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How to buy
If you live in Australia, the best way to invest in Netflix 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 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.
Now check your email: you should 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 Netflix 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 “Netflix” 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
Netflix is a company dedicated to the distribution of audiovisual content (series, movies, documentaries, among others) via streaming. There is no one today who does not know about the existence of the platform or who has not heard about any of its series.
And the fact is that Netflix is the number one of all streaming companies mainly because it is the oldest. Although it also contributes a lot the fact that it produces its own series and movies, some of which have achieved resounding success as is the case of La Casa de Papel.
Evolution of Netflix
The company was founded in 1997 in California and in 1998 began its activity with a DVD rental service by mail. In the year 2000, already with a website, Netflix started its personalized recommendation system, based on the rating of its customers.
It was not until 2007 that Netflix started its video on demand service as we know it today. However, at the beginning this service was only available in the United States and Canada, by 2011 it was already available in the rest of America and all of Europe.
But it was in 2016 when it took the big leap and began to offer its service worldwide thus becoming the great company it is today.
We already mentioned that Netflix produces its own series, movies, documentaries and animations. The company started with own productions in 2013 with the political drama Houses of Cards which was critically acclaimed at the time. And since then, Netflix's original productions have always given something to talk about.
Among its most famous productions we can mention:
- Money Heist
- Stranger Things
Among many others that, although they are series designed for a specific sector, have achieved popularity among its users in general.
Their future in the stock market
The evolution of this streaming company, its ability to adapt to new times and new technologies have a positive impact on the company's valuation.
That is why its share price has gone from $15 in the initial offering to the prices we have today.
And since Netflix is a technology company, it is only natural that its rise will continue, which makes this company one of the few that should always be taken into account.
Reason for using eToro for acquiring Netflix shares in Australia?
- You can make investments in plenty of different products
- You can leverage
- It's very easy to operate
- It takes strategies from skilled traders so you can replicate them
- Allows you to short sell
Official main site: www.etoro.com *
If you are considering investing in Netflix from Australia, eToro may be the best way to do it.
“Social trading”, an innovative investment method that consists in replicating techniques and strategies from other experienced investors, has become trendy thanks to eToro.
If you are a novice user or do not have much experience in investments, eToro is very helpful. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques, eToro rewards your knowledge with money.
Besides, the interface of the website is so uncomplicated, great for users who want to begin in the stocks world, without ending up overwhelmed with tons of diagrams and numbers.
What are the instruments you can trade in eToro?
You already know about stocks, there are other financial instruments you can trade with .
About Index Funds
Are the best alternative for those interested in long-term investments, particularly for beginners. If you don't need to use the amount of money you'll invest in less than five or ten years, index funds offer you variety and lower risks.
Contrary to what it may seem, very few fund managers can beat the benchmark (yes, you have probably heard of investors who achieve huge profits).
But putting aside some exceptional cases (like Warren Buffett's), not everything is as good as it sounds: when someone brags about having beaten the market, it was probably for a short time, or their fees are really high. Also, past performances do not ensure a future one.
Index funds provide solutions to both concerns: their fees are insignificant and they regularly beat active managers, but in the long term.
Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for merging the advantages of stocks and mutual funds: they can be exchanged regularly at market price, but include a much wider diversity of assets and considerably lower rates.
Foreign exchange market
Forex or currency trading is the exchange between two currencies in order to obtain a profit through the operation.
If you want to trade EUR and USD, you speculate how many dollars it will take to buy a euro, anticipating that after obtaining the first currency (the euro) it will raise its price compared to the second (the dollar), to make a profit by selling it. Assume you entered when a euro is worth 1.10 USD and you leave when a euro is worth 1.15: that margin is yours once you make the operation.
As you may have already inferred, this kind of trading usually implies investing a lot, since variations are normally low, or using a lot of leverage, which implies an extra risk. Our recommendation for those who are new in the world of trading is not to start with Forex, but with a safer and simpler market.
Most currencies are available on eToro. Still, remember that this market functions with contract for differences, thus the underlying asset won't be yours.
How does eToro work?
We already said that one of the best things about eToro is how simple it is to use the interface. You don't need to read a lot or have previous knowledge to start trading.
You won't have any issues 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.
First of all, you will have to enter all the information that eToro asks for: first and last name, address…
During the sign-up process, you will also find some questions about your previous trade experience.
But don't feel intimidated, it is not a test that you have to pass. The objective is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.
As soon as you are registered and have completed your profile, the “incomplete profile” bar will disappear.
Let's see what the different sections of the page are.
“Set Price Alerts” allows you to put alarms on the price of certain assets. This is very useful when you want to purchase an asset which price is decreasing, but it seems to you that it will decrease even more.
“News Feed” is the more “social” section. There, traders can interact and share experiences.
