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How to buy
For those who live in Kenya, the best way to invest in Coca-Cola 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 our language, accepts users from Kenya, 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.
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 Coca-Cola rising while you wait for your transfer to be done.
How to make your first purchase
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Coca-Cola” 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.
Coca-Cola business model
The Coca-Cola Company is the U.S.-based transnational corporation that produces and markets the Coca-Cola beverage. Although more properly, the original Atlanta-based company produces concentrated syrup which it distributes to bottlers around the world.
In the year 1886, the pharmacist John Pemberton sought to produce in his laboratory a medicine for stomach problems. It was then that he produced and began to market a drink that combined coca leaves and kola nut at 5 cents per glass.
Soon, Pemberton's drink became a success and his accountant, Frank Robinson, came up with the name Coca-Cola and the logo. In 1891, together with another pharmacist named Asa Candler and his brother, as well as the accountant, The Coca-Cola Company was founded. And two years later, in 1893, the trademark was registered at the Industrial Property Registration Office.
In 1897 Coca-Cola exit the United States for the first time and in 1989 the first agreement was signed to bottle Coca-Cola for the entire North American territory. According to this agreement, The Coca-Cola Company would produce the concentrated syrup and the bottlers would make the beverage and would also be in charge of sales and distribution.
Coca-Cola's business model
We already know that The Coca-Cola Company produces the concentrated syrup that it distributes to bottlers around the world. What we have not mentioned is that the bottlers operate as a franchise system, but with exclusive territories.
Thus, in Latin America there is only Coca-Cola FEMSA and in Western Europe Coca-Cola European Partners. This is just to give an example, since there are other bottling companies that make sure Coca-Cola is present all over the world.
With this simple model, Coca-Cola went from being a beverage in a pharmacy to the largest and best known beverage company in the world. To the point that on average, everyone sees at least three Coca-Cola advertisements every day.
Best of all, Coca-Cola's marketing is always a marvel. Although it also makes use of popular beliefs such as its unknown formula that supposedly only two people in the company know about. Or the fact that it contains coca leaves in its formula.
About this we can say that it is impractical and almost impossible that only two people know the formula in such a big company. Besides, it is known that in 1903 coca leaves were replaced by caffeine, so no, it does not contain coca leaves.
And from all this what can be concluded is that, just as humanity will not stop growing, Coca-Cola will not stop growing either.
What instruments can you trade in eToro?
You already know about stocks, there are more financial instruments you can trade in eToro.
Are suitable for those planning to invest for the long term, particularly for beginners. If you don't need an amount of money for the next five or ten years, index funds offer you variety and lower risks.
Contrary to what it may seem, it is not easy at all to beat the market (although you have probably heard of investors who obtain huge profits).
But putting aside some exceptional cases, not everything is as good as it sounds: when someone brags about having beaten the market, they have probably done so for a short time, or will charge you so many commissions 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 mean necessarily that it will happen again.
Index funds offer these two great advantages: although in the long term, they regularly beat active managers, and the charges are so much lower.
Foreign exchange trading or Forex consists, as the name says, in the trading of currencies. In other words, is the conversion of one currency to another, and the aim is, evidently, to obtain a benefit out of this.
If you decide to trade the EUR/USD pair, for example, you buy euros and pay with dollars, with the expectation that after buying the first currency (the euro) it will raise its price compared to the second (the dollar), to make a profit by selling it. Let's say you entered when a euro is worth 1.10 USD and you close when the price has gone up to 1.15: consequently, you will gain that margin.
You may be thinking that this form of trading requires high investments, and you're right, because fluctuations are usually minimal, and often you will need to use high leverage (which sometimes can be too much of a risk). If you are new to the world of trading, we don't recommend beginning with the currency market, because it's not the safest alternative.
The most common currency pairs are available on eToro. Still, take into account that in this market sales are made through contract for differences, thus the underlying asset won't be yours.
Most investors trade with raw materials due to their stability. While other assets present higher fluctuation, raw materials prices vary less and offer safety 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, the price will also rise.
Take into account that raw materials don't pay dividends. So, the only prospective earnings would come from a future sale of the asset.
Commodities are generally classified into hard raw materials, which include precious metals, industrial metals, and oil; and soft raw materials, which are basically agricultural products, like soy, cocoa, corn, or rice.
About Contracts for Difference
If you already registered on eToro, you probably realized that the acronym CFD appears frequently. We will explain its meaning now, but you should know first that cryptocurrency trading on the platform is only CFD if you go short.
FYI, and in case you want to try at some point day trading cryptocurrency or other trading practices, later on we will also explain concepts such as leverage and “going short”.
eToro allows you to bet both “in the black” and “in red”. For instance, you believe that the Coca-Cola will fall, so probably you consider that the best thing to do is refrain from getting in until it does. However, if it actually goes down, you can earn some money out of that.
