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www.etoro.com *
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How to buy
For those who live in Philippines, a great way to invest in Xpeng 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 should 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.
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 Xpeng rising while you wait for your transfer to be done.
How to make your first trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Xpeng” 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
What does Xpeng do?
Xpeng is a Chinese company dedicated to the manufacture of high-end electric vehicles. It was founded in 2015 by Xia Heng and He tao, together with two important partners who believed in the project: He Xiaopeng, former executive of Alibaba and Lei Jun, founder of Xiaomi.
This company, also known as Xiaopeng Motors, decided to enter the competitive electric vehicle segment, a sector dominated by Tesla and where NIO already existed in China. However, despite also being luxury vehicles, Xpeng has differentiated itself because its main objective is to provide comfort in its vehicles, beyond speed.
The company currently offers two vehicle models, the G3 and the P7. In the case of the G3, it is an SUV that began marketing in 2018 (although its foundation was in 2015). While the P7, a very comfortable sedan, they brought it to market in 2020.
Its IPO was on August 27, 2020, so there is no historical information about its performance as can be found from other companies. But at the time of its IPO, in the company's prospectus, it notified that by July 2020 it had sold 18,741 units of the G3 and 1966 units of the P7.
These are obviously quite small numbers when compared to other companies in the same sector. In fact, although Xpeng is listed on the New York Stock Exchange, it only markets its vehicles in China because as we mentioned, it is a small company.
An important detail is that when reviewing the company's financial reports (you can find them on its official website) we find that the company since its foundation has generated losses.
The year 2020 has been the only year in which sales have exceeded the cost of sales generating 40 million dollars of profit. However, this figure is only about sales because when operating expenses (research and development, administrative and general expenses) are added in, Xpeng has a net loss of $418 million. And it was their best year ever.
Straight up we recommend you look at other established companies like Tesla if you are interested in investing in the electric vehicle sector. Because at the end of the day, if all you are offering is the potential going forward, you are not offering anything that Tesla or NIO does not.
Can you rely on eToro?
eToro is very careful with the information about past performances from traders, and its reliability has been independently tested several times.
The main headquarters of eToro is located in Cyprus, and therefore it is certified by the CySEC or Cyprus Securities Market Commission, which covers debts up to € 20,000 from its clients, including those from Philippines. Furthermore, eToro follows all the strict regulations of the European Union.
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, eToro has more than 20 million users all over the world, and it has been operating for fifteen years. To sum up, we can be confident that our money is in good hands.
Their excellent customer service is also worth mentioning. You can use the online chat, and they also have a phone number available for assistance.
How to deposit funds on eToro
Within the payment options accepted on eToro you will find: credit card, PayPal, bank transfer, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is a very easy process. Just go to “Deposit funds”, type the amount and select your payment method.
Consider that for security reasons, you must be the holder of the credit card or the account.
The minimum amount you can deposit is $ 200 and there is a maximum limit of how much you can deposit if you are not verified, so if you plan to operate with larger sums, you should verify your account previously.
The platform accepts transfers in any currency, but you will have to pay a fee for the conversion to USD. So it is better to use USD directly.
About Contracts for Difference
It is possible that you have found the initials CFD more than once if you entered eToro before. Before we come back to this, you must know that cryptocurrency operations on eToro are only CFDs when you are short-selling or leverage over x2 (although the platform does not even allow this).
We will also explain concepts like leverage and “going short”, in case you are thinking about day trading cryptocurrency or other more advanced operations.
With CFDs you can operate on the platform even if you are “in red” or don't have a positive balance. Let's say that you have the conviction that the Xpeng will go down, so the logical thing is to think “if it is going to depreciate (go down in price), I'll just wait and bet when it has gone down”. But if you are sure that it is going down, why not take advantage of that?
You can accomplish that by “going short”. More or less, it functions like this:
- They lend you, let's say, 100 units of Xpeng, with a total price of $ 5,000 (these are completely imaginary numbers)
- You sell the 100 units at $ 5,000
- As you thought, the price falls, and the unit of Xpeng now costs $ 30 instead of $ 50
- You buy the 100 units again, but at their current price, $ 3,000
- You give back the 100 units to whoever made the loan in the first place
- You save the $ 2000 difference!
