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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 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 inbox: you should 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.
How to make your first purchase
As soon as 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.
What does Netflix do?
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.
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:
- Money Heist
- Stranger Things
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.
- User-friendly and simple
- It uses techniques and moves from experienced investors so you can copy them
- Allows you to go short
- Leverage is allowed
- There are tons of investment opportunities
Main site: www.etoro.com
You should absolutely consider eToro in case you are interested in investing in Netflix from Ireland.
eToro is popular for making “social trading” fashionable, a revolutionary form of investing in which users can replicate the techniques of other traders who have been generating income for years.
eToro has solutions for you, especially if you are still a beginner in trading, because it puts your investment on autopilot by repeating strategies from those who have been doing it for years. And for those skilled investors willing to share their techniques with others, eToro rewards your knowledge with money.
It is also worth mentioning how accessible is the platform, perfect for beginners who are taking their first steps in the investment world.
What types of financial assets can you trade in eToro?
Besides stocks, there are a few more financial assets available.
Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. We can say that ETFs are halfway between stocks and funds: they are traded in the market like stocks, during the day. However, their advantage is that they are more diversified compared to stocks, and have lower fees.
If a long-term investment sounds good to you, and you won't need to take back your money in five or ten years, index funds can be the best alternative. This kind of investment is also suitable for beginners since the risks are lower.
Perhaps you have a different idea, but very few investors can beat their benchmark return (although you have probably heard of managers who achieve huge profits).
But putting aside some exceptional cases, not everything is as good as it sounds: if you hear of someone who has beaten the index, they have probably done so for a short period, or the rates are so high that it ends up being better for you to index (whit minimal commissions). Also, take into account that if something happened in the past it doesn't necessarily represent a regular behavior.
Index funds provide solutions to both concerns: their commissions are insignificant and in the long term they almost always beat active managers.
Forex or currency trading is the exchange between a pair of currencies.
If you decide to trade euros and dollars, for instance, you speculate how many dollars it will take to buy a euro, with the expectation that the euro will raise its price compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when they cost 1.20 USD, that margin will be yours.
You may be thinking that operating with currencies requires investing considerable amounts, and you are not wrong, since increases in prices are never that dramatic, and often you will need to use high leverage (which is an important risk). Our recommendation for those starting in the world of trading is to choose another market to begin with, since Forex is not the safest.
eToro allows trading with the most popular currency pairs but keep in mind that this market works through contract for differences, so you will not be the owner of the real asset.
The major advantage of trading with raw materials is that prices are more stable than those of other assets. In fact, their stability is what makes most investors trade with commodities when facing economic adversities or fears of inflation. Nonetheless, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Take into account that, unlike stocks, commodities don't pay dividends. Therefore, the only potential further income would come from a future sale of the asset.
There are two basic kinds of commodities: hard raw materials and soft raw materials. The former are precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; and the latter are agricultural goods as cocoa, soybeans, rice, or sugar, among many others.
How do Contracts for Difference work?
If you already browsed eToro, you probably noticed that the initials CFD appear over and over. Before we explain what this is, you must know that cryptocurrency trading on the platform is only CFD if you go short or use leverage over x2 (but the platform does not even allow this).
For the record, and if you are thinking about day trading cryptocurrency and other more advanced practices, we will also address concepts such as going short and leverage.
Even if you aren't “in the black”, you can still bet on eToro with CFDs. 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 in price, I'll just wait until it does”. However, if you are convinced that it is going down, why not making some profits?
You can accomplish that by “going short”. Here's how it works:
- You obtain from a loan 100 units of Netflix, with a total price of $ 5,000 (these numbers are fictional)
- You make $ 5,000 by selling the 100 units
- As you thought, it devaluates, and the unit of Netflix now costs $ 30 instead of $ 50
- You get the 100 units again, but at their current price, $ 3,000
- You return the 100 units to the person that loaned them to you
- You will have made $ 2000, since you keep the difference
Take into account that it is much simpler than it sounds: we can just say that by trading in Netflix you can also make money if you anticipate it will fall.
Futures Vs CFD
What are the differences between CFDs and Futures?
- Who is the counterparty? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Date of expiration Futures expire in a variable given date, while CFDs don’t expire
- Variety of options for trading The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size” Costs for Futures are higher than costs for CFDs.
