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www.etoro.com *
* Your capital is at risk.
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How to buy
For those who live in Philippines, a great way to invest in Apple 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 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 your 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.
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
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Apple” 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.
Contents
About this company
Apple is a technology company whose business model includes the design and manufacture of electronic products, software and online services. It also includes the commercialization of these products, since the company itself owns more than 400 stores worldwide.
Since its founding and the success of Apple II in 1976 until today, Apple went from being a garage company to what it is today: one of the top 5 and largest companies in the technology sector along with Google, Facebook, Microsoft and Amazon. Apple being the first company to reach a market capitalization of more than 1 trillion dollars.
Apple products and innovation
Being Apple a technology company, it has a serious commitment to innovation. That is why year after year we see how Apple creates new products or improves existing lines. Just look at the evolution of the iPhone, iPad or Mac, to which we can add the Apple Watch and Apple TV.
In addition to this and framed in its business internalization model, Apple developed its own processor called Apple M1 which will be used in all its devices, thus eliminating the dependence it had on chips manufactured by Intel.
With the Apple M1, the company has promised that all its devices will make a quantum leap, starting with Macs. Although it is certain that they will then start using their Apple M1 in all other devices.
The secret of Apple's business
In addition to what was exposed in the previous point, much of Apple's success is given by its marketing strategy. This strategy goes from the most basic: creating the need for the product; to the most important: building customer loyalty.
Apple takes the latter to the point that its customers are its best marketing and there is no need to give much explanation about this. After all, we all know an Apple user who recommends and defends to the death all Apple products.
The success of Apple products and the Apple brand is fully reflected in its stock price. This is how Apple's share price went from $ at the time of its IPO, to the prices we have today.
And given the nature of Apple as a company, it is only natural that its share price will continue to rise over time.
What is leverage
Do you know what leverage is? We'll put it simply: the good thing about trading is that it lets you invest even more than you can have in a given time. Let's say that you enter with $ 100 and you use x2 leverage, you will be actually investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for instance, you are sure that Apple price is going up, and that you have $ 1,000 for “going long”, you should know that you can increase your investment and earn higher profits.
You could consider asking for a credit, but you must know that all the process takes time, and by the moment you receive the money, Apple might be already so expensive (if your guess was right) that investing wouldn't be convenient anymore.
Leverage is like a loan, but it is only a few clicks away! eToro allows you to operate with much more money than what you have on the platform. Before trading, you will see the leverage options as in the image:
Trading with other assets allows you to use higher 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 want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 (remember that$ 1,000 are a “loan” from eToro).
- Then, turns out that Apple price does increases, as you assumed, and now the price of your investment is $ 2,400 (20% more), so you decide to sell back because you want to play it safe.
- The $ 1k of leverage will be deducted, and you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours from the beginning.
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 profits. However, if the asset decreases, you will also lose more money in the blink of an eye.
For instance: if the price falls by 10%, you won't lose $ 10, but twice (the leverage) that figure, that would be $ 20. That is why to operate with leverage it is crucial to take into account Take Profit and Stop Loss.
Take Profit is the automatic sell order that is above the entry price: you buy Apple shares at $ 100 and you ask eToro to automatically close your operation as soon as the price reaches $ 120. It is very helpful to avoid being blinded by greed: we would all take a 20% profit in the beginning, but when you reach that 20% it is easy to want higher profits and put yourself at risk of losing money. It's like you made sure now of not acting recklessly in the near future.
On the other hand, when trading with leverage you also have to use Stop Loss, because a small decrease in the price of an asset can lead to a substantial loss. Take into account that eToro will recommend a limit for Stop Loss, but it is better to set it closer to current price than the platform suggests.
Assets you can trade in this broker
We already know about stocks, there are other financial assets available.
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 inexpensive, diversified, and the risk is lower.
You may think differently, but benchmark returns are very difficult to beat and very few fund managers achieve that, apart from some famous cases.
In practice, if a fund manager achieves to beat the market, it is only for a short period or on a specific occasion. Or perhaps they would charge very high rates and indexing would be a better decision anyway (with minimal commissions).
The good thing about index funds is that they solve both issues: their rates are insignificant and in the long term they tend to beat active managers.
Commodity market
The major benefit of trading with commodities is that their price fluctuates less than that of other assets. Actually, their stability is what makes people often invest in raw materials, to take refuge from market volatility or inflation. However, the cost of commodities depends on supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Note that, unlike stocks, commodities don't pay dividends. Therefore, the only potential further income would come from a future sale of the asset.
