|Recommended Broker 🇪🇬||
|🌐 Official website:||
* Your capital is at risk.
How to buy
For those who live in Egypt, the best way to invest in 3M 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 Egypt, 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 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.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “3M” 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.
Minnesota Mining and Manufacturing Company, better known as 3M, is one of the most diversified companies in terms of products. To the point that, according to their own website, they have more than 100,000 product patents that they can provide to customers.
It was founded in Minnesota in 1902 as a small mining company, as can be inferred from its name. However, since the company did not achieve the expected success, they decided to move from mining to producing the abrasives that the industry needed.
And from then on, the company followed a path in which, as they define it, they never stopped inventing products and innovating. So, following this path, they went from inventing the first tough sandpaper in 1920 to iconic products such as the Scotch-Brite sponge.
Their product portfolio is truly immense and they are all dedicated to niche markets, devising a solution for every problem. However, these can be categorized into abrasives, adhesive tapes, safety equipment, household products, window films and oddly enough, healthcare equipment.
3M as an investment
About this company we can find information on the official website registered since 1920, which tells us that this company has a long history on the New York Stock Exchange. Which in turn reflects the growth and expansion of 3M as a company.
As it grew from a small company in a small town in Minnesota to a presence in 100 countries and more than 88,000 employees worldwide, its stock market share went from a rock bottom price to the value it is at today.
3M's historical performance is something that any company would like to have and, of course, any investor would like to achieve. The best part is that 3M stock not only has a great performance year after year, but it also pays dividends quarterly to its investors.
Dividends are the portion of a company's earnings that are distributed to shareholders, so a company that pays dividends is a company that generates profits. And 3M's dividends are particularly high, even more so when you consider its share price.
For the past several years, 3M has been paying annual dividends to its shareholders in the range of $5 to $6 per share. This makes it one of investors' favorite dividend stocks.
Reason for using eToro for investing in 3M from Egypt?
- You can learn from other trading strategies
- Admits short-trading
- It's uncomplicated and easy to use
- You can leverage
- You can make investments in thousands of other goods
Homepage: www.etoro.com *
If you are interested in investing in 3M from Egypt, eToro may be the best option.
“Social trading”, a relatively new way of investing by replicating techniques and strategies from other experienced investors, has become popular because of eToro.
If you are a novice user or haven't gained much investment experience, eToro is great for you. You can rest assured that you are making a smart investment since the site replicates those from subjects with a long profit record. On the contrary, if you are an expert in the subject willing to share your methods with other traders, eToro rewards you with money.
It is also worth mentioning how easy is to manage the platform, excellent for beginners who are starting in the investment world.
Is eToro trustworthy for purchasing 3M?
eToro is very rigorous with the data about past performances from users, and its reliability has been tested once and again by independent organizations.
The main headquarters of eToro is located in Cyprus, and the platform is certified by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 from its client's debts, including those from Egypt. On the other hand, eToro meets all the strict requirements of the European Union.
eToro is backed by the European Financial Instruments Market or MiFID, and by the Financial Conduct Authority or FCA in the United States of America. Apart from the above, it has a trajectory of fifteen years, with more than 20 million users around the world. So, you can be sure that your money is safe.
Their customer service functions perfectly. You can contact them by phone or use their online chat.
About Contracts for Difference
If you already have been on eToro, you probably realized that the acronym CFD appears over and over. Before we explain what this is, we must say that CFDs on eToro are only possible if you go short or choose leverage above x2 (nevertheless, this is not even available on eToro).
For the record, and in case you want to try at some point day trading cryptocurrency or other operations, next you will also find information about concepts such as leverage and “going short”.
The good thing about eToro is that it allows you to bet both “in the black” and “in red”. In a hypothetical case: you are sure that the 3M will go down, so perhaps you consider that the best thing to do is wait until it does and then go in. However, if it really falls, it might mean extra money for you.
You can do this through what is known known as “going short”. Its operation, roughly, works like this:
- You get from a loan 100 units of 3M, valued at a total of $ 5,000 (these are completely imaginary numbers)
- You make $ 5,000 by selling the 100 units
- The price falls, as you thought, and the unit of 3M goes from $ 50 to $ 30
- Again, you buy the 100 units, but at the current value, $ 3,000
- You pay back the 100 units to the person that loaned them to you
- You keep the $ 2000 difference!
