|Recommended Broker 🇳🇿||
|🌐 Official website:||www.etoro.com *|
How to buy
For those who live in New Zealand, a great way to invest in Google 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 New Zealand, 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: you should have received an email from eToro, click on the link 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 “Google” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Google business explained
Google is the most used search engine and the most visited website worldwide, performing an average of three billion searches per day. But it is also one of the largest software and electronic services companies in existence for a long time.
Like other Internet companies, Google was born as a university project in 1996 by students Larry Page and Sergey Brin. Two years later, in 1998, the two founded the company Google Inc. and the search engine was launched on September 27.
At that time, it was just a search engine with an infrastructure of 80 servers in a closet. However, its initial success was so great that by the year 2000 it had already displaced the most popular search engine at the time, AltaVista.
Since then, Google has only grown to become the technological giant we know today. From just a search engine and generating revenue from internet advertising, Google evolved to offer a wide variety of services among which we can mention:
- Google Chrome
- Android OS
And we mention these because they are the ones that generate the most revenue for Google, revenue that comes from the advertising model that we all know. But there are also lesser-known projects that also generate revenue to the company, such as Google Drive, Workspace or Cloud.
Future projects of Google
Being a technology company, Google remains in a process of continuous research and development that sustains its success in the market. This is how Google has a laboratory known as Google X in which it works on new technologies.
In this laboratory, Google develops technology that may seem futuristic, such as the Smarty Pants, which are robotic pants controlled by artificial intelligence that will help people with reduced mobility.
Following the futuristic line, we can also mention the Wolverine project. In this case it is a device that would improve the hearing of any person. You will probably think that there is nothing futuristic about this, but the magic lies in the device's ability to focus on a particular speaker in a crowded environment.
These are projects that are ongoing, but to mention something more rational and company-related, there is the Taara project. This project seeks to bring the Internet to everyone using beams of light instead of wires. And according to the company itself, this technology is the only one that has the potential to surpass Google Fiber.
This is the way Google has kept growing over and over and that has allowed it to remain in the group of the big five of technology, along with Facebook, Amazon, Microsoft and Apple.
Why do we recommend it?
- It is possible to invest in thousands of different products
- You can trade leveraged
- User-friendly and straightforward
- It takes techniques and moves from successful traders so you can emulate them
- You can go short
Main site: www.etoro.com
You should consider eToro if you are interested in investing in Google from New Zealand.
eToro is known for making “social trading” fashionable. Social trading is an ingenious form of investing in which traders can repeat the strategies of other investors who have been making earnings for years.
eToro is very helpful if you don't have much experience in trading. You can rest assured that you are making a smart investment since the site emulates those from subjects with a great deal of expertise. And for those skilled investors willing to share their techniques with others, eToro rewards your knowledge with money.
Besides, the interface of the platform is so uncomplicated, great for users who want to begin in the stocks world, without getting crazy with tons of diagrams and numbers.
How do Contracts for Difference work?
It is possible that you have found the term CFD repeatedly if you entered eToro before. Before we come back to it, you must know that CFDs on eToro are only possible when you are short-selling or leverage higher than x2 (but the platform does not even allow this).
If you are thinking about day trading cryptocurrency or other trading practices, you will also find information about terms such as going short and leverage.
The advantage of eToro is that it lets you bet both “in the black” and “in red”. Let's say that you have the conviction that the Google will fall, so perhaps it is obvious to think “if it is going to depreciate (go down in price), I simply refrain from getting in and I'll go in when it has gone down”. However, if it really goes down, it is possible to earn some money out of that.
The practice known as “going short” will allow you to do that. It works, roughly, this way:
- You ask for a loan of, let's say, 100 units of Google, which total price at that moment is $ 5,000 (obviously, these numbers aren't real)
- You make $ 5,000 by selling the 100 units
- The price is reduced, as you guessed, and the unit of Google goes from $ 50 to $ 30
- You purchase the 100 units again, but at $ 3,000
- You give back the 100 units to the loaner
- The difference is yours, so, you will have earned $ 2000
It all seems more complex than it really is. Just bear in mind that by trading in Google on eToro, with CFDs you can earn money if you anticipate downs in the price.
Differences between futures and CFDs
How are CFDs and Futures different?
- Futures: operations are made with someone else, another investor.
- CFDs: the counterparty is the brokerage, in this case, eToro. That means you don't “play” against or with another trader but the bank.
- Expiry date:
- Futures: they expire on a given date. At that moment, the contract is closed even if you are in losses.
- CFDs: they don't expire. As a result, you can wait for your position to rise before exiting.
- Options for trading:
- Futures: very little variety
- CFDs: a lot of variety, there is a huge diversity and types of CFDs
- Minimum deposit:
- Futures: minimum investment is higher
- CFDs: you can start with a lower trade size
- Trading costs and charges:
- Futures: as you have to pay more in the first place, costs are lower
- CFDs: higher (although not too much)
- Possibility of leverage:
- Futures: there is no leverage leverage
- CFDs: totally available
Have you heard the term “leverage”? We'll put it simply: the good thing about trading is that it lets you invest more money than you can have in a given time. That is, if you have $ 100 and you put them with x2 leverage, you will be really investing $ 200.
Why using leverage and how to do it
Assuming that, for instance, you are sure that Google price is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.
There's the possibility of asking for a credit at your bank, but you must know that all the process takes time, and when you receive the money, Google might be already so expensive that trading wouldn't be convenient anymore.
