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How to buy
For those who live in Egypt, a great way to invest in Spotify shares is, definitely, 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.
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
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Spotify” 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.
What does Spotify do?
Spotify Technology is a Swedish company whose product is the well-known music player application that bears the same name of the company: Spotify. Launched in 2008, the application has become one of the most widely used, accumulating more than 340 million users worldwide.
From the beginning, Spotify was presented as a multiplatform application that was available for Windows, Mac Os, Linux, Symbian, IOS and Android. With this, Spotify was guaranteed a fast diffusion among music lovers as they could have the application always with them, both on computers and cell phones.
Spotify offers its users more than 35 million song titles that they can listen to as on the radio via streaming. And it also offers users the possibility of using the application for free or subscribing to the premium service.
The difference is that the free accounts have some limitations, in addition to having advertising between songs. Unlike the premium ones that do not have any limitations or advertising.
In this way, Spotify generates money with both types of account because with the free account it obtains income from advertising while with the premium accounts it obtains income from subscriptions. Being the subscriptions its main business and major source of income as it has more than 155 million users who pay the subscription.
In its business model, the company keeps 30% of the revenues while the remaining 70% is distributed among the artists. This is based on a formula that distributes the money in relation to the number of plays accumulated by each singer.
It went public only on April 3, 2018, so its history listed on the New York Stock Exchange is quite short. However, this has come to offer a return of more than 200% between highs and lows making it an ideal stock for those who know how to take advantage of volatility.
In general, Spotify is a company with a great future given the segment to which it is dedicated, music. This is a sector that grows and adapts on its own and Spotify is only the medium through which it is disseminated, remaining completely outside of what happens in the music industry. And although so far it does not pay dividends, it is not ruled out that in the future it will do so.
Reason for using this broker for trading Spotify shares from Egypt?
- It offers other traders successful investment strategies so you can emulate them
- Accepts short-selling
- Very user-friendly and simple
- eToro allows leverage
- There are uncountable investment possibilities
Official page in English: www.etoro.com *
In case you are interested in buying Spotify shares from Egypt, eToro is probably the best option currently.
“Social trading”, a relatively new investment method that consists in replicating techniques and strategies from other experienced investors, has become trendy thanks to eToro.
eToro is very helpful if you are still a novice user in trading. You can rest assured that you will be making a smart investment since the site emulates those from subjects with a long profit record. Additionally, in case you do have experience in investment, eToro pays you for sharing it.
Besides, the interface of this site is amazingly manageable, great for users who want to begin in the stocks world, without getting crazy with tons of graphs and numbers.
Can you rely on eToro?
eToro has been independently tested once and again to validate its fidelity in reporting performance statistics from previous users. And it has been confirmed every time that eToro is meticulous with the data.
eToro fulfills all the strict regulations of the European Union, legislation in which it is found. Specifically, its main headquarters is in Cyprus, and it is certified by the CySEC or Cyprus Securities Market Commission, which can cover up to € 20,000 of the debts from its clients, including those from Egypt.
It is also backed by the European Financial Instruments Market or MiFID, and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, it should be mentioned that eToro has more than 20 million users worldwide, and it has been operating for the last fifteen years. To sum up, we can be confident that our money is in good hands.
It is also important to mention the good functioning of its customer service. They have a phone number for assistance, a ticket system, and a live chat.
Payment methods on eToro
Within the payment options available on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is very easy. You just have to click “Deposit funds”, type the amount and choose a payment method from the previous ones.
Remember that for security reasons, you need to be the owner of the credit card or the account.
The lowest amount you can deposit is $ 200, and there is a maximum authorized if you are not verified, so if you plan to operate with higher amounts, contact Support beforehand to verify your account.
The platform accepts transfers in any currency, but charges a fee for making the conversion to USD. That is why we recommend, if possible, depositing in USD from the beginning.
Assets available in this broker
Besides stocks, there are other financial instruments available.
Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. We can say that ETFs are halfway between stocks and funds: they are publicly traded and therefore can be bought and sold at any time at market price. Their advantage is that they are more diversified compared to stocks, and have lower fees.
About Index Funds
In case you are interested in long-term investments, and you won't need to take back your money in at least five years, index funds can be the best choice. This type of investment is also suitable for beginners since it is safer. Besides, the variety is wider.
Perhaps you have a different idea, but very few investors can beat the benchmark (although you have probably heard of investors who obtain huge profits).
