|Recommended Broker 🇳🇿||
|🌐 Official website:||www.etoro.com *|
How to buy
If you live in New Zealand, the best way to invest in NIO shares is, definitely, 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 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 inbox: you should have received an email from eToro, click on “Verify my email” 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 NIO rising while you wait for your transfer to be done.
How to make your first purchase
When 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.
About this 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 for investing in NIO in New Zealand?
- It uses other people successful investment strategies so you can replicate them
- Accepts short-trading
- User-friendly and straightforward
- eToro offers leverage
- It is possible to invest in tons of other goods
Go to the official page: www.etoro.com *
In case you are considering it, eToro is probably the best way to buy NIO shares from New Zealand.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become trendy because of eToro.
If you are a beginner or haven't gained much investment experience, eToro is great for you. You can rest assured that you will be making a smart investment since the site replicates those from subjects with a great deal of expertise. Oppositely, if you are an investor willing to share your methods with other traders, eToro rewards you with money.
Another thing to mention is how manageable the interface is, which turns out perfect for new users that are just learning all about the trading world.
Is eToro trustworthy for purchasing NIO?
eToro is very careful with the information about past performances from users, and its reliability has been tested once and again by independent organizations.
The main headquarters of eToro is in Cyprus, and therefore it is approved by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients, including those from New Zealand. Furthermore, eToro follows all the strict policies of the European Union.
It is also supported by the European Financial Instruments Market or MiFID, and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, eToro has more than 20 million users all over the world, and it has been operating for the last fifteen years. To sum up, we can be confident that our finances are safe.
Their customer service functions perfectly. You can use the ticketing system, an online chat, and they also have a phone number available for assistance.
Payment methods on eToro
When it comes to payment on eToro, there isn't really much to say, since it is really straightforward. You only need to select “Deposit funds”, set an amount, and choose your payment method. You can pay with PayPal (available for some countries), bank transfer, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Skrill, or Neteller.
Consider that for security reasons, you need to be the holder of the account or the credit card.
The lowest amount you can deposit is $ 200, and there is a maximum allowed if you are not verified. Therefore, if you want to trade with higher amounts, you should verify your account previously.
Also, know that you can make the transfer in any currency because eToro defaults all deposits to USD, although it charges a fee, so it is better to make the transfer directly in USD.
How do Contracts for Difference function?
You probably have seen the term CFD all the time if you entered eToro before. We will come back to it, but first, you should know that CFDs on eToro are only possible when you go short.
For the record, and if you are considering day trading cryptocurrency and other more advanced practices, we will also cover terms like leverage and “going short”.
eToro allows you not only to bet if you are “in the black”, but through CFDs you can also bet “in red”. Let's say that you believe that the NIO will fall, so perhaps you think that the best thing to do is refrain from getting in until it actually falls. However, if it really falls, it might mean extra money for you.
The operation known as “going short” will allow you to do that. It works, pretty much, as it follows:
- Someone lends you, let's say, 100 units of NIO, which cost $ 5,000 (these are completely made up numbers)
- You make $ 5,000 by selling the 100 units
- The NIO devaluates from $ 50 to $ 30
- You purchase the 100 units again, but at their current price, $ 3,000
- Then you return the 100 units to whoever made the loan
- The rest is yours, so, you will have earned $ 2000
It all sounds more tricky than it really is. Just keep in mind that by trading in NIO on eToro, with CFDs you can make a profit when you anticipate downs.
How does leverage work
Do you know what leverage is? Just in case, we'll put it simply: trading allows you to invest more money than what you really have. Let's say that you enter with $ 100 and you choose to leverage x2, the amount of your investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for instance, you are certain that NIO 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.
Possibly, you could ask a financial company for a loan, put an asset as a guarantee, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then purchase NIO… But maybe once you have made all that, your prediction could've been confirmed already and NIO price is so high that it is not worth investing.
Using leverage, you can get that amount with two clicks. It's exactly like a loan, but much better: you will get it from eToro, which allows you to invest a lot more than you have on the platform. Before trading, you will see the leverage options as in the screenshot below:
Trading with other assets allows you to use higher leverage. Why? Because cryptocurrencies are usually medium-long term investments, and leverage is used primarily for day trading or short-term operations. Let's talk a bit more about how leverage works.
If for your investment of $ 1,000, you choose leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro gives you the remaining amount to reach that figure.
A week later turns out that NIO valuation goes up by 20% and now your investment costs 2,400. So, a wise decision is to sell them back now.
You will have to pay back the $ 1,000 of leverage and the net profit would be $ 400 (since the other $ 1,000 was your initial investment).
With $ 1000 you get $ 400 more, no less than a profit of 40%. Not bad, right?
But watch out: if all goes as you intended and the asset increases, you will make profits. Nevertheless, if the price goes down, you will also lose more money in the blink of an eye.
