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How to buy
For those who live in Philippines, the best way to invest in Xiaomi 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 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 inbox: you 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.
How to make your first purchase
When eToro has confirmed the receipt of your credit, you just have to search for “Xiaomi” 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 Xiaomi a buy?
Xiaomi Corporation is a company of Chinese origin in the technology sector that manufactures and markets electronic equipment, the best known being its smartphones. But what really makes Xiaomi famous is the “value for money”, being Xiaomi itself that defines itself as “a global company that manufactures quality products at honest prices”.
It was founded in 2010 by Lei Jun and Lin Bin, with 2011 being the year when they launched their first smartphone in the Chinese market. This was the first big step of the company that from that moment on would have a history full of successes. And perhaps the first milestone was in 2013 when it surpassed Samsung and Apple in sales for the first time in China.
And since then, the company's commercial success internationally has been an outright affront to other smartphone manufacturing companies. Especially as Xiaomi's market share grows year after year, snatching space from Samsung and Apple.
The Xiaomi model
On several occasions, one of Xiaomi's founders (Lei Jun) has stated that the company prices smartphones only slightly above the manufacturing cost price. And it does this without sacrificing the quality of the components, offering a high quality product at low prices compared to other brands.
And this translates into a volumetric sales strategy, i.e., offering quality at a low price to sell more and thus make a good profit. This model, although it may seem simple and trite, has worked so well that its market share is growing by 16% annually. In the European market, this growth has reached more than 50%.
Despite this, and the fact that more than 90% of its revenue comes from the sale of mobile devices, the company continues to categorize itself as a software and internet company. This has generated criticism of Xiaomi from Samsung and Apple for “not generating innovation” in any area.
Depending on who looks at it, the latter may or may not be true. But what is absolutely clear is that Xiaomi offers equipment with the same features of high-end equipment from other brands at a price up to more than 3 times lower, which has guaranteed its commercial success.
Finally, Xiaomi does not use traditional advertising media and focuses on social networks. In addition to building customer loyalty so that they are the spokespersons of the brand. Very similar to what other brands do, isn't it?
The fact is that, regardless of the criticism, Xiaomi is an established company with a business model that has given it such strength that it is practically impossible for Xiaomi to disappear in the future.
eToro, our favorite platform for investing in Xiaomi in Philippines?
- User-friendly and simple
- You can imitate other traders investment strategies
- Admits “shorting” or short-selling
- eToro allows leverage
- It is possible to make investments in thousands of other products
Homepage: www.etoro.com *
If you are considering purchasing Xiaomi shares from Philippines, eToro is probably the best option.
This platform is popular for making “social trading” a trend, a revolutionary form of investing in which users can replicate the movements of other traders who have been making profits over time.
If you are still a rookie or do not have much experience in investments, eToro is great for you, since it automatizes your investment by replicating moves from those who have been doing it for years. On the other hand, if you are an expert in the subject and decide to share your knowledge with the community, eToro pays you for it.
It is also worth mentioning how easy is to manage this platform, excellent for beginners who are starting in the investment world.
How do Contracts for Difference function?
If you browsed eToro previously, you must have seen how the acronym CFD appears over and over. We will explain its meaning now, but you should know first that cryptocurrency trading on eToro is only CFD if you are short-selling or leverage over x2 (nevertheless, the platform does not even allow this).
If you are interested in day trading cryptocurrency or other trading operations, you will also find information about concepts such as short-selling and leverage.
Even if you don't have a positive balance, you can still operate on eToro with CFDs. Let's say that you have the conviction that the Xiaomi will go down, so the logical thing is to think “if it is going to depreciate or go down, I'll simply wait until it does”. Nevertheless, if it really goes down, it is possible to earn some money out of that.
You can do that by “going short”. Basically, this is how it works:
- You ask someone to lend you, for instance, 100 units of Xiaomi, which total value at the moment is $ 5,000 (these figures aren't real)
- Then, you sell them at their current price, $ 5,000
- The Xiaomi goes from $ 50 to $ 30 (as you calculated, the price decreases)
- Again, you buy the 100 units, but now their value is $ 3,000
- Now you give back the 100 units to whoever made the loan
- You will have made $ 2000, since you keep the difference
It all sounds more tricky than it really is. Just remember that by trading in Xiaomi on eToro, you can make money if you foretell downs in the price.
Differences between futures and CFDs
How are Futures and CFDs different?
- Futures: operations are made with another investor or trader.
- CFDs: you do not operate with someone else, the counterparty is the broker, in this case, eToro.
- Expiry date:
- Futures: there is an expiration date. When that moment arrives, the contract is closed even if you are in red.
- CFDs: on the contrary, there is no expiration date. Thus, you can wait for your position to rise before exiting.
