How to invest in Xpeng from Australia

Recommended Broker 🇦🇺
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👌Difficulty Low
☢️Commissions Zero
💲Minimum deposit 200$
🪙Instruments: Stocks like Xpeng, 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: www.etoro.com *
* Your capital is at risk.

How to buy

If you live in Australia, the best way to invest in Xpeng 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 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.

Then check your email inbox: you 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 purchase

When eToro has confirmed the receipt of your credit, you just have to search for “Xpeng” 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 Xpeng?

Xpeng is a Chinese company dedicated to the manufacture of high-end electric vehicles. It was founded in 2015 by Xia Heng and He tao, together with two important partners who believed in the project: He Xiaopeng, former executive of Alibaba and Lei Jun, founder of Xiaomi.

This company, also known as Xiaopeng Motors, decided to enter the competitive electric vehicle segment, a sector dominated by Tesla and where NIO already existed in China. However, despite also being luxury vehicles, Xpeng has differentiated itself because its main objective is to provide comfort in its vehicles, beyond speed.

The company currently offers two vehicle models, the G3 and the P7. In the case of the G3, it is an SUV that began marketing in 2018 (although its foundation was in 2015). While the P7, a very comfortable sedan, they brought it to market in 2020.

Its IPO was on August 27, 2020, so there is no historical information about its performance as can be found from other companies. But at the time of its IPO, in the company's prospectus, it notified that by July 2020 it had sold 18,741 units of the G3 and 1966 units of the P7.

These are obviously quite small numbers when compared to other companies in the same sector. In fact, although Xpeng is listed on the New York Stock Exchange, it only markets its vehicles in China because as we mentioned, it is a small company.

An important detail is that when reviewing the company's financial reports (you can find them on its official website) we find that the company since its foundation has generated losses.

The year 2020 has been the only year in which sales have exceeded the cost of sales generating 40 million dollars of profit. However, this figure is only about sales because when operating expenses (research and development, administrative and general expenses) are added in, Xpeng has a net loss of $418 million. And it was their best year ever.

Straight up we recommend you look at other established companies like Tesla if you are interested in investing in the electric vehicle sector. Because at the end of the day, if all you are offering is the potential going forward, you are not offering anything that Tesla or NIO does not.

Why we recommend this broker:

  1. You can copy trading tactics
  2. Accepts “shorting” or short-selling
  3. User-friendly and straightforward
  4. eToro allows leverage
  5. It is possible to invest in thousands of different products

Main site: www.etoro.com *

You should certainly consider eToro in case you are interested in trading Xpeng shares from Australia.

eToro is known for making “social trading” fashionable, a revolutionary way of investing in which traders can emulate the moves of other investors who have been generating income over time.

eToro has solutions for you, especially if you are still a beginner in trading. You can rest assured that you will be doing a smart investment move when replicating those from subjects with a great deal of expertise. Additionally, in case you are an investor, the platform pays for your knowledge.

It is also worth mentioning how accessible is this platform, ideal for beginners who are starting in the investment world.

What are Contracts for Difference?

You probably have seen the initials CFD more than once if you already registered on eToro. We will come back to it, but you should know first that CFDs on eToro are only possible if you short sell or leverage above x2 (although this is not even available on eToro).

We will also refer to concepts such as leverage and “going short”, in case you are interested in day trading cryptocurrency or other more advanced operations.

The advantage of eToro is that it allows you not only to bet when you are “in the black”, but with CFDs you can also bet “in red”. For example: you are sure that the Xpeng will go down, so probably you consider that it is better to refrain from getting in until it actually falls. Nevertheless, if you really consider that it's going down, why not making some profits out of that?

You can do this through a practice known as “going short”. Its operation, roughly, works like this:

  • You ask someone to lend you, for instance, 100 units of Xpeng, which cost $ 5,000 at the moment (obviously, these numbers aren't real)
  • You make $ 5,000 by offering them at the market price
  • As you supposed, it depreciates, and the unit of Xpeng goes from $ 50 to $ 30
  • You obtain the 100 units again, but at $ 3,000
  • Then you pay back the 100 units to the loaner
  • You keep the $ 2000 difference!

It is really simple. Just bear in mind that by trading in Xpeng on eToro, with CFDs you can make a profit if you anticipate downs in the price.

How are CFDs and futures different?

How are CFDs and Futures different?

  • Counterparties
    • Futures: operations are made with another investor.
    • CFDs: the counterparty is the broker, in this case, eToro. That means you do not “play” with someone else but with the bank.
  • Expiration:
    • Futures: they expire. Once the contract expires, it is closed even if you are in red.
    • CFDs: there is no expiration date. This means that you can wait for your position to rise before exiting.
  • Trading markets:
    • Futures: there are limited options
    • CFDs: a lot of variety, there are CFDs of practically anything
  • Minimum deposit amount or “trade size”:
    • Futures: you have to invest much more
    • CFDs: you can get in with a lower minimum trade size
  • Trading costs and charges:
    • Futures: being higher figures, rates are, commonly, proportionally lower
    • CFDs: higher (although they are not excessively high either)
  • Possibility of leverage:
    • Futures: you can't leverage
    • CFDs: completely available

eToro payment methods

When it comes to depositing money on eToro, there isn't really much to say, since it is pretty simple. You only need to select “Deposit funds”, set an amount, and choose the payment option you prefer. You can use PayPal (available for some countries), bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.

