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How to buy
If you live in Philippines, a great way to invest in JP Morgan 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 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 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.
Now check your email: you 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 JP Morgan 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 “JP Morgan” 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.
JP Morgan business explained
JP Morgan is a U.S. financial institution founded in 1871 from which originated the three largest banks in the world: JP Morgan Chase, Morgan Stanley and Deutsche Bank. Currently, when referring to JP Morgan, we are talking about JP Morgan Chase, which was born from the merger between the original bank and Chase Manhattan Corporation in 2000.
Chase Manhattan Corporation also has a long history, dating back to 1824 with the name of Chemical Bank. It was for several periods the largest bank in the United States in terms of both deposits and investments.
Since its foundation, Chemical Bank grew and merged with other banks, and in 1996 it acquired Chase Manhattan Corporation. It kept this name until 2000 when it merged with JP Morgan and formally became JP Morgan Chase & Co.
The merger of these two large banks gave rise to a giant that is considered the oldest financial services institution in the world. In addition to being the largest having as assets the astronomical figure of 3,689,336,000,000,000 dollars, that is, 3.6 trillion.
JP Morgan Chase as an investment
The phrase “too big to fail”, which has economic implications behind it, fully describes today's JP Morgan Chase. It is virtually impossible for this bank to fail, regardless of the state of the economy.
And if it did, it would be immediately bailed out by the U.S. government as has happened with other banks. This is because, given its size, it would have huge implications for the economy as a whole if JP Morgan Chase were to disappear.
However, as we have already said, it is practically impossible for this to happen because JP Morgan Chase, together with the FED, has bailed out other banks. Such is the magnitude and importance of this financial institution.
So, if an investor is looking for a company where his money is safe in every way, JP Morgan Chase is the best possible choice. Because to conclude, the shares of this company have good yields and pay dividends to its investors.
Is eToro reliable for purchasing JP Morgan?
eToro is very meticulous with the information about past performances from users, and its integrity has been tested once and again by independent organizations.
eToro fulfills all the strict regulations of the European Union, legislation in which it is found. Specifically, its head office is in Cyprus, where it is certified by the Cyprus Securities Market Commission (known as CySEC), which can cover up to € 20,000 of the debts from its clients (those from Philippines included).
It is also supported by the European Financial Instruments Market (MiFID), and in the USA it is under the control of the Financial Conduct Authority (FCA). In addition to all these regulations, it should be mentioned that eToro has been active for fifteen years, with more than 20 million users, so we can rest assured that our funds are safe.
It is also worth mentioning the good functioning of its customer service. You can use the online chat, and they also have a phone number available for assistance.
eToro deposit methods
When it comes to payment on eToro, there is not much to say, since it is really straightforward. You only need to select “Deposit funds”, put an amount, and choose your payment method. You can pay with PayPal (available for some countries), bank transfer, credit card, Skrill, or Neteller.
(Keep in mind that you should be the account or credit card holder, for security reasons).
The minimum first time deposit is $ 200, and there is a maximum limit for unverified accounts. Thus, if your intention is to deposit larger sums, you will need to verify your account previously.
You can pay in any currency and eToro will automatically convert it to USD. Nevertheless, it is advisable to deposit directly in USD since the platform charges a commission.
About Contracts for Difference
If you browsed eToro before, you must have noticed that the acronym CFD appears all the time. Before we explain this further, you must know that CFDs on eToro are only possible when you short sell.
We will also refer to terms like going short and leverage, in case you are considering day trading cryptocurrency or more advanced practices.
Even if you don't have a positive balance, you can still bet on eToro with CFDs. Let's say that you have the certitude that the JP Morgan will fall, so the logical thing is to think “if it is going to depreciate or go down in price, I'll simply wait until it does and then I'll bet”. However, if you are almost sure that it is going down, why not making some profits?
You can do that by “going short”. More or less, it functions like this:
- Someone lends you, let's say, 100 units of JP Morgan, with a total value of $ 5,000 (these numbers are imaginary)
- You sell them at their current price, $ 5,000
- As you supposed, it depreciates, and the unit of JP Morgan goes from $ 50 to $ 30
- You purchase all 100 units one more time, but now they are worth $ 3,000
- You pay back the 100 units to whoever loaned them to you
- The difference is yours, so, you will have earned $ 2000
It is really simple. Just take into account that by trading in JP Morgan on eToro, with CFDs you can make a profit when you anticipate downs.