Commodities can be classified into two main categories: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (like aluminum, iron, or zinc), and oil; and the latter are agricultural products, like wheat, soybeans, vegetables, or even dairy, among many others.
eToro payment methods
Among the payment methods that eToro accepts you will find: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. Making a deposit with eToro is so simple: click “Deposit funds”, set an amount and pick the payment method you prefer.
Remember that for security policies, you need to be the holder of the credit card or the account.
You can start with a $ 200 deposit, and there is a limited maximum for unverified accounts. Thus, if you aim to trade with large amounts, you should contact Support to verify your account.
You can pay in any currency and eToro will do the conversion to USD. But it is better to transfer directly in USD since the platform charges a fee.
How does a demo account work?
In case you are beginning as an investor, you can start by practicing with a “demo” option. You only need to set the “virtual” option and you will be able to trade with “imaginary” funds.
This option is great for those who want to put their talents to the test before playing for real funds. With your virtual portfolio, you will begin with a $ 100,000 balance (which of course, is fake) to do your operations, not only with Apple, but you can also create a diverse portfolio with all the different instrument that are available on eToro.
If your trials don't go well and you lose your funds, you can always ask the platform to replenish $ 100k of virtual balance. The second time will probably be better.
Nevertheless, keep in mind that you need to be prudent for trading, and using a practice account can have an adverse effect. It is not the same to risk your real savings than to operate with a false balance that you don't mind losing.
As you may suppose, if you are interested in trading in the long or medium-term, there is no point in using the virtual mode and having to wait for years. But it can be very useful if you want to practice short and medium-term trading.
How does eToro work?
We mentioned previously 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 are familiar with any of the most common social networks, like Instagram or Pinterest.
We will talk about how to register and the different sections of eToro.
You will have to fill in some information requested when registering.
Also, you will see that they ask you some questions about your experience as an investor.
But you don't need to worry: it's not about passing an exam. They are only measures to know how much knowledge you have and what type of financial instruments they can recommend. For instance, if it is your first experience in the investment world, they will not suggest that you invest in futures.
Let's get to know the fundamental sections of the interface.
In the “Set Price Alerts” tab you can put alerts on the price of certain securities. You just have to click on the three points at the end of the line and you will be able to program a price alert. It is a very useful tool for when you want to buy a security which price is decreasing, but it seems to you 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.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we mentioned before, the different financial assets available on are:
- Cryptocurrencies
- ETFs
- stocks
- Raw materials
- Forex
- Index funds
In “People” are all the profiles and historical performances of other users, and you can replicate their movements with just one click. This is where the “social trading” concept is best applied.
In this section, you can search and find users according to your interests. You can search by risk level, trading market, or average profits, among other filters. When you choose an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, proportionally. 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 asset, in this case, $ 200.
Finally, you will also find the CopyPortfolios divided into three main categories: “Top Trader”, “Market” and “Partner”.
Sometimes you might prefer copying to CopyPortfolios than to other investors, because 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 find easily and are classified by sectors. Therefore, if you suspect a specific sector, like e-commerce or drones, has a good chance of prospering, you should look for that specific portfolio.
“Social trading”, an innovative concept
The first platform that thought of trading as a social activity was eToro, and the idea became popular really quick. Other brokers have also adopted this concept, but eToro is still the leader.
But they didn't limit themselves to transferring the logic of the social network to the trading world. They could have made the umpteenth social network in which users talk about investing, but they were not satisfied with that: the great innovation of eToro was allowing investors to replicate the investments of other users, who in turn were rewarded for their contributions.
It is not complicated at all. When you access eToro you will find in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
CopyPortfolios
“CopyPortfolios” contain a collection of financial assets of a certain sector. For example, if you consider that a particular sector will succeed in the near future but you don't know which stocks to invest in, you just have to choose a portfolio that groups together a variety of related companies in that industry.
CopyPortfolio has generated a 100% profit in the last year, and the only thing you have to do to benefit from it is to click on “Invest”, enter the amount, place the stop-loss and wait.
Copy People
But you can also copy other users of the platform who are successful investors. It is really simple: you can find them with “Copy People” and just duplicate their strategies.
In the profile of each user, you will be able to see their risk profile (how much risk do they take when trading), their performance, and the type of assets they trade..
Besides duplicating other user's moves, which is great and very helpful, we also recommend that you make the most out of the community by reading other user's comments. You can learn a lot from their experiences and knowledge, mainly if your goal is to make a living from trading.
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.