Remember that for security reasons, you need to be the owner of the credit card or the account.

The lowest amount is $ 200, and there is a maximum authorized if you are not verified, so if you plan to operate with larger sums, you should verify your account first.

The platform accepts deposits or transfers in any currency, but charges a fee for making the conversion to USD. So it is better to use USD directly.

How does eToro work?

As we have referred among the positive aspects of eToro, the best thing about this online broker is its simplicity: anyone can trade without having to read endless guides.

If you have used any of the most common social networks, such as Twitter or Facebook, you can perfectly manage eToro's interface.

We will talk about the registration process and the different tabs you will find on the platform.

You will have to provide some personal information (like full name or address, for instance) when registering.

They will also ask you about your previous trading activities.

But don't feel like you are taking an exam. The objective is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.

Let's see what the different sections of the page are.

With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. This is perfect if you want to buy an asset and you are waiting for its price to fall.

In the “News Feed” tab is the most social part of eToro: where users are interacting all day and sharing valuable information.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the different financial assets that eToro offers are:

  • Cryptocurrencies
  • ETFs
  • stocks
  • Raw materials
  • Forex trading
  • Index funds

The term “social trading” comes to life within “People”: that is where you can copy the trading strategies of any user you choose. You'll be able to see all their profiles and historical performances.

You can find those traders that you find more interesting. You can search by risk level, financial instruments, or average profits, among other filters. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. If you have $ 1000 and the trader puts 20% of their funds in an asset, the platform will also invest 20% of your money in the same company or instrument, in this case, $ 200.

You will also see the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.

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The advantage of using CopyPortfolios instead of copying people is that this way the risk is more diversified. There are all kinds of portfolios that you can recognize easily and are classified by sectors. So, in case you suspect a specific industry, such as fashion or oil, will prosper in the future, you should probably look for that specific portfolio.

Have you heard about “social trading”?

The first platform that thought of trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also adopted this concept, but eToro is way better.

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

When you enter eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.

CopyPortfolios

“CopyPortfolios” contain a collection of assets of a certain sector. For example, 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.

At the time of writing this text, this CopyPortfolio has generated a 100% return in the last year, and it is as simple as clicking on “Invest”, enter the amount, place the stop-loss, and the rest will be done practically on its own.

Copy People

But it is also possible to copy other users of the platform who are successful investors. With “Copy People” you can find them and duplicate their investments easily.

In the profile of each user, you will be able to see their risk profile (the higher the risk, the more chances of winning more and losing more), their performance, and what type of instruments they trade..

And although duplicating other people's investments is very interesting, I also suggest taking advantage of the platform's community to read other users and learn from them. It is a great source of information and knowledge, especially if you want to turn investing into a lifestyle.

Investment strategies

When trading cryptocurrencies, there are different possible methods or strategies, like day trading or buying and holding, for naming just a few.

My suggestion for those who are beginning to invest is going halfway between the two options: when you open your Xpeng position, place a dynamic stop loss 15-20% under the top price, and let the magic happen.

For instance, if you purchase a cryptocurrency at $ 15, then it increases to $ 25 and falls again to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will get a satisfactory income.

You may be wondering: why not selling back when the price is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.

Later on, you will be able to apply more complex techniques, such as going short or using leverage.

Virtual portfolio

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 trading with fictional funds is very easy.

A virtual account can be a good way of gaining confidence before starting to operate with real funds. When you open your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of assets available on the platform (not only with Xpeng).

If your performance is not that good and you lose your funds, there is always a possibility to replenish your virtual balance. You'll probably do better on the second try.

Take into account that investing is mostly about being cold-minded, and perhaps a virtual account can prevent you from controlling your impulses. It is not the same to trade with your own money than with virtual funds, which you can lose without a problem.

Finally, if you intend to invest in the medium or long-term, with profits almost guaranteed just by duplicating a strategy, it doesn't make sense that you waste years investing in virtual mode. On the contrary, short and medium-term trading is ideal to try out with the demo mode.

Common questions

How much is the minimum deposit?
Only 200$.

When will I be able to take out my funds?
At any time. Simply close your Xpeng investment, go to “Withdraw Funds” section and that's all.

What deposit methods are accepted?
You can use: Credit Card, Bank Transfer, PayPal, Rapid Transfer, Neteller, Skrill and Klarna / Sofort Banking.

* 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.