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How to buy
For those who live in Egypt, a great way to invest in Qualcomm 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 Cyprus Securities and Exchange Commission, and therefore complies with all the regulations of the European Union, the most demanding in the world.
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 your 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 Qualcomm rising while you wait for your transfer to be done.
How to make your first purchase
When eToro has confirmed the receipt of your credit, you just have to search for “Qualcomm” 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 Qualcomm a buy?
Qualcomm is an American technology company that is well known because its chips are widely used in the smartphones industry. And among all the chips it manufactures, surely the best known is the Snapdragon processor, which is preferred by most smartphones manufactors.
This company, founded in 1985 in California, initially offered satellite location and messaging services to long-distance transport companies. At the same time it produced integrated circuits for equipment specialized in digital radio communications as well as its first patents, which would be essential for the company.
It would be in 1990 when Qualcomm has the first approach with cellular technology, particularly with CDMA, which would define the future of the company. This fact plus its patents mark a milestone for Qualcomm because, although it is known for Snapdragon, its real business is in cellular technology patents.
In those years, Qualcomm developed a lot of wireless technology that it filed and patented in the United States. As time went by, its patents would be taken as standard in the cellular industry and for wireless technologies.
That is why its main business and source of income is the licensing of patented technologies. And all, but all cell phones are dependent and use in one way or another some of Qualcomm's patents. Thus, Qualcomm's licensing fee is between $20 and $30 per mobile device produced.
This is an outrageous figure for the sector, being 10 times higher than the average and for which Qualcomm has entered into legal disputes in the United States for monopoly. Although Qualcomm has come out of this with flying colors and has argued that the price for using its patent is higher because its patents are more important and indispensable.
As you can imagine, Qualcomm receives a monstrous income from patent licensing alone. This allows the company to pay quarterly dividends to its investors for an average of $2.6 per year. In turn, these two facts are reflected in the positive returns that Qualcomm's stock has on the stock market.
If we add to this the fact that the legal battles that Qualcomm has won basically allow it to continue with its patent monopoly, we can affirm that this company is one of the best to invest in the long term.
Reason for using eToro for investing in Qualcomm in Egypt?
- There are lots of investment options
- Leverage is allowed
- It's really simple and intuitive
- It uses strategies from successful investors so you can copy them
- Allows you to go short
Official website: www.etoro.com *
In case you are considering it, eToro is the best way to invest in Qualcomm from Egypt.
“Social trading”, a relatively new form of investing by replicating techniques and strategies from other experienced investors, has become trendy thanks to eToro.
eToro is very useful if you don't have much experience in trading. You can rest assured that you are making a smart investment since the site replicates those from subjects with a great deal of expertise. Additionally, in case you do have experience in investment, eToro pays you for sharing it with others.
Another thing to mention is how easy the interface is, which turns out perfect for new users that are learning all about the trading world.
Assets available in this broker
Besides stocks, there are other financial instruments you can trade with in eToro.
The main attraction of investing in commodities is that their price fluctuates less than that of other assets. Actually, their security is what makes people often invest in raw materials, to take refuge from market volatility or inflation. Despite that, the prices of commodities are defined by their demand. Therefore, if a generalized fear of inflation causes higher demand, the prices will also be higher.
Note that the only intended income from the investment in raw materials will come from their further sale because these kinds of assets do not distribute dividends or pay interest.
Raw materials are usually 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, for instance.
This is the best option for people who can invest in the long term, especially for beginners, because it is less expensive, diversified, and safer.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers have done it, apart from some specific cases, like Warren Buffett's.
If someone brags about having beaten the index, they probably have done it for a chor period or on a specific occasion, or perhaps the commissions are so high that indexing would be a better decision.
Index funds offer these two advantages: they usually beat active managers in the long term, and the rates are minimal.
How do Contracts for Difference function?
It is possible that you have found the initials CFD now and then if you entered eToro before. We will come back to it, but first, you should know that cryptocurrency trading on eToro is only CFD when you short sell.
We will also refer to terms such as leverage and “going short”, in case you are considering day trading cryptocurrency or other more advanced operations.
With CFDs you can bet on the platform even if you are not “in the black” or having a negative balance. For example: you are sure that the Qualcomm will fall, so you clearly think “if it is going to depreciate, I'll just wait and bet when it has gone down”. However, if it really falls, it might mean extra money for you.
The operation known as “going short” will allow you to do that. It functions, more or less, as it follows:
- Someone lends you, let's say, 100 units of Qualcomm, with a total price of $ 5,000 (these numbers are entirely made up)
- You sell them at their price at the moment, $ 5,000
- As you thought, the price falls, and the unit of Qualcomm goes from $ 50 to $ 30
- You purchase all 100 units once again, but now they are worth $ 3,000
- Then you return the 100 units
- The rest is yours, so, you will have earned $ 2000
Keep in mind that it seems much more complicated than how eToro CFDs actually work: we can summarize this whole operation by saying that by trading in Qualcomm you can also earn money if you foretell it will fall.
