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How to buy
If you live in Ireland, a great way to invest in Qualcomm shares is, definitely, 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 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 trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Qualcomm” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Should I invest in Qualcomm?
Qualcomm is an American technology company that is well known because its chips are widely used in the smartphones industry. And among all the chips it manufactures, surely the best known is the Snapdragon processor, which is preferred by most smartphones manufactors.
This company, founded in 1985 in California, initially offered satellite location and messaging services to long-distance transport companies. At the same time it produced integrated circuits for equipment specialized in digital radio communications as well as its first patents, which would be essential for the company.
It would be in 1990 when Qualcomm has the first approach with cellular technology, particularly with CDMA, which would define the future of the company. This fact plus its patents mark a milestone for Qualcomm because, although it is known for Snapdragon, its real business is in cellular technology patents.
In those years, Qualcomm developed a lot of wireless technology that it filed and patented in the United States. As time went by, its patents would be taken as standard in the cellular industry and for wireless technologies.
That is why its main business and source of income is the licensing of patented technologies. And all, but all cell phones are dependent and use in one way or another some of Qualcomm's patents. Thus, Qualcomm's licensing fee is between $20 and $30 per mobile device produced.
This is an outrageous figure for the sector, being 10 times higher than the average and for which Qualcomm has entered into legal disputes in the United States for monopoly. Although Qualcomm has come out of this with flying colors and has argued that the price for using its patent is higher because its patents are more important and indispensable.
As you can imagine, Qualcomm receives a monstrous income from patent licensing alone. This allows the company to pay quarterly dividends to its investors for an average of $2.6 per year. In turn, these two facts are reflected in the positive returns that Qualcomm's stock has on the stock market.
If we add to this the fact that the legal battles that Qualcomm has won basically allow it to continue with its patent monopoly, we can affirm that this company is one of the best to invest in the long term.
What types of instruments can you trade in eToro?
Besides stocks, there are way more financial assets you can trade with in this broker.
About Index Funds
This is the best option for people who can invest in the long term, especially for those who are starting to trade, because it is less expensive, diversified, and safer.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers have done it, apart from some specific cases, like Warren Buffett's.
If a fund manager brags about having beaten the benchmark, they probably have done it for a chor period or on particular occasions, or sometimes the charges are so high that indexing would be a better decision (with minimal commissions).
With index funds, you won't be concerned about that: most of the time, they beat active managers in the long term, and the charges are minimal.
Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. They can be described as a combination of stocks and mutual funds. They can be traded like regular stocks, but include a wide diversity of assets and have lower fees.
Commodities or raw materials
Most investors trade with raw materials due to their stability. While other assets present higher fluctuation, raw materials prices vary less and offer security against inflation or market volatility. Nevertheless, prices do depend on supply and demand in the market, so if an economic situation provokes higher demand for a certain good, the price will also go up.
Take into account that, unlike stocks, raw materials don't pay dividends. So, by investing in them you will only have a further profit by selling them back.
Commodities are commonly classified into two kinds: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural goods like coffee, rice, soy, or sugar.
About Contracts for Difference
You probably have seen the initials CFD all the time if you entered eToro before. Before we explain this further, we must say that cryptocurrency operations on eToro are only CFDs if you are short-selling.
We will also refer to concepts such as leverage and “going short”, in case you are thinking about day trading cryptocurrency or more advanced practices.
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 have the conviction that the Qualcomm will go down, so the logical thing is to think “if it is going to depreciate (go down in price), I'll just wait and bet when it has gone down”. However, if you really think that it's going down, why not making some profits?
You can do that by “going short”. More or less, this is how it works:
- You ask for a loan of, let's say, 100 units of Qualcomm, which cost $ 5,000 at the moment (these numbers are made up)
- You make $ 5,000 by selling the 100 units
- The price is reduced, as you calculated, and the unit of Qualcomm now costs $ 30 instead of $ 50
- You get the 100 units again, but at $ 3,000
- Now you pay back the 100 units to the loaner
- There: the $ 2000 difference is yours
It is far more simple than it may seem. Just remember that by trading in Qualcomm on eToro, you can make a profit if you foretell downs in the price.
What's the difference between CFDs and futures?
What are the main differences between CFDs and Futures?
