|Recommended Broker 🇺🇸||
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How to buy
For those who live in the United States, the best way to invest in Qualcomm 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 Australian Securities and Investments Commission (ASIC).
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 the United States, 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 inbox: 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 purchase
When eToro has confirmed the receipt of your credit, you just have to search for “Qualcomm” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Should I invest in Qualcomm?
Qualcomm is an American technology company that is well known because its chips are widely used in the smartphones industry. And among all the chips it manufactures, surely the best known is the Snapdragon processor, which is preferred by most smartphones manufactors.
This company, founded in 1985 in California, initially offered satellite location and messaging services to long-distance transport companies. At the same time it produced integrated circuits for equipment specialized in digital radio communications as well as its first patents, which would be essential for the company.
It would be in 1990 when Qualcomm has the first approach with cellular technology, particularly with CDMA, which would define the future of the company. This fact plus its patents mark a milestone for Qualcomm because, although it is known for Snapdragon, its real business is in cellular technology patents.
In those years, Qualcomm developed a lot of wireless technology that it filed and patented in the United States. As time went by, its patents would be taken as standard in the cellular industry and for wireless technologies.
That is why its main business and source of income is the licensing of patented technologies. And all, but all cell phones are dependent and use in one way or another some of Qualcomm's patents. Thus, Qualcomm's licensing fee is between $20 and $30 per mobile device produced.
This is an outrageous figure for the sector, being 10 times higher than the average and for which Qualcomm has entered into legal disputes in the United States for monopoly. Although Qualcomm has come out of this with flying colors and has argued that the price for using its patent is higher because its patents are more important and indispensable.
As you can imagine, Qualcomm receives a monstrous income from patent licensing alone. This allows the company to pay quarterly dividends to its investors for an average of $2.6 per year. In turn, these two facts are reflected in the positive returns that Qualcomm's stock has on the stock market.
If we add to this the fact that the legal battles that Qualcomm has won basically allow it to continue with its patent monopoly, we can affirm that this company is one of the best to invest in the long term.
Reason for using eToro for purchasing Qualcomm shares in the United States?
- It is really straightforward and manageable
- Allows to replicate investment tactics
- Allows you to go short
- You can trade leveraged
- There are uncountable possibilities for investments
Homepage: www.etoro.com *
eToro is the best option to purchase Qualcomm shares from the United States.
eToro is known for making “social trading” a trend. Social trading is a revolutionary way of investing in which traders can emulate the moves of other investors who have been generating income over time.
If you are a novice user or haven't gained much investment experience, eToro is very useful. You can rest assured that you are making a smart investment since the site duplicates those from subjects with a great deal of expertise. Additionally, in case you are an investor, the platform pays for your knowledge.
Another thing to mention is how intuitive the platform is, which turns out perfect for new users that are just learning all about the trading world.
What are Contracts for Difference?
If you have entered eToro before, you must have noticed that the initials CFD appear repeatedly. We will come back to it, but first, you should know that cryptocurrency trading on the platform is only CFD when you go short or leverage higher than x2 (but this is not even available on the platform).
If you are interested in day trading cryptocurrency and other more advanced practices, later on you will also meet terms like leverage and “going short”.
With CFDs you can operate on eToro even if you are “in red” or don't have a positive balance. For example: you have the conviction that the Qualcomm will fall, so perhaps it is obvious to think “if it is going to depreciate or go down, I'll simply wait until it does and then I'll go in”. However, 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:
- Someone lends you, let's say, 100 units of Qualcomm, valued at a total of $ 5,000 (these numbers are completely made up)
- You make $ 5,000 by selling the 100 units
- The price is reduced, as you guessed, and the unit of Qualcomm now costs $ 30 instead of $ 50
- You buy the 100 units again, but at $ 3,000
- You return the 100 units
- There: the $ 2000 difference is yours
Keep in mind that it is much simpler than it sounds: we can summarize this whole operation by saying that by trading in Qualcomm you can also earn money if you predict it will fall.
How are CFDs and futures different?
How are Futures and CFDs different?
- Which are the counterparties? With Futures, the counterparty is another trader. In CDFs, it’s the brokerage, in this case eToro
- When do they expire? Futures expire in a variable given date. CFDs don’t have expiry date
- Variety: The market for Futures is narrower. With CFDs you can trade in several different markets.
- Minimum deposit amount or “trade size”: Costs for Futures are higher than costs for CFDs.
- Is it possible to leverage? with Futures, it isn’t possible; while with CFDs it is.
Do you know what leverage is? We'll put it simply: trading lets you invest even more than what you really have. Let's say that you enter with $ 100 and you put them with x2 leverage, you will be really investing $ 200.
Leverage, Take Profit and Stop Loss
Let's pretend that you are confident that Qualcomm will rise, and you want to “go long”. You have $ 1,000, but you actually can invest more and make more money.
Perhaps you could go to your bank, request a credit, put an asset as a guarantee, wait for it to be accepted, wait for the money, and then acquire Qualcomm… But maybe once you have made all that, your prediction could've been confirmed a long time ago, and Qualcomm would be already so high that it is not worth investing.
With leverage, you can get that amount of money really easily. It's like borrowing money, but much better: you will get it from eToro, which allows you to invest a lot more than you have on the platform. Before trading, you will be able to choose between the different leverage options as in the screenshot below:
With other assets, you can use more leverage. 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 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).
- A few days later, Qualcomm price does rises, as you thought, 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.
- Once the $1,000 from leverage is deducted, you will have $ 1,400 left; which means the net profit is $ 400, since the other $1,000 was yours initially.
With $ 1000 you get $ 400, in other words, 40% more. That's not bad at all.
