How To Invest In Esports UK – Investing in Esports For Beginners 2021
Regardless of your age, occupation, or anything else, I can say with a good degree of certainty that you’ll have heard of gaming. Well, Esports is essentially professional gaming, with players training for months or even years to take part in tournaments to win cash prizes. Esports are ever-increasing in popularity and as such, investors are making big money from them. This has left many wanting a piece of the pie before prices inflate to new highs. If this sounds like you, then you’re in the right place. Throughout this guide, we’ll explain the different types of investment, some Esports pros & cons, and give you an easy-to-follow guide on how to invest in Esports.
#1 Broker to Invest in Esports – eToro
How to Invest in Esports – Step by Step Guide 2021
If you’re looking for a quick guide on how to get started with investing then don’t go anywhere. Below, you can find our summary of exactly how you can start investing from the comfort of your own home. If you’re looking for a more detailed guide, you can find that toward the bottom of the page.
- Step 1: Open an eToro account: The first thing you’ll need to do is register with eToro. Just type “eToro.com” into your browser, press “Join Now” and fill in the required details.
- Step 2: Verify your Identity: Because eToro is a regulated broker you’ll need to verify your identity. You’ll need a photo ID (passport, driving licence) and proof of address (utility bill, bank statement).
- Step 3: Fund your account: The next step is funding your account. To do this click on “deposit funds”, enter how much you want to invest, and press “Deposit”.
- Step 4: Invest in Esports: You’re ready to invest! Just type “InTheGame” in the eToro search bar, press invest, and if everything looks good, press “Invest” once more.
Where to Invest in Esports – Choose a Broker
If you want to take advantage of the Esports craze then you’ll need to register with a trusted broker. To help you decide which platform is best for you, we’ve compiled this list of our choices for the top 3 Esports brokers.
1. eToro – All-Around Best UK Esports Broker
By far the largest platform on our list is eToro. You don’t get over 20 million loyal customers by treating them poorly, eToro takes pride in making sure every single customer has an excellent experience on the platform. They offer some unique features to help inexperienced investors start making money as quickly as possible, while still catering to the needs of traders with more experience.
Security & Privacy
Security at eToro is second to none, they use several industry-leading techniques to ensure the safety of customers and their funds. Firstly, eToro is regulated by the FCA and CySEC, meaning that they’re subject to regular audits and strict data protection rules. On top of this, eToro uses SSL encryption to prevent any sensitive information from being intercepted by attackers, providing a much safer overall experience. Users can also benefit from enabling 2FA, this makes it harder for someone to gain access to your account or complete any important actions.
Fees & Features
If you’re looking for an easy-to-use platform with a great range of features, then you’ll be right at home on eToro. New users can benefit from CopyTrading which allows you to automatically mirror the trades of more experienced users, letting you earn a passive income without much effort. Another phenomenal beginner-centric feature is CopyPortfolios, we’ll delve deeper into how you can invest in Esports using CopyPortfolios a bit later, but in essence, you can have a diverse portfolio in just one click, reducing your risk greatly. Much like the other platforms on this list, eToro offers users commission-free trading, so you can get the most bang for your buck.
|Fee Type||Fee Amount|
|Inactivity Fee||£10 (Monthly)|
- Large user base
- Lacking MetaTrader support
- TradingView integration would be nice
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Best Platform to invest in Esports for Beginners UK
Although relatively new to the investment space, Capital.com certainly runs with the big dogs. They’ve focused on delivering a refined and simple trading experience, all while still managing to pack in a huge range of advanced features. Capital.com makes sure anyone trading on their platform has all the help needed to be a successful trader, creating lifelong customers.
Security & Privacy
In terms of security, Capital.com makes sure its customers are well taken care of. Much like eToro, they’re regulated by the FCA and CySEC, meaning you don’t have to worry about your money going up and vanishing. The team at Capital.com understands customers rightly want to make sure their data is secure, which is why they are fully compliant with standards set by PCI data security. Additionally, any sensitive information you provide Capital.com is encrypted using Transport Layer Security, so you don’t have to worry about attackers attempting to gain access to your information.
Fees & Features
As we touched on, Capital.com takes care to make sure their customers have an easy time when just beginning their trading journey. They do this by providing a huge amount of educational resources, which include guides on the basics of trading, various markets, and more advanced trading techniques. This provides users with everything they need to become excellent traders and make the most of the platform. Once again, Capital.com is a commission-free trading platform, allowing you to get the most out of your investment in Esports.
- A plethora of educational material
- No inactivity fee
- Simple interface
- Limited to trading CFD based instruments & real stocks
76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Great Alternative Platform to Invest in Esports UK
And to round off our list, we have our oldest platform, AvaTrade. Since its launch in 2006, AvaTrade has steadily become the go-to Esports investment platform for many, this is due to its well-balanced feature list, strict security, and good support. Although somewhat lacking any unique features, AvaTrade has done well to create an inviting platform for beginners, experienced traders, and anyone in-between.