- Who is the counterparty? In the case of Futures, the counterparty is another investor. In CDFs, it’s the brokerage, in this case eToro
- Date of expiration Futures have a determined expirationdate. CFDs don’t expire
- Markets available for trading: Futures include fewer options to trade. With CFDs you can trade in several different markets.
- Minimum deposit: Costs for Futures are higher than costs for CFDs.
- Is it possible to leverage? with Futures, it isn’t possible; while with CFDs it is.
eToro payment methods
Within the payment methods available on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is really simple. Just go to “Deposit funds”, choose an amount and the payment method you prefer.
Remember that for security policies, you must be the holder of the account or the credit card.
The minimum amount you can deposit is $ 200 and there is a limited amount if you are not verified, so if you plan to operate with higher amounts, contact Support beforehand to verify your account.
You can pay in any currency and eToro will do the conversion to USD. However, it is advisable to deposit directly in USD since the platform charges a fee.
We said before that eToro is very friendly and intuitive. Anyone can start using it without previous knowledge or long explanations.
You won't have any problems with the interface if you have used any of the most common social networks, like Whatsapp or Facebook.
We will talk about how to register and the different tabs you will find on the platform.
When you open your account, you will have to fill in all the information that eToro asks for: first and last name, address…
Also, you will have to answer some questions about your experience at investing.
But don't 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 assets they can recommend. For example, if it is your first experience in the investment world, they will not recommend that you invest in futures.
Let's get to know the different sections of the page.
“Set Price Alerts” allows you to put alarms on the price of certain securities. It is a very useful tool for when you are after an asset that is falling, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
In “Discover” you will find the investment tabs: “Instruments”, “People” and “CopyPortfolios”. As we discussed previously, the six types of instruments on eToro are:
- Raw materials
- Index funds
The term “social trading” comes to life in the section “People”: there, you can duplicate the trading strategies of any investor you choose.
In this section, you will be able to search for those users that you find more interesting. When you select an investor and indicate how much you want to invest, eToro will automatically replicate their movements, proportionally. For instance, if you have $ 1000 and the trader puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also see the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
The benefit of using CopyPortfolios instead of copying particular traders is that this way you will diversify the risk. 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 industry will prosper anytime soon? Then you will surely find a CopyPortfolio about it.
Have you heard about “social trading”?
The first platform that conceived trading as a social activity was eToro, and the idea became successful really quick. Other brokers have also adopted this concept, but we have tried them all and eToro is way better.
But it wasn't just about creating yet another social network to talk about investment. The real innovation was in the possibility for users to copy the moves of experienced traders, and to reward the latter for their ideas and knowledge.
It sounds complex but it isn't: when you enter eToro you will find in the menu on the left 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 have significant profits 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.
You should know that in the last year, CopyPortfolio has generated 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”.
The other alternative is to directly copy traders: in “Copy People” you can locate eToro users who are very successful and whose operations you can duplicate.
You will find in the profile of users: the kind of assets they operate (currencies, cryptocurrencies, raw materials, shares…), their risk profile (a higher risk implies higher possibilities of earning more or losing more), and their trading history.
Besides duplicating 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, particularly if you aim to make a living from trading.
You can operate cryptocurrencies in many different ways: from purchasing and holding to day trading (taking advantage of market volatility).
If you are just beginning in the world of investment, I suggest a middle point: when you open your Qualcomm position, place a dynamic stop loss 15-20% under the maximum price, and let the magic happen.
For example, if you buy a cryptocurrency at $ 15, it increases to $ 25 and decreases again to $17, the stop-loss will allow your operation to be closed, perhaps at $ 21 or $ 22. Therefore, you will obtain a fine profit.
Perhaps you are wondering: why not selling back 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 will be ready for more advanced trading strategies, such as short-selling or using leverage.
How does a demo account work?
In case you do not have much experience as an investor, the option to operate in “demo” mode may be useful. You only need to set a virtual account and you will be able to trade with an imaginary balance.
A virtual account can be a good way of practicing before starting to trade with real money. When you open your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of assets available on eToro, besides Qualcomm.
If your performance is not that good and you go back to zero, you can always ask eToro support to replenish $ 100k of virtual funds. The second try will probably be better.
Take into account that you should always be prudent when investing, and using a demo account might have the opposite effect. It is not the same to trade with your own money than with fake funds, which you can lose without a problem.
Evidently, 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 very useful if you want to practice short and medium-term investment.
* 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.