For instance: if instead of increasing by 20%, the price falls by 10%, you do not lose $ 10, but $ 20, because of the leverage. That is why the concepts of Take Profit and Stop Loss are so important when trading with 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 bought NIO shares at $ 100, you request eToro to close your operation when it reaches $ 120. That way, you make sure you won't change your mind and decide to wait a bit longer in case it keeps rising, which could make you lose it all.
Also, if you use leverage you absolutely need to place a Stop Loss order (take into account that any small loss is greater with leverage). Consider that eToro will recommend a limit for Stop Loss, but you should set it closer to current price than that.
What are the instruments you can trade in eToro?
You already know about stocks, there are way more financial instruments you can trade in this broker.
About Index Funds
This is the best option for people who can invest in the long term, mostly for beginners, because it is less expensive, diversified, and safer.
Unlike a lot of people think, benchmark returns are very difficult to beat and very few fund managers achieve that, apart from some specific cases.
If someone brags about having beaten the index, they probably did it for a short time or on particular occasions, or sometimes the rates are so high that indexing would be a better decision (with minimal commissions).
Index funds provide solutions to both concerns: their commissions are insignificant and they regularly beat active managers, but in the long term.
Have you heard about Exchange-traded funds or ETFs? They are passively managed funds, known for combining the benefits of stocks and mutual funds: they can be traded at any moment in the market, but include a much wider diversity of assets and the rates are significantly lower.
Most people invest in raw materials due to their stability. While other assets tend to fluctuate more, raw materials prices vary less and offer safety against inflation or market volatility. However, prices do depend on supply and demand in the market, so if an economic situation produces higher demand for a certain good, its cost will also rise.
Note that, unlike stocks, commodities don't pay dividends. So, the only potential further income would come from a future sale of the asset.
There are two basic types of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; while the latter are agricultural products as sugar, coffee, corn, soy.
Foreign exchange market
Forex or currency trading allows obtaining profits by converting one currency for another.
In case you decide to exchange EUR and USD, you buy euros at their price in dollars, hoping that after obtaining the first currency (the euro) it will increase compared to the second (the dollar), to make a profit by selling it. Suppose you entered when a euro is worth 1.10 USD and you leave when it is worth 1.15: that margin is yours once you make the operation.
You may be thinking by now that this form of trading requires high investments, and that is correct, because fluctuation in prices is never that dramatic, and if you use a lot of leverage to counter that, you will take a considerable risk. Our advice for those starting in the world of trading is to choose another market to begin with, since Forex is risky and complex.
Most currencies are available on eToro but consider that in this market sales are always made through CFDs, thus you will not be the owner of the underlying asset.
How does eToro work?
As we have mentioned previously, one of the best things about eToro is its extraordinary simplicity: anyone can trade without having to read endless explanatory texts.
You won't have any issues with the interface if you have used any other social network, like Twitter or Facebook.
We will explain, roughly, the registration steps and the different sections that you will see on the platform.
When you open your account, you will have to fill in your personal data.
Also, you will have to answer some questions about your experience at investing.
But don't worry: it is not an exam. They are only measures to know how much knowledge you have and what type of financial instruments they can suggest. For example, if you have never invested before, they will not recommend that you invest in futures.
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 site are.
“Set Price Alerts” allows you to put alarms on the price of certain securities. You only need to click on the three points at the end of the line and you will be able to program a price alarm. It is a very useful tool for when you want to purchase a security which price is decreasing, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we already discussed the kinds of assets that are available on eToro:
- Exchange-Traded Funds
- Index funds
In “People”, you can find the public profiles of eToro users and their past performance. This is where you can duplicate the movements of the users that you find most inspiring.
You can search for those investors that best suit your interests: by average profits, types of assets or risk level, for instance. Just indicate the amount you want to invest and eToro will be in charge of replicating the movements made by the selected investor, in proportion. “In proportion” means that if you have $ 1000 and the investor puts 10% in an asset, eToro will invest also 10% of your money (that is, $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into three categories, Top Trader, Market, and Partner.
Remember that in some cases, it might be preferable to copy from CopyPortfolios than to particular investors, since the former offer more diversity. Besides, the different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector will prosper in the future? Then you will surely find a CopyPortfolio about it.
How does a virtual portfolio 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 money is very easy.
A virtual account can help you to practice and gain experience before starting to trade with real money. When you create your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of assets available on eToro (not just with NIO).
Don't worry, since if you lose all your virtual funds, you can contact support so they can add back the $ 100,000 to your demo account and you can try again.
Keep in mind that investing is mainly about being cold-minded, and using a virtual 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.
And of course, the demo mode is kind of absurd if you want to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years to see the outcome. Demo accounts may be helpful for practicing before trading in the short or medium-term.
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.