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How to buy
If you live in Ireland, a great way to invest in NIO 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 Australian Securities and Investments Commission (ASIC).
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 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 trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “NIO” 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.
About the company
NIO is a company founded in China by entrepreneur William Li in 2014 that manufactures and markets high-end electric vehicles. At the time of its launch, this company caught the attention of other large companies that decided to invest in NIO and back it. Among them we can mention Lenovo, Tencent, and large investors such as Sequoia Capital.
Since its founding, NIO has grown so much that it currently has offices in Germany, the United States and the United Kingdom. But one of the most remarkable events was the IPO of its shares on the New York Stock Exchange in 2018, where the value of its shares has revalued up to 500%.
This company seeks to lead the way in the transition from internal combustion vehicles to electric vehicles, thus declaring war on Tesla. This has caused the existence of NIO to be framed within the confrontation between the United States and China.
But it should be clarified that NIO is not the only Chinese company producing electric vehicles. And although its goal is to produce intelligent electric vehicles and autonomous driving, it also has ideas that completely differentiate it from Tesla and the other companies competing in this sector.
What makes NIO stand out from its competitors?
NIO offers high-performance electric vehicles that have a range of more than 600 km. But this is something we can find in other electric vehicles from the Tesla brand.
What does set NIO apart is its charging systems, as the charge can be brought to wherever the vehicle is located. It does this with a van that is capable of providing charging for a range of 100km to two vehicles, and can also recharge Tesla vehicles. So, if a Tesla user does not have a Supercharger nearby, they can call NIO.
In addition, a recharging system that completely sets it apart from the rest is battery swapping. NIO has battery recharging stations where the discharged battery is replaced by a fully charged battery.
All this is done automatically and controlled by robots that carry out the whole process in less than three minutes. So NIO owners really care little or nothing about charging time, thus raising the company's service to a new level.
This service works on a subscription basis that users pay monthly and gives them access to the service. With the advantage of making vehicles cheaper by more than 8 thousand dollars, since users do not have to buy the battery but only subscribe to the service.
Small differences in the business model that in the future could tilt the balance towards NIO's side, making it a company that should always be taken into account.
Why we recommend this broker:
- Really intuitive and straightforward
- It uses other people successful investment strategies so you can copy them
- Allows you to go short
- Leverage is allowed
- There are lots of possibilities for investments
Official homepage: www.etoro.com *
If you are considering buying NIO shares from Ireland, eToro may be the best option.
This platform is famous for making “social trading” fashionable. Social trading is a revolutionary form of investing in which investors can replicate the movements of other traders who have been generating income 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 replicates those from subjects with a long profit record. And for those skilled investors willing to share their techniques, eToro rewards your knowledge with money.
Besides, the interface of the site is so uncomplicated, ideal for users who want to begin in the stocks world, without ending up overwhelmed with tons of diagrams and numbers.
Can you rely on eToro?
eToro is very careful with the data about past performances from investors, and its integrity has been independently tested several times.
The main office of eToro is located in Cyprus, and the platform is certified by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients. On the other hand, eToro meets all the strict requirements of the European Union.
eToro responds to the European Financial Instruments Market or MiFID in Europe, and to the Financial Conduct Authority (FCA) in the U.S. Apart from the above, it has a trajectory of fifteen years, with more than 20 million users all over the world. So, you can be sure that your finances are safe.
Finally, their customer service functions perfectly. You can use the online chat, and they also have a phone number available for assistance.
About Contracts for Difference
If you have entered eToro previously, you probably noticed that the initials CFD appear frequently. We will explain exactly what this means, but first, you should know that CFDs on eToro are only possible when you go short or leverage above x2 (but the platform does not even allow this).
We will also refer to concepts such as short-selling and leverage, in case you are thinking about day trading cryptocurrency or other more advanced practices.
The advantage of eToro is that it lets you bet both “in the black” and “in red”. In a hypothetical case: you are sure that the NIO will fall, so perhaps you consider that it is better to wait until it does and then go in. But 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”. Its operation, roughly, consists in the following:
- You ask for a loan of, let's say, 100 units of NIO, which cost $ 5,000 at the moment (these numbers are made imaginary)
- You make $ 5,000 by selling the 100 units
- The NIO devaluates from $ 50 to $ 30
- You purchase all 100 units once again, but at the current value, $ 3,000
- You return the 100 units to whoever made the loan
- There: the $ 2000 difference is yours
Keep in mind that it sounds much more complex than how eToro CFDs actually work: we can just say that by trading in NIO you can also make money if you anticipate the downs.
Differences between futures and CFDs
How are Futures and CFDs different?
- Who is the counterparty? In the case of Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- Expiry date Futures expire in a variable given date. CFDs don’t have expiry 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 it is always possible.
What is leverage
Are you familiar with the term “leverage”? Just in case, we'll put it simply: trading allows you to invest higher amounts than what you really have. Let's say that you have $ 100 and you put them with x2 leverage, you will be really investing $ 200.
About leverage, Take Profit and Stop Loss
Assuming that, for example, you are positive that NIO price is going up, and that you have $ 1,000 for “going long”, you should know that you can increase your investment and make more money.
