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How to buy
For those who live in Philippines, 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 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 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 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.
*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.
Is Google a buy?
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.
What are Contracts for Difference?
It is possible that you have found the term CFD more than once if you already accessed eToro. We will explain exactly what this means, but you should know first that CFDs on eToro are only possible if you short sell or choose leverage above x2 (and the platform does not even allow this).
We will also explain concepts such as going short and leverage, in case you are thinking about day trading cryptocurrency or other more advanced practices.
Even if you aren't “in the black”, you can still operate on eToro with CFDs. For instance, you have the certitude that the Google will fall, so perhaps you consider that the best thing to do is refrain from getting in until it does. Nevertheless, if it actually falls, you can earn some money out of that.
You can do that by “going short”. More or less, it functions like this:
- They lend you, let's say, 100 units of Google, which cost $ 5,000 (these numbers are completely made up)
- You sell them at their market price, $ 5,000
- The Google devaluates from $ 50 to $ 30
- You purchase all 100 units again, but at the current value, $ 3,000
- You pay back the 100 units
- You will have made $ 2000, since you keep the difference
It all sounds more tricky than it really is. Just keep in mind that by trading in Google on eToro, with CFDs you can make money when you anticipate downs.
Differences between futures and CFDs
In case you are interested, here are the most important differences between Futures and CFDs:
- Futures: operations are made with someone else, another trader.
- CFDs: the counterparty is the brokerage, in this case, eToro. In other words: you do not “play” with someone else but with the bank.
- Date of expiration:
- Futures: they expire. Once the contract expires, it is closed even if you have losses.
- CFDs: there is no expiration date. It is possible to wait until you rise up and then exit.
- Trading options:
- Futures: there are fewer options
- CFDs: they include lots of different assets, commodities and currencies
- Minimum investment:
- Futures: you need to enter with a larger amount
- CFDs: you can start with a small initial deposit
- Trading costs:
- Futures: as you have to invest more, rates are lower
- CFDs: higher (although they are not excessively high either)
- Futures: you can't leverage
- CFDs: fully available
How to use leverage in trading
Do you know what leverage is? We'll put it simply: another advantage of trading is that it 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.
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 must know that you have the option of investing more and making more money.
You could consider requesting a credit at your bank, but you must know that all the process takes time, and by the moment you receive the money, Google might be already so expensive (if your guess was right) that trading wouldn't be convenient anymore.
Leverage is like a loan, and you will only have to click a few times to get it! You will be able to operate with much more than what you have on the platform. As in the image below, you will see the different options you have:
Trading with other assets allows you to use higher leverage. This is 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.
You begin with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest, since eToro would put the other $ 1,000.
A week later turns out that Google valuation rises up by 20% and now your investment costs 2,400. So, a wise decision is to sell them back now.
Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you invested yourself, so the net profit is $ 400.
In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is quite good.
But there's always a drawback. If all goes as you intended and the asset increases, you will make profits. On the other hand, if the asset decreases, you will also lose more money in the blink of an eye.
For example: if instead of increasing by 20%, 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 so important when using leverage.
Take Profit is the automatic order to sell once the asset is above the entry price: you purchase Google shares at $ 100 and you ask eToro to close your operation as soon as the price reaches $ 120. It is very useful 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 risk losing it all. It's like you got assured in advance of not doing anything dumb in the future.
On the other hand, when operating 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. Always remember to set a Stop Loss lower than that suggested by the platform.
What assets can you trade in eToro?
Besides criptocurrenciesstocks, there are more financial assets you can trade .
The major benefit of investing in raw materials is that prices are more stable than those of other assets. Actually, their intrinsic stability is what makes most people trade with commodities when facing financial insecurities or fears of inflation. However, the cost of raw materials is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Consider that raw materials don't pay dividends. Thus, the only potential further income would come from a future sale of the asset.
There are two basic kinds of commodities: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals (for instance, iron, nickel, or aluminum), and oil; and the latter are agricultural products, like sugar, coffee, corn, soy.
