- eToro is one of the most popular platforms for investing online
- eToro offers users the ability to trade stocks, commodities, ETFs, cryptocurrencies and more
- This step-by-step guide will show you how to buy Alibaba shares on eToro
With the rise of online brokers, it is easier than ever to invest your money in Alibaba and other large companies. If you’ve thought about buying Alibaba stocks and looking for different brokers online, you’ve probably heard of eToro.
Create an eToro account
eToro was established in 2007 and has since become one of the most popular brokers for online trading and investing. eToro has more than 10 million registered users and is regulated in Cyprus, Australia and the United Kingdom. In addition to giving users the ability to buy and sell stocks, their platform actually provides a diverse suite of other trading products. Let’s quickly review a list of the defining features of eToro:
- Commercial actions and other traditional financial instruments
- Trade cryptocurrencies
- Copy the portfolios of successful traders
- Test trading strategies with demo trading
- Leverage trading
Now let’s see the main pros and cons of eToro stock trading:
- Wide selection of assets available for trading
- Social trading features
- Demo trading support
- Forex trading fees are relatively high
- Withdrawal and inactivity fees
Buy Alibaba (BABA) on eToro
Alibaba is a technology company based in China which is best known for its operations in the e-commerce sector. However, Alibaba is also involved in the fields of electronic payments, cloud computing and search engines. Alibaba was founded in 1999 by Jack Ma, who was the richest person in China in March 2020. In 2019, the company had more than 100,000 employees and generated more than $ 55 billion in revenue. Alibaba was listed on the stock exchange in 2014 and the company’s shares are listed on the New York Stock Exchange under the symbol BABA as well as on the Hong Kong Stock Exchange under the symbol 9988.
Now let’s start by buying Alibaba shares (BABA) on the eToro platform.
1. Create an eToro account
Creating an eToro account is very simple and you can log in to your new eToro account in a few minutes.
Create an eToro account
If you just want to take a look at what the eToro platform has to offer, the only information required to create an account is an email and a phone number. However, if you want to deposit money and actually start trading, you will need to provide additional personal information to verify your identity.
2. Complete your eToro profile
After creating your eToro account, you will need to complete your eToro profile before you can start trading. This information is necessary for eToro to comply with applicable AML and CTF regulations. Click on “Full Profile” under your username and follow the steps presented.
3. Fund your eToro account
After performing the necessary verification, you can fund your eToro account.
The minimum deposit currently accepted by eToro is $ 200, or the equivalent in other currencies. The platform actually offers seven different deposit methods, so choose the one that works best for you:
- Credit / debit card
- Pay Pal
- Bank transfer
As with any investment, invest no more than you are willing to lose.
POINT: If you don’t feel ready to trade stocks for real money yet, you can use eToro’s virtual wallet feature to test some risk-free trading strategies. You can switch from your real wallet to your virtual wallet by clicking on the icon under the name of your profile. You will receive $ 100,000 in virtual money which you can use to exchange any instrument offered by eToro.
4. Buy Alibaba shares
Once your account is funded, you can start trading stocks on eToro. You can either buy a stock or sell it short, depending on how you think the market will evolve. In this guide, we will show an Alibaba (BABA) stock purchase.
Go to the search bar at the top of the eToro interface and enter the name or ticker of the security you want to buy, in this case Alibaba. In addition to the price table, you will also find key information about the stock, including the balance sheet, profit and loss accounts and more. For some stocks, research is also provided.
Click on the “Negotiate” button to place your order for BABA shares. Now a window will open where we can modify all the parameters of our business. In this example, we will invest $ 5,020.
By switching between “Trade” and “Order” at the top right, you can either buy the stock at the best price currently available, or specify the exact price at which you want to buy the stock. We will keep it at “Commerce” because it is the quickest and easiest way.
Under “Amount”, we will define the amount we want to invest – in this case, $ 5,020. Below we can see what percentage of our total capital we are using.
In the section at the bottom, you can define your stop loss, leverage and profit levels. Stop losses are used to set the maximum loss you are willing to accept in trading, while draw profits are used to make gains by automatically closing the position once it reaches a specified value above our price. entry. Regarding leverage, we will keep it at 1x, because a higher leverage would introduce additional risks for our business.
After clicking on “Open Trade”, your order will be submitted and your transaction should be completed shortly.
5. Monitor the performance of your BABA stock
Once your order is complete, you can follow the status of your transaction in the “Portfolio” section. Here you can also update your stop loss and take profit levels if you are not satisfied with the previously defined levels.
If you want to leave the store, click the X icon on the right (blue).
Do you own the stocks you buy on eToro?
Yes – when you buy a security like Alibaba on eToro, you are investing in the underlying asset. However, there are some caveats to this. EToro Australia users actually purchase a CFD (contract for differences) when they purchase inventory from eToro.
If you use eToro to buy stocks listed on the Borsa Italiana, the Helsinki Stock Exchange, the Stockholm Stock Exchange or the Oslo Stock Exchange, you are also buying a CFD.
When you use CFDs, you get exposure to the price movements of the underlying asset, but you don’t actually own the asset itself.
What is copy trading on eToro?
eToro presents itself as a “social trading” platform, and these social features give eToro a unique dimension compared to most other online trading platforms. The eToro copy exchange function allows you to copy exchanges made by other eToro users.
You can access this functionality by going to the “Copy people” section in the navigation bar. The different traders you can copy are sorted by risk level, so you can choose the risk level of a trading strategy with which you are comfortable.
For each trader, you can see detailed statistics on their performance during a selected transaction period and the changes made to their portfolio. You can copy up to 100 different traders at a time. The minimum amount you can invest in a single trader is $ 200.
Negotiate actions on eToro
Of course, eToro offers many other stocks to trade in addition to BABA. The company offers around 800 different stocks listed on various global exchanges. Here are some examples of the stocks you can buy on eToro:
- You’re here
The essentials about buying Alibaba shares (BABA) on eToro
If you want to invest in Alibaba stocks via an online platform, eToro is definitely worth checking out. The platform offers a full suite of features while providing an intuitive and user-friendly interface for beginners. Not only does the platform allow you to trade traditional financial instruments like stocks, ETFs and indices, but you can also trade cryptocurrencies on eToro.
The copy function is also ideal for users who want to invest in a diversified portfolio of stocks, but prefer to leave the exact composition of the portfolio to a more experienced investor.
Trade stocks on eToro