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How to buy
If you live in Australia, the best way to invest in Huawei 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: 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 Huawei rising while you wait for your transfer to be done.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “Huawei” 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.
Is Huawei a buy?
Huawei is one of the largest technology and telecommunications companies in existence today. Its best-known product is smartphones, but it also produces telecommunications equipment, routers and modems, consulting services and software.
Like many of today's large companies, Huawei started with a modest capital of 3 thousand dollars and 3 employees. It was in 1987 when engineer Ren Zhengfei founded the company in the city of Guangdong to distribute imported telephone exchanges.
During those years, China was looking to modernize the country's telecommunications and Huawei's founder saw the opportunity to scale his venture to a national telecommunications company. Thus, he interspersed the commercialization of telephone exchanges with the practice of reverse engineering from which he hoped to develop his own product.
Thus, in 1993, Huawei launched a telephone switch completely developed by them and which was better than any of those available in China at the time. And this first step was enough for Huawei to become what it is today.
Evolution of Huawei
If anything characterizes Huawei, it is the speed with which it adapts to market requirements and advances in technology.
In its evolution it went through manufacturing products based on GSM, CDMA and UMTS technologies. The production of routers and LTE telecommunications equipment, as well as its cell phones being in 2009 when Huawei would produce its first smartphone with the Android operating system.
One of its milestones was the Huawei P40 whose camera completely eclipsed all other devices available on the market at the time regardless of whether it was Samsung or Apple. There was no one who at the time did not see the advertising of the smartphone, listen or read something about it.
Subsequently, already framed in the trade war between the United States and China, Huawei was one of the sanctioned and most damaged companies. First, Google was banned from selling the Android operating system for Huawei cell phones. Secondly, because of Trump's accusations of espionage, with which he asked his allies not to maintain relations with the company.
But despite this, the company has found a way around the obstacles to the point that the sanctions have not prevented it from becoming the world's largest cell phone manufacturer. Likewise, Huawei continues to lead the development and implementation of 5G technology worldwide.
And all this just goes to show how big Huawei has become, to the point that the world's leading economy cannot fully exert its power over it.
Why do we recommend it?
- Very intuitive and simple
- It offers other users successful investment strategies so you can emulate them
- Allows “shorting” or short-selling
- Leverage is allowed
- You can invest in thousands of other goods
Official website in English: www.etoro.com *
eToro is probably the best option today to buy Huawei shares from Australia.
“Social trading”, a relatively new investment method that consists in replicating techniques and strategies from other experienced investors, has become popular thanks to eToro.
eToro is very helpful if you don't have much experience in trading. 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 others, eToro pays for it.
It is also very convenient how easy is to manage the platform, excellent for new traders who are starting in the investment world.
Is eToro reliable for purchasing Huawei?
eToro is very meticulous with the information about past performances from users, and its reliability has been independently tested several times.
eToro complies with all the strict regulations required by the European Union. Its head office is in Cyprus, where it is certified by the Cyprus Securities Market Commission or CySEC, which protects up to € 20,000 of the debts from its clients (those from Australia included).
eToro is backed by the European Financial Instruments Market or MiFID in Europe, and by the Financial Conduct Authority (FCA) in the U.S. You should also know that it has a trajectory of fifteen years, with more than 20 million users all over the world. So, you can be sure that your money is safe.
No less important is their excellent customer service. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
eToro payment methods
Among the payment methods available on eToro are: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Depositing money with eToro is so simple: click “Deposit funds”, type a number and choose a payment method from the previous ones.
Remember that for security policies, you must be the owner of the account or the credit card.
The minimum amount you can deposit is $ 200 and there is a limit of how much you can deposit if you are not verified, so if you plan to operate with larger sums, contact Support previously to verify your account.
Additionally, remember that you can make the deposit in any currency you want since eToro will make the conversion to USD, although it charges a fee, so it is better to make the transfer directly in USD.
How do Contracts for Difference work?
If you have entered eToro before, you probably realized that the initials CFD appear all the time. We will come back to it, but you should know first that cryptocurrency trading on the platform is only CFD when you are short-selling or leverage above x2 (although the platform does not even allow this).
In case you want to try at some point day trading cryptocurrency and other more advanced practices, next we will also cover concepts like leverage and “going short”.
eToro allows you to bet both “in the black” and “in negative”. For instance, you have the certitude that the Huawei will fall, so you obviously think “if it is going to depreciate, I'll simply wait until it does”. But if it really falls, it might mean extra money for you.
You can do that by “going short”. More or less, this is how it works:
- You ask someone for a loan of, let's say, 100 units of Huawei, which cost $ 5,000 at the moment (obviously, these numbers aren't real)
- You sell them at their market price, $ 5,000
- The price falls, as you guessed, and the unit of Huawei now costs $ 30 instead of $ 50
- You purchase all 100 units once again, but at the current value, $ 3,000
- Then you return the 100 units
- The rest is yours, so, you will have earned $ 2000
It all sounds more tricky than it really is. Just bear in mind that by trading in Huawei on eToro, with CFDs you can make a profit when you anticipate downs.
Differences between futures and CFDs
Here are the most important differences between CFDs and Futures, in case you want to know more:
- Futures: the exchange is made with someone else, another investor.
- CFDs: the operations are not made with someone else, but the counterparty is the brokerage.
