How to invest in Xiaomi from Egypt

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💲Minimum deposit 200$
🪙Instruments: Stocks like Xiaomi, crypto, forex, commodities
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🌐 Official website: www.etoro.com *
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How to buy

If you live in Egypt, a great way to invest in Xiaomi 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 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 inbox: you should 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.

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 Xiaomi 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 “Xiaomi” 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.

Should I buy Xiaomi shares?

Xiaomi Corporation is a company of Chinese origin in the technology sector that manufactures and markets electronic equipment, the best known being its smartphones. But what really makes Xiaomi famous is the “value for money”, being Xiaomi itself that defines itself as “a global company that manufactures quality products at honest prices”.

It was founded in 2010 by Lei Jun and Lin Bin, with 2011 being the year when they launched their first smartphone in the Chinese market. This was the first big step of the company that from that moment on would have a history full of successes. And perhaps the first milestone was in 2013 when it surpassed Samsung and Apple in sales for the first time in China.

And since then, the company's commercial success internationally has been an outright affront to other smartphone manufacturing companies. Especially as Xiaomi's market share grows year after year, snatching space from Samsung and Apple.

The Xiaomi model

On several occasions, one of Xiaomi's founders (Lei Jun) has stated that the company prices smartphones only slightly above the manufacturing cost price. And it does this without sacrificing the quality of the components, offering a high quality product at low prices compared to other brands.

And this translates into a volumetric sales strategy, i.e., offering quality at a low price to sell more and thus make a good profit. This model, although it may seem simple and trite, has worked so well that its market share is growing by 16% annually. In the European market, this growth has reached more than 50%.

Despite this, and the fact that more than 90% of its revenue comes from the sale of mobile devices, the company continues to categorize itself as a software and internet company. This has generated criticism of Xiaomi from Samsung and Apple for “not generating innovation” in any area.

Depending on who looks at it, the latter may or may not be true. But what is absolutely clear is that Xiaomi offers equipment with the same features of high-end equipment from other brands at a price up to more than 3 times lower, which has guaranteed its commercial success.

Finally, Xiaomi does not use traditional advertising media and focuses on social networks. In addition to building customer loyalty so that they are the spokespersons of the brand. Very similar to what other brands do, isn't it?

The fact is that, regardless of the criticism, Xiaomi is an established company with a business model that has given it such strength that it is practically impossible for Xiaomi to disappear in the future.

Why we advise to use eToro for investing in Xiaomi from Egypt?

  1. It is uncomplicated and easy to use
  2. You can learn from other trading strategies
  3. Allows you to short sell
  4. You can leverage
  5. There are uncountable possibilities for investments

Main site: www.etoro.com *

In case you are considering it, eToro is probably the best way to trade Xiaomi shares from Egypt.

eToro is famous for making “social trading” fashionable. Social trading is an ingenious way of investing in which users can imitate the movements of other traders who have been generating income over time.

eToro is very useful if you are still a novice user in trading. You can rest assured that you are making a smart investment since the site duplicates those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques, eToro rewards your knowledge with money.

Besides, the interface of the website is so uncomplicated, ideal for a user who wants to begin in the stocks world, without ending up overwhelmed with tons of diagrams and numbers.

How do Contracts for Difference function?

If you browsed eToro previously, you probably realized that the acronym CFD appears frequently. We will come back to it, but first, you should know that CFDs on eToro are only possible if you go short.

For the record, and in case you are considering day trading cryptocurrency or other practices, you will also find information about concepts such as short-selling and leverage.

With CFDs you can operate on the platform even if you are “in red” or don't have a positive balance. For example: you believe that the Xiaomi will go down, so the logical thing is to think “if it is going to depreciate, I'll simply wait until it does”. But if it really goes down, it is possible to make some profits out of that.

You can do that by “going short”. Here's how it works ,roughly:

  • You ask someone to lend you, for instance, 100 units of Xiaomi, which cost $ 5,000 at the moment (obviously, these numbers are made up)
  • You earn $ 5,000 by offering them at their price at that moment
  • The Xiaomi goes from $ 50 to $ 30 (as you predicted, it devaluates)
  • Again, you buy the 100 units, but now their price is $ 3,000
  • You pay back the 100 units
  • You keep the $ 2000 difference!

Keep in mind that it seems much more complex than how eToro CFDs actually work: we can summarize this whole operation by saying that by trading in Xiaomi you can also make money if you foretell the downs.

Differences between futures and CFDs

Here is a brief comparison between Futures and CFDs, in case you want to know more:

  • Counterparty
    • Futures: operations are made with someone else, another trader.
    • CFDs: the counterparty is eToro, the brokerage. That means you do not “play” against or with another individual but the bank.
  • Expiry:
    • Futures: there is a date of expiry. Once the contract expires, it is closed and can't be reopened.
    • CFDs: there is no expiration date. It is possible to wait until you rise up and then close.
  • Variety:
    • Futures: options are much more restricted
    • CFDs: there is an enormous amount of possibilities
  • Minimum investment amount or “trade size”:
    • Futures: minimum investment is higher
    • CFDs: you can start trading with a low amount
  • Trading costs and charges:
    • Futures: costs are usually lower
    • CFDs: higher (although not excessively)
  • Use of leverage:
    • Futures: it isn't possible to trade with leverage
    • CFDs: it is always possible to leverage

Leverage explained

If you haven't heard about the term “leverage”, 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 leverage x2, your initial investment will be $ 200.

