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How to buy
If you live in Philippines, a great way to invest in 3M 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 our language, accepts users from Philippines, 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 3M 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 “3M” 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.
What does 3M do?
Minnesota Mining and Manufacturing Company, better known as 3M, is one of the most diversified companies in terms of products. To the point that, according to their own website, they have more than 100,000 product patents that they can provide to customers.
It was founded in Minnesota in 1902 as a small mining company, as can be inferred from its name. However, since the company did not achieve the expected success, they decided to move from mining to producing the abrasives that the industry needed.
And from then on, the company followed a path in which, as they define it, they never stopped inventing products and innovating. So, following this path, they went from inventing the first tough sandpaper in 1920 to iconic products such as the Scotch-Brite sponge.
Their product portfolio is truly immense and they are all dedicated to niche markets, devising a solution for every problem. However, these can be categorized into abrasives, adhesive tapes, safety equipment, household products, window films and oddly enough, healthcare equipment.
3M as an investment
About this company we can find information on the official website registered since 1920, which tells us that this company has a long history on the New York Stock Exchange. Which in turn reflects the growth and expansion of 3M as a company.
As it grew from a small company in a small town in Minnesota to a presence in 100 countries and more than 88,000 employees worldwide, its stock market share went from a rock bottom price to the value it is at today.
3M's historical performance is something that any company would like to have and, of course, any investor would like to achieve. The best part is that 3M stock not only has a great performance year after year, but it also pays dividends quarterly to its investors.
Dividends are the portion of a company's earnings that are distributed to shareholders, so a company that pays dividends is a company that generates profits. And 3M's dividends are particularly high, even more so when you consider its share price.
For the past several years, 3M has been paying annual dividends to its shareholders in the range of $5 to $6 per share. This makes it one of investors' favorite dividend stocks.
Reason for using this broker , for these reasons:
- User-friendly and simple
- Allows to replicate trading moves
- Allows you to go short
- You can trade leveraged
- There are uncountable possibilities for investments
Official main site: www.etoro.com *
You should certainly consider eToro if you are thinking about trading 3M shares from Philippines.
eToro is famous for making “social trading” a trend, a revolutionary form of investing in which users can replicate the techniques of other traders who have been making earnings for a long time.
eToro has solutions for you, even if you are still a beginner in trading, because it automatizes your investment by repeating strategies from traders with a very long profit history. On the other hand, if you are an expert in the field and decide to share your methods with others, eToro rewards you with money.
It is also worth mentioning how easy is the interface of the platform, perfect for beginners who are taking their first steps in the investment world.
What are CFDs?
You probably have found the term CFD more than once if you already accessed eToro. Before we come back to this, you must know that cryptocurrency operations on eToro are only CFDs if you go short or use leverage above x2 (and this is not even available on eToro).
We will also refer to concepts such as leverage and “going short”, in case you are thinking about day trading cryptocurrency or other more advanced practices.
Even if you don't have a positive balance, you can still operate on eToro with CFDs. Let's say that you are sure that the 3M will fall, so probably you consider that it is better to refrain from getting in until it does. But if it really falls, it might mean extra money for you.
You can do this through what is known known as “going short”. Its operation, roughly, consists in the following:
- You obtain from a loan 100 units of 3M, with a total value of $ 5,000 (these are completely imaginary figures)
- Next, you get $ 5,000 by offering them at their price at that moment
- As you supposed, the price falls, and the unit of 3M now costs $ 30 instead of $ 50
- Again, you purchase the 100 units, but at the current value, $ 3,000
- You pay back the 100 units to the loaner
- The difference is yours, so, you will have made $ 2000
Take into account that it seems much more complicated than it really is: we can summarize this whole operation by saying that by trading in 3M you can also earn money if you predict it will go down.
How are CFDs and futures different?
How are Futures and CFDs different?
- Futures: the exchange is made with another investor.
- CFDs: the counterparty is the brokerage platform (eToro). That means you don't “play” against or with another trader but the bank.
- Expiration date:
- Futures: they expire. Once the contract expires, it is closed even if you have losses.
- CFDs: on the contrary, there is no expiration date. Thus, you can wait until you get in a good position before closing.
- Options for trading:
- Futures: options are much more restricted
- CFDs: there is an enormous amount of possibilities
- Minimum deposit amount or “trade size”:
- Futures: very high minimum investment
- CFDs: you can get in with a small initial amount
- Cost of trading and charges:
- Futures: as you need to pay more in the first place, fees are lower
- CFDs: higher (although not excessively)
- Futures: it isn't possible to leverage
- CFDs: totally available
In case you are not familiar with the term “leverage”, we'll describe it briefly: it is the possibility to invest a higher amount than you actually have. For example, you can enter with $ 100, but if you leverage x2, your initial investment will be $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for example, you are certain that 3M price is going up, and that you have $ 1,000 for “going long”, you must know that you can increase your investment and make more money.
There's the possibility of asking for a loan at your bank, but it is a process that takes time, and by the moment you receive the money, 3M might be already at a much higher price, so you wouldn't be able to invest the way you planned.
Thanks to leverage, you can obtain that amount just by moving a finger. It's exactly like a loan, but much easier and quicker, and with the advantage that you will be getting it directly from eToro. Before trading, you will be able to choose between the different leverage options as in the screenshot below:
Trading with other assets allows you to use even more leverage. This is because leverage is most used for short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's explain how leverage works in the practice.