How are CFDs and futures different?
How are Futures and CFDs different?
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- When do they expire? Futures have a determined expirationdate. CFDs don’t have expiry date
- Markets available: The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum investment: Being higher numbers, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher.
- Is it possible to leverage? with Futures, it isn’t possible; while with CFDs it is.
eToro deposit methods
When it comes to depositing money on eToro, there is not much to say, since it is pretty simple. You only need to select “Deposit funds”, put an amount, and choose your payment method. You can pay with PayPal, bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
(Keep in mind that you should be the account or credit card owner, for security reasons).
You can start with a $ 200 deposit, and if you are not verified you will have a maximum amount allowed. Thus, if you aim to operate with much more, you should contact Support to verify your account.
You can pay in any currency you want and eToro will automatically convert it to USD. But it is advisable to deposit directly in USD since the platform charges a fee.
As we have mentioned before, one of the best features of eToro is its simplicity: anyone can invest without having to read endless guides.
If you are familiar with any of the most common social networks, you can perfectly use eToro's interface.
We will explain, roughly, the registration steps and the different sections that you will find on the platform.
When you register, you will have to enter all the information that eToro asks for: first and last name, address…
Before you end up with the sign-up process, you will also find some questions about your previous trade experience.
But don't feel intimidated. They only intend to find out about your previous experience and knowledge to determine which instruments to recommend for you.
Let's review the different functions of the interface.
In “Set Price Alerts”, you have, as its name says, the possibility to set alerts on the price of certain assets. This is very useful when you want to buy an asset which price is decreasing, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we discussed previously in this guide the different financial instruments on eToro:
- Index funds
In “People” are all the profiles and historical performances of other users, and you can replicate their strategies with just one click. This is where the “social trading” concept is best applied.
You can find those users that you find more interesting. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. If you have $ 1000 and the trader puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same asset, in this case, $ 200.
You will also see the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
The benefit of copying to CopyPortfolios instead of specific traders is that this way you will diversify the risk. The portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to succeed in the future? Then look, because surely there is a CopyPortfolio about it.
What is social trading?
eToro is a pioneer in social trading, it was the first broker to propose it. Since that moment, a multitude of copycats have appeared, but I have tried them all and eToro is still the best.
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 copy the strategies of experienced traders, and to reward the latter for their ideas and knowledge.
In the left menu of the site, you will see “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are kinds of exchange-traded funds or thematic index funds, a portfolio that bundles a number of assets in a certain sector. For example, if you anticipate that a particular sector will succeed in the near future 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.
You should know that in the past twelve months, CopyPortfolio has given returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected 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. It is really easy: you can find them with “Copy People” and just duplicate their moves.
In the profile of each user, you will see their risk profile (the higher the risk, the more possibilities of winning more and losing more money), their performance, and what type of instruments they operate: shares, forex, cryptocurrencies, raw materials….
Replicating strategies from others can be very interesting and helpful, but you should also make the most out of the platform's community, read what other users think, and learn from them. If your goal is to end up living from investment, it is a great place to absorb a lot of knowledge.
Trading with leverage
If you still don't know what “leverage” is, we'll put it short: it is, simply, the ability to use a higher amount than you actually have. 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 sure that Qualcomm price is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.
Possibly, you could ask a financial company for a credit, wait for it to be accepted, wait for the money, send the money to eToro, confirm that it arrived, and then purchase Qualcomm… However, once you've managed doing all that, probably Qualcomm would be already much higher (if your prediction got confirmed), and it wouldn't be a good idea to invest.
Leverage is exactly like a loan, but it is only a few clicks away! You will be able to invest (and earn) much more than what you have on the platform. You will simply see the different options as in the image below:
When operating in different markets you can use higher leverage. The reason is that cryptocurrencies are usually medium-long term investments, and leverage is used mostly for day trading or short-term operations. But let's see how leverage works.
If you have the $ 1,000 and use leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro puts the remaining amount to reach that figure.
A week later Qualcomm price rises up by 20% and now your investment costs 2,400. But you don't want to be too reckless, so you decide, wisely, to sell back.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you put in yourself, so the net profit is $ 400.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
It may sound too good to be true. The thing is, it can also play against you. If everything goes according to plan and the price goes up, you will earn profits in little time; but in the opposite scenario, you will also lose more really fast.
For example: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but $ 20. Because of that, the concepts of Take Profit and Stop Loss are crucial when using leverage.
Take Profit is the automatic sell order that is above the entry price: you buy Qualcomm shares at $ 100 and you ask eToro to automatically close your position as soon as the price goes up to $ 120. It is very helpful to avoid being blinded by greed: a 20% profit is usually pretty good, but once you see it goes up, you might consider you can make higher profits, which is not always the case. Consequently, you might lose money if you don't close on time. So, Take Profit helps you to trade more safely.
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). You always need to mark a Stop Loss more tight than that suggested by the platform.
* 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.