Keep in mind that it sounds much more complex than how eToro CFDs actually work: we can just say that by trading in Xpeng you can also make money if you anticipate it will go down.
How does leverage work
If you are not familiar with the term “leverage”, we'll describe it briefly: it is, simply, the possibility to invest a higher amount than you actually have. For example, if you start with $ 100 and you leverage x2, your initial investment will be $ 200.
Leverage, Take Profit and Stop Loss
Assuming that, for instance, you are certain that Xpeng price is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.
Possibly, you could ask your bank for a credit, wait for it to be accepted and receiving the money, send the money to eToro, confirm that it arrived, and then buy Xpeng… But by that moment it is likely that your prediction was confirmed a long time ago, and Xpeng would be already at such a high value that it is not worth investing.
Leverage is like a credit, and you will only have to click a few times! eToro allows you to operate with much higher amounts than what you actually have on the platform. As in the image below, you will see the different options you have:
With other assets, the leverage you can use is higher. The reason is that 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.
If you have the $ 1,000 and use leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro gives you the remaining amount to reach that figure.
A couple of days later, as you thought, Xpeng price raises its price by 20% and your money has appreciated reaching $ 2,400. Ok, don't be greedy, let's sell.
First of all, the 1k $ of the leverage will be deducted. You have $ 1,400 left, of which $ 1000 is the money you invested yourself, so the net profit is $ 400.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.
Does it sound too wonderful? The thing is, it can also play against you. If everything goes as planned, you will make more money in less time; however, if the value of the asset decreases, you will also lose more in less time.
For example: if the price falls by 10%, you won't lose $ 10, but twice that figure, which means $ 20. For that reason, when operating with leverage it is very important to be familiar with other two terms: Take Profit and Stop Loss.
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 Xpeng shares at $ 100, you program eToro to close once 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 be a mistake.
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). That is why it is vital to mark a Stop Loss more conservative than that suggested by eToro.
What types of assets can you trade in eToro?
Besides stocks, there are other financial assets available.
Commodities (raw materials)
Most investors trade with raw materials because of their stability. While other assets tend to fluctuate more, commodity prices vary less and offer security against inflation or market volatility. However, prices do depend on supply and demand in the market, so if an economic situation produces higher demand for a certain good, the price will also go up.
Consider that, unlike stocks, raw materials don't pay dividends. So, the only potential further earnings would come from a future sale of the asset.
Commodities can be divided into two main types: hard raw materials and soft raw materials. The former are precious metals (such as gold, silver, copper, and platinum), industrial metals (like iron, nickel, or aluminum), and oil; while the latter are agricultural goods as cocoa, soybeans, rice, or sugar.
About ETFs
Exchange-Traded Funds or ETFs are a kind 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 have lower fees.
Index Funds
If a long-term investment sounds like a good idea to you, and you won't need to withdraw your money in five years or maybe a decade, index funds can be the best choice. This type of investment is also suitable for beginners since it is safer.
Perhaps you have a different idea, but it is very hard to beat the market (although you have probably heard of investors who achieve huge returns).
But besides Warren Buffett and a couple more, not everything is as good as it sounds: when someone brags about having beaten the market, they have probably done so for a short period, or the rates are so high that it ends up being better for you to index (whit minimal commissions). Besides, if something happened once or twice, it doesn't mean necessarily that it will happen again in the future.
Index funds offer solutions to both concerns: their rates are insignificant and in the long term they tend to beat active managers.
Do you know what “social trading” is?
The first platform that thought of trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also adopted this concept, but we have tried them all and eToro is still the leader.
However, their main achievement wasn't just recreating a social network in the world of trading. There are countless pages to talk about investing, but they wanted to go further: the great innovation of eToro was allowing users to imitate the moves of skilled investors, who were paid for their ideas.
It sounds complicated but it isn't: when you enter eToro you will find in the menu on the left the options “Copy People” and “Invest in CopyPortfolios”.
