How to invest in McDonald’s from Ireland

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How to buy

If you live in Ireland, a great way to invest in McDonald's 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 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 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.

Then check your email: you should 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 McDonald's 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 “McDonald's” 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.

Should I buy McDonald's shares?

McDonald's Corporation is an American company known for its hamburger restaurants around the world. It was founded by brothers Richard and Maurice McDonald in 1940, who first implemented the fast food concept inspired by Henry Ford.

Initially, the McDonald brothers did not have as broad a business vision as the company has today. It was Ray Kroc who would take the company to success, becoming the first successful McDonald's franchisee in 1955.

By 1960, Kroc would buy the company from the McDonald brothers for 2.7 million dollars, thus becoming the owner of the company. Since then, the company has grown to more than 36,000 restaurants in 118 countries. Ray Kroc turned the company into one of the most successful companies worldwide, although its real business is not hamburgers.

McDonald's business model: hamburgers or real estate?

Although McDonald ‘s is a fast food restaurant chain that primarily sells hamburgers, most of its revenue does not come from selling food, but rather from renting its properties, i.e., real estate.

Only 5% of the restaurants are wholly owned by the company, the rest are franchises that operate almost like any other well-known franchise. That is, the franchisee pays the brand (McDonald's) to have the rights to use the brand to make a profit.

Thus, McDonald's gets paid for the franchise, is the supplier of the restaurant and also gets a share of the monthly profits of each restaurant. But in addition to this, McDonald's gets paid rent for the space where the franchise is located since the company owns all the locations.

Each time a new McDonald's opened, the company would first buy the land and fit out the location and give the franchisee the finished restaurant. Thus, the franchisee is only responsible for the management and operation of the restaurant.

This is how McDonald's came to own more than 36 locations that it rents to its franchisees as part of the franchise agreement. And that is why, although the company only fully manages 5% of the restaurants, it generates annual profits in excess of 20 billion dollars.

And this allows it to offer attractive dividends to holders of company stock (dividends are the portion of profits distributed to investors) that have historically increased year after year. As a result, McDonald's is a company that every investor tends to include in his or her portfolio.

Why we advise to use eToro:

  1. It's very user-friendly
  2. It offers other people successful investment strategies so you can replicate them
  3. Allows short-selling
  4. You can leverage
  5. There are lots of possibilities for investments

Main site: www.etoro.com *

eToro is probably the best way to purchase McDonald's shares from Ireland.

This platform is popular for making “social trading” fashionable. Social trading is a revolutionary form of investing in which traders can emulate the moves of other investors who have been generating profits for years.

eToro is very helpful if you don't have much experience in trading. You can rest assured that you will be making a smart investment since the site emulates those from subjects with a great deal of expertise. Additionally, in case you do have experience in investment, eToro pays you for sharing it with others.

It is also worth mentioning how easy is to manage the platform, ideal for beginners who are starting in the investment world.

What are Contracts for Difference?

You probably have seen the term CFD all the time if you already accessed eToro. Before we explain this further, we must say that cryptocurrency trading on the platform is only CFD if you go short.

FYI, and if you want to try at some point day trading cryptocurrency and other advanced operations, next we will also explain concepts like short-selling and leverage.

With CFDs you can bet on eToro even if you are “in red” or don't have a positive balance. For instance, you believe that the McDonald's will fall, so perhaps you think that it is better to refrain from getting in until it does. But if it really falls, it might mean extra money for you.

The operation known as “going short” will allow you to do that. It functions, more or less, like this:

  • You ask for a loan of, let's say, 100 units of McDonald's, which total price at that moment is $ 5,000 (obviously, these numbers are made imaginary)
  • You make $ 5,000 by selling the 100 units
  • As you presumed, the price falls, and the unit of McDonald's now costs $ 30 instead of $ 50
  • You buy the 100 units again, but at $ 3,000
  • Then you give back the 100 units to the person that loaned them to you
  • The difference is yours, so, you will have made $ 2000

Keep in mind that it is much simpler than it sounds: we can just say that by trading in McDonald's you can also make money if you foretell it will fall.

Differences between futures and CFDs

How are Futures and CFDs different?

