|Recommended Broker 🇮🇪||
|🌐 Official website:||www.etoro.com *|
How to buy
For those who live in Ireland, a great way to invest in McDonald's 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: 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 McDonald's 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 “McDonald's” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Is McDonald's a buy?
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.
How do Contracts for Difference function?
It is possible that you have found the initials CFD now and then if you already accessed eToro. Before we explain this further, we must say that cryptocurrency operations on eToro are only CFDs when you are short-selling.
For your information, and if you want to try at some point day trading cryptocurrency or other advanced practices, later on you will also meet terms such as leverage and “going short”.
The advantage of eToro is that it allows you not only to bet “in the black”, but with CFDs you can also bet “in red”. In a hypothetical case: you believe that the McDonald's will fall, so perhaps you consider that the best thing to do is wait until it does and then go in. However, if it actually goes down, you can make some profits out of that.
The practice known as “going short” will allow you to do that. It works, more or less, this way:
- You get from a loan 100 units of McDonald's, with a total value of $ 5,000 (these are completely made up numbers)
- You sell the 100 units at $ 5,000
- The McDonald's devaluates from $ 50 to $ 30
- You buy all 100 units one more time, but at the current value, $ 3,000
- Now you pay back the 100 units
- You keep the $ 2000 difference!
It is far more simple than it may seem. Just remember that by trading in McDonald's on eToro, you can make a profit if you foretell downs in the price.
How to deposit funds into your eToro account
Within the payment options available on eToro are: 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 have to go to “Deposit funds”, type a number and select your preferred method.
Of course, take into consideration that for security reasons, you should be the owner of the account or the credit card.
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. Thus, if your intention is to deposit higher amounts, you should contact Support to verify your account.
The platform accepts deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we recommend, if possible, depositing in USD directly.
We said before that eToro is very friendly and intuitive. Anyone can start using it without previous experience or long explanations.
You won't have any issues with the interface if you are familiar with any other social network.
We will explain the registration steps and the different tabs that you will find.
First of all, you will have to enter your personal data.
They will also ask you about your previous trade experience.
But you don't need to worry: it's not about passing an exam. It is only a way of finding out how much knowledge you have and what type of financial instruments they can recommend. For instance, if you have never invested before, they will not recommend that you invest in futures.
Let's review the different tabs of the page.
In the “Set Price Alerts” tab, you have, as its name says, the option 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 it seems to you that it will decrease even more.
“News Feed” is for social purposes and interaction. This is the section where users can share opinions and learn from each other.
In “Discover” you will find the investment tabs: “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the six types of instruments on eToro are:
- Exchange-Traded Funds
- Forex trading
- Index funds
In “People” are all the profiles and historical performances of other users, and you can replicate their movements with just one click. This is where the “social trading” concept is best applied.
In this section, you can search and find users according to your interests. You can search by risk level, financial instruments, or average profits, among other filters. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. If you have $ 1000 and the trader puts 20% of their funds in an asset, eToro will put $ 200 of your funds in the same asset or company as well.
You will also see the three main types of CopyPortfolios, which are “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. Besides, the portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry will prosper in the future? Then look, because surely there is a CopyPortfolio about it.
Do you know what “social trading” is?
eToro was the first platform that proposed social trading, and this new concept became very successful. Many other brokers copied this idea, but eToro beats them all.
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 copy the strategies of experienced traders, who were in turn paid for their ideas.
It is not complicated at all. When you enter eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are a kind of portfolio that includes a series of goods of the same sector. For instance, if you consider that a particular sector will succeed in the near future but you are not sure which investments to make, you just have to pick a portfolio that groups together a variety of related companies in that industry.
CopyPortfolio has generated a 100% return in the last twelve months, and the only thing you have to do is to click on “Invest”, choose the amount, place the stop-loss, and the rest will be done practically on its own.
But you can also copy other users of the platform who are successful investors. It is really easy: you can find them with “Copy People” and just replicate their moves.
In each user profile, you will see their risk profile (how much risk do they take), their performance history, and the type of financial instruments they trade: equities, forex, cryptocurrencies, raw materials….
Besides copying other investor's moves, which is really interesting and helpful, we also recommend that you make the most out of the community by reading other users. You can learn a lot from their experiences, mainly if your goal is to make a living from trading.
How does a demo account work?
If you do not have much experience investing, you can start by practicing with a “demo” option. 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.
This tool is ideal for those who are new to this world and want to put their talents to the test before playing for real funds. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do your operations, not only with McDonald's, but you can also create a diverse portfolio with all the different instrument that are available on eToro.
The first attempt is not usually that good. But don't worry, since you can ask eToro to replenish the virtual $ 100k to your portfolio.
But remember that trading is mostly about being cold-minded, and using a practice account can have an adverse effect. It is completely different to risk your real savings than to do operations with a fake balance that you don't mind losing.
And of course, the virtual mode is kind of absurd if you intend to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years. Virtual accounts may be useful for trying out before investing 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.