Why using leverage and how to do it

Let's say that you are sure that Xiaomi will rise, and you consider “going long. You have $ 1,000, but you actually can invest more and make more money.

Possibly, you could ask your bank for a loan, wait for it to be accepted, wait for the money, and then acquire Xiaomi… Nevertheless, when you finish doing all that, probably Xiaomi would be already at a much higher price, and it wouldn't be a good idea to invest then.

Leverage is exactly like a loan, and you will only have to click a few times! eToro allows you to operate with much more money than what you have on the platform's wallet. It is simple, before investing you will see the different options as in the screenshot:

apalancamiento

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 mostly for day trading or short-term trading. But let's see how leverage works.

You start with $ 1,000 and decide to use leverage x2, which means you would really invest $ 2,000, since eToro would put the other $ 1,000.

A week later turns out that Xiaomi price goes up by 20% and now your investment costs 2,400. So, a wise decision is to sell them back now.

You will have to give back the $ 1,000 of leverage and you will have made $ 400 (since the other $ 1,000 was your initial investment).

In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.

But watch out: if everything goes ok and the asset increases, you will make money. On the other hand, if the asset decreases, you will also lose more money in the blink of an eye.

For example: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but $ 20, because of the leverage. For that reason, when using leverage it is very important to be familiar with two other concepts: 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 bought Xiaomi shares at $ 100, you request eToro to close once it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to wait a bit longer in case it keeps going up, which could make you lose it all.

Stop Loss is even more necessary, mostly if you use leverage, because a small loss with leverage can have a significant impact. You always need to mark a Stop Loss more tight than that suggested by the platform.

What are the instruments you can trade in eToro?

Besides cryptostocks, there are a few more financial instruments available.

Index Funds

Index funds are the best alternative for those who want to invest for the long term, mostly for beginners. If you don't need to use the amount of money you'll invest in less than five or ten years, index funds offer you security and diversity.

Unlike a lot of people think, benchmark returns are very difficult to beat and very few fund managers have done it, apart from some famous cases, like Warren Buffett's.

If a fund manager brags about having beaten the index, they probably have done it for a chor period or on particular occasions, or perhaps the rates are so high that indexing would be a better decision.

Index funds offer these two advantages: although in the long term, they regularly beat active managers, and the fees are lower than you imagine.

ETFs

Exchange-Traded Funds or ETFs are similar to index funds. They can be described as a merge between stocks and mutual funds, including the best features of both. They are traded in the market like stocks, during the day. Their main benefit is that they offer more alternatives compared to stocks, and their commissions are much lower than those of an actively managed fund.

Commodity market

The main benefit of trading with raw materials is that prices are more stable than those of other assets. Actually, their stability is what makes people often invest in raw materials, to take refuge from financial insecurities or fears of inflation. Nonetheless, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.

Consider that the only intended profit from the investment in raw materials will come from their further sale because, unlike stocks, commodities do not give returns or pay interest.

Raw materials are usually classified 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 goods like coffee, rice, soy, or sugar.

Foreign exchange

Forex or currency trading is the exchange between a pair of currencies.

If you decide to trade EUR and USD, you speculate how many dollars it will take to buy a euro, with the expectation that after buying the first currency (the euro) it will increase compared to the second (the dollar), to make a profit by selling it. Suppose you entered when a euro is worth 1.10 USD and you leave when the price has gone up to 1.15: that difference is yours once you make the operation.

You may be thinking by now that trading with currencies requires high investments, and you are not wrong, since fluctuation in prices is never that dramatic, and often you will need to use high leverage (which sometimes can be too much of a risk). Our recommendation for those starting in the world of trading is to choose another market to begin with, since Forex is risky and complex.

eToro allows trading with the most common currency pairs. Nevertheless, remember that this market works with CFDs, therefore the underlying asset won't be yours.

How to deposit funds on eToro

When it comes to depositing money on eToro, there isn't really much to say, since it is pretty simple. You only need to select “Deposit funds”, put an amount, and choose the payment option you prefer. You can pay with PayPal (available for some countries), bank transfer, credit card, Skrill, or Neteller.

Consider that for security reasons, you need to be the holder of the account or the credit card.

The minimum amount you can deposit is $ 200 and there is a maximum limit of how much you can deposit if you are not verified, so if you plan to operate with larger sums, you should verify your account previously.

eToro allows transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD from the beginning.