- Futures: there is a date of expiry. Once the contract expires, it is closed even if you have losses.
- CFDs: on the contrary, they don't expire. It is possible to wait until you are in a good position to close.
- Options for trading:
- Futures: there are limited options for investment
- CFDs: they include lots of different assets, commodities and currencies
- Minimum deposit:
- Futures: you need to start with a higher amount
- CFDs: you can get in with a small amount
- Costs and fees:
- Futures: as you have to invest more, rates are lower
- CFDs: costs are higher
- Futures: there is no leverage leverage
- CFDs: fully available
Financial instruments you can operate with in eToro
We already know about cryptostocks, there are more financial instruments you can trade .
About Index Funds
If you are interested in long-term investments, and you won't need to withdraw your money in at least five years, index funds can be the best choice. This type of investment is also suitable for beginners since it is more secure.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers have done it, apart from some famous cases.
In practice, all that glitters is not gold: if a fund manager achieves to beat the benchmark, it is only for a short period or on a specific occasion. Or perhaps they would charge very high fees and indexing would be a better decision (with minimal commissions).
The good thing about index funds is that they solve those two issues: their commissions are insignificant and in the long term they tend to beat active managers.
ETFs or Exchange-Traded Funds are similar to index funds. We can say that ETFs are halfway between stocks and funds: they are traded in the market like stocks, during the day. However, their advantage is that they are more diversified compared to stocks, and their fees are much lower than those of an actively managed fund.
Most investors trade with raw materials because of their stability. While other assets present higher fluctuation, raw materials prices vary less and offer security against inflation or market volatility. However, prices do depend on supply and demand in the market, so if the fear of possible inflation provokes higher demand for a certain good, the price will also go up.
Remember that the only intended profit from the investment in raw materials will come from their further sale because, unlike shares, commodities don't pay dividends.
There are two basic kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (like aluminum, iron, or zinc), and oil; while the latter are agricultural goods, such as sugar, coffee, corn, soy, among many others.
Currency trading or Forex consists, as the name says, in the trading of currencies. It's the conversion of one currency to another to make a profit through the operation.
If you decide to exchange the EUR/USD pair, you speculate how many dollars it will take to buy a euro, hoping 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 exit when it reaches 1.15: thus, you will gain that margin.
As you may have already inferred, this kind of trading usually implies investing a lot, since fluctuations tend to be low, or using much leverage, which is always a risk. In case you are just starting in trading, it is not a good idea to begin with the currency market, because it's not the safest alternative.
eToro allows exchanging the most common currency pairs but consider that Forex works through CFDs, therefore you will not be the owner of the real asset.
“Social trading”, an innovative concept
eToro was the first platform that proposed social trading, and this new concept became very successful. Many other brokers copied this idea, but eToro beats them all.
However, their main accomplishment wasn't just recreating a social network in the world of trading. There are already countless pages to talk about investing, but they were not satisfied with that: the major contribution of eToro was to allow traders to imitate the moves of skilled investors, and to reward them latter for their knowledge.
It sounds complex but it isn't: when you access eToro you will find in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are a kind of portfolio that bundles a number of financial assets in a certain sector. For instance, if you anticipate that a particular sector will succeed in the near future but you don't know which stocks to invest in, you just have to pick a portfolio that groups together a variety of related companies in that industry.
At the date of writing this text, this CopyPortfolio has generated a 100% return in the last twelve months, and you just need to click on “Invest”, enter the amount, place the stop-loss, and the rest will be done practically on its own.
The other option is to directly copy users: in “Copy People” you can locate eToro users who are very successful investing and whose moves you can duplicate just by clicking “Copy”.
In the profile of each user, you will see their risk profile (how much risk do they take when trading), their performance, and the type of assets they operate: currencies, cryptocurrencies, commodities, stocks….
Besides copying other investor's moves, which is great and very helpful, we also suggest that you make the most out of the community by reading other users. You can learn a lot from their experiences and knowledge, particularly if your goal is to make a living from trading.
We mentioned before that one of the best things about eToro is how simple it is. You don't need to read a lot or have previous knowledge to start investing.
You won't have any issues with the interface if you have used any of the most common social networks, like Twitter or Pinterest.
Now we will walk you through the registration process and the different sections of the page that you should know.
You will have to fill in some information requested when registering.
Before you end up with the sign-up process, you will also have to answer some questions about your previous investment activities.
But don't feel like you are taking an exam. The only intention is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.
Let's review the different tabs of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. Just click the tab and you will be able to set it. This is perfect in case you want to purchase a security that is falling but you believe it will decrease even more.
In the “News Feed” tab is the most social part of eToro: where users are interacting all day and sharing opinions, tips, and other valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned previously, the six types of instruments on eToro are:
- Exchange-Traded Funds
- Raw materials
- Index funds
In the tab “People”, you can find the profiles of eToro users and their performances. This is where you can replicate the movements of your preferred traders.
You will be able to search and find users according to your interests. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For example, if you invest $ 1000 and the user puts 20% of their funds in an asset, the platform will invest $ 200 of your funds in the same asset or company as well.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
The benefit of copying to CopyPortfolios instead of specific traders is that this way you will diversify the risk. There are all kinds of portfolios that you can identify easily and are classified by sectors. Therefore, in case you think a specific sector, like biotechnology or oil, has a good chance of prospering, you should look for that specific portfolio.
* 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.