Possibly, you could ask a financial company for a loan, wait for it to be accepted, wait for the money, and then purchase NIO… Nevertheless, once you've managed doing all that, probably NIO 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 get that amount just by moving a finger. It's exactly like borrowing money, but much easier and quicker, and with the advantage that you will be getting it directly from eToro which will let you invest much more than you have on the platform. As in the image below, you will see the different options you have:
Trading with other assets allows you to use more leverage. The reason is that leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. That said, I'm going to explain better how leverage works:
- If you decide to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from eToro).
- Then, turns out that NIO price does rises, as you thought, and now the cost of your investment is $ 2,400 (20% more), so you decide to sell back.
- Once the $1,000 from leverage is deducted, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours from the beginning.
With $ 1000 you get $ 400, in other words, 40% more. Not bad, right?
But watch out: if everything goes ok and the price rises, you will make profits. Nevertheless, if the asset decreases, you will also lose more money in the blink of an eye.
For example: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but $ 20, because of the leverage. That is why to operate with leverage it is very important 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 bought NIO shares at $ 100, you can ask eToro to close when 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 necessary, particularly if you trade with leverage, since a small loss with leverage can have a significant impact. Take into account that eToro will recommend a limit for Stop Loss, but you should set it closer to current price than that.
What are the assets you can trade in eToro?
We already know about cryptostocks, there are other financial instruments available.
Index funds are suitable for those interested in long-term trading, especially for beginners. If you don't need an amount of money for the next five or ten years, index funds are a secure option.
Perhaps you have a different idea, but it is very hard to beat the market (although you have probably heard of managers who achieve huge returns).
But besides Warren Buffett and a couple more, all that glitters is not gold: if you hear of someone who has beaten the market, they have probably done so for a short time, or the rates are so high that it ends up being better for you to index (whit minimal commissions). Besides, if something happened once, it doesn't mean necessarily that it will happen again in the future.
The good thing about index funds is that they perfectly solve those two issues: their commissions are minor and in the long term they tend to beat active managers.
Foreign exchange market
Forex or currency trading allows obtaining profits by exchanging one currency for another.
If you decide to trade the EUR/USD pair, you speculate how many dollars it will take to buy a euro, with the expectation that the euro will rise compared to the dollar. Then, if you purchased each euro at 1.15 USD and you sell them back when their price is 1.20 USD, that margin will be yours.
You may be thinking that this form of trading requires high investments, and you are not wrong, because fluctuation in prices is never that dramatic, and often you will need to use a lot of leverage (which is an important risk). In case you are just starting in trading, we don't recommend beginning with this market, because it's not the safest option.
Most currencies are available on eToro but take into consideration that this market works with CFDs, thus the underlying asset won't be yours.
Most people invest in raw materials due to their stability. While other assets tend to fluctuate more, commodity prices vary less and offer security against inflation or market volatility. However, prices are subject to supply and demand in the market, so if the fear of possible inflation provokes higher demand for a certain good, its cost will also rise.
Note that the only intended profit from the investment in raw materials will be the hypothetical capital gain after selling them: unlike shares, these don't distribute dividends or pay interest.
Commodities can be divided into two main categories: 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 products, like sugar, coffee, corn, soy.
What is social trading?
The first platform that thought of trading as a social activity was eToro, and the idea became popular really quick. Other brokers have also adopted this concept, but we have tried them all and eToro is way better.
But the main accomplishment wasn't just creating a social networking site for traders. They could have made the umpteenth social network in which users discuss investing, but they wanted much more: the main contribution of eToro was to allow traders to imitate the moves of skilled investors, and to reward them latter for their ideas.
You will find in the left menu of the site the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of 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 select a portfolio that groups together a variety of related companies in that industry.
CopyPortfolio has generated a 100% profit in the last year, and you just need to click on “Invest”, enter the amount, place the stop-loss and wait.
But it is also possible to copy other users of the platform who are successful investors. With “Copy People” you can locate them and duplicate their investments easily.
You will find in the profile of each user: the kind of financial instruments they trade with, their risk profile, and their trading history.
Besides copying other user's strategies, which is really interesting and helpful, we also suggest that you benefit from the community by reading other users. You can learn a lot from their experiences, particularly if your goal is to make a living from trading.
You can trade cryptocurrencies in many different ways: from purchasing and holding to day trading (taking advantage of price fluctuations).
In case you are a beginner in the world of investment, I recommend a middle point: when you open your NIO position, place a stop-loss 15-20% below the top price, and let the rest happen on its own.
For instance, if you buy a cryptocurrency when it is worth $ 15, it increases 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.
Perhaps you are wondering: why not selling when the cost is at its peak? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and give good results.
At some point, you can take your first steps with advanced trading strategies, such as using leverage or going short to make money from bear markets.
Virtual portfolio: How does it work?
In case you are beginning as an investor, you can start by practicing with a “demo” option. Setting a virtual account and operating with fictional funds is very simple.
This can be a great way of gaining experience and confidence before starting to trade with real funds. You will have an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can operate with all the different instruments available on eToro, not only with NIO.
If your trials don't go as planned and you lose your funds, there is always a possibility to replenish your virtual funds. You'll probably do better on the second try.
But remember that trading is mainly about being cold-minded, and demo account trading can have an adverse effect. It is completely different to risk your own money than to do operations with virtual funds which loss does not suppose any drama. Besides, investing virtual money can prevent you from learning to control your emotions, something you should be able to do when trading.
Finally, if you are interested in investing in the long or medium-term, it makes no sense that you try the demo mode and wait for years. But it can be ideal if you want to practice short and medium-term 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.