|Recommended Broker 🇦🇺||
|🌐 Official website:||
* Your capital is at risk.
How to buy
For those who live in Australia, a great way to invest in Zynga 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.
Now check your email inbox: you 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 Zynga 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 “Zynga” 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.
Zynga business model
Zynga is a multinational company in the video game sector whose market niche is focused on web social games. Founded in 2007, in its beginning it had a great boom thanks to its alliance with Facebook, where users of the platform had access to the games.
Many of these games were truly iconic, surely you will have played some of them or at least the name will ring a bell. Among the best known are FarmVille, CityVille, Mafia Wars, and CastleVille, having a large number of users on Facebook.
Currently, Zynga has its own web platform where it offers its games separately from Facebook, although some of them are still present in the social network. In them we can find that the company states that it has offices in Canada, United Kingdom and India, in addition to the United States.
Likewise, they also state that currently more than one billion people have played their games both on their website and on Facebook or any mobile platform. This is of vital importance when we analyze its business model.
According to the platform, its most popular games are FarmVille, Zynga Poker, Words with Friends and CSR (a car game). Although these are quite old, it also has more up-to-date titles such as a game based on Harry Potter and another on Games of Thrones.
Zynga's business model
Their way of generating money is very simple, they create an addictive game and publish it for free, but with some limitations that only disappear if the user pays.
An example of this are the games in which, if the user loses, he must wait a certain time to play again. But if the user pays a small sum of money, he does not have to wait this time, but can continue playing immediately.
In addition, there is the income from real money gambling games in which he usually earns a commission. Although in this case Zynga is as if it were a casino and therefore applies the rule “the house always wins”.
Zynga as an investment
Its share price is quite low and the stock has some peculiarities.
The first and most salient is that its stock market performance the last 5 years has far outperformed the growth of the SP500 and the NASDAQ Composite Index.
The second is that, in the same period of time, although the company has had a constant growth with little volatility, the accumulated return is more than 500% and still has the possibility of continuing to grow.
And obviously, this has put Zynga in the eye of investors looking for companies with good long-term returns in the market.
Why we recommend this broker:
- It is possible to invest in thousands of different products
- You can trade leveraged
- Very intuitive and simple
- It takes other users successful investment strategies so you can replicate them
- Allows you to go short
Homepage: www.etoro.com *
eToro is probably the best way to trade Zynga shares from Australia.
eToro is famous for making “social trading” fashionable. Social trading is an ingenious form of investing in which users can imitate the techniques of other traders who have been generating profits for a long time.
eToro has solutions for you, even if you don't have much experience in trading, since it automatizes your investment by imitating moves from traders with a very long profit history. Additionally, in case you do have experience in investment, eToro pays you for sharing it with others.
Besides, the interface of the website is so uncomplicated, ideal for those who want to begin in the stocks world, without getting crazy with tons of graphs and figures.
About Contracts for Difference
If you already have been on eToro, you probably noticed that the initials CFD appear over and over. Before we explain this further, we must say that cryptocurrency operations on eToro are only CFDs when you go short or leverage over x2 (although this is not even available on the platform).
We will also refer to concepts such as leverage and “going short”, in case you are thinking about day trading cryptocurrency or other more advanced operations.
With CFDs you can operate on eToro even if you are “in red” or don't have a positive balance. For example: you believe that the Zynga will fall, so you clearly think “if it is going to depreciate (go down in price), I'll just wait until it does”. But if it actually falls, you can make some profits out of that.
You can do that by “going short”. Here's how it works ,roughly:
- Someone lends you, let's say, 100 units of Zynga, which cost $ 5,000 (these are completely made up numbers)
- You get $ 5,000 by selling them at their price at that moment
- The price falls, as you thought, and the unit of Zynga now costs $ 30 instead of $ 50
- You buy the 100 units again, but at their current price, $ 3,000
- Now you pay back the 100 units
- The difference is yours, so, you will have made $ 2000
Keep in mind that it is much easier than it sounds: we can summarize this whole operation by saying that by trading in Zynga you can also make money if you predict it will go down.
