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How to buy
For those who live in Australia, a great way to invest in JP Morgan shares is, definitely, 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
As soon as eToro has confirmed the receipt of your credit, you just have to search for “JP Morgan” 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.
About this company
JP Morgan is a U.S. financial institution founded in 1871 from which originated the three largest banks in the world: JP Morgan Chase, Morgan Stanley and Deutsche Bank. Currently, when referring to JP Morgan, we are talking about JP Morgan Chase, which was born from the merger between the original bank and Chase Manhattan Corporation in 2000.
Chase Manhattan Corporation also has a long history, dating back to 1824 with the name of Chemical Bank. It was for several periods the largest bank in the United States in terms of both deposits and investments.
Since its foundation, Chemical Bank grew and merged with other banks, and in 1996 it acquired Chase Manhattan Corporation. It kept this name until 2000 when it merged with JP Morgan and formally became JP Morgan Chase & Co.
The merger of these two large banks gave rise to a giant that is considered the oldest financial services institution in the world. In addition to being the largest having as assets the astronomical figure of 3,689,336,000,000,000 dollars, that is, 3.6 trillion.
JP Morgan Chase as an investment
The phrase “too big to fail”, which has economic implications behind it, fully describes today's JP Morgan Chase. It is virtually impossible for this bank to fail, regardless of the state of the economy.
And if it did, it would be immediately bailed out by the U.S. government as has happened with other banks. This is because, given its size, it would have huge implications for the economy as a whole if JP Morgan Chase were to disappear.
However, as we have already said, it is practically impossible for this to happen because JP Morgan Chase, together with the FED, has bailed out other banks. Such is the magnitude and importance of this financial institution.
So, if an investor is looking for a company where his money is safe in every way, JP Morgan Chase is the best possible choice. Because to conclude, the shares of this company have good yields and pay dividends to its investors.
Why do we recommend it?
- It uses strategies from successful traders so you can copy them
- You can go short
- It's uncomplicated and manageable
- eToro allows leverage
- There are uncountable products you can invest in
Official website in English: www.etoro.com *
If you are thinking about trading JP Morgan shares from Australia, eToro is probably the best way to do it.
“Social trading”, an innovative form of investing by replicating techniques and moves from other experienced investors, has become trendy because of eToro.
If you are a novice user or do not have much investment experience, eToro is great for you. You can rest assured that you are making a smart investment since the site duplicates those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques with the community, eToro rewards your knowledge with money.
It is also very convenient how accessible is this platform, excellent for new traders who are taking their first steps in the investment world.
Is eToro reliable for purchasing JP Morgan?
eToro is very meticulous with the data about past performances from traders, and its reliability has been tested once and again by independent organizations.
The main headquarters of eToro is in Cyprus, and therefore the broker is approved by the Cyprus Securities Market Commission (known as CySEC), which covers debts up to € 20,000 from its clients. On the other hand, eToro meets all the strict policies of the European Union.
eToro is backed by the European Financial Instruments Market (MiFID) in Europe, and by the Financial Conduct Authority (FCA) in the USA. 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.
Their customer service functions perfectly. They have a phone number for assistance, a ticketing system, and a live chat.
How to deposit funds into your eToro account
When it comes to depositing money on eToro, there is not much to say, since it is pretty simple. You only need to select “Deposit funds”, set an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card, Skrill, or Neteller.
Consider that for security policies, you must be the holder of the account or the credit card.
The minimum amount allowed is $ 200, and there is a maximum limit for unverified accounts. So, if your intention is to deposit higher amounts, you should contact Support to verify your account first.
The platform accepts transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD directly.
In case you still don't know what “leverage” is, we'll put it short: it is the possibility to invest a higher amount than you actually have. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.
Leverage, Take Profit and Stop Loss
Let's pretend that you have complete certainty that JP Morgan will raise its price, and you want to “go long”. You have $ 1,000, but you actually can invest more and make more money.
