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How to buy
For those who live in Ireland, a great 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 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 our 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 link 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 purchase
As soon as 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.
*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.
Contents
Coca-Cola business explained
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.
Coca-Cola's history
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.
eToro deposit methods
When it comes to payment on eToro, there is not much to say, since it is really straightforward. You just have to click “Deposit funds”, set an amount, and choose your payment method. You can pay with PayPal (available for some countries), bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
Consider that for security reasons, you must be the owner of the credit card or the account.
You can start from $ 200, and there is a limited maximum for unverified accounts. Thus, if you intend to trade with much more, you will need to verify your account previously.
eToro accepts deposits 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.
eToro Interface
We mentioned previously that eToro is very easy to manage. Anyone can start using it without previous experience or long explanations.
You won't have any problems with the interface if you are familiar with any other social network, like Whatsapp or Facebook.
We will explain, roughly, the registration process and the different tabs that you will see.
You will have to provide some personal data (like full name or address, for instance) when registering.
During the sign-up process, you will also have to answer some questions about your previous trading activities.
But don't feel like you are taking an exam. The only intention is to know more about you and be clear about which financial instruments they should suggest according to your knowledge and experience.
When you fill in all your information in your profile, you will stop seeing the “incomplete profile” message.
Let's review the different functions of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alert when an asset is at a certain price. This is ideal 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.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we mentioned in this guide, the six types of instruments on eToro are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Raw materials
- Forex trading
- Index funds
The term “social trading” makes sense in the section “People”: there, you can duplicate the strategies of the best investors with just one click. You'll be able to see all their profiles and historical performances.
Using the search box, you can find the investors that you find more interesting: by risk level, types of instruments, average earnings… You just have to type the amount of your investment and eToro will be in charge of replicating the movements of the investor you chose, in proportion. “In proportion” means that if you have $ 1000 and the investor puts 10% in an asset, the platform will invest also 10% of your money (that is, $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.
The benefit of copying to CopyPortfolios instead of individuals is that this way you will diversify the risk. Besides, the different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to have success anytime soon? Then look, because surely there is a CopyPortfolio about it.
“Social trading”, an innovative concept
The first platform that conceived trading as a social activity was eToro, and the idea became successful really quick. Other brokers have also adopted this concept, but eToro is way better.
But it wasn't just about creating yet another social network to talk about investment. The real achievement was in allowing users to copy the moves of experienced traders, who were in turn paid for their ideas.
In the left menu of the site, you will see “Copy People” and “Invest in CopyPortfolios”.
CopyPortfolios
“CopyPortfolios” contain a collection of financial assets of the same sector. Let's say that you consider that the gaming industry is going to prosper soon but you don't have enough information (or time) to choose stocks, you just have to pick the CopyPortfolio called “InTheGame”, which includes Microsoft, Google, Tencent, NVIDIA, Logitech, Intel, AMD, Nintendo, Ubisoft, Unity…
At the time of writing this article, this CopyPortfolio has generated a 100% return in the last year, and the only thing you have to do is to click on “Invest”, select the amount, place the stop-loss, and the rest will be done practically on its own.
Copy People
But it is also possible to copy other successful traders of the platform. With “Copy People” you can find them and replicate their investments easily.
In the profile of each user, you will see their risk profile (how much risk do they take), their performance, and what type of financial instruments they operate: stocks, forex, cryptocurrencies, raw materials….
Copying other people's investments can be very interesting and useful, but it is also a good idea to take advantage of the community to read other users and learn from their experience. If you aim to end up living from investment, it is a great place to gain valuable knowledge.
Leverage explained
If you still don't know what “leverage” is, we'll describe it briefly. When trading, it's the capacity of increasing your investment by borrowing money from the broker. 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 example, you are sure that Coca-Cola price is going up, and that you have $ 1,000 for “going long”, you must know that you have the option of investing more and making more money.
You could consider asking for a credit at your bank or other financial company, but it is a process that takes time, and when you receive the money, Coca-Cola might be already so expensive that trading wouldn't be convenient anymore.
Leverage is like a loan, and you will only have to click a few times! You will be able to invest (and earn) much higher amounts than what you actually have on the platform. As in the image below, you will see the different options you have:
Trading with other assets allows you to use more leverage. The reason: leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's deepen a bit more on how all this works.
If you have the $ 1,000 and choose leverage x2, you will be investing $ 2,000. eToro would be “loaning” you the extra $ 1,000.
A few days later, as you predicted, Coca-Cola price raises its price by 20% and your money has appreciated reaching $ 2,400. But you don't want to take too much risk, so it's time to sell.
You will have to pay 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 you can make a profit of 40% (in the case you earn $ 400). That is pretty decent.
It may sound too good to be true. The thing is, you can also lose. If everything goes as planned, you will earn profits in little time; but in the opposite case, you will also lose more really quickly.
Let's imagine that the asset didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but double, $ 40. That is why the terms “Take Profit” and “Stop Loss” are crucial when using 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 Coca-Cola shares at $ 100, you can ask eToro to close once it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to keep waiting in case it keeps rising, which could be a mistake.
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). Consider that eToro will recommend a limit for Stop Loss, but you should place it lower than that.
Practice account
Are you beginning in trading? Using a demo account can be useful. Just assure yourself that the virtual mode is set and you can start practicing with a “fictional” portfolio.
A virtual portfolio can help you to practice and gain experience before starting to operate with real funds. When you create your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on eToro, besides Coca-Cola.
Don't worry, since if you lose all your virtual funds, you can contact support so they can add back the $ 100k to your portfolio and you can try again.
Take into account that trading is mainly about being cold-minded, and perhaps using a demo account can prevent you from controlling your impulses. It will never be the same as risking your own money.
And of course, if you are going to invest in the medium or long-term, with profits almost guaranteed only by duplicating a strategy, it is absurd that you waste years investing with a demo account. On the other hand, you may be interested in the virtual mode if you want to experiment with short and medium-term operations.
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.