Financial assets you can operate with in this broker
We already know about stocks, there are other financial instruments available.
Are the best option for those interested in long-term trading, mostly for beginners. If you don't need to take back your money in less than five or ten years, index funds are the safest option.
You may think differently, but beating the benchmark is far from being a piece of cake and very few fund managers achieve that, apart from some famous cases.
In practice, if a fund manager achieves to beat the benchmark, it is only for a short time or on a specific occasion. Or perhaps they would charge very high fees and indexing would be a better decision anyway (with minimal commissions).
Index funds provide solutions to both concerns: their rates are insignificant and in the long term they tend to beat active managers.
What do you know about Exchange-traded funds or ETFs? They are passively managed funds, known for merging the benefits of stocks and mutual funds: they can be traded regularly at market price, but have much more investment possibilities and the rates are significantly lower.
The major advantage of trading with raw materials is that their price fluctuates less than that of other financial products. In fact, their stability is what makes most investors trade with commodities when facing market volatility or inflation. Despite that, the prices of commodities are defined by their demand. Therefore, if a given economic situation causes higher demand, the prices will also rise.
Note that the only intended profit from the investment in raw materials will come from their further sale because these kinds of assets don't pay dividends.
Raw materials are usually categorized into two kinds: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products such as sugar, cocoa, soybeans, among others.
Forex or currency trading allows obtaining profits by converting one currency for another.
In case you decide to exchange the EUR/USD pair, you speculate how many dollars it will take to buy a euro, thinking that the euro will rise compared to the dollar. Therefore, if you bought each euro for 1.15 USD and you sell them back when they cost 1.20 USD, that margin will be yours.
Perhaps you already deducted this, but operating with currencies usually implies investing a lot, because prices never increase that much, or using a lot of leverage, which is a bit like skating on thin ice, as you know. 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 but bear in mind that Forex functions through contract for differences, which means you will not be the owner of the underlying asset.
eToro payment methods
When it comes to depositing money on eToro, there isn't really much to say, since it is really straightforward. Just click “Deposit funds”, type an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card, Skrill, or Neteller.
Remember that for security policies, you need to be the owner of the account or the credit card.
The minimum amount you can deposit is $ 200 and there is a limited amount if you are not verified, so if you want to trade with higher amounts, contact Support previously to verify your account.
The platform accepts deposits or transfers in any currency, but charges a commission for making the conversion to USD. That is why we suggest, if possible, depositing in USD directly.
When trading cryptocurrencies, there are different possible methods or strategies, like buying and holding or day trading, for naming just a couple.
If you don't have much experience in investment, I recommend something in the middle: when you open your Zynga position, set a dynamic stop loss 15-20% under the maximum price, and let the rest happen on its own.
This means that if, for instance, 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 obtain a pretty good profit.
Perhaps you are wondering: why not selling back when the price is at its highest? But that would only work for a psychic or a fortune-teller. The mentioned strategy is more down-to-earth and can work out perfectly if it is well applied.
Sooner or later, you will be ready for applying advanced investment strategies, like using leverage or going short to profit from bear markets.
How does a demo account work?
Are you beginning in trading? Using a demo account can be very helpful. Just make sure the virtual mode is set in the top left corner of the page and you can start operating with fictional funds.
This can be a great way of practicing before trading with real money. You will have an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can operate with all the different assets available on eToro, not just with Zynga.
The first attempt is not usually that good. But don't worry, because you can ask support to deposit back the virtual funds to your portfolio.
Keep in mind that trading is mostly about being cautious, and perhaps a virtual account can make you a bit impulsive. It will never be the same as risking your own money.
And of course, the demo mode is kind of pointless if you intend to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years to see the outcome. Demo accounts may be helpful for practicing before investing 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.