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How to buy
For those who live in Ireland, the best way to invest in Facebook shares is, definitely, 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.
Now check your email inbox: 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 Facebook 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 “Facebook” 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.
Facebook, beyond the famous social network, is a company that is part of the group of the Big 5 of technology along with Alphabet (Google), Amazon, Apple and Microsoft. And in addition to the social network Facebook, with almost 3 billion users, the company owns Instagram and WhatsApp.
The social network Facebook has long remained the most used social network. And WhatsApp, Facebook Messenger and Instagram are not far behind in the ranking as they are only surpassed by YouTube, which ranks second. So, Facebook (company), there is no one to take it out of the big 5 or dethrone it as the number one social network.
All this is well known and many people invest in the company just for this. But Facebook also has other projects that are little known and that can have a great impact for the company. Among them, the most relevant surely is the cryptocurrency Libra, which became a stablecoin called Diem.
The Facebook cryptocurrency: from Libra to Diem
Initially, Facebook announced in June 2019 its intention to create a cryptocurrency that would be integrated into its products (Facebook, Facebook Messenger, Instagram and WhatsApp). This with the intention that users could have a secure and very cheap form of payment in their accounts. This is how Libra was born.
However, this announcement alarmed many countries because as we know, cryptocurrencies are decentralized and cannot be regulated by governments. So many were directly and openly against the company's initiative. Mainly because of the fear that the cryptocurrency would destabilize economies given the number of Facebook users.
After complying with many legal requirements demanded by some countries (including the United States) in which basically mechanisms were agreed to avoid destabilizing the economy and that the State can maintain control of fiscal and monetary policy, Facebook can bring its cryptocurrency to the market, only now it is called Diem.
In addition to the change from Pound to Diem, it is now a stablecoin backed entirely by circulating money. Its value, unlike other stablecoins such as Tether, does not fluctuate and always maintains a 1 to 1 relationship with the reference currency. And we say reference currency because it not only represents the dollar, but also the euro and the pound sterling, among others.
The best thing is that in addition to being Diem a stablecoin, it is backed by the company Facebook and many others among which Coinbase, Uber, Shopify and Spotify stand out. Undoubtedly, this is one of Facebook's greatest successes as a company and will undoubtedly have positive repercussions on its valuation.
Instruments you can operate with in this broker
We already know about stocks, there are other financial assets you can trade in this broker.
What do you know about Exchange-traded funds? They are passively managed funds, known for merging the advantages of stocks and mutual funds: they can be exchanged at any moment in the market, but have much more investment possibilities and the rates are significantly lower.
Are the best option 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.
You may think differently, but beating the benchmark is far from being a piece of cake and very few fund managers achieve that, apart from some famous cases.
In practice, if a fund manager achieves to beat the market, it is only for a short time or on a specific occasion. Or perhaps they would charge very high rates and indexing would be a better decision (with minimal commissions).
Index funds provide solutions to both concerns: their rates are insignificant and they often beat active managers, but in the long term.
Most investors trade with raw materials because of their stability. While other assets present higher fluctuation, commodity prices vary less and offer security against inflation or market volatility. Nevertheless, prices are subject to supply and demand in the market, so if the fear of possible inflation provokes higher demand for a certain good, its cost will also rise.
Take into account that, unlike shares, raw materials don't pay dividends. Thus, the only prospective earnings would come from a sale of the asset.
There are two main types of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (for instance, iron, nickel, or aluminum), and oil; and the latter are agricultural products, like cocoa, soybeans, rice, or sugar.
Forex or currency trading allows obtaining profits by exchanging one currency for another.
In case you want to trade euros and dollars, you buy euros at their price in dollars, with the expectation that the first currency (the euro) will revalue compared to the second (the dollar), to make a profit by selling it. Assume you entered when the price of one euro is 1.10 USD and you exit when it reaches 1.15: as a result, that margin will be yours once you sell back.
You may be thinking by now that this form of trading requires investing considerable amounts, and you are not wrong, since increases in prices are never that dramatic, and often you will need to use a lot of leverage (which is an important risk). Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.
eToro allows exchanging the most popular currency pairs but remember that in this market sales are made through CFDs, which means the underlying asset won't be yours.
eToro payment methods
When it comes to payment on eToro, there isn't really much to say, since it is really straightforward. You just have to click “Deposit funds”, put 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 you must be the account or credit card holder, for security policies).
The minimum amount you can deposit is $ 200 and there is a limit of how much you can deposit if you are not verified, so if you plan to operate with higher amounts, you should verify your account previously.
Also, remember that you can make the transfer in any currency because eToro converts it to USD, but charges a commission for it, so it is better to make the transfer directly in USD.
Virtual portfolio: How does it work?
Are you taking your first steps as an investor? Using a demo account can be very helpful. Just assure yourself that the virtual mode is set in the top left corner of the page and you can start operating with fictional funds.
This can be a great way of practicing before starting to trade with real money. The platform will give you an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can trade with all the different assets available on eToro, not only with Facebook.
If your first attempts don't go well and you go back to zero, you can always ask eToro support to replenish $ 100k of virtual balance. You'll probably do better on the second attempt.
But remember that investing is mainly about being cold-minded, and using a demo account can have an adverse effect. It is not the same to risk your own money than to do operations with virtual funds which loss does not suppose any drama.
As you may suppose, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and waste years waiting to see the results. On the other hand, it can be very useful if you want to practice short and medium-term investment.
How does eToro work?
As we have mentioned previously, one of the best features of eToro is its extraordinary simplicity: anyone can invest without having to read endless explanatory texts.
You won't have any problems with the interface if you have used any of the most common social networks.
We will explain, roughly, the registration steps and the different sections that you will find.
You will have to provide some personal information (like full name or address, for instance) when registering.
Before you end up with the sign-up process, you will also find some questions about your previous experience as an investor.
But you don't need to worry: it is not an exam. It is only a way of finding out how much knowledge you have and what type of assets they can suggest. For instance, if it is your first experience in the investment world, they will not recommend that you invest in futures.
Let's see what the different sections of the page are.
“Set Price Alerts” allows you to set 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 alert. This is very useful when you are after a security that is falling, but perhaps you think that it has not finished falling yet.
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 different financial instruments on eToro:
- Index funds
The concept “social trading” comes to life within “People”: there, you can replicate the strategies of the best investors.
In this section, you can search and find users according to your interests. When you choose an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. For example, if you have $ 1000 and the user puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
Lastly, you will also see the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
In some cases, it might be preferable to copy from CopyPortfolios than to individuals, since the former offer more diversity. There are all kinds of portfolios that you can find easily and are classified by sectors. Thus, if you think a specific industry, like biotechnology or drones, will have good incomes in the future, you can find that specific portfolio and do your investment.
* 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.