What's the difference between CFDs and futures?
What are the differences between Futures and CFDs?
- Who is the counterparty? With Futures, the counterparty is another investor. In CDFs, it’s the broker (eToro)
- When do they expire? Futures have a determined expirationdate, while CFDs don’t have expiry date
- Markets available: Futures include fewer options to trade. CFDs include a wide range of possibilities.
- Minimum investment amount: Costs for Futures are higher than costs for CFDs.
- Use of leverage: with Futures, you can’t leverage; while with CFDs it is always possible.
What is social trading?
eToro was the first broker to propose trading as a social activity, and time has proven that it was an excellent idea. A lot of copycats have appeared since then, but eToro is definitely the best.
But it wasn't just about creating yet another social network to talk about investment. The main achievement was in allowing users to replicate the moves of experienced traders, and to reward the latter for their ideas and knowledge.
It sounds complicated but it isn't: when you enter eToro you will find in the left menu the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” contain a collection of assets of the same sector. For instance, 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 pick a portfolio that groups together a variety of related companies in that industry.
CopyPortfolio has generated a 100% profit in the last year, and it is as simple as clicking on “Invest”, select the amount, place the stop-loss and wait.
But you can also copy other successful investors of the site. With “Copy People” you can find them and duplicate their moves easily.
In each user profile, you will be able to see their risk profile (how much risk do they take), their performance, and the type of assets they operate..
Besides copying other user's moves, which is great and very helpful, we also recommend that you benefit from the community by reading other user's remarks. You can learn a lot from their experiences, particularly if your goal is to make a living from trading.
How to use eToro
We mentioned previously that eToro is very easy to manage. Anyone can start investing without previous knowledge or long explanations.
You won't have any issues with the interface if you are familiar with any other social network.
Let's talk about the sign-up process and the different sections of eToro that you should know.
First, you will have to enter your personal data.
They will also ask you about your previous trade experience.
But don't feel intimidated, it is not a test that you have to pass. 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.
Next, we will talk about the different sections of the interface.
With the “Set Price Alerts” tool, you'll be able to program an alert 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 purchase an asset and you are waiting for it to decrease.
In the “News Feed” tab is the most social part of eToro: where users are interacting all the time and sharing opinions, tips, and other valuable information.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. As we mentioned previously, the six types of instruments on eToro are:
- Exchange-Traded Funds
- Index funds
In “People”, you can find eToro users and their past performance. This is where you can replicate the strategies of the investors that you find most inspiring.
You can search for those users that you find more interesting: by risk level, types of instruments, average earnings… Just indicate the amount you want to invest and eToro will be in charge of replicating the movements of the selected investor, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will also invest $ 100 of your money in the same company.
In this part you will also see the three main types of CopyPortfolios, which are Top Trader, Market, and Partner.
In some cases, you might prefer copying to CopyPortfolios than to other users, since the former offer more diversity. There are all kinds of portfolios that you can identify easily and are classified by sectors. Thus, in case you suspect a specific industry, like e-commerce or drones, will have good incomes in the future, you can look for that specific portfolio and invest.
How does a demo account work?
For those who still don't have much experience in investing, using a demo account can be useful. You just need to set the virtual mode and you can start practicing with a “fictional” amount.
This is a great tool for those who want to put their talents to the test before playing for real money. With your virtual portfolio, you will begin with a $ 100,000 balance (which of course, is fake) to do all the operations that you can think of: not just with JP Morgan, you can also work with a diverse portfolio.
The first attempt is not usually that good. But you can ask support to deposit back the virtual funds to your portfolio.
Take into account that you should always be prudent when trading, and perhaps a demo account can make you a bit impulsive. It is not the same to operate with your own money than with fake funds, which you can lose without any consequences.
And of course, the demo mode is kind of pointless if you intend to trade in the medium or long-term (with almost guaranteed returns only by replicating an index), since you would be wasting years. Virtual accounts may be helpful for trying out before investing 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.