But putting aside some exceptional cases, all that glitters is not gold: if you hear of someone who has beaten the benchmark, they have probably done so for a short period, or the rates are so high that it ends up being better for you to index (whit minimal commissions). Besides, take into account that past performances do not ensure a future one.
The good thing about index funds is that they perfectly solve those two issues: their rates are insignificant and they beat active managers almost all the time, although in the long term.
Commodities (raw materials)
The main attraction of trading with commodities is that their price fluctuates less than that of other assets. In fact, their intrinsic stability is what makes people often invest in raw materials, to take refuge from economic adversities or market volatility. Even so, the prices of commodities are defined by their demand. Therefore, if a given economic situation causes higher demand, the prices will also rise.
Remember that the only intended income from the investment in raw materials will come from their further sale because these kinds of assets do not pay dividends.
Raw materials are usually categorized 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.
“Social trading”, an innovative concept
eToro was the first broker to suggest that trading could become social, and time has proven that it was a great idea. Since then, a lot of other brokers have followed this concept, but we have tried them all and eToro is still the best.
The merit of the platform is that they did not limit themselves to transferring the logic of the social network to the trading world. There are countless sites to discuss investing, but they wanted much more: the great innovation of eToro was allowing users to imitate the moves of skilled investors, who in turn were rewarded for their ideas.
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 includes a number of different assets of the same sector. For instance, if you anticipate that a particular sector will have significant profits but you are not sure which investments to make, you just have to choose a portfolio that groups together 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 successful traders of the site. It is really simple: you can find them with “Copy People” and just duplicate their strategies.
You will find in the profile of each user: the type of assets they operate with, their risk profile, and their performance history.
Besides copying other investor's moves, which is really interesting and helpful, we also recommend that you make the most out of the community by reading other users. You can learn a lot from their experiences, mainly if you aim to make a living from trading.
There are many methods to trade cryptocurrencies: from buying and waiting to day trading (taking advantage of market volatility).
If you are just beginning in the world of trading, my suggestion is something in between: when you open your position, set a stop-loss 15-20% below the highest price, and let the magic happen.
For example, if you purchase a cryptocurrency at $ 15, it increases to $ 25 and falls back to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will obtain a good profit.
It may sound more appealing to sell when the cost is at its highest, right before corrections, but unless you're a fortuneteller, that's impossible. The mentioned strategy is much more realistic and, well applied, it can work very well.
At some point, you can take your first steps with advanced trading techniques, like going short or using leverage.
How to use eToro
As we have mentioned before, one of the best things about eToro is its extraordinary simplicity: anyone can use it without having to read endless guides.
You won't have any issues with the interface if you have used any other social network.
We will explain, roughly, the registration process and the different sections that you will find on the page.
You will have to fill in some information requested when registering.
They will also ask you about your previous experience as an investor.
But you don't need to worry: it is not an exam. They are only measures to know how much knowledge you have and what type of financial instruments they can suggest. For example, if it is your first experience in the investment world, they will not suggest that you invest in futures.
Let's see what the different sections of the platform are.
“Set Price Alerts” allows you to put alerts on the price of certain securities. You only need to click on the three points at the end of the line and you will be able to program a price alarm. This is very useful when you want to buy a security that is falling, but perhaps you think that it will decrease even more.
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 previously, the types of financial assets available on are:
- Raw materials
- Index funds
In “People”, you will find the profiles of eToro users and their historical performance. This is where you can replicate with just one click the strategies of your preferred investors.
In this section, you will be able to search and find users according to your interests. When you choose an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, in proportion. If you invest $ 1000 and the trader puts 20% of their funds in an asset, the platform will invest $ 200 of your funds in the same asset or company as well.
You will also see the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
The advantage of using CopyPortfolios instead of copying people is that this way you will diversify the risk. The different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector is going to have success anytime soon? Then look, because surely there is a CopyPortfolio about it.
If 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 simple.
This is a great tool for those who are new to this world and want to put their talents to the test before playing for real money. With your virtual portfolio, you will begin with a $ 100,000 balance (which of course, is fake) to do all the trades that you can think of: not just with Spotify, you can also work with a diverse portfolio.
Don't worry, since if you lose all your virtual balance, you can contact support so they can add back the $ 100,000 to your portfolio and you can make a second attempt.
Take into account that investing is mostly about being cold-minded, and perhaps using a demo 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 want to invest in the medium or long-term, since you would be wasting years to see the outcome. Virtual accounts may be ideal for practicing short or medium-term investments.
* 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.