In “Discover” you will find the investment tabs: “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments on eToro:
- Exchange-Traded Funds
- Raw materials
- Index funds
In the section “People”, you can find eToro users and their historical performance. This is where you can duplicate the strategies of your preferred traders.
You can search and find users according to your interests. You can apply filters like country, average profits, or financial market. When you choose 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, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are “Top Trader”, “Market” and “Partner”.
Remember that in some cases, you might prefer copying to CopyPortfolios than to other traders, since the former offer more diversity. There are all kinds of portfolios that you can recognize easily and are divided by sectors. Therefore, if you suspect a specific industry, such as fashion or healthcare, will prosper in the future, you can find that specific portfolio and invest in it.
“Social trading”, an innovative concept
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 beats them all.
But it wasn't just about creating yet another social network to talk about investment. The real achievement was in allowing users to replicate the moves of experienced traders, and to reward the latter for their ideas and knowledge.
You will find in the left menu of the site 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 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 pick a portfolio that groups together a variety of related companies in that industry.
You should know that in the past year, CopyPortfolio has given returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss and click on “Invest”.
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 simply by clicking “Copy”.
In the profile of each user, you will be able to see their risk profile (the higher the risk, the more possibilities of earning more and losing more), their performance history, and the kind of instruments they operate: currencies, cryptocurrencies, raw materials, stocks….
Besides duplicating other user's strategies, which is great and very helpful, we also recommend that you make the most out of the community by reading other user's comments. You can learn a lot from their experiences, particularly if you aim to make a living from investments.
How to use leverage when trading Netflix
If you still don't know what “leverage” is, we'll put it short. When trading, it's the capacity of multiplying your investment without putting more money. For example, if you start with $ 100 and you leverage x2, your initial investment will be $ 200.
Leverage, Take Profit and Stop Loss
Let's say that you are confident that Netflix will raise its price, and you want to “go long”, but you only have $ 1,000 available. However, you have the option of investing more money and get higher profits.
There's the possibility of asking for a credit at your bank or other financial company, but you must know that all the process takes time, and when you receive the money, Netflix might be already so expensive (if your guess was right) that investing wouldn't be convenient anymore.
Using leverage, you can get that amount just by moving a finger. It's exactly like borrowing money, but much better: from eToro itself. You will be able to operate with much more money than you actually have on the eToro Wallet. As in the image below, you will see the different options you have:
When trading with other kinds of assets you can use higher leverage. The reason is that cryptocurrencies usually represent medium-long term investments. However, leverage is used especially for day trading or short-term operations. But let's see how leverage works in the practice.
If you have the $ 1,000 and choose leverage x2, you will be investing $ 2,000. eToro would be “loaning” you the extra $ 1,000.
A couple of days later, as you thought, Netflix price increases by 20% and your money has appreciated reaching $ 2,400. But you don't want to take too much risk, so it's time to sell back.
You will have to give back the $ 1,000 of leverage and the net profit would be $ 400 (since the other $ 1,000 was your initial investment).
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.
It may sound too good to be true. The trick is that the risk of losing out is also there. If everything goes as planned, you will earn profits in little time; but in the opposite scenario, you will also lose more really quickly.
For example: if the price falls by 10%, you won't lose $ 10, but twice that figure, which means $ 20, because of the leverage. That is why to operate with leverage it is fundamental to know other two terms: Take Profit and Stop Loss.
Take Profit is the automatic order to sell once the asset is above the entry price: you purchase Netflix shares at $ 100 and you ask eToro to close your operation as soon as the price goes up to $ 120. It is very useful to avoid being blinded by greed: we would all take a 20% profit when making the investment, but when you reach that 20% it is easy to want higher profits and put yourself at risk of losing money. It's like you got assured in advance of not doing anything dumb in the future.
Stop Loss is even more important, mostly if you trade with leverage, because a reduced loss with leverage can be tragic for your wallet. That is why it is essential to mark a Stop Loss more tight than that suggested by eToro.
Virtual portfolio: How does it work?
In case you are taking your first steps as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional funds is very simple.
This is a great tool for those who are new to this world and want to put their talents to the test before playing for real money. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do all the trades that you can think of: not only with Netflix, you can also create a diverse portfolio with a variety of assets.
If your trials don't go as planned and you go back to zero, there is always a possibility to replenish your virtual funds. The second time will always be better.
However, remember that trading is mainly about being cold-minded, and using a practice account can have the reverse effect. It is completely different to risk your real savings than to do operations with a fake balance which loss does not suppose any drama. Also, using fake money can prevent you from learning to control your emotions, something you should be able to do when trading.
As you may suppose, the virtual mode is kind of absurd if you intend to trade in the medium or long-term (with almost guaranteed returns only by replicating an index), since you would be wasting years to see the outcome. Virtual accounts may be useful for practicing before trading in the short or medium-term.
* 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.