If you are interested in long-term investments, and you won't need to withdraw your money in at least five years, index funds can be the best alternative. This kind of investment is also great for beginners since the risks are much lower. Besides, the variety is wider.
You may have a different idea, but it is not easy at all to beat the market (yes, you have surely heard of managers who achieve huge profits).
But putting aside some unusual cases, all that glitters is not gold: when someone brags about having beaten the market, it was probably for a short time, or their charges are really high. In the end, indexing is better because commissions are minimal. Besides, past performances do not ensure a future one.
With index funds, you won't be concerned about that: although in the long term, they regularly beat active managers, and the charges are so much lower.
Foreign exchange market
Forex or currency trading allows obtaining profits by converting one currency for another.
If you decide to exchange euros and dollars, you speculate how many dollars it will take to buy a euro, hoping 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 they are worth 1.20 USD, that margin will be yours.
Perhaps you already inferred this, but trading with foreign exchange usually implies large resources, because prices rarely increase that much, or using much leverage, which is a bit like skating on thin ice. Our recommendation for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.
You can exchange with almost every currency on eToro but remember that in Forex sales are made through contract for differences, therefore you won't own the real asset.
How to deposit funds into your eToro account
When it comes to payment on eToro, there isn't really much to say, since it is pretty simple. Just click “Deposit funds”, type 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.
Remember that for security reasons, you need to be the holder of the credit card or the account.
You can start with a $ 200 deposit, and if you are not verified you will have a maximum amount allowed. So, if your intention is to deposit higher amounts, you should contact Support to verify your account.
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, using USD directly.
We said previously that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
Everyone who has used Whatsapp, Linkedin or any of the most common social networks, knows enough to operate with the eToro interface.
Now we will detail the sign-up process and the different sections of the page that you should know.
First, you will have to fill in all the information that eToro asks for: first and last name, address…
To complete your profile, 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 suggest. For example, 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 page.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. Just click the tab and you will be able to set it. This is ideal in case you want to buy an asset and you are waiting for it to decrease.
“News Feed” is for social purposes. This is the section where users can share opinions and information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we already talked about the kinds of assets on eToro:
- Forex trading
- Index funds
In “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.
You will be able to search for those users that you find more interesting. You can apply filters like risk level, average profits, or financial market. When you choose an investor and indicate how much money you want to invest, eToro will automatically replicate their movements, proportionally. For example, if you invest $ 1000 and the user puts 20% of their funds in an asset, eToro will also invest 20% of your money in the same company or instrument, in this case, $ 200.
Lastly, you will also find the CopyPortfolios divided into three main kinds: “Top Trader”, “Market” and “Partner”.
In some cases, you might prefer copying to CopyPortfolios than to individuals, because you avoid putting all your eggs in one basket. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Thus, if you think a specific sector, like fashion or drones, will have good incomes in the future, you can look for that specific portfolio and invest.
What is social trading?
eToro was the first platform that proposed social trading, and this new concept became very successful. Many other brokers copied this idea, but eToro is still the best one.
But the main achievement wasn't just recreating a social network in the world of trading. They could have made the umpteenth social network in which users talk about investing, but they wanted much more: the major contribution of eToro was to allow traders to imitate the moves of skilled investors, and to reward them latter for their ideas.
In the left menu of the site, you will see “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of financial assets of a certain sector. For example, if you think that the gaming sector is going to succeed shortly but you don't have enough information (or time) to choose stocks, you just have to pick the CopyPortfolio “InTheGame”, which includes companies like Google, Microsoft, NVIDIA, Nintendo, Logitech, among others.
CopyPortfolio has generated a 100% profit in the last year, and it is as simple as clicking on “Invest”, choose the amount, place the stop-loss and wait.
The other option is to directly copy traders: in “Copy People” you can locate eToro users who are very successful investing and whose operations you can replicate very easily.
You will see in the profile of users: the kind of assets they trade, their risk profile, as well as their trading history.
Besides copying other investor's moves, which is really interesting and helpful, we also suggest that you make the most out of the community by reading other users. You can learn a lot from their experiences, mainly if you aim to make a living from trading.
* 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.