Leverage is like a loan, but it is only a few clicks away! You will be able to operate with much higher amounts than what you actually have on the platform's wallet. Before trading, you will see the leverage options as in the screenshot below:
Trading with other assets allows you to use even more leverage. Why? Because 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 have the $ 1,000 and use leverage x2, you will be investing $ 2,000, as we mentioned. eToro would be “loaning” you the extra $ 1,000.
A few days pass and, indeed, you were right: Google 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.
You will have to give back the $ 1,000 of leverage and the net profit would be $ 400 (since the other $ 1,000 was your initial investment).
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is pretty decent.
But watch out: if everything goes ok and the asset increases, you will make money. Nevertheless, if the price goes down, you will also lose more money really fast.
For example: if the price falls by 10%, you won't lose $ 10, but twice (the leverage) that figure, that would be $ 20. That is why the concepts of Take Profit and Stop Loss are fundamental when using leverage.
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 Google 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 going up, which could be a mistake since the price could go down again.
Stop Loss is even more important, mostly when operating with leverage, since a small loss could 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.
Financial assets you can operate with in eToro
Besides criptocurrenciesstocks, there are more financial instruments you can trade with in this broker.
In case you are interested in long-term investments, and you won't need to withdraw your money in five or ten years, index funds can be the best alternative. This kind of investment is also suitable for beginners since it is 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.
If someone brags about having beaten the index, they probably have done it for a chor period or on particular occasions, or perhaps the commissions are so high that indexing would be a better decision.
With index funds, you won't be concerned about that: although in the long term, they frequently beat active managers, and the commissions are minimal.
What is an ETF?
Have you heard about Exchange-traded funds? They are passively managed funds, known for merging the benefits of stocks and mutual funds, because they can be exchanged regularly at market price, but include a much wider diversity of assets and the fees are significantly lower.
Commodities (raw materials)
Most people invest in raw materials because of their stability. While other assets present higher fluctuation, raw materials prices vary less and offer safety against inflation or market volatility. Nevertheless, prices are subject to supply and demand, so if the fear of possible inflation produces higher demand for a certain good, its cost will also go up.
Consider that, unlike shares, commodities don't pay dividends. Therefore, the only prospective income would come from a sale of the asset.
Commodities are usually classified into hard raw materials, which include precious metals as gold, silver, or copper, as well as industrial metals, and oil; and soft raw materials, which are basically agricultural goods, like soy, cocoa, corn, or rice.
What is known as Forex trading consists in the exchange of currencies. In other words, is the conversion between currencies, and the aim is, evidently, to obtain a benefit out of this.
If you decide to exchange EUR and USD, you purchase euros and pay with dollars, hoping that the first currency (the euro) will revalue compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you exit when the price has gone up to 1.15: consequently, you will gain that margin.
Perhaps you already inferred this, but operating with foreign exchange usually implies large resources, since variations are normally low, or using much leverage, which implies an extra risk. Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and simpler market.
eToro allows exchanging the most common currency pairs. However, keep in mind that in Forex trading sales are always made through contract for differences, which means you won't own the real asset.
You can trade cryptocurrencies using several methods: for instance, you can buy and hold, or you can day trade using price volatility to your advantage.
In case you don't have much experience trading, our recommendation is a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work.
This means that if, for instance, you purchase a cryptocurrency at $ 10, it rises to $ 20, and after that it decreases to $ 12, your position will be closed at $ 16-17 and you will have earned a considerable profit.
I know it might sound more appealing to sell when the price is at its peak, but unless you're clairvoyant, that's impossible. The above method is much more realistic and it can give great results.
Later on, you will be able to apply more complex techniques, such as using leverage or going short.
Practice account: How does it work?
In case you are taking your first steps as an investor, the possibility to operate in “demo” mode may be helpful. Setting a virtual account and trading with fictional funds is very easy.
A virtual portfolio can help you to practice and gain experience before starting to operate 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 financial instruments available on eToro, besides Google.
If your performance is not that good and your balance ends at zero, there is always a possibility to replenish your virtual balance. The second time will probably be better.
Nevertheless, keep in mind that trading is mostly about being cautious, and using a demo account can have an adverse effect. It is not the same to risk your real savings than to do operations with a fake 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.
Evidently, the virtual mode is kind of absurd if you want to trade in the medium or long-term, since you would be wasting years to see the results. Demo accounts may be useful for trying out before investing in the short or medium-term.
As we have referred among the positive aspects of eToro, the best thing about this platform is its simplicity: anyone can use it without having to read endless guides.
You won't have any issues with the interface if you have used any of the most common social networks.
We will talk about how to register and the different tabs you will find on the page.
When you register, you will have to fill in your personal data, like first name, last name, address….
Before you end up with 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 be clear about which financial instruments they should suggest according to your knowledge and experience.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's see what the different sections of the page are.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. This is perfect if you want to buy a security that is falling but you believe it will decrease more to a certain point.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the six types of instruments on eToro are:
- Raw materials
- Index funds
In the section “People”, you can find eToro users and their performances. This is where the term “social trading” makes sense since you can duplicate with just one click the strategies of the investors that you prefer.
You can search for those investors that best suit your interests: by average earnings, types of assets or risk level, for instance. You just have to type 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 invest $ 100 of your money in that asset.
Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.
In some cases, you might prefer copying to CopyPortfolios than to individuals, because the former offer more diversity. 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 have success in the future? Then look, because surely there is a CopyPortfolio about it.
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.