Take into account that it seems much more complex than how eToro CFDs actually work: we can just say that by trading in 3M you can also make money if you anticipate it will fall.
If you still don't know what “leverage” is, we'll describe it briefly: it is, simply, the possibility to use 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 are confident that 3M will rise, and you want to “go long”. You have $ 1,000, but you actually can invest more and make more money.
You could consider asking for a loan at your bank, but you must know that all the process takes time, and when you receive the money, 3M might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Leverage is like a loan, and you will only have to click a few times! You will be able to invest (and earn) much higher amounts than what you actually have on the platform. You will simply see the different options as in the image below:
Trading with other assets allows you to use even more leverage. This is because leverage is most common in short-term operations, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works:
- If you decide 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, 3M price does rises, as you thought, and now the price of your investment is $ 2,400 (20% higher), so you decide to sell back because you want to play it safe.
- Once the $ 1k from leverage is returned, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours initially.
As you can see, with $ 1000 you get $ 400 more, no less than a profit of 40%. Not bad, right?
But watch out: if all goes as you intended and the price rises, you will make money. However, if the price goes down, 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. Because of that, the terms “Take Profit” and “Stop Loss” are so important when using leverage.
Take Profit is the automatic order to sell once the asset is above the entry price: you purchase 3M shares at $ 100 and you ask eToro to close your operation as soon as the price goes up to $ 120. It is very helpful to avoid being blinded by enthusiasm: we would all take a 20% profit when investing, but when you reach that 20% it is easy to want some more and risk losing it all. It's like you made sure now of not acting recklessly in the near future.
Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). Take into account that eToro will recommend a limit for Stop Loss, but it is better to set it lower than that.
Assets available in this broker
You already know about stocks, there are other financial assets available.
Exchange-Traded Funds or ETFs are similar to index funds. We can say that ETFs are somewhere between stocks and funds: they are traded in the market like stocks, during the day. Their main benefit is that they are more diversified compared to stocks, and their commissions are much lower than those of an actively managed fund.
Forex or currency trading is the exchange between two currencies in order to obtain a profit through the operation.
In case you decide to exchange EUR and USD, you speculate how many dollars it will take to buy a euro, thinking that the first currency (the euro) will raise its price compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you close when it reaches 1.15: as a result, that margin will be yours once you sell back.
You may be thinking by now that trading with currencies requires investing considerable amounts, and that is correct, because fluctuations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. Our advice 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 remember that this market works with CFDs, so you will not own the real asset.
Do you know what “social trading” is?
eToro was the first broker to suggest trading as a social activity, and time has proven that it was a great idea. A lot of copycats have appeared since then, but we have tried them all and eToro is still the best.
However, their main achievement wasn't just creating a social network for traders. They could have made the umpteenth social network in which users discuss investing, but they were not satisfied with that: the major contribution of eToro was to allow users to replicate the strategies of experienced traders, and to reward them latter for their knowledge.
When you access eToro you will find 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 example, if you consider that a particular sector will have significant profits but you are not sure which investments to make, you just have to pick a portfolio that includes a variety of related companies in that industry.
CopyPortfolio has generated a 100% profit in the last twelve months, and you just need to click on “Invest”, enter the amount, place the stop-loss and wait.
But it is also possible to copy other users of the platform who are successful investors. It is really easy: you can find them with “Copy People” and just replicate their moves.
You will find in the profile of users: the kind of financial instruments they operate with, their risk profile (a higher risk implies higher possibilities of earning more or losing more money), as well as their trading history.
Copying other people's investments can be very interesting and helpful, but it is also a good idea to take advantage of the community to read other users and learn from their experience. If you want to end up living from trading, it is a good place to gain valuable knowledge.
There are many cryptotrading trategies: from purchasing and holding to day trading using price volatility in your favor.
In case you are just starting in the world of investment, I suggest something in the middle: when you open your 3M position, place a stop-loss 15-20% under the maximum price, and let the magic happen.
For example, if you purchase a cryptocurrency when its price is $ 15, then it increases to $ 25 and falls back to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Therefore, you will get a pretty good income.
You may be wondering: why not selling when the price is at its peak? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and give good results.
At some point, you will be ready for more advanced trading techniques, like using leverage or going short.
* 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.