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www.etoro.com *
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How to buy
If you live in Ireland, a great way to invest in Netflix 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 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.
Then check your email inbox: you should have received an email from eToro, click on “Verify my email” 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.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “Netflix” 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
Is Netflix a buy?
Netflix is a company dedicated to the distribution of audiovisual content (series, movies, documentaries, among others) via streaming. There is no one today who does not know about the existence of the platform or who has not heard about any of its series.
And the fact is that Netflix is the number one of all streaming companies mainly because it is the oldest. Although it also contributes a lot the fact that it produces its own series and movies, some of which have achieved resounding success as is the case of La Casa de Papel.
Evolution of Netflix
The company was founded in 1997 in California and in 1998 began its activity with a DVD rental service by mail. In the year 2000, already with a website, Netflix started its personalized recommendation system, based on the rating of its customers.
It was not until 2007 that Netflix started its video on demand service as we know it today. However, at the beginning this service was only available in the United States and Canada, by 2011 it was already available in the rest of America and all of Europe.
But it was in 2016 when it took the big leap and began to offer its service worldwide thus becoming the great company it is today.
In-house productions
We already mentioned that Netflix produces its own series, movies, documentaries and animations. The company started with own productions in 2013 with the political drama Houses of Cards which was critically acclaimed at the time. And since then, Netflix's original productions have always given something to talk about.
Among its most famous productions we can mention:
- Elite
- Money Heist
- Stranger Things
- Castlevania
- Narcos
- Dark
Among many others that, although they are series designed for a specific sector, have achieved popularity among its users in general.
Their future in the stock market
The evolution of this streaming company, its ability to adapt to new times and new technologies have a positive impact on the company's valuation.
That is why its share price has gone from $15 in the initial offering to the prices we have today.
And since Netflix is a technology company, it is only natural that its rise will continue, which makes this company one of the few that should always be taken into account.
How do Contracts for Difference function?
If you already browsed eToro, you probably noticed that the initials CFD appear frequently. Before we explain what this is, we must say that CFDs on eToro are only possible when you are short-selling.
We will also refer to concepts such as going short and leverage, in case you are thinking about day trading cryptocurrency or other more advanced operations.
With CFDs you can bet on the platform even if you are not “in the black” or having a negative balance. In a hypothetical case: you have the conviction that the Netflix will fall, so you clearly think “if it is going to depreciate or go down, I'll just wait and bet when it has gone down”. However, if it really goes down, it is possible to earn some money out of that.
You can do this through what is known known as “going short” which consists in something like the following:
- You obtain from a loan 100 units of Netflix, with a total price of $ 5,000 (these are completely imaginary figures)
- You sell them at their price at the moment, $ 5,000
- The price falls, as you guessed, and the unit of Netflix goes from $ 50 to $ 30
- You purchase all 100 units once again, but at the current value, $ 3,000
- Now you return the 100 units
- The difference is yours, so, you will have made $ 2000
Keep in mind that it seems much more tricky than how eToro CFDs actually work: we can just say that by trading in Netflix you can also earn money if you anticipate it will go down.
Differences between futures and CFDs
How are CFDs and Futures different?
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
- Expiration date Futures have a determined expirationdate. CFDs don’t have expiry date
- Variety of options: The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum investment: Being higher numbers, Futures require, proportionally, lower costs. Costs for CFDs are a bit higher, although not too much.
- Use of leverage: with Futures, it isn’t possible; while with CFDs it is.
How to use leverage in trading
In case you still don't know what “leverage” is, we'll describe it briefly. When trading, it's the capacity of enlarging your investment without putting more money. For example, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.
About leverage, Take Profit and Stop Loss
Let's pretend that you are confident that Netflix will rise, and you consider “going long. You have $ 1,000, but you actually can invest more and make more money.
You could consider asking for a credit, but it is a process that takes time, and by the moment you receive the money, Netflix might be already so expensive (if your guess was right) that investing wouldn't be convenient anymore.
With leverage, you can get that amount of money really easily. It's just like borrowing money, but much better: you will get it from eToro, which lets you invest much more than you have on the platform. You will simply see the different options as in the screenshot:
With other assets, the ability to leverage is greater. The reason: leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. 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 Netflix price does rises, as you assumed, and now the cost of your investment is $ 2,400 (20% higher), so you decide to sell back because you want to play it safe.
- The $ 1k of leverage will be deducted, and 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 pretty decent.
The thing is, you can also lose money. If everything goes as planned, you will earn more money in less time; however, if the value of the asset goes down, you will also lose more in less time.
Supposing 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 so important when trading with leverage.
Take Profit is a limit you can set when trading: you set the platform to sell your assets once they get to a point above the entry price. For instance, you can buy Netflix shares at $ 100 and request that your position is closed automatically when it goes up to $ 120. It is very helpful to avoid being blinded by greed: a 20% profit is usually very good, but once you see it goes up, you might think you can make higher profits, which is not always the case. Consequently, you might lose money if you don't close on time. So, Take Profit helps you to trade more safely.