But there's always a downside. If everything goes ok and the asset increases, you will make money. On the contrary, if the price goes down, you will also lose more money really fast.
For example: if the price falls by 10%, you do not lose $ 10, but $ 20, because of the leverage. For that reason, the concepts of Take Profit and Stop Loss are crucial when trading with leverage.
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 Qualcomm shares at $ 100, you program eToro to close your operation when it reaches $ 120. That way, you make sure you won't change your mind and decide to keep waiting in case it keeps rising, which could make you lose it all.
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). You always need to establish a Stop Loss lower than that suggested by the platform.
What are the assets you can trade in eToro?
You already know about criptocurrenciesstocks, there are a few more financial assets available.
This is the best option for people who can invest in the long term, mostly for those who are starting to trade, because it is inexpensive, diversified, and the risk is lower.
Unlike a lot of people think, beating the benchmark is far from being a piece of cake and very few fund managers have done it, apart from some famous cases, like Warren Buffett's.
If someone brags about having beaten the benchmark, they probably have done it for a chor period or on a specific occasion, or sometimes the rates are so high that indexing would be a better decision.
Index funds offer solutions to both concerns: their fees are insignificant and they beat active managers most of the time, although in the long term.
Have you heard about Exchange-traded funds? They are passively managed funds, known for merging the benefits of stocks and mutual funds: they can be exchanged at any moment in the market, but include a much wider diversity of assets and the rates are significantly lower.
Commodities (raw materials)
The major attraction of trading with commodities is that prices are more stable than those of other financial assets. In fact, their intrinsic stability is what makes most investors choose commodities when facing possible inflation or market volatility. Nonetheless, the prices of commodities are defined by their demand. Therefore, if a generalized fear of inflation provokes higher demand, the prices will also rise.
Consider that the only intended income from the investment in raw materials will be the hypothetical capital gain after the sale since, unlike stocks, these don't distribute dividends or pay interest.
Raw materials are generally categorized into hard raw materials, which include precious metals, industrial metals, and oil; and soft raw materials, which are basically agricultural products, like soy, cocoa, corn, or rice, for instance.
Forex or currency trading is the exchange between two currencies.
For example, in case you want to exchange euros and dollars, you speculate how many dollars it will take to buy a euro, thinking that the euro will raise its price 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.
As you may have deduced, this type of trading usually implies a large capital, because prices never increase that much, or using much leverage, which is always a risk. If you are new to the world of trading, it is not a good idea to begin with this market, because it's not the safest alternative.
You can trade with almost all well-known currency pairs on eToro. However, consider that this market functions with contract for differences, therefore you won't own the underlying asset.
There are many methods to operate cryptocurrencies: for instance, you can buy and hold, or you can day trade (and benefit from market volatility).
In case you are a beginner in the world of investment, I recommend a middle point: placing a dynamic stop-loss (15-20% under the highest price) and wait for it to work its magic.
For example, if you purchase a cryptocurrency at $ 15, then it rises up to $ 25 and decreases back to $17, the stop-loss will close your position at $ 21 or $ 22. Therefore, you will get a pretty good income.
You may be wondering: why not selling back when the price is at its highest? But unless you are a psychic, that is just impossible. The mentioned strategy can work perfectly and is much more realistic.
Eventually, you will be ready for using advanced investment strategies, like using leverage or going short.
We mentioned before that eToro is very friendly and intuitive. Anyone can start using it without having to read endless explanations.
Everyone who has previously used Instagram, Pinterest or any of the most common social networks, knows enough to use eToro.
Let's talk about the sign-up process and the different sections of eToro that you should know.
You will have to provide some personal information when registering.
Also, you will see that they ask you some questions about your experience as an investor.
But don't feel intimidated, it is not a test that you have to pass. The only intention is to know more about you and determine which financial instruments they should recommend according to your knowledge and experience.
You will see a bar that says “incomplete profile” until you complete all the requested information.
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 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 that is falling but you believe it will decrease even more.
The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.
In “Discover” you will find the tabs: “Instruments”, “People” and “CopyPortfolios”. As we mentioned before, the six types of instruments on eToro are:
- Exchange-Traded Funds
- Raw materials
- Index funds
The concept “social trading” makes sense within “People”: that is where you can replicate the trading strategies of any investor you choose.
You can search for those investors that best suit your interests: by average earnings, types of instruments or risk level, for instance. Just indicate the amount you want to invest and eToro will replicate the movements of the investor you selected, in proportion. “In proportion” means that if you have $ 1000 and the investor puts 10% of his or her balance 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 benefit of copying to CopyPortfolios instead of people is that this way the risk will be more diversified. There are all kinds of portfolios that you can identify easily and are classified by sectors. Therefore, in case you think a specific industry, such as biotechnology or oil, has a good chance of prospering, you should look for that specific portfolio.
How does a demo account work?
In case you are taking your first steps as an investor, you can start by practicing with a “demo” option. Setting a virtual account and trading with fictional money is very simple.
A virtual portfolio can be a good way of gaining confidence before starting to operate with real funds. When you create your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of assets available on the platform (not just with Qualcomm).
Don't worry, since if you lose all your virtual funds, you can contact support so they can add back the $ 100,000 to your demo account and you can try again.
But remember that you need to be prudent for trading, and using a demo account can have an adverse effect. It is not the same to risk your own money than to trade with virtual funds which loss does not suppose any drama.
As you may suppose, if you want to invest in the medium or long-term, with profits almost guaranteed only by replicating an index, it doesn't make sense that you waste years investing in virtual mode. On the other hand, the virtual mode can be helpful to experiment with short and medium-term investments.
* 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.