How to invest in GameStop from Ireland

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👌Difficulty Low
☢️Commissions Zero
💲Minimum deposit 200$
🪙Instruments: Stocks like GameStop, crypto, forex, commodities
⚖️Regulated by: Cyprus Securities and Exchange Commission (CySec), United Kingdom's Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
🌐 Official website: www.etoro.com *

How to buy

If you live in Ireland, the best way to invest in GameStop 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 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 GameStop 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 “GameStop” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.

Should I invest in GameStop?

GameStop Corporation is an American company founded in Dallas in 1984 specializing in the video game industry. It is one of the largest video game retailers in existence, operating more than 4,800 stores in the United States, Canada, Australia and Europe.

It went public on the New York Stock Exchange in 1988 and since then has traded on the stock market like any other company. It has had some very good years and some not so good years, which, although it cannot be said to have been completely bad, have been years of decline.

This company stayed off the radar for a long time until January 2021 when its share price skyrocketed by more than 1,500% in just 3 days, only to return to its average the following week. As you can imagine, all this movement generated huge gains for those who positioned themselves in the right direction.

GameStop, Reddit and Wall Street

Behind these absurd moves, a large number of people belonging mainly to a Reddit forum called WallStreetBets were involved. This forum, as its name suggests, is all about “Wall Street betting”, although in the case of GameStop what they were looking for was to beat the whole Wall Street game.

This is how the idea spread from WallStreetBets to other forums on Reddit, motivating more and more people to buy GameStop shares. The end result was a buying frenzy that drove the price up to the level it reached and then back down to the mean.

Upon investigation, it was learned that it was a user who had bought about $50,000 worth of Reddit stock who initiated the move after the company had a dismal outlook. Having achieved his goal, he probably withdrew by selling the shares at a very high price, taking huge profits out of the market.

But, just as there were those who gained, there were those who lost a lot because in the buying frenzy, many entered too late. And by this we mean when the share price stopped rising and started to fall.

The commotion was such that the term meme stock has been coined to describe stocks that have sharp price movements motivated by social networks.

About Contracts for Difference

You probably have found the acronym CFD all the time if you already accessed eToro. We will explain its meaning now, but first, you should know that CFDs on eToro are only possible if you are short-selling or select leverage over x2 (and the platform does not even allow this).

We will also refer to concepts like leverage and “going short”, in case you are interested in day trading cryptocurrency or other more advanced operations.

With CFDs you can operate on the platform even if you are “in red” or don't have a positive balance. For example: you have the certitude that the GameStop will fall, so probably you consider that it is better to refrain from getting in until it actually falls. However, if you really consider that it's going down, why not take advantage of that?

You can do by “going short” which consists in something like this:

  • Someone lends you, let's say, 100 units of GameStop, which cost $ 5,000 (these are completely imaginary figures)
  • Then, you sell them at their price on the market, $ 5,000
  • As you guessed, the price falls, and the unit of GameStop goes from $ 50 to $ 30
  • You purchase all 100 units one more time, but now they are worth $ 3,000
  • Now you return the 100 units
  • The difference is yours, so, you will have made $ 2000

Keep in mind that it is much simpler than it sounds: we can summarize this whole operation by saying that by trading in GameStop you can also earn money if you predict the downs.

What's the difference between CFDs and futures?

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

  • Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
  • Expiry date Futures expire in a variable given date, while CFDs don’t have expiration date
  • Markets available for trading: The market for Futures is narrower. With CFDs you can trade in several different markets.
  • Minimum investment amount or “trade size”: Costs for Futures are higher than costs for CFDs.
  • Leverage: with Futures, you can’t leverage; while with CFDs leverage is always available.

How does eToro work?

We mentioned before that one of the best things about 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 trading.

You won't have any problems with the interface if you have used any of the most common social networks, like Twitter or Pinterest.

Let's talk about the sign-up process and the different tabs you will find on the page.

When you register, you will have to fill in 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 is not like you are answering a test. They are only measures to know how much knowledge you have and what type of financial instruments they can suggest. For instance, if you have never invested before, they will not recommend that you invest in futures.

You will see a bar that says “incomplete profile” until you fill in all the information.

