|Recommended Broker 🇪🇬||
|🌐 Official website:||
* Your capital is at risk.
How to buy
If you live in Egypt, the best way to invest in Google 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 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 “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.
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 Google 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 “Google” 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.
Is Google a buy?
Google is the most used search engine and the most visited website worldwide, performing an average of three billion searches per day. But it is also one of the largest software and electronic services companies in existence for a long time.
Like other Internet companies, Google was born as a university project in 1996 by students Larry Page and Sergey Brin. Two years later, in 1998, the two founded the company Google Inc. and the search engine was launched on September 27.
At that time, it was just a search engine with an infrastructure of 80 servers in a closet. However, its initial success was so great that by the year 2000 it had already displaced the most popular search engine at the time, AltaVista.
Since then, Google has only grown to become the technological giant we know today. From just a search engine and generating revenue from internet advertising, Google evolved to offer a wide variety of services among which we can mention:
- Google Chrome
- Android OS
And we mention these because they are the ones that generate the most revenue for Google, revenue that comes from the advertising model that we all know. But there are also lesser-known projects that also generate revenue to the company, such as Google Drive, Workspace or Cloud.
Future projects of Google
Being a technology company, Google remains in a process of continuous research and development that sustains its success in the market. This is how Google has a laboratory known as Google X in which it works on new technologies.
In this laboratory, Google develops technology that may seem futuristic, such as the Smarty Pants, which are robotic pants controlled by artificial intelligence that will help people with reduced mobility.
Following the futuristic line, we can also mention the Wolverine project. In this case it is a device that would improve the hearing of any person. You will probably think that there is nothing futuristic about this, but the magic lies in the device's ability to focus on a particular speaker in a crowded environment.
These are projects that are ongoing, but to mention something more rational and company-related, there is the Taara project. This project seeks to bring the Internet to everyone using beams of light instead of wires. And according to the company itself, this technology is the only one that has the potential to surpass Google Fiber.
This is the way Google has kept growing over and over and that has allowed it to remain in the group of the big five of technology, along with Facebook, Amazon, Microsoft and Apple.
- Allows you to make investments in countless of different products
- eToro offers leverage
- Really intuitive and simple
- Allows to learn from other trading moves
- You can short sell
Main site: www.etoro.com *
You should absolutely consider eToro in case you are interested in investing in Google from Egypt.
“Social trading”, a relatively new investment method that consists in 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, since it puts your investment on autopilot by repeating strategies from other experienced people with a very long profit history. Additionally, in case you do have experience in investment, eToro pays you for sharing it.
Another thing to mention is how manageable the interface is, which turns out perfect for new users that are just learning all about the trading world.
Instruments you can operate with in eToro
We already know about stocks, there are other financial assets you can trade with .
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 exchanged at any moment in the market, but have much more diversity and considerably lower fees.
About Index Funds
If a long-term investment sounds like something you would do, and you won't need to take back your money in at least five years, index funds can be the best alternative. This type of investment is also great for beginners since it is more secure.
Contrary to common perception, it is very hard to beat the market (although you have probably heard of investors who obtain huge profits).
But putting aside some unusual cases, all that glitters is not gold: if you hear of someone who has beaten the benchmark, it was probably for a limited time, or their rates are really high. Also, take into account that if something happened once, it doesn't mean necessarily that it will happen again in the future.
The good thing about index funds is that they perfectly solve those two issues: their rates are insignificant and in the long term they almost always beat active managers.
Foreign exchange market
Forex or currency trading is the exchange between a pair of currencies in order to gain money through the operation.
If you decide to trade the EUR/USD pair, you buy euros at their price in dollars, with the expectation that the euro will rise compared to the dollar. Therefore, if you purchased each euro at 1.15 USD and you sell them back when they are worth 1.20 USD, you'll be keeping that margin.
You may be thinking that trading with currencies requires high investments, and you are not wrong, since fluctuations are usually minimal, and if you use a lot of leverage to counter that, you will take a considerable risk. In case you are just starting to trade, we don't recommend beginning with the currency market, because it is very risky and complex.
eToro allows trading with the most usual currency pairs. Still, bear in mind that in this market sales are made through CFDs, therefore the underlying asset won't be yours.
