro). 
  • Then, turns out that Coca-Cola price does increases, as you thought, and now the price of your investment is $ 2,400 (20% higher), so you decide to sell back because you want to play it safe. 
  • The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours initially.

In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.

It may sound too good to be true. The thing is, it can also play against you. If everything goes according to plan and the price goes up, you will earn more money in less time; however, if the value of the asset decreases, you will also lose more in less time.

For instance: if the price falls by 10%, you won't lose $ 10, but twice that figure, which means $ 20, because of the leverage. For that reason, when trading with leverage it is crucial to know about Take Profit and Stop Loss.

Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price. 

If you bought Coca-Cola shares at $ 100, you program eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps rising, which could make you lose it all.

Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). Take into account that eToro will recommend a limit for Stop Loss, but it is better to set it closer to current price than that.

Common questions

How much is the minimum investment I have to invest in Coca-Cola?
The minimum deposit is 200$.

When will I be able to withdraw my funds?
Whenever you want. Simply close your Coca-Cola investment, go to “Withdraw Funds” section and you will receive the money very soon.

What deposit methods can I use?
You can use: PayPal, Bank Transfer, Credit Card, Rapid Transfer, Klarna / Sofort Banking, Neteller and Skrill

* 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.