CopyPortfolios
“CopyPortfolios” are kinds of exchange-traded funds or thematic index funds, a portfolio that includes a number of different assets of the same market. For example, if you consider that a particular sector will have significant profits but you are not sure which investments to make, you just have to choose a portfolio that includes a variety of related companies in that industry.
You should know that in the last year, CopyPortfolio has generated returns of 100%. And you can benefit from it just by choosing a portfolio, enter your chosen amount, place the stop-loss and click on “Invest”.
Copy People
A second option is to directly copy traders of the platform: in “Copy People” you can find eToro users who are very successful and whose moves you can replicate very easily.
You will find in the profile of users: the type of financial instruments they operate with (forex, cryptocurrencies, commodities, shares…), their risk profile, and their trading history.
Copying strategies from others can be very interesting and helpful, but you should also make the most out of the platform's community, read what other users think, and learn from their experience. If you want to end up living from investment, it is a great place to gain valuable knowledge.
Trading strategies
There are different methods or ways for crypto trading, like day trading or buying and holding, for naming just a few.
In case you are just beginning in the world of trading, I recommend a middle point: when you open your position, place a dynamic stop loss 15-20% under the highest price, and forget about the operation.
Therefore, if for example you purchase a cryptocurrency at $ 10, it reaches $ 20 and then falls to $ 12, your stop loss will close your position at $ 16-17 and you will have made a considerable profit.
You may be wondering: why not selling when the cost is at its highest? But unless you are a psychic, that is just not possible. The mentioned strategy can work perfectly and is more realistic.
At some point, you can take your first steps with advanced trading techniques, like using leverage or going short.
How does eToro work?
We already said that one of the best things about eToro is how simple it is. You don't need to read a lot or have previous knowledge to start investing.
You won't have any problems with the interface if you have used any of the most common social networks, like Instagram or Pinterest.
Now we are going to walk you through the registration process and the sections of the page that you should familiarize yourself with.
You will have to provide some personal data when registering.
During the sign-up process, you will also have to answer some questions about your previous experience as an investor.
But don't worry: it is not an exam. They are only measures to know how much knowledge you have and what type of assets they can suggest. For instance, if you have never invested before, they will not recommend that you invest in futures.
Let's see what the different sections of the page are.
“Set Price Alerts” allows you to set alarms on the price of certain assets. It is a very useful tool for when you want to buy an asset that is falling, but perhaps you think that it will decrease even more.
In “News Feed”, users interact and share opinions, tips, and other valuable information.
In “Discover” you will find the investment tabs: “Instruments”, “People” and “CopyPortfolios”. As we mentioned before, the financial instruments available on are:
- Cryptocurrencies
- Exchange-Traded Funds
- Shares
- Commodities
- Forex trading
- Index funds
In the tab “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 can find those users that you find more interesting. When you select 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 trader puts 20% of their funds in an asset, the platform will invest $ 200 of your funds in the same asset or company as well.
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 individuals, because the former offer more diversity. There are all kinds of portfolios that you can recognize easily and are classified by sectors. Thus, in case you suspect a specific industry, such as e-commerce or pharmacy, has good chances to succeed, you should look for that specific portfolio.
Virtual account: How does it work?
Are you beginning as an investor? Using a demo account can be very helpful. Just assure yourself that the virtual mode is set in the upper left corner of the page and you can start operating with fictional funds.
This option is perfect for those who want to give it a few tries before trading with real money. With your virtual account, you will begin with a $ 100,000 balance (which of course, is fake) to do your operations, not only with Xpeng, but you can also create a diverse portfolio.
The first attempt is not usually that good. But don't worry, since you can ask support to replenish the virtual $ 100k to your portfolio.
Keep in mind that you should always be prudent when trading, nevertheless, using a virtual portfolio might have the opposite effect. It will never be the same as risking your own money.
Finally, the virtual mode is kind of absurd if you intend to trade in the medium or long-term, since you would be wasting years to see the results. Virtual accounts may be helpful for practicing before investing in the short or medium-term.
Common 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.