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How to buy
If you live in Australia, the best way to invest in NIO 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.
Now 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.
How to make your first purchase
As soon as eToro has confirmed the receipt of your credit, you just have to search for “NIO” 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.
NIO is a company founded in China by entrepreneur William Li in 2014 that manufactures and markets high-end electric vehicles. At the time of its launch, this company caught the attention of other large companies that decided to invest in NIO and back it. Among them we can mention Lenovo, Tencent, and large investors such as Sequoia Capital.
Since its founding, NIO has grown so much that it currently has offices in Germany, the United States and the United Kingdom. But one of the most remarkable events was the IPO of its shares on the New York Stock Exchange in 2018, where the value of its shares has revalued up to 500%.
This company seeks to lead the way in the transition from internal combustion vehicles to electric vehicles, thus declaring war on Tesla. This has caused the existence of NIO to be framed within the confrontation between the United States and China.
But it should be clarified that NIO is not the only Chinese company producing electric vehicles. And although its goal is to produce intelligent electric vehicles and autonomous driving, it also has ideas that completely differentiate it from Tesla and the other companies competing in this sector.
What makes NIO stand out from its competitors?
NIO offers high-performance electric vehicles that have a range of more than 600 km. But this is something we can find in other electric vehicles from the Tesla brand.
What does set NIO apart is its charging systems, as the charge can be brought to wherever the vehicle is located. It does this with a van that is capable of providing charging for a range of 100km to two vehicles, and can also recharge Tesla vehicles. So, if a Tesla user does not have a Supercharger nearby, they can call NIO.
In addition, a recharging system that completely sets it apart from the rest is battery swapping. NIO has battery recharging stations where the discharged battery is replaced by a fully charged battery.
All this is done automatically and controlled by robots that carry out the whole process in less than three minutes. So NIO owners really care little or nothing about charging time, thus raising the company's service to a new level.
This service works on a subscription basis that users pay monthly and gives them access to the service. With the advantage of making vehicles cheaper by more than 8 thousand dollars, since users do not have to buy the battery but only subscribe to the service.
Small differences in the business model that in the future could tilt the balance towards NIO's side, making it a company that should always be taken into account.
eToro, our favorite broker
- It is uncomplicated and user-friendly
- Allows to imitate other traders trading moves
- Allows “shorting” or short-selling
- You can leverage
- There are tons of products you can invest in
Official homepage: www.etoro.com *
You should absolutely consider eToro if you are thinking about investing in NIO from Australia.
eToro is well-known for making “social trading” fashionable. Social trading is an ingenious form of investing in which users can replicate the movements of other traders who have been generating income for a long time.
If you are still a rookie or do not have much investment experience, eToro is very helpful. You can rest assured that you are making a smart investment since the site replicates those from subjects with a long profit record. And for those skilled investors willing to share their techniques with the community, eToro pays for it.
Another advantage is how easy the interface is, which turns out perfect for new users that are learning all about the trading world.
Financial instruments you can trade in this broker
Besides stocks, there are more financial assets you can trade with .
What do you know about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds: they can be traded regularly at market price, but offer much more diversity and considerably lower fees.
About Index Funds
Index funds are suitable for those who want to invest for the long term, 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 security and diversity.
Perhaps you have a different idea, but very few fund managers can beat their benchmark return (yes, you have probably heard of managers who achieve huge profits).
But putting aside some exceptional cases, all that glitters is not gold: if you hear of someone who has 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, if something happened once or twice, it doesn't mean necessarily that it will happen again.
The good thing about index funds is that they solve both issues: their rates are insignificant and in the long term they tend to beat active managers.
Forex or currency trading allows obtaining profits by converting one currency for another.
If you decide to exchange EUR and USD, you speculate how many dollars it will take to buy a euro, with the expectation that after buying the first currency (the euro) it will increase compared to the second (the dollar), to make a profit by selling it. Let's say you entered when the price of one euro is 1.10 USD and you close when a euro is worth 1.15: as a result, you will gain that margin.
Perhaps you already inferred this, but this kind of trading usually implies investing a lot, because prices rarely increase that much, or using a lot of leverage, which you know is 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 simpler market.
You can exchange with the most common currency pairs on eToro. However, consider that in Forex sales are always made through CFDs, therefore you will not be the owner of the real asset.
About Contracts for Difference
It is possible that you have found the acronym CFD repeatedly if you already registered on eToro. Before we explain this further, we must say that cryptocurrency trading on eToro is only CFD when you go short.
For the record, and in case you want to know about day trading cryptocurrency or other trading practices, later on we will also explain terms such as short-selling and leverage.
Even if you aren't “in the black”, you can still bet on eToro with CFDs. Let's say that you believe that the NIO will go down, so the logical thing is to think “if it is going to depreciate, I'll just wait and go when it has gone down”. Nevertheless, if it really falls, it might mean extra money for you.
You can do this through a practice known as “going short”. Its operation, roughly, consists in the following:
- You obtain from a loan 100 units of NIO, valued at a total of $ 5,000 (these numbers are fictional)
- You make $ 5,000 by selling the 100 units
- The price falls, as you calculated, and the unit of NIO now costs $ 30 instead of $ 50
- You purchase all 100 units one more time, but at the current price, $ 3,000
- Now you give back the 100 units to whoever loaned them to you
- The rest is yours, so, you will have made $ 2000
It all seems more complicated than it really is. Just remember that by trading in NIO on eToro, you can earn money if you foretell downs in the price.
Have you heard about “social trading”?
eToro is a pioneer in social trading, it was the first broker to propose it. 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 main achievement was in allowing users to copy the strategies of advanced investors, and to reward the latter for their ideas and knowledge.
It sounds complex but it isn't: when you enter eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are types of ETF or thematic index funds, a portfolio that includes several assets of the same market. Let's say that you consider that the gaming industry is going to prosper soon but you don't have enough information (or time) to choose stocks, you just have to pick the CopyPortfolio called “InTheGame”, which includes Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…
You should know that in the last year, CopyPortfolio has given 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 the “Invest” button.
But it is also possible to copy other users of the platform who are successful investors. With “Copy People” you can locate them and replicate their investments easily.
In each user profile, you will see their risk profile (how much risk do they take), their performance history, and what type of instruments they trade..
Besides copying other user's moves, which is really interesting and helpful, we also recommend that you benefit from the community by reading other user's remarks. You can learn a lot from their experiences, particularly if you aim to make a living from trading.
* 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.