This is a sponsored post on behalf of eToro
If you’re keen to invest, it’s important to understand what type of investor you plan to be. Would you be content for others to pick and choose investments for you? If so, you may wish to invest in some sort of managed fund. However, if you’re the type that prefers a more ‘hands on’ approach, you may want to make your own investment choices.
There really is no right and wrong way to invest. However, if you fall into the latter category, and prefer to choose investments yourself, you may be inclined to invest in companies you have some connection to.
In this article, we’re going to explore how to invest in companies you love. Keep on reading for all the details or click on a link to head straight to a section…
To start your investing journey you’ll first need to choose an investing platform. Investing platforms – also known as ‘brokerage accounts’ – typically allow you to invest stocks, shares, funds, and possibly more.
When you use a broker, pay close attention to any annual platform fees. This refers to the fee a platform charges for holding an account – it’s usually a percentage of your total investment. It’s also important to consider any share dealing fees that may apply. This refers to the cost of each single share purchase.
Often, providers with high platform fees have low share dealing fees. As a result, if you’re an investor looking to trade on a regular basis, it may be a good idea to pay closer attention to the cost of trading individual shares, as opposed to any annual platform charge.
On the other hand, if you’re more likely to make a limited number of trades, it might be better to focus on the annual platform cost. That’s because the cost of making single trades will be less relevant to you.
While platform and share dealing charges are the most common fees, before deciding on an account it’s also worth looking out for any additional fees on top – such as deposit and/or commission fees. These can all add up.
INVESTING THROUGH ETORO
eToro is a leading investing platform, which allows investors to buy a number of investments such as:
- Stocks and shares
- Index funds and ETFs
- Commodities (oil, gold, silver etc.)
- Cryptoassets (including Bitcoin and Ethereum)
- Currencies (forex trading)
The platform doesn’t charge share dealing fees if you invest in stocks and shares. Nor does it
charge an annual platform charge, though there is a $10 ‘inactivity fee’; to consider if you don’t make a trade for 12 months.
There are no deposit fees either. However, withdrawals attract a modest $5 fee. Foreign exchange fees also apply if you deposit or withdraw in a currency other than US dollars.
For full disclosure, we are working in partnership with eToro right now. In large part because their investment services are one of the cheapest around. We also like the fact that you can start investing with $10. Plus, the platform doesn’t charge any share dealing or platform fees when investing in stocks and shares which is real plus. Your capital is at risk. Other fees apply.
The process of buying shares can differ between platforms. With eToro, it’s a pretty straightforward process.
Once you’ve visited the eToro website, you simply need to create an account. Once you’ve done this, you’ll be required to verify your email address. You’ll then need to answer a few questions, and provide some personal details.
You’ll be asked questions that relate to your attitude to risk, as well as questions about your investing style. It’s best to answer these as honestly as you can in order for the platform to cater its offering for your individual needs.
Once your profile is complete, you can then deposit funds into your account. If you make a deposit in pounds, a $5 fee will apply.
Once you have funds sitting in your account, you can then go ahead and search for investments. Once you’ve found an individual company you want to buy shares in, you can click on the ‘buy’ button. It’s as simple as that.
Any shares you purchase will be displayed in your profile every time you log in. You can also follow the movement of individual share prices on the eToro website.
eToro is regulated in the UK by the FCA (Financial Conduct Authority). You can find the full details here.
If you want to invest in individual companies, you may be tempted to invest in organisations you love, or have some sort of connection to. After all, you may be investing in order to support ethical initiatives, rather than focusing solely on financial returns.
For example, if you’re a keen advocate of green energy, you may wish to buy a stock, or fund, that supports or directly invests in renewable energy. (If this applies to you, take a look at our article that explores how to identify whether a fund is green).
Of course, you don’t have to invest in companies you love purely for ethical reasons. For example, if you’re an avid fan of Manchester United, you may wish to buy shares in the Red Devils. That way, you’ll be heavily invested in the performance of the club, both on and off the pitch. Take a look at our article that explains how to invest in football clubs for more on this.
On a similar note, you may be a loyal customer of a particular brand’s product or service. For example, you may be first in the queue for the latest Apple iPhone, or iMac, because you’re a fan of the company’s ethos or technology-driven mindset. Alternatively, you may be a lover of Elon Musk’s eccentric nature. In which case, you may be drawn to buying shares in Tesla.
Buying shares in companies you know and love certainly makes it possible to own a slice of something you feel a connection to. However, if you do this, understand that there are no guarantees your investment choices won’t leave you feeling disappointed.
As with any investing, your capital is at risk. Always be aware that you can lose money when investing, and the value of your portfolio can both rise and fall.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on
profits may apply.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% 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.
Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, visit etoro.com/trading/fees.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.