How to invest in GameStop from Australia

Recommended Broker 🇦🇺
👌Difficulty Low
☢️Commissions Zero
💲Minimum deposit 200$
🪙Instruments: Stocks like GameStop, crypto, forex, commodities
⚖️Regulated by: Cyprus Securities and Exchange Commission (CySec), United Kingdom's Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
🌐 Official website: *
* Your capital is at risk.

How to buy

For those who live in Australia, a great way to invest in GameStop 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 Australian Securities and Investments Commission (ASIC).

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 our 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 should 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 “GameStop” 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 GameStop?

GameStop Corporation is an American company founded in Dallas in 1984 specializing in the video game industry. It is one of the largest video game retailers in existence, operating more than 4,800 stores in the United States, Canada, Australia and Europe.

It went public on the New York Stock Exchange in 1988 and since then has traded on the stock market like any other company. It has had some very good years and some not so good years, which, although it cannot be said to have been completely bad, have been years of decline.

This company stayed off the radar for a long time until January 2021 when its share price skyrocketed by more than 1,500% in just 3 days, only to return to its average the following week. As you can imagine, all this movement generated huge gains for those who positioned themselves in the right direction.

GameStop, Reddit and Wall Street

Behind these absurd moves, a large number of people belonging mainly to a Reddit forum called WallStreetBets were involved. This forum, as its name suggests, is all about “Wall Street betting”, although in the case of GameStop what they were looking for was to beat the whole Wall Street game.

This is how the idea spread from WallStreetBets to other forums on Reddit, motivating more and more people to buy GameStop shares. The end result was a buying frenzy that drove the price up to the level it reached and then back down to the mean.

Upon investigation, it was learned that it was a user who had bought about $50,000 worth of Reddit stock who initiated the move after the company had a dismal outlook. Having achieved his goal, he probably withdrew by selling the shares at a very high price, taking huge profits out of the market.

But, just as there were those who gained, there were those who lost a lot because in the buying frenzy, many entered too late. And by this we mean when the share price stopped rising and started to fall.

The commotion was such that the term meme stock has been coined to describe stocks that have sharp price movements motivated by social networks.

Instruments you can trade in this broker

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

About Index Funds

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

Contrary to what it may seem, it is not easy to beat the market (yes, you have surely heard of investors who achieve huge profits).

But putting aside some unusual cases (like Warren Buffett's), all that glitters is not gold: when someone brags about having beaten the index, 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). Also, past performances do not ensure a future one.

Index funds offer these two great benefits: they usually beat active managers in the long term, and the fees are so much lower.

Foreign exchange market

Forex or currency trading is the exchange between two currencies.

If you decide to trade EUR and USD, you purchase euros at their price in dollars, thinking that the euro will raise its price compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when they are worth 1.20 USD, that margin will be yours.

As you may have deduced, this kind of trading requires investing a lot, because prices rarely increase that much, or using a lot of leverage, which is always a risk. Our recommendation for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.

eToro allows trading with the most usual currency pairs but remember that this market works through CFDs, which means the underlying asset won't be yours.

How do Contracts for Difference work?

If you already accessed eToro, you must have noticed that the acronym CFD appears frequently. We will come back to it, but first, you should know that CFDs on eToro are only possible if you are short-selling.

We will also explain terms such as short-selling and leverage, in case you are interested in 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”. Let's say that you have the certitude that the GameStop will go down, so you obviously think “if it is going to depreciate (go down in price), I'll just wait until it does and then I'll bet”. However, if it really goes down, it is possible to make some profits out of that.

The operation known as “going short” will allow you to do that. It works, roughly, this way:

  • You ask for a loan of, let's say, 100 units of GameStop, which total value at that moment is $ 5,000 (obviously, these figures aren't real)
  • You sell the 100 units at $ 5,000
  • As you presumed, the price falls, and the unit of GameStop goes from $ 50 to $ 30
  • You get the 100 units again, but at $ 3,000
  • Then you return the 100 units to the loaner
  • The difference is yours, so, you will have made $ 2000

It is really simple. Just know that by trading in GameStop on eToro, with CFDs you can make money if you anticipate downs in the price.

Futures Vs CFD

How are Futures and CFDs different?