Possibly, you could ask a financial company for a loan, wait for it to be accepted and receiving the money, and then purchase JP Morgan… But by then it is possible that your prediction was confirmed a long time ago, and JP Morgan would be already at such a high value that it is not worth investing.
Using leverage, you can get that amount of money just by clicking your mouse. It's like a loan, but much better: from eToro itself. You can get financing to invest much more money than you actually have on the platform. As in the image below, you will see the different options you have:
Within other markets, you can use more leverage. The reason is that leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's see how leverage works:
- If you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- A few days later, JP Morgan price does increases, as you assumed, 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.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is pretty decent.
But there's always a downside. If everything goes ok and the price rises, you will make money. However, if the asset decreases, you will also lose more money really fast.
Supposing that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. For that reason, the concepts of Take Profit and Stop Loss are so important when operating with leverage.
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 JP Morgan shares at $ 100, you request eToro to close your operation when it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps going up, which could make you lose it all.
Stop Loss is even more necessary, especially if you use leverage, because a small loss with leverage can have a significant impact. Consider that eToro will recommend a limit for Stop Loss, but you should place it closer to current price than the platform suggests.
Do you know what “social trading” is?
The first platform that thought of trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also taken this concept, but eToro is way better.
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 copy the moves of experienced traders, who were in turn paid for their ideas.
When you access eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of assets of a certain sector. For instance, if you consider that a particular sector will have significant profits but you don't know which stocks to invest in, you just have to choose a portfolio that includes a variety of related companies in that industry.
You should know that in the past year, 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”.
The other alternative is to directly copy traders of the platform: in “Copy People” you can find eToro users who are very successful and whose moves you can duplicate.
You will see in the profile of each user: the type of financial instruments they trade (forex, cryptocurrencies, commodities, shares…), their risk profile, and their performance history.
Replicating other people's investments can be very interesting and useful, but it is also a good idea to take advantage of the community to read other users and learn from their experience. If you wish to end up living from investment, it is a great place to gain valuable knowledge.
There are different methods or ways for crypto trading, like buying and holding or day trading (and using price volatility in your favor), for naming just a couple.
My recommendation for those who are starting to trade is something in the middle: when you open your JP Morgan position, set a dynamic stop loss 15-20% below the highest price, and let the magic happen.
This means that if, for example, you buy a cryptocurrency at $ 10, it rises to $ 20, and after that it decreases to $ 12, your position will be closed at $ 16-17 and you will have earned a decent profit.
I know it might sound more appealing to sell when the price is at its highest, right before corrections, but that is simply not possible. The mentioned method is much more down-to-earth and, well applied, it can work very well for you.
Later on, you will be able to apply more sophisticated techniques, such as using leverage or going short.
We already mentioned that one of the best features of eToro is that the platform is very friendly and easy to use. It isn't necessary to read a lot or have previous knowledge to start investing.
Everyone who has used social networks like Whatsapp or Facebook, has enough knowledge to use eToro.
We will explain the registration steps and the different tabs that you will find.
When you register, you will have to enter all the information that eToro asks for: first and last name, address…
To complete your registration, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated. They only intend to find out how much you know and which instruments to recommend for you.
Let's review the different functions of the interface.
In the “Set Price Alerts” tab, you have, as its name indicates, the option to set alerts on the price of certain securities. You only need to click on the three points at the end of the line and you will be able to program a price alert. It is a very useful tool for when you are after a security which price is decreasing, but it seems to you that it will decrease even more.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we discussed previously in this guide the kinds of assets on eToro:
- Raw materials
- Forex trading
- Index funds
In “People”, you can find the public profiles of eToro users and their performances. This is where you can copy with just one click the strategies of your preferred investors.
Using the search bar, you can find the investors that you find more interesting: by average profits, types of instruments or risk level, for instance. You just have to type 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 trader puts 10% in an asset, eToro will invest also 10% of your money (that is, $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying people is that this way you will diversify the risk. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector will prosper anytime soon? Then you will surely find 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.