|Recommended Broker 🇮🇪||
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How to buy
If you live in Ireland, the best way to invest in Coca-Cola 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 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.
Then check your email inbox: 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 Coca-Cola 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 “Coca-Cola” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
What does Coca-Cola do?
The Coca-Cola Company is the U.S.-based transnational corporation that produces and markets the Coca-Cola beverage. Although more properly, the original Atlanta-based company produces concentrated syrup which it distributes to bottlers around the world.
In the year 1886, the pharmacist John Pemberton sought to produce in his laboratory a medicine for stomach problems. It was then that he produced and began to market a drink that combined coca leaves and kola nut at 5 cents per glass.
Soon, Pemberton's drink became a success and his accountant, Frank Robinson, came up with the name Coca-Cola and the logo. In 1891, together with another pharmacist named Asa Candler and his brother, as well as the accountant, The Coca-Cola Company was founded. And two years later, in 1893, the trademark was registered at the Industrial Property Registration Office.
In 1897 Coca-Cola exit the United States for the first time and in 1989 the first agreement was signed to bottle Coca-Cola for the entire North American territory. According to this agreement, The Coca-Cola Company would produce the concentrated syrup and the bottlers would make the beverage and would also be in charge of sales and distribution.
Coca-Cola's business model
We already know that The Coca-Cola Company produces the concentrated syrup that it distributes to bottlers around the world. What we have not mentioned is that the bottlers operate as a franchise system, but with exclusive territories.
Thus, in Latin America there is only Coca-Cola FEMSA and in Western Europe Coca-Cola European Partners. This is just to give an example, since there are other bottling companies that make sure Coca-Cola is present all over the world.
With this simple model, Coca-Cola went from being a beverage in a pharmacy to the largest and best known beverage company in the world. To the point that on average, everyone sees at least three Coca-Cola advertisements every day.
Best of all, Coca-Cola's marketing is always a marvel. Although it also makes use of popular beliefs such as its unknown formula that supposedly only two people in the company know about. Or the fact that it contains coca leaves in its formula.
About this we can say that it is impractical and almost impossible that only two people know the formula in such a big company. Besides, it is known that in 1903 coca leaves were replaced by caffeine, so no, it does not contain coca leaves.
And from all this what can be concluded is that, just as humanity will not stop growing, Coca-Cola will not stop growing either.
What types of assets can you trade in eToro?
Besides stocks, there are a few more financial instruments available in eToro.
Commodities (raw materials)
The major benefit of investing in raw materials is that prices are more stable than those of other assets. Actually, their security is what makes people often invest in raw materials, to take refuge from financial insecurities or fears of inflation. Nonetheless, the cost of raw materials depends on supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Remember that the only intended profit from the investment in raw materials will come from their further sale because these kinds of assets do not pay dividends.
Raw materials are commonly classified into two types: 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 products like sugar, cocoa, soybeans, among others.
Have you heard about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds, because they can be traded at any moment in the market, but offer much more diversity and the rates are significantly lower.
Index funds are suitable for those who want to invest for the long term, particularly 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 are the safest.
Perhaps you have a different idea, but very few investors can beat the benchmark (yes, you have surely heard of investors who achieve huge profits).
But except for Warren Buffett and a couple more, all that glitters is not gold: if you hear of someone who has beaten the market, they have probably done so for a short time, or the rates are so high that it ends up being better for you to index (whit minimal commissions). Also, past performances do not ensure a future one.
The good thing about index funds is that they solve both issues: their rates are insignificant and they often beat active managers, but in the long term.
Forex or currency trading allows obtaining profits by converting one currency for another.
If you decide to exchange euros and dollars, for example, you buy euros at their price in dollars, thinking that the euro will rise compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when they are worth 1.20 USD, that margin will be yours.
As you may have deduced, this type of trading requires investing a lot, because prices never increase that much, or using much leverage, which implies an extra 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.
The most common currency pairs are available on eToro but remember that Forex trading functions through CFDs, so the underlying asset won't be yours.
Payment methods on eToro
Among the payment options that eToro accepts you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is a very easy process. You just need to click “Deposit funds”, set an amount and choose the payment method you prefer.
Remember that for security reasons, you must be the holder of the credit card or the account.
The minimum you can deposit is $ 200 and there is a limit of how much you can deposit if you are not verified. Therefore, if you want to trade with larger sums, you should verify your account first.
You can pay in any currency you want and eToro will do the conversion to USD. But it is better to use USD anyway since the platform charges a fee.
How does eToro work?
We already said that one of the best features of eToro is that the platform is very friendly and easy to use. It isn't necessary to read a lot or have previous knowledge to start investing.
You won't have any problems with the interface if you are familiar with any of the most common social networks, like Linkedin or Whatsapp.
We will explain, roughly, the registration process and the different tabs that you will find.
You will have to provide some personal data when registering.
To complete your profile, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated. The only intention is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's get to know 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 perfect if you want to purchase a security that is falling but you believe it will decrease more to a certain point.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed before, the different financial assets that eToro offers are:
- Exchange-Traded Funds
- Raw materials
- Index funds
The concept “social trading” makes sense within “People”: that is where you can copy the strategies of the best investors.
Using the search box, you can find the investors that best suit your interests: by risk level, types of instruments, average earnings… Just indicate the amount you want to invest and eToro will replicate the movements of the investor you selected, 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 balance in that asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
In some cases, you might prefer copying to CopyPortfolios than to individuals, since you avoid putting all your eggs in one basket. There are all kinds of portfolios that you can identify easily and are divided by sectors. So, in case you think a specific industry, such as biotechnology or healthcare, will have good incomes in the future, you can look for that specific portfolio and invest in it.
“Social trading”, an innovative concept
eToro is a pioneer in social trading, it was the first broker to propose it. Since that moment, a lot of other platforms have imitated this concept, 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 main achievement was in the possibility for users to replicate the moves of advanced investors, 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 a kind of portfolio that bundles a number of assets in a certain sector. For example, 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 includes a variety of related companies in that industry.
You should know that in the last twelve months, 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 “Invest”.
But you can also copy other users of the platform who are successful investors. With “Copy People” you can find them and replicate their moves easily.
In each user profile, you will see their risk profile (the higher the risk, the more chances of winning more and losing more), their performance, and the kind of assets they trade: shares, foreign exchange, cryptocurrencies, raw materials….
Replicating other people's investments 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 good place to acquire valuable knowledge.
In case you are beginning as an investor, the possibility to operate in “demo” mode will be helpful. You just have to make sure that the “Virtual” option is set in the upper left corner and your operations will be carried out with an imaginary balance.
A virtual portfolio can help you to practice and gain experience before starting to operate with real money. When you create your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of financial instruments available on eToro, besides Coca-Cola.
The first attempt is not usually that good. But you can ask eToro to replenish the virtual $ 100k to your account, and the second time you should do better.
Nevertheless, keep in mind that you need to be prudent for trading, and using a practice account can have the reverse effect. It is completely different to risk your own money than to trade with virtual funds which loss does not suppose any drama. Besides, investing virtual money can prevent you from learning to control your emotions, something you should be able to do when trading.
And of course, the virtual mode is kind of absurd if you intend to invest in the medium or long-term, since you would be wasting years to see the outcome. Virtual accounts may be useful for trying out before trading in the short or medium-term.
* 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.