  • Counterparties
    • Futures: operations are made with another trader.
    • CFDs: the operations are not made with someone else, but the counterparty is the brokerage platform, in this case, eToro.
  • Expiration date:
    • Futures: they expire on a given date. Once the contract expires, it is closed and can't be reopened.
    • CFDs: there is no expiration date. You can wait until you get in a good position before exiting.
  • Variety:
    • Futures: there are limited options
    • CFDs: they include lots of different assets, commodities and currencies
  • Minimum investment:
    • Futures: you have to invest much more
    • CFDs: it is possible to start with a low amount
  • Costs and fees:
    • Futures: as you need to invest more, fees are lower
    • CFDs: fees are higher
  • Leverage:
    • Futures: there is no leverage leverage
    • CFDs: accessible leverage

Do you know what “social trading” is?

eToro was the first broker to suggest that trading could become social, and time has proven that it was an excellent idea. A lot of copycats have appeared since then, but eToro is definitely superior.

But it wasn't just about creating yet another social network to talk about investment. The real innovation was in the possibility for users to replicate the moves of experienced traders, who were in turn paid for their ideas.

When you access eToro you will find in the left menu the options “Copy People” and “Invest in CopyPortfolios”.


“CopyPortfolios” are types of exchange-traded funds or thematic index funds, a portfolio that bundles a number of assets in a certain sector. For example, if you anticipate that a particular sector will have significant profits but you are not sure which investments to make, you just have to choose a portfolio that groups together a variety of related companies in that industry.

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 chosen amount, place the stop-loss and click on “Invest”.

Copy People

But it is also possible to copy other successful investors of the platform. With “Copy People” you can locate them and imitate their investments easily.

You will find in the profile of users: the kind of assets they operate with (forex, cryptocurrencies, raw materials, stocks…), their risk profile, and their performance history.

And although replicating other people's strategies can be very helpful, it is also a good idea to take advantage of the platform's community to read other users and learn from them. If you wish to end up living from investment, it is a good place to absorb a lot of knowledge.

Investment strategies

When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading (and using market fluctuation in your favor), for naming just a couple.

In case you are just beginning in the world of investment, our suggestion is a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.

Therefore, if for example you acquire a cryptocurrency at $ 10, it reaches $ 20, and after that it falls to $ 12, your stop loss will close your position at $ 16-17 and you will obtain a pretty good profit.

It might sound more appealing to sell when the cost is at its peak, right before corrections, but unless you're psychic, that's impossible. The above strategy is much more down-to-earth and, well applied, it can work very well.

And when you have more experience, you can take your first steps with advanced investment strategies, like using leverage or going short to profit from bear markets.

Leverage explained

Have you heard about “leverage”? We'll put it simply: trading allows you to invest higher amounts than what you really have. Let's say that you have $ 100 and you put them with x2 leverage, you will be really investing $ 200.

Leverage, Take Profit and Stop Loss

Assuming that, for example, you are sure that GameStop price is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.

There's the possibility of asking for a loan at your bank or other financial company, but you must know that all the process takes time, and by the moment you receive the money, GameStop might be already at a much higher price, so you wouldn't be able to invest the way you planned.

Leverage is like a credit, but it is only a few clicks away! eToro allows you to operate with much more money than what you have on the platform. Before trading, you will find the leverage options as in the image below:


Trading with other assets allows you to use higher leverage. The reason is that leverage is most used for short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's deepen a bit more on how all this works:

  • If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 was borrowed from eToro). 
  • Then, turns out that GameStop price does increases, as you thought, and now the cost 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 from the beginning.

By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.

But watch out: if all goes as you planned and the price goes up, you will make money. On the opposite scenario, if the price goes down, you will also lose more money in the blink of an eye.

For example: if the price falls by 10%, you do not lose $ 10, but twice (the leverage) that figure, that would be $ 20. Therefore, when using leverage it is very important to know two other concepts: 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 GameStop shares at $ 100, you program eToro to close your operation when it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to keep waiting in case it keeps rising, which could be a mistake.

Stop Loss is even more necessary, particularly if you use leverage, because a small loss with leverage can have a significant impact on your wallet. Take into account that eToro will recommend a limit for Stop Loss, but you should place it lower than that.

Frequently asked questions

How much is the minimum investment I have to invest in GameStop?
You can invest as low as 200USD.

When will I be able to take out my money?
At any time. You just have to close your GameStop investment, click on “Withdraw Funds” and you will receive the money very soon.

What payment methods accepts this broker?
Available payment methods are: 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.