- Use of leverage With Futures, it isn’t possible; while with CFDs it is.
eToro deposit methods
Within the payment options that you will find on eToro are: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Making a deposit on eToro is so simple: go to “Deposit funds”, choose an amount and the payment method you prefer.
Consider that for security reasons, you must be the owner of the credit card or the account.
The lowest amount is $ 200, and there is a maximum allowed for unverified accounts, so if you plan to operate with larger sums, you should verify your account previously.
eToro allows transfers in any currency, but you will have to pay a fee for the conversion to USD. That is why we recommend, if it is in your hands, depositing in USD from the beginning.
What is social trading?
eToro was the first platform that proposed social trading, and this new concept became very successful. Many other brokers copied this idea, but 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 wanted much more: the major contribution of eToro was to allow users to replicate the strategies of experienced traders, and to reward them latter for their ideas.
In the left menu of the site, you will see “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of financial assets of a certain sector. For example, 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.
At the time of writing this article, this CopyPortfolio has generated a 100% return in the last twelve months, and it is as simple as clicking on “Invest”, select the amount, place the stop-loss, and the rest will be done practically on its own.
The other option is to directly copy users: in “Copy People” you can locate eToro users who are very successful investing and whose moves you can duplicate very easily.
In the profile of each user, you will see their risk profile (the higher the risk, the more possibilities of earning more and losing more money), their performance history, and what kind of instruments they trade..
And although copying other user's investments 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 wish to end up living from investment, it is a good place to gain valuable knowledge.
There are many methods to operate cryptocurrencies: from purchasing and waiting to day trading using price fluctuations to your advantage.
My recommendation for those who are starting to trade is something in the middle: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
For example, if you buy a cryptocurrency at $ 15, then it increases to $ 25 and falls again to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will get a satisfactory income.
It may sound more appealing to sell when the cost is at its highest, but unless you're clairvoyant, that will never be possible. The mentioned method is much more down-to-earth and, well applied, it can work very well.
And when you have more experience, you will be ready for more advanced trading strategies, such as going short or using leverage.
How to use leverage when trading Netflix
If you still don't know what “leverage” is, we'll put it short: it is the possibility to use a higher amount than you actually have. That way, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.
Why using leverage and how to do it
Let's say that you are confident that Netflix will raise its price, and you want to “go long”, but you only have $ 1,000 available. However, you have the option of investing more money and get higher profits.
There's the possibility of requesting a credit, but it is a process that takes time, and by the moment you finally get the money, Netflix might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Leverage is just like a credit, but it is only a few clicks away! You will be able to operate with much more than what you have on the platform. Before trading, you will how much leverage to use as in the image:
When operating with other assets you can use higher leverage. The reason is that leverage is most common in short-term operations, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works.
You enter with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest (the extra $ 1,000 to reach $ 2,000 are “borrowed” from eToro).
A couple of days later, as you thought, Netflix price has risen by 20% and your money has appreciated reaching $ 2,400. But you don't want to take too much risk, so it's time to sell.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 was yours initially, so the net profit is $ 400.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.
The trick is that the risk of losing out also increases. If everything goes according to plan and the price goes up, you will earn profits in little time; but if the opposite occurs, you will also lose more really fast.
Let's say that the asset didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but double, $ 40. For that reason, when operating with leverage it is essential to know about Take Profit and Stop Loss.
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 Netflix shares at $ 100, you request eToro to close your operation when it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to wait a bit longer in case it keeps rising, which could be a mistake.
On the other hand, when using leverage you should always use Stop Loss, because a small fall in the price of an asset can have a big impact on your wallet. Always remember to mark a Stop Loss more tight than that suggested by the platform.
Virtual account: How does it work?
In case you are taking your first steps as an investor, you can start by practicing with a “demo” option. You only need to set the “virtual” option and you will be able to trade with “imaginary” funds.
A virtual account can be a good way of gaining confidence before starting to operate with real funds. When you create your demo account, you will begin with a virtual balance of $ 100.000, to operate with a variety of assets available on eToro, besides Netflix.
The first attempt is not usually that good. But don't worry, since you can ask eToro to replenish the virtual $ 100k to your account, and the second try you should do better.
Nevertheless, remember that you need to be prudent for trading, and using a practice account can have the opposite effect. It is not the same to risk your real savings than to do operations with virtual funds that you don't mind losing. Besides, investing virtual money can prevent you from learning to control your emotions, as a true investor should.
And of course, the demo 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 useful for practicing before trading 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.