Stop Loss is even more important, mostly if you trade with leverage, because a small loss with leverage can be tragic for your wallet. Always remember to set a Stop Loss more conservative than that suggested by eToro.
How to deposit funds on eToro
When it comes to depositing money on eToro, there is not much to say, since it is pretty simple. You only need to select “Deposit funds”, put an amount, and choose your payment method. You can use PayPal, bank transfer, credit card, Skrill, or Neteller.
(Keep into consideration that you must be the account or credit card owner, for security reasons).
The lowest amount is $ 200, and there is a maximum authorized for unverified accounts, so if you plan to operate with higher amounts, contact Support previously to verify your account.
You can make the deposit in any currency you want and eToro will automatically convert it to USD. But it is advisable to deposit directly in USD since the platform charges a fee.
Investment strategies
You can operate cryptocurrencies in many different ways: from purchasing and waiting to day trading (taking advantage of price volatility).
My recommendation for those who are starting to trade is going for a middle point: when you open your position, set a stop-loss order 15-20% under the highest price, and let the magic happen.
For example, if you purchase a cryptocurrency at $ 15, then it rises up to $ 25 and decreases again to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will get a pretty good income.
It might sound more appealing to sell when the price is at its highest, right before corrections, but unless you're clairvoyant, that's impossible. The mentioned method is much more realistic and, well applied, it can work very well for you.
At some point, you will be ready for more advanced trading techniques, such as short-selling or using leverage.
How does a virtual portfolio work?
For those who still don't have much experience in investing, a demo account can be very helpful. Just make sure the virtual mode is set in the upper left corner of the page and you can start practicing with an “imaginary” portfolio.
A virtual portfolio can be a good way of practicing before starting to operate with real money. When you create your demo account, you will begin with a virtual amount of $ 100.000, to trade with a variety of assets available on eToro (not only with Netflix).
If your trials don't go well and you lose your funds, you can always ask eToro support to replenish $ 100k of virtual funds. The second time will probably be better.
But keep in mind that you need to be prudent for trading, and using a practice account can have an adverse effect. It is not the same to risk your real savings than to do operations with virtual funds that you don't mind losing. Also, using fake money can prevent you from learning to control your emotions, something you should be able to do when trading.
Evidently, the virtual mode is kind of pointless if you want to trade in the medium or long-term, since you would be wasting years. Virtual accounts may be ideal for practicing short or medium-term investments.
eToro Interface
We mentioned before that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.
Everyone who has used social networks like Instagram or Facebook, has enough knowledge to use eToro.
We will explain, roughly, the registration process and the different tabs that you will find.
When you open your account, you will have to fill in all the information that eToro asks for: first and last name, address…
Additionally, you will see that they ask you some questions about your experience at investing.
But don't feel intimidated. The only intention is to know more about you and be clear about which financial instruments they should recommend 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.
“Set Price Alerts” allows you to put alarms on the price of certain assets. 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.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned in this guide, the six types of instruments on eToro are:
- Cryptocurrencies
- ETFs
- Shares
- Commodities
- Forex trading
- Index funds
In the tab “People”, you can find the profiles of eToro users and their performances. This is where you can copy the strategies of the users that you prefer.
Using the search box, you can find the investors that best suit your interests: by risk level, types of financial instruments, average earnings… Just indicate the amount of your investment and eToro itself 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 also invest $ 100 of your balance in that asset.
Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.
Sometimes it might be better to copy from CopyPortfolios than to other users, because you avoid putting all your eggs in one basket, or in other words, risk is more diversified. The portfolios are identified so you can recognize them easily: one about gaming, another about large drone companies, another about pharmacy … You think that a certain sector is going to succeed in the future? Then look, because surely there is a CopyPortfolio about it.
What is social trading?
eToro was the first broker to suggest trading as a social activity, and time has demonstrated that it was an excellent idea. Since then, a multitude of copycats have appeared, but I have tried them all and eToro is still the best.
But they didn't limit themselves to transferring the logic of the social network to the trading world. They could have made the umpteenth social network in which users talk about investing, but they were not satisfied with that: the great innovation of eToro was allowing investors to imitate the strategies of other users, who in turn were rewarded for their knowledge.
It sounds complex but it isn't: when you access eToro you will see in the left menu the options “Copy People” and “Invest in CopyPortfolios”.
CopyPortfolios
“CopyPortfolios” are a kind of portfolio that includes several goods of the same market. 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 select a portfolio that includes a variety of related companies in that industry.
At the time of writing this text, this CopyPortfolio has generated a 100% profit in the last twelve months, and you just need to click on “Invest”, choose the amount, place the stop-loss, and the rest will be done practically on its own.
Copy People
But you can also copy other successful traders of the platform. It is really easy: you can find them with “Copy People” and just replicate their moves.
In the profile of each user, you will be able to see their risk profile (how much risk do they take), their performance history, and what kind of assets they trade: currencies, forex, raw materials, stocks….
Besides copying other user's strategies, which is great and very helpful, we also recommend that you make the most out of the community by reading other user's remarks. You can learn a lot from their experiences and knowledge, mainly if your goal is to make a living from trading.
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.