Security & Privacy
AvaTrade retains many of the features the previous two platforms offer, they’re regulated by various bodies all over the world, including in 3 tier-1 jurisdictions. To protect customers’ data from any digital attacks, AvaTrade makes use of 256-bit SSL encryption, which should be more than sufficient. And to step things up a notch, identity documents or card information is protected using McAfee Secure, which puts an extra layer between your data and any would-be criminals. If you’re bothered by TrustPilot reviews, AvaTrade is rated 5 stars, which is always a nice-to-have.
Fees & Features
Available on both mobile and browser, AvaTrade maintains a good level of accessibility, further evidenced by the range of markets they offer, and the ability to create an Islamic trading account. Although not to the same level as Capital.com, AvaTrade offers some useful guides primarily focused on fundamental and technical analysis. Experienced traders shouldn’t be left disheartened by a lack of features either, as AvaTrade offers the ability to register for a “professional trading account”, however, you should note the requirements to do so are pretty strict. AvaTrade users can also benefit from commission-free trading, just make sure to be wary of the high inactivity fees, something that could be a deal-breaker for the casual investor.
|Fee Type||Fee Amount|
|Inactivity Fee||£50 after 3 months & £100 after 12 months|
- Great all-around platform
- Professional trading account
- Analysis guides
- Islamic account
- Range of markets
- No unique features
- High inactivity fees
Your Capital is at Risk.
Invest in Esports UK – Broker Price Comparison
To help you see how each platform stacks up against one another, we created this easy-to-reference table showing the fees associated with each platform.
|Broker||Commission||Deposit Fee||Withdrawal Fee||Inactivity Fee|
|eToro||0%||£0||£0||£10 monthly (after 12 months inactivity)|
|AvaTrade||0%||£0||£0||£50 after 3 months, £100 after 12 months|
What are the Different Ways to Invest in Esports?
If you’re looking to invest in Esports, there are a number of ways you can go about it. We’ll discuss 3 different ways you can invest using the brokers we’ve mentioned, as well as another, more hands-on method to get some skin in the game
For those with limited experience, an eToro CopyPortfolio is hard to beat. It provides an extremely easy way to invest in Esports and reduces risk hugely because it’s already diversified. Although similar to an ETF, a copy portfolio differs because it’s more akin to opening up many different positions, rather than investing in a group of assets bundled together by a fund. When you’re investing in a CopyPortfolio, you can see all of the assets included, along with what percentage of the portfolio each makes up. Due to this, if you have a specific team or company that you’d like
ETFs (Exchange Traded Funds)
An ETF, otherwise known as an exchange-traded fund is a way investors can put their money in a diverse range of assets without having to do a ridiculous amount of legwork. A brokerage or fund will group together several related companies or teams and allow investors to purchase a fraction, although you can receive dividend payments, you do not own any of the underlying assets. You’ll earn money if the value of the companies in the ETF increase and lose out if they decrease. Typically an ETF is seen as relatively safe and stable, because it contains a range of assets, shielding your investment if one were to collapse.
Equal Weight Indices
An index fund sometimes referred to as indices, is a way of investing in multiple companies in a similar way to an ETF. The main difference between an index and an ETF is how they’re bought and sold, you trade an ETF in the same way you would trade a stock, an Index, however, is bought directly through a fund manager. You can often avoid trading fees when investing in indices, which can result in having more funds invested than you would with an ETF.
Best Ways to Invest in Esports UK
As we’ve discussed, there are a huge amount of different ways you can invest in Esports. When you’re trying to choose which method is best for you, it’s advisable to consider the options each type of investment provides, and weigh them against your individual requirements. To help make this process a bit easier, we’ve created this section explaining who can best benefit from each investment type.
Create an Esports Team
We’ll only touch on this briefly as it won’t apply to 99% of the people reading this guide, but if you’re serious about Esports it could be an excellent way to invest. Although it’s by no means a small undertaking, creating an Esports team doesn’t have the same financial requirements as traditional sports teams.
Invest in Esports Managed Portfolio
For anyone looking for an easy-to-understand way of investing in Esports, we recommend an eToro CopyPortfolio. This is because it provides reasonably good, steady, stress-free returns that are well within the reach of the average investor. Because a CopyPortfolio is more akin to opening multiple positions than investing in an ETF, you gain all the benefits of having a highly diversified portfolio, without having to worry about any of the risks associated with ETFs.
Invest in Esports ETFs
If you’re looking for a medium to long-term way to invest in Esports, then an ETF could be perfect for you! An ETF is traded in the same way you would trade a stock, it allows you to easily invest in a diverse range of assets, greatly reducing your risk exposure. This can be massively beneficial for anyone wanting to take advantage of the booming Esports industry, while only taking on minimal risk. When investing in Capital.com’s VanEck Vectors Esport ETF/CFD Fund, experienced traders can take advantage of leverage, allowing you to amplify your profits up to 5:1.
Invest in Esports Indices
Another way you can invest in Esports is using index funds. Best suited for long-term investors, and those looking for a safe place to store money for the later years of life. For the average investor without a laser-focused list of companies they’d like to put their money in, it’s hard to beat an index fund, they provide stable growth and minimal risk, thanks to their low fees and variety of underlying assets. One of the world’s best-known investors, Warren Buffett has shared his love for index funds and stated they’re an excellent option for any looking to save for retirement, in our opinion, anything recommended by someone of Buffett’s status is at least worth considering.