Investment strategies

When trading cryptocurrencies, there are different possible methods or strategies, such as day trading or buying and holding, for naming just a couple.

In case you are just beginning in the world of investment, I recommend a middle point: when you open your position, set a stop-loss order 15-20% below the maximum price, and let the magic happen.

This means that if, for example, you acquire a cryptocurrency at $ 10, it reaches $ 20, and after that it decreases to $ 12, your stop loss will take you out of the trade at $ 16-17 and you will have earned a considerable profit.

I know it might sound more appealing to sell when the price is at its maximum, but that is simply not possible. The mentioned strategy is much more realistic and, well applied, it can work very well.

Eventually, you will be ready for using more advanced trading techniques, such as going short to profit from bear markets or using leverage.

Virtual account: How does it work?

Are you beginning in trading? Using a demo account can be very helpful. You just need to set the virtual mode and you can start practicing with a “fictional” portfolio.

virtual en eToro

This is a great tool for those who want to put their talents to the test before playing for real money. With your virtual account, 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 Xiaomi, you can also work with a diverse portfolio.

Don't worry, since if you lose all your virtual funds, you can contact support so they can add back the $ 100k to your demo account and you can make a second attempt.

Keep in mind that you should always be cautious when trading, and using a virtual portfolio might have the opposite effect. It will never be the same as risking your own money.

Evidently, the virtual mode is kind of absurd if you want to trade in the medium or long-term (with almost guaranteed returns only by replicating an index), since you would be wasting years to see the results. Demo accounts may be helpful for trying out short or medium-term investments.

How does eToro work?

As we have mentioned among the positive aspects of eToro, the best thing about this online broker is its extraordinary simplicity: anyone can invest without having to read endless explanatory texts.

If you have used any of the most common social networks, you can perfectly manage eToro's interface.

We will explain the registration process and the different tabs that you will find.

First, you will have to enter your personal data, like first name, last name, address….

Additionally, you will have to answer some questions about your experience as an investor.

However, it's not like they're testing you or anything. They only intend 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 recommend that you invest in futures.

When you fill in all your information in your profile, the annoying “incomplete profile” bar will disappear.

Let's get to know the different sections of the interface.

“Set Price Alerts” allows you to set alerts on the price of certain securities. This is very useful when you are after an asset that is falling, but it seems to you that it will decrease even more.

The section “News Feed” allows users to interact and share their experiences and knowledge.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we already mentioned the kinds of assets on eToro:

  • Cryptocurrencies
  • ETFs
  • Shares
  • Commodities
  • Forex trading
  • Index funds

The concept “social trading” comes to life in the section “People”: there, you can copy the strategies of the best investors with just one click.

You can search for those users that best suit your interests: by average earnings, market or risk level, for instance. You just have to choose the amount of your investment and eToro itself will be in charge of replicating the movements of the selected investor, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your money in that asset.

In this part you will also find the three main types of CopyPortfolios, which are Top Trader, Market, and Partner.

fondos
Sometimes it might be preferable to copy from CopyPortfolios than to individuals, because you avoid putting all your eggs in one basket. Besides, the portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector will prosper in the future? Then you will surely find a CopyPortfolio about it.

What is social trading?

The first platform that thought of trading as a social activity was eToro, and the idea became popular really quick. Other brokers have also adopted this concept, but we have tried them all and eToro is still the leader.

But it wasn't just about creating yet another social network to talk about investment. The real innovation was in allowing users to replicate the moves of experienced traders, who were in turn paid for their ideas.

It sounds complicated but it isn't: when you access eToro you will see in the left menu the options “Copy People” and “Invest in CopyPortfolios”.

CopyPortfolios

“CopyPortfolios” contain a collection of assets of a certain sector. Let's say that you consider that the gaming sector is going to succeed shortly but you don't have enough information (or time) to choose stocks, you just have to pick the CopyPortfolio “InTheGame”, which includes Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…

You should know that in the last year, CopyPortfolio has given returns of 100%. And you can benefit from it just by choosing a portfolio, enter your chosen amount, place the stop-loss and click on the “Invest” button.

Copy People

But you can also copy other successful traders of the site. It is really simple: you can find them with “Copy People” and just replicate their strategies.

You will see in the profile of each user: the kind of assets they operate (currencies, cryptocurrencies, commodities, stocks…), their risk profile (a higher risk implies more chances of earning more or losing more money), as well as their performance history.

Copying strategies from others can be very interesting and useful, but you should also make the most out of the platform's community, read what other users think, and learn from their experience. It is great for acquiring important knowledge, especially if you want to turn investing into a lifestyle.

Common questions

How much is the minimum investment in Xiaomi?
You can invest as low as 200$.

When will I be able to take out my money?
At any time. Simply sell your Xiaomi trade, go to “Withdraw Funds” section and you will the money very soon.

What deposit methods accepts eToro?
You can use: PayPal, Bank Transfer, Credit Card, Rapid Transfer, Klarna / Sofort Banking, Neteller and Skrill

* 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.