|Recommended Broker 🇮🇪||
|🌐 Official website:||
* Your capital is at risk.
How to buy
For those who live in Ireland, the best way to invest in 3M 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 your language, accepts users from Ireland, 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.
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 3M rising while you wait for your transfer to be done.
How to make your first trade
As soon as 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.
3M business explained
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.
What are CFDs?
It is possible that you have found the acronym CFD repeatedly if you already accessed eToro. Before we come back to this, we must say that CFDs on eToro are only possible when you are short-selling or leverage over x2 (although this is not even an option on the platform).
If you want to try at some point day trading cryptocurrency and other advanced practices, next we will also address concepts like going short and leverage.
With CFDs you can bet on eToro even if you are “in red” or don't have a positive balance. For example: you are sure that the 3M will go down, so perhaps you think that it is better to refrain from getting in until it actually falls. However, if it really falls, it might mean extra money for you.
You can accomplish that by “going short”. More or less, it functions like this:
- You ask someone to lend you, for instance, 100 units of 3M, which total value at the moment is $ 5,000 (obviously, these numbers aren't real)
- You make $ 5,000 by selling the 100 units
- As you supposed, the price falls, and the unit of 3M goes from $ 50 to $ 30
- You get the 100 units again, but their total current value is now $ 3,000
- Then you return the 100 units to whoever made the loan
- The rest is yours, so, you will have made $ 2000
Keep in mind that it is much easier than it sounds: we can just say that by trading in 3M you can also make money if you anticipate the downs.
What's the difference between CFDs and futures?
Here are the major differences between CFDs and Futures, in case you want to know more:
- Futures: the counterparty is someone else, another trader.
- CFDs: the operations are not made with another individual, the counterparty is the broker, in this case, eToro.
- Futures: there is a date of expiration. When that moment arrives, your operation is closed even if you are in losses.
- CFDs: on the contrary, there is no expiration date. You can wait until you get in a good position before closing.
- Trading markets:
- Futures: there are limited options
- CFDs: they include lots of different assets, commodities and currencies
- Minimum investment amount:
- Futures: minimum investment is higher
- CFDs: you can get in with a small deposit
- Trading costs and charges:
- Futures: as you have to pay more in the first place, rates are lower
- CFDs: higher (although they are not excessively high either)
- Possibility of leverage:
- Futures: you can't leverage
- CFDs: completely available
How does leverage work
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, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.
About leverage, Take Profit and Stop Loss
Let's say that you are confident that 3M will raise its price, and you consider “going long, but you only have $ 1,000 available. However, it is possible to put more and earn higher profits.
There's the possibility of requesting a credit at your bank or other financial company, but it is a process that takes time, and when you receive the money, 3M might be already so expensive that trading wouldn't be convenient anymore.
Leverage is exactly like a loan, and you will only have to click a few times! You will be able to operate with much higher amounts than what you actually have on the platform's wallet. As in the image below, you will see the different options you have:
When operating in different markets you can use higher leverage. This is because leverage is most common in short-term operations, and cryptocurrencies tend to be a medium or long-term investment. But let's deepen a bit more on how all this works.
You begin with $ 1,000 and decide to use leverage x2, which means you would really invest $ 2,000 (the extra $ 1,000 to reach $ 2,000 are “borrowed” from eToro).
A few days pass and, indeed, you were right: 3M price raises its price by 20% and the value of your investment is now $ 2,400. Ok, don't be greedy, let's sell.
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.
Does it sound too good? The trick is that the risk of losing out is also there. If everything goes according to plan and the price goes up, you will earn more money in less time; however, if the value of the asset goes in the opposite direction, you will also lose more in less time.
For instance: if the price falls by 10%, you won't lose $ 10, but $ 20, because of the leverage. For that reason, the terms “Take Profit” and “Stop Loss” are fundamental when trading with leverage.
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 3M shares at $ 100, you request eToro to close when 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 important, especially if you use leverage, since a reduced loss with leverage can be tragic for your wallet. Consider that eToro will recommend a limit for Stop Loss, but you should place it closer to current price than the platform suggests.
There are different methods or ways for crypto trading, like buying and holding or day trading, for naming just a few.
If you are a beginner in the world of trading, our recommendation is a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work on its own.
For instance, if you purchase a cryptocurrency at $ 15, it rises up to $ 25 and falls back to $17, the stop-loss will close your position at $ 21 or $ 22. Hence, you will get a pretty good income.
Perhaps you are wondering: why not selling when the cost is at its maximum? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and is more realistic.
Later on, you will be able to apply more sophisticated strategies, like going short to profit from bear markets or using leverage.
How to use eToro
As we have referred among the positive aspects of eToro, the best thing about this online broker is its simplicity: anyone can use it without having to read endless explanatory texts.
You won't have any issues with the interface if you are familiar with any of the most common social networks.
Now we are going to walk you through the sign-up process and the different sections of the page that you should familiarize yourself with.
You will have to provide some personal data (like full name or address, for instance) when registering.
Also, you will see that they ask you some questions about your experience as an investor.
However, it is not like you are answering a test. It is only a way of finding out how much knowledge you have and what type of financial instruments they can recommend. For instance, if you have never invested before, they will not recommend that you invest in futures.
Next, we will explain the different sections of the site.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. Just click the tab and you will be able to set it. This is ideal if you want to purchase a security and you are waiting for its price to fall.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. And we already talked about the kinds of assets on eToro:
- Exchange-Traded Funds
- Raw materials
- 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.
In this section, you can search and find users according to your interests. When you select an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, proportionally. For example, if you have $ 1000 and the trader puts 20% of their funds in an asset, eToro will invest $ 200 of your balance in the same asset as well.
You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
The benefit of copying to CopyPortfolios instead of individuals is that this way the risk will be more diversified. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry will prosper anytime soon? Then look, because surely there is a CopyPortfolio about it.
Do you know what “social trading” is?
eToro was the first broker to propose trading as a social activity, and time has proven that it was a great idea. A lot of copycats have appeared since then, but eToro is definitely superior.
But it wasn't just about creating yet another social network to talk about investment. The main achievement was in allowing users to replicate the strategies of experienced traders, who were in turn paid for their ideas.
You will find in the left menu of the page the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of financial assets of the same sector. For example, if you consider that a particular sector will succeed in the near future but you don't know which stocks to invest in, 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 generated returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss order and click on the “Invest” button.
A second option is to directly copy users of the platform: in “Copy People” you can find eToro users who are very successful and whose moves you can duplicate.
In each user profile, you will be able to see their risk profile (how much risk do they take), their performance, and what kind of assets they trade: shares, forex, cryptocurrencies, raw materials….
And although replicating other user's investments can be very helpful, I also suggest taking advantage of the platform's community to read other users and learn from them. If your goal is to end up living from trading, it is a good place to absorb a lot of knowledge.
Frequently asked questions
* 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.