  • Counterparty
    • Futures: operations are made with someone else, another investor.
    • CFDs: you do not operate with someone else, the counterparty is the broker, in this case, eToro.
  • Date of expiration:
    • Futures: they expire. Once the contract expires, it is closed even if you have losses.
    • CFDs: on the contrary, they do not have an expiry date. It is possible to wait until you are in a good shape to exit.
  • Options for trading:
    • Futures: it is very limited
    • CFDs: there is an enormous amount of options for trading
  • Minimum investment amount or “trade size”:
    • Futures: very high minimum investment
    • CFDs: you can get in with a small amount
  • Trading costs and charges:
    • Futures: costs are usually lower
    • CFDs: fees are higher
  • Possibility of leverage:
    • Futures: nonexistent leverage
    • CFDs: fully available

Payment methods on eToro

When it comes to payment on eToro, there isn't really much to say, since it is really straightforward. You only need to select “Deposit funds”, put an amount, and choose your payment method. You can use PayPal (available for some countries), bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.

(Keep in mind that you should be the account or credit card holder, for security reasons).

You can start with a $ 200 deposit, and if you are not verified you will have a maximum amount allowed. Thus, if you aim to operate with much more, you should contact Support to verify your account.

eToro accepts transfers in any currency, but charges a commission for making the conversion to USD. So it is better to use USD from the beginning.

What is social trading?

The first platform that thought of trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also taken this concept, but we have tried them all and eToro is still the leader.

But it wasn't just about creating yet another social network to talk about investment. The main innovation 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 assets of a certain sector. For example, if you anticipate that a particular sector will have significant profits but you don't know which stocks to invest in, you just have to select 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 selected amount, place the stop-loss and click on “Invest”.

Copy People

But you can also copy other users of the platform who are successful investors. With “Copy People” you can locate them and imitate their investments easily.

In the profile of each user, you will be able to see their risk profile (the higher the risk, the more chances of winning more and losing more), their performance, and what kind of financial instruments they operate..

And although duplicating other user's strategies is very interesting, you should also make the most out of the platform's community, read what other users think, and learn from them. If you aim to end up living from investment, it is a great place to absorb a lot of knowledge.

Investment strategies

There are many cryptotrading methods: for example, you can buy and hold, or you can day trade (and benefit from market volatility).

My suggestion for those who are starting to invest is something in the middle: when you open your position, set a dynamic stop loss 15-20% below the maximum price, and forget about the operation.

For example, if you buy a cryptocurrency at $ 15, it rises up to $ 25 and falls again to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Therefore, you will get a satisfactory income.

It may sound more appealing to sell when the price is at its peak, right before corrections, but unless you're clairvoyant, that's impossible. The above strategy is much more down-to-earth and, well applied, it can work very well for you.

Later on, you will be able to apply more sophisticated techniques, like going short to profit from bear markets or using leverage.

How to use leverage in trading

Do you know what leverage is? Just in case, we'll put it simply: trading allows you to invest higher amounts than you can have in a given time. Let's say that you enter with $ 100 and you use x2 leverage, the amount of your investment will be $ 200.

Leverage, Take Profit and Stop Loss

Let's pretend that you are confident that McDonald's will raise its price, and you consider “going long, but you only have $ 1,000 available. However, you have the option of investing more money and earn higher profits.

There's the possibility of asking for a loan, but it is a process that takes time, and by the moment you finally get the money, McDonald's might be already so expensive that investing wouldn't be convenient anymore.

Leverage is just like a credit, and you will only have to click a few times! eToro allows you to invest (and earn) much higher amounts than what you actually have on the platform. It is really simple, before investing you will see the different options as in the screenshot:

apalancamiento

When operating in different markets you can use higher leverage. The reason: cryptocurrencies are a value that is invested in the medium-long term. However, leverage is used mainly for day trading or short-term trading. Let's talk a bit more about how leverage works:

  • If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 was “borrowed” from eToro). 
  • Then, turns out that McDonald's price does increases, as you assumed, and now the price of your investment is $ 2,400 (20% more), so you decide to sell back. 
  • Once the $1,000 from leverage is returned, you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours initially.

In conclusion, by investing $ 1000 you can make a profit of 40% (in the case you earn $ 400). That is quite good.

It may sound too good to be true. The trick is that the risk of losing out is also there. If everything goes as planned, you will earn profits in little time; but in the opposite case, you will also lose more really fast.

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 operating 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 bought McDonald's shares at $ 100, you program 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.

Stop Loss is even more important, mostly if you trade with leverage, since a small loss with leverage can be tragic for your wallet. That is why it is essential to establish a Stop Loss more conservative than that suggested by the platform.

Frequently asked questions

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

When will I be able to take out my funds?
At any time. You just have to end your McDonald's position, click on “Withdraw Funds” and you will the money very soon.

What deposit methods can I use?
Available payment methods are: PayPal, Bank Transfer, Credit Card, Rapid Transfer, Klarna / Sofort Banking, Neteller and Skrill

* 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.