Is Esports a good investment UK?
As an investor, it makes sense to put your money into a growing industry rather than something close to reaching its full potential, after all, you won’t get much return on the latter. There aren’t many industries this close to their conception that are growing as quickly as Esports, and with the majority of Esports audiences being young, it’s entirely possible the industry already has a heap of life-long fans.
Popularity of Esports Only Rising
The popularity of Esports has been rising sharply over the past few years, going from somewhat of a joke to a billion-dollar industry that’s impossible to ignore. The success of Esports can be partly attributed to the young, tech-fluent audience and the massive popularity of competitive gaming. In the grand scheme of things, we’re still very much at the birth of the Esports industry, with the majority of teams being less than a decade old, if the industry keeps growing at its current rate Esports could be one of the most profitable investments out there.
Esports are Global
Unlike some investments which are geo-specific, Esports is a global industry with teams from all over the world. Because of this, the amount of potential customers is huge. Both Asian and Western countries are in love with Esports, the USA, UK, and China boast some of the best teams. As Esports become more serious and reach a wider audience, it would make sense for countries to begin creating national teams, potentially leading to a global Esports league, if this ends up happening Esports could even start competing with traditional sports in terms of viewership & popularity.
Investing in Esports – What are the Risks
Every investment comes with its own set of risks and for Esports, it’s a far longer list than a typical investment. Because you would typically be investing in a single team, if they stop performing well, as an investor you’re in trouble. After all, just with traditional sports, wins bring publicity and publicity brings money. That being said, you can reduce your risk by investing in a bundle of grouped-together teams like with an ETF or equal weight index.
Although the Esports market as a whole is growing, if a team has a bad spell with lots of losses, it could end in disaster. Just as a company losing revenue could decrease its stock price, if an Esports team has a lot of losses, its value and popularity will heavily decrease, with less popularity comes fewer merch sales, and therefore an even greater loss in value. In that sense Esports and regular sports are very alike, should a team stop winning, they lose relevance at an alarming rate. While it’s easy to think “well I’ll just invest in winning teams”, you need to keep in mind if just a single-player were to retire or switch teams it could be the start of a losing streak that’s hard to recover from.
The phrase “one bad apple can spoil the barrel” rings true in the world of Esports. While we shouldn’t necessarily judge a team by the actions of one player, we often do, it’s hard to believe that a group of people working so closely together wouldn’t know if one member was cheating. In the past, such scandals have been spelled disaster for Esports teams, with fans and event organizers rightly feeling cheated and as such remaining hesitant to trust the teams again. If fans or event organizers can’t trust a team, why would an investor trust them with their money?
How to Invest in Esports with eToro
Do you want to take advantage of the booming Esports market? When you’re new to investing it can be confusing filtering through all the contradictory information available out there, however, at Economy Watch we believe investing should be accessible to all which is why we’ve created this handy guide, to help you start investing in less than 10 minutes!
Step 1: Open an account with eToro
Regardless of what you want to invest in, you won’t get far without an account with a brokerage! We recommend eToro for anyone looking to get started with investing because they offer a diverse range of financial instruments, industry-leading security, and a simple-to-navigate interface. Type “eToro.com” into your browser, press “Join Now”, and provide the required details.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
After you’ve created your eToro account, you’ll need to verify it. This is because eToro is a regulated broker and is subject to strict rules surrounding data protection and money laundering. You’ll need to provide eToro a photo ID (passport, driving licence) and proof of address (utility bill, bank statement).
Step 3: Fund your account
Once you’ve verified your Etoro account, you’re almost ready to start investing! All that’s left is to fund your account. To do this all you have to do is click “Deposit Funds”, enter the amount you’d like to invest, and press “Deposit”. eToro supports a range of payment methods, including, credit/debit cards, bank transfers, and e-wallets (PayPal, Skrill, etc).
Step 4: Invest in Esports!
Now that you’ve funded your eToro account, all that’s left to do is invest! We recommend using eToro’s CopyPortfolio, which lets you invest in a range of assets at once. In the search bar just type “InTheGame”, press “invest”, and when you’re ready press “Invest” again. After this, you’ll be making money with CopyPortfolios!
The Esports industry has grown by a tremendous amount over the past 5 years and with competitions growing in popularity, that trend is likely going to continue. If you want to take advantage of this great opportunity, you’ll need to set up the best platform to invest in Esports. After conducting a great deal of research, we concluded that eToro is the best platform to invest in Esports, thanks to their phenomenal blend of security, features, and ease of use. Now that you’ve come to the end of our guide, you should know some of the pros and cons of investing in Esports and have all the knowledge required to start investing today. As with any investment, it’s always important you do your own research and risk only what you can afford to lose.
Best Place to Invest in Esports UK – eToro
Where can I Invest in Esports UK?
What is an Esports CopyPortfolio?
What is an Esports ETF?
What’s the Future of Esports?
Should I Invest in Individual Stocks or a CopyPortfolio/ETF