Most people invest in raw materials because of their stability. While other assets present higher fluctuation, commodity prices vary less and offer security against inflation or market volatility. However, prices are subject to supply and demand in the market, so if the fear of possible inflation produces higher demand for a certain good, its cost will also increase.
Note that commodities don't pay dividends. Thus, by trading with these you will only have a further income by selling them back.
Raw materials are generally classified into hard raw materials, which include precious metals, industrial metals, and oil; and soft raw materials, which are basically agricultural goods, like soy, cocoa, corn, or rice.
What are CFDs?
If you browsed eToro previously, you must have noticed that the acronym CFD appears repeatedly. We will come back to it, but first, you should know that CFDs on eToro are only possible when you go short or leverage higher than x2 (but the platform does not even allow this).
In case you are considering day trading cryptocurrency or other operations, later on we will also refer to terms such as leverage and “going short”.
eToro lets you bet both “in the black” and “in red”. For instance, you are sure that the Google will go down, so perhaps you think that the best thing to do is refrain from getting in until it actually falls. But if it actually falls, you can earn some money out of that.
The operation known as “going short” will allow you to do that. It functions, roughly, this way:
- You ask someone to lend you, for instance, 100 units of Google, which cost $ 5,000 at the moment (obviously, these numbers are made imaginary)
- You earn $ 5,000 by selling them at their price at that moment
- The Google devaluates from $ 50 to $ 30
- You obtain the 100 units again, but at $ 3,000
- You pay back the 100 units to whom made the loan in the first place
- The rest is yours, so, you will have made $ 2000
Consider that it sounds much more tricky than how eToro CFDs actually work: we can summarize this whole operation by saying that by trading in Google you can also earn money if you predict it will go down.
What's the difference between CFDs and futures?
If you want to know, here are the major differences between CFDs and Futures:
- Which are the counterparties? In the case of Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- Expiry date Futures expire in a variable given date, while CFDs don’t have expiration date
- Markets available: Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size”: Costs for Futures are higher than costs for CFDs.
- Use of leverage: with Futures, it isn’t possible; while with CFDs it is.
How to use leverage in trading
If you still don't know what “leverage” is, we'll put it short. When trading, it's the capacity of enlarging your investment without putting extra money. For example, you can enter with $ 100, but if you use x2 leverage, you will be investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for instance, you are certain that Google price is going up, and that you have $ 1,000 for “going long”, you should know that you can increase your investment and earn higher profits.
There's the possibility of requesting a loan at your bank or other financial company, but you must know that all the process takes time, and when you receive the money, Google might be already so expensive that investing wouldn't be convenient anymore.
Leverage is just like a loan, but it is only a few clicks away! eToro allows you to operate with much more money than what you have on the platform's wallet. As in the image below, you will see the different options you have:
Within other markets, the leverage you can choose is higher. Why? Because cryptocurrencies are a value that is invested in the medium-long term. However, leverage is used mainly for day trading or short-term trading. But let's deepen a bit more on how all this works.
You enter with $ 1,000 and pick leverage x2, then you would really invest $ 2,000, since eToro would put the other $ 1,000.
A couple of days pass and turns out that you were right: Google price has risen by 20% and your money has appreciated reaching $ 2,400. Ok, don't be greedy, let's sell.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you invested yourself, so you'll have earned $ 400.
In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.
It may sound too good to be true. The thing is, you can also lose money. If everything goes as planned, you will earn more money in less time; however, if the value of the asset decreases, you will also lose more in less time.
For example: if instead of increasing by 20%, the price falls by 10%, you do not lose $ 10, but twice (the leverage) that figure, that would be $ 20. Therefore, when trading with leverage it is very important to know about Take Profit and Stop Loss.
Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.
If you purchased Google shares at $ 100, you request eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps going up, which could make you lose it all.
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). For that reason, it is vital to set a Stop Loss more tight than that suggested by eToro.
* 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.