You can do by “going short”. Its operation, roughly, consists in the following:
- You ask someone to lend you, for instance, 100 units of Coca-Cola, which total price at that moment is $ 5,000 (these numbers aren't real)
- Next, you sell them at their price on the market, $ 5,000
- As you supposed, the price falls, and the unit of Coca-Cola now costs $ 30 instead of $ 50
- You purchase the 100 units again, but at $ 3,000
- Then you return the 100 units
- There: the $ 2000 difference is yours
Take into account that it sounds much more tricky than how eToro CFDs actually work: we can summarize this whole operation by saying that by trading in Coca-Cola you can also earn money if you anticipate it will go down.
Futures Vs CFD
Here are the most important differences between CFDs and Futures, in case you want to know more:
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the broker (eToro)
- Date of expiry Futures expire in a variable given date. CFDs don’t expire
- Markets available: 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, it isn’t possible; while with CFDs it is.
eToro payment methods
Among the payment methods available on eToro are: credit card, PayPal, bank transfer, Neteller, and Skrill. Making a deposit on eToro is so simple: click “Deposit funds”, choose an amount and the payment method you prefer.
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 first.
eToro allows deposits in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD from the beginning.
We said before that eToro is very friendly and intuitive. Anyone can start investing without having to read endless explanations.
You won't have any problems with the interface if you are familiar with any of the most common social networks, like Facebook or Instagram.
We will explain, roughly, the registration steps and the different tabs that you will find on eToro.
First of all, you will have to fill in all the information that eToro asks for: first and last name, address…
During the sign-up process, you will also find some questions about your previous investment activities.
But don't feel like you are taking an exam. The objective is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.
Let's see what the different sections of the platform are.
In “Set Price Alerts”, you have, as its name says, the possibility to set alerts on the price of certain securities. This is very useful 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 share their experiences and knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we discussed previously in this guide the kinds of assets that are available on eToro:
- Raw materials
- Index funds
In “People”, you can find eToro users and their performances. This is where you can copy with just one click the movements of your preferred traders.
In this section, you can search and find users according to your interests. You can apply filters like country, average profits, or financial instruments. When you select an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, in proportion. For instance, if you have $ 1000 and the trader puts 20% of their funds in an asset, the platform will also invest 20% of your money in the same company or instrument, in this case, $ 200.
You will also see the three main types of CopyPortfolios, which are classified into “Top Trader”, “Market” and “Partner”.
The advantage of using CopyPortfolios instead of copying individuals is that this way you will diversify the risk. There are all kinds of portfolios that you can recognize easily and are divided by sectors. Thus, if you think a specific industry, like gaming or healthcare, will prosper in the future, you should look for that specific portfolio.
“Social trading”, an innovative concept
eToro is a pioneer in social trading, it was the first broker to propose it. Since that moment, a multitude of copycats have appeared, but I have tried them all and eToro is still the best.
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 replicate the strategies of experienced traders, who were in turn paid for their ideas.
Perhaps it sounds complicated, but it is actually very simple. When you enter eToro you will see in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of financial assets of the same sector. For example, if you consider that a particular sector will have significant profits but you don't know which stocks to invest in, you just have to pick a portfolio that includes a variety of related companies in that industry.
You should know that in the last twelve months, CopyPortfolio has given returns of 100%. And you can benefit from it just by choosing a portfolio, enter your selected amount, place the stop-loss order and click on the “Invest” button.
A second alternative is to directly copy users: in “Copy People” you can locate eToro users who are very successful investing and whose operations you can replicate simply by clicking “Copy”.
In the profile of each user, you will be able to see their risk profile (how much risk do they take), their performance, and what type of instruments they operate: currencies, forex, raw materials, shares….
Copying strategies from others can be very interesting and useful, but it is also a good idea to take advantage of the community to read other users and learn from their experience. If you want to end up living from investment, it is a good place to gain valuable knowledge.
You can operate cryptocurrencies using several methods: from purchasing and waiting to day trading (taking advantage of price volatility).
In case you are new in the world of trading, I suggest a middle point: placing a dynamic stop-loss (15-20% under the highest price) when you open your Coca-Cola position and wait for it to work.
This means that if, for example, you purchase a cryptocurrency at $ 10, it goes up to $ 20 and then falls to $ 12, your stop loss will close your position at $ 16-17 and you will make a pretty good profit.
You may be wondering: why not selling when the price is at its highest? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and is much more realistic.
And when you have gained more experience, you will be ready for more advanced trading strategies, like going short or using leverage.
Virtual account: How does it 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 and you can start practicing with an “imaginary” balance.
This tool is great for those who want to put their talents to the test before playing for real money. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do your operations, not only with Coca-Cola, but you can also work with a diverse portfolio.
Don't worry, since if you lose all your virtual balance, you can contact support so they can add them back to your demo account and you can try again.
Nevertheless, remember that trading is mainly about being cautious, and using a practice account can have an adverse effect. It is completely different to risk your own money than to operate with a false balance that you don't mind losing. Besides, using fake money can prevent you from learning to control your emotions, as a true investor should.
Finally, if you intend to invest in the medium or long-term, with profits almost assured only by duplicating an index, it is absurd that you invest in the virtual mode and wait for years. On the other hand, you may be interested in the virtual mode if you want to experiment with short and medium-term investments.
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.