- Trading options:
- Futures: there are fewer options for investment
- CFDs: a lot of variety, there are CFDs of practically anything
- Minimum deposit amount or “trade size”:
- Futures: minimum investment is higher
- CFDs: you can start with a small initial amount
- Costs and fees:
- Futures: being higher figures, rates are, commonly, proportionally lower
- CFDs: costs are higher
- Possibility of using leverage:
- Futures: absent leverage
- CFDs: fully available
What is leverage
Have you heard the term “leverage”? Just in case, we'll define it simply: the good thing about trading is that it lets you invest higher figures than what you really have. That is, if you enter with $ 100 and you put them with x2 leverage, you will be actually investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for instance, you are positive that Xiaomi price is going up, and that you have $ 1,000 for “going long”, you should know that you can increase your investment and make more money.
Perhaps you could go to your bank, ask for a loan, put something as a guarantee, wait for it to be accepted, wait for the money, and then purchase Xiaomi… However, when you finish doing all that, probably Xiaomi would be already much higher (if your prediction got confirmed), and it wouldn't be a good idea to invest.
Leverage is like a credit, but it is only a few clicks away! You will be able to invest (and earn) much higher amounts than what you actually have on the platform. Before trading, you will find the leverage options as in the screenshot:
When trading in different markets you can use higher leverage. The reason: leverage is most common in short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works.
You enter with $ 1,000 and pick leverage x2, which means you would have $ 2,000 to invest, since eToro would put the other $ 1,000 (which is double your initial amount).
A couple of days later, as you thought, Xiaomi price increases by 20% and the value of your investment is now $ 2,400. Ok, don't be greedy, let's sell.
You need to pay back the $ 1,000. You have $ 1,400 left, of which $ 1000 is the money you put in yourself, so the net profit is $ 400.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.
But there's always a downside. If everything goes ok and the asset increases, you will make money. Nevertheless, if the asset decreases, you will also lose more money really fast.
Let's suppose that the asset didn't increase by 20%, but it went down also by 20%, you won't lose $ 20 but $ 40, because of the leverage. For that reason, when operating with leverage it is essential to know about Take Profit and Stop Loss.
Take Profit is a trading limit you can set for your assets: you ask the platform to sell them once they get to a point above the entry price. For instance, you can buy Xiaomi shares at $ 100 and request that your position is closed automatically when it goes up to $ 120. It is very useful to avoid being blinded by enthusiasm: we would all take a 20% profit when investing, but when you reach that 20% it is easy to ask yourself “what if this keeps going up and it is a mistake to exit?”. It's like you made sure now of not acting recklessly in the future.
Stop Loss is even more important, mostly when trading with leverage, since a small loss could be tragic for your wallet. For that reason, it is essential to set a Stop Loss more tight than that suggested by the broker.
What financial assets can you trade in eToro?
Besides criptocurrenciesstocks, there are other financial instruments you can trade .
The main benefit of trading with commodities is that prices are more stable than those of other assets. In fact, their intrinsic security is what makes people often invest in raw materials, to take refuge from market volatility or inflation. However, the cost of commodities is determined by supply and demand, so if faced with the fear of inflation, demand rises a lot, so will the price.
Note that commodities don't pay dividends. Thus, the only potential further income would come from a sale of the asset.
Commodities can be classified into two main types: hard raw materials and soft raw materials. The former include precious metals (such as gold, silver, copper, and platinum), industrial metals, and oil; and the latter are agricultural goods, such as sugar, coffee, corn, soy, among many others.
What are ETFs?
Have you heard about Exchange-traded funds or ETFs? They are similar to index funds and are known for merging the benefits of stocks and mutual funds: they can be traded at any moment in the market, but have much more investment possibilities and the fees are significantly lower.
As we have mentioned among the positive aspects of eToro, the best thing about this online broker is its extraordinary simplicity: anyone can use it without having to read endless explanatory texts.
You won't have any problems with the interface if you have used any of the most common social networks.
We will explain the registration steps and the different sections that you will find.
First, you will have to fill in your personal data, like first name, last name, address….
To complete your profile, you will have to answer some questions about your experience as an investor.
But you don't need to worry: it is not an exam. They only intend to know how much knowledge you have and what type of financial instruments they can suggest. For instance, if you have never invested before, they will not suggest that you invest in futures.
As soon as you are registered and have completed your profile, you will stop seeing the “incomplete profile” message.
Let's get to know the fundamental sections of the platform.
With the “Set Price Alerts” tool, you'll be able to program an alert when a security is at a certain price. This is ideal in case you want to purchase an asset and you are waiting for it to decrease.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. As we mentioned in this guide, the financial instruments available on are:
- Forex trading
- Index funds
In “People”, you will find the public profiles of eToro users and their performances. This is where you can replicate the strategies of your preferred traders.
You can search for those users that you find more interesting: by average profits, market or risk level, for example. Just indicate the amount of your investment and eToro will replicate the movements of the selected investor, in proportion. This means that if you have $ 1000 and the trader puts 10% in an asset, the platform will invest also 10% of your money (in this case $ 100) in that same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
The advantage of using CopyPortfolios instead of copying individuals is that this way you will diversify the risk. There are all kinds of portfolios that you can find easily and are divided by sectors. Therefore, if you think a specific industry, like fashion or healthcare, has a good chance of prospering, you can look for that specific portfolio and invest in it.
* 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.