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

“Set Price Alerts” allows you to set alerts on the price of certain assets. You just have to click on the three points at the end of the line and you will be able to program a price alarm. It is a very useful tool for when you want to buy an asset which price is decreasing, but it seems to you that it will decrease even more.

“News Feed” is the more “social” section. There, users can interact and share their knowledge.

“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we discussed before, the different financial assets that eToro offers are:

  • Cryptocurrencies
  • ETFs
  • stocks
  • Raw materials
  • Currencies
  • Index funds

The term “social trading” makes sense in the section “People”: there, you can duplicate the strategies of any investor you choose with just one click.

You can search for those investors that best suit your interests: by average earnings, types of assets or risk level, for instance. Just indicate the amount you want to invest and eToro will replicate the movements made by 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.

Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.

fondos
The advantage of copying to CopyPortfolios instead of people is that this way you will diversify the risk. There are all kinds of portfolios that you can identify easily and are classified by sectors. Therefore, if you think a specific industry, such as biotechnology or pharmacy, will have good incomes in the future, you should probably look for that specific portfolio.

Investment strategies

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

If you don't have much experience in investment, my suggestion is something in the middle: when you open your GameStop position, place a dynamic stop loss 15-20% below the highest price, and let the magic happen.

For example, if you buy a cryptocurrency at $ 15, then it increases to $ 25 and falls back to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Thus, you will obtain a fine profit.

Perhaps you are wondering: why not selling when the price is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.

Later on, you will be able to apply more sophisticated techniques, like short-selling or using leverage.

How to use leverage when trading GameStop

If you haven't heard about “leverage”, we'll describe it briefly. When trading, it's the capacity of increasing your investment without putting more money. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.

About leverage, Take Profit and Stop Loss

Assuming that, for example, you are certain that GameStop 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.

Perhaps you could go to your bank, ask for a credit, wait for it to be accepted, wait for the money, and then obtain GameStop… Nevertheless, once you've managed doing all that, probably GameStop would be already much higher (if your prediction got confirmed), and it wouldn't be a good idea to invest then.

Using leverage, you can obtain that amount of money just by moving a finger. It's exactly like a loan, but much better: from eToro itself. You can get financing to operate with much more money than you actually have on the platform. Before trading, you will see the leverage options as in the screenshot below:

apalancamiento

With other assets, the ability to leverage is greater. This is because cryptocurrencies are a value that is invested in the medium-long term, and leverage is used mostly for day trading or short-term operations. But let's deepen a bit more on how all this works.

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

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

You need to pay back the $ 1,000. You have $ 1,400 left, of which $ 1000 is the money you put in yourself, so you'll have earned $ 400.

As you can see, with $ 1000 you get a profit of $ 400, no less than a profit of 40%. Not bad, right?

But watch out: if everything goes ok and the asset increases, you will make money. Nevertheless, if the asset decreases, you will also lose more money than you invested.

Let's suppose that the price didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but double, $ 40. Because of that, the terms “Take Profit” and “Stop Loss” are fundamental 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 GameStop shares at $ 100, you request eToro to close once it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps rising, which could make you lose it all.

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 it is better to place it closer to current price than that.

How does a demo account work?

In case you are beginning as an investor, you can start by practicing with a “demo” option. Setting a virtual account and trading with fictional money is very easy.

real or virtual trading

A virtual account can help you to practice and gain experience before starting to trade with real money. When you create your demo account, you will begin with a virtual balance of $ 100.000, to operate with a variety of financial instruments available on the platform, besides GameStop.

The first attempt is not usually that good. But you can ask support to replenish the virtual $ 100k to your portfolio, and the second try you should do better.

Nevertheless, keep in mind that trading is mostly about being prudent, and demo account trading can have the opposite effect. It is completely different to risk your own money than to operate with a fake balance which loss does not suppose any drama. Besides, using fake money can prevent you from learning to control your emotions, something you should be able to do when trading.

Evidently, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and wait for years. But it can be very useful if you want to practice short and medium-term trading.

FAQ

How much is the minimum deposit?
You can invest as low as 200USD.

When will I be able to withdraw my funds?
Whenever you want. Simply end your GameStop investment, click on “Withdraw Funds” and you will receive the money very soon.

What payment methods are accepted?
You can use: Bank Transfer, Credit Card, PayPal, Neteller, Rapid Transfer, Skrill and Klarna / Sofort Banking.

* 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.