You begin with $ 1,000 and pick leverage x2, which means you would have $ 2,000 to invest, since eToro would put the other $ 1,000.
A week later 3M valuation rises up by 20% and now your investment costs 2,400. But you don't want to be too reckless, so you decide, wisely, to sell back.
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).
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
The thing is, you can also lose. If everything goes as planned, you will earn more money in less time; however, if the value of the asset decreases, you will also lose more in less time.
Let's say that the price didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but double, $ 40. Because of that, the terms “Take Profit” and “Stop Loss” are crucial 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 purchased 3M shares at $ 100, you request eToro to close 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 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). Always remember to set a Stop Loss lower than that suggested by eToro.
Assets available in eToro
Besides criptocurrenciesstocks, there are other financial instruments you can trade with in eToro.
Exchange-Traded Funds or ETFs are a type of passively managed fund, similar to index funds. We can say that ETFs are somewhere between stocks and funds: they can be traded like regular stocks, but include a wide diversity of assets and the rates are much lower than those of an actively managed fund.
In case you want to invest in the long term, and you won't need to withdraw your money in at least five years, index funds can be the best choice. This kind of investment is also great for beginners since the risks are much lower.
You may think differently, but beating the benchmark is far from being a piece of cake and very few fund managers have done it, apart from some specific cases.
If someone brags about having beaten the benchmark, they probably have done it for a chor period or on a specific occasion, or sometimes the rates are so high that indexing would be a better decision anyway.
With index funds, you don't have to worry about that: they usually beat active managers in the long term, and the commissions are lower than you imagine.
What is known as Forex trading consists in the exchange of currencies. It's the conversion of one currency to another to make a profit through the operation.
If you decide to exchange euros and dollars, for instance, you purchase euros and pay with dollars, with the expectation that the euro will increase compared to the dollar. Then, if you bought each euro for 1.15 USD and you sell them back when their price is 1.20 USD, you'll be keeping that margin.
You may be thinking that this form of trading requires investing considerable amounts, 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. If you are just starting in trading, we don't recommend beginning with this market, because it's not the safest option.
eToro allows exchanging the most usual currency pairs but remember that in this market sales are always made through contract for differences, thus you will not be the owner of the real asset.
The major benefit of investing in commodities is that their price fluctuates less than that of other financial assets. Actually, their intrinsic stability is what makes people often invest in raw materials, to take refuge from possible inflation or market volatility. Still, the prices of commodities are defined by their demand. Therefore, if a given economic situation provokes higher demand, the prices will also be higher.
Take into account that, unlike shares, raw materials don't pay dividends. Thus, the only potential further income would come from a future sale of the asset.
There are two main kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (like iron, nickel, or aluminum), and oil; and the latter are agricultural goods as sugar, coffee, corn, soy, among many others.
How to deposit funds into your eToro account
Among the payment options that you will find on eToro are: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Depositing money with eToro is so simple: go to “Deposit funds”, type a number and select a payment method from the previous ones.
Remember that for security policies, you must be the owner of the account or the credit card.
The minimum amount allowed is $ 200, and there is a maximum limit for unverified accounts. Thus, if you aim to operate with large amounts, you should contact Support to verify your account first.
eToro accepts deposits or transfers in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if it is in your hands, depositing in USD from the beginning.
When trading cryptocurrencies, there are different possible methods or strategies, like day trading or buying and holding, for naming just a few.
If you don't have much experience trading, our suggestion is a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work on its own.
For example, if you buy a cryptocurrency at $ 15, then it increases to $ 25 and decreases again to $17, the stop-loss will close your position at $ 21 or $ 22. Hence, you will get a pretty good income.
I know it might sound more appealing to sell when the cost is at its peak, right before corrections, but unless you're psychic, that's impossible. The above method is much more down-to-earth and, well applied, it can work very well.
Sooner or later, you will be prepared for using more advanced trading strategies, like using leverage or going short to make money from bear markets.
How does eToro work?
We mentioned before that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.
You won't have any issues with the interface if you have used any other social network, like Twitter or Facebook.
Now we will walk you through the sign-up process and the different sections of the page that you should familiarize yourself with.
You will have to fill in some information requested when registering.
To complete your profile, you will see that they ask you some questions about your experience as an investor.
However, it's not like they're testing you or anything. They only intend 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 suggest that you invest in futures.
Let's get to know the different sections of the interface.
With the “Set Price Alerts” tool, you'll be able to program an alarm when a security is at a certain price. This is perfect if you want to buy an asset that is falling but you believe 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”. As we discussed previously, the financial instruments available on are:
- Exchange-Traded Funds
- Raw materials
- Index funds
In the section “People” are all the profiles and historical performances of other investors, and you can replicate their movements with just one click. This is where the “social trading” concept is best applied.
In this section, you will be able to find those users that you find more interesting. When you select an investor and indicate the amount you want to invest, eToro will automatically replicate their movements, in proportion. If you invest $ 1000 and the trader puts 20% of their funds in an asset, eToro will put $ 200 of your balance in the same asset as well.
You will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
Sometimes it might be better to copy from CopyPortfolios than to individuals, since you avoid putting all your eggs in one basket, or in other words, risk is more diversified. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Therefore, if you think a specific industry, such as biotechnology or pharmacy, has a good chance of prospering, you should probably look for that specific portfolio.
* 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.