In this complete eToro review, you will find out about the latest updates in 2021 along with other questions of interest in the portal. From the basics like what is eToro to a small guide on how to start with it, this article provides you with everything you need.
What Is eToro?
Founded in 2007 by David Ring and the Assia Brothers, Ronen Assia, and Yoni Assia, eToro represents a global financial trading platform and a multi-asset broker. Originally, eToro was named Retail FX by the founders. It offers Stocks trading, Commodities trading, Forex trading, CFDs trading, Social trading, Indices trading, Cryptocurrency trading, Exchange Traded Funds (ETF) trading, Index-Based Funds trading.
eToro is based in Uk and has approximately 17 million users in 100 countries including millions of registered users in 43 U.S. states and Washington, D.C. The platform is well-tailored for those with a basic understanding of forex and cryptocurrency trading.
This social trading website operates as a social network for traders, creating a great user experience. This unique proprietary platform’s key feature is the ease with which an individual client can implement copy trading. This means that you can find on the eToro platform traders who want to be copied and who are following risk-control rules. In this complete eToro review, we will dive deeper into all the details in order to get you familiar with the tool.
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Usability And eToro Markets
To get started with eToro you need to open an account which is a simple step that can be accomplished online. It could take several days to process the requested information that you submitted and verify your identity. Once this procedure is finished, your account will be officially opened.
eToro Fees
eToro fees level is generally ranked as low but before we get into details let us remind you of some basic terms for you to better understand broker fees.
- Trading fees occur when you trade. These can be commissions, spreads, financing rates, and conversion fees.
- Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.
eToro offers zero-commission real stock trading. Since May 2020, this is valid for all countries, but clients from Australia can only trade US stocks commission-free. Note that you’re buying the real stock with the free feature, not a CFD product and you cannot use leverage.
Deposit Fees
The minimum required for the first and subsequent deposits is 50$. For deposits made by wire transfer, the minimum required for initial deposits and subsequent deposits is $500. Your money can be easily deposited in your eToro account by logging in and clicking “Deposit funds”.
The minimum deposit amount (except for the first and whatever the chosen payment method) is $50. However, it can vary as well depending on the location. So in case you have any questions regarding this matter, it would be advisable to contact eToro customer service.
Withdrawal Fees
eToro has a 5$ withdrawal fee which can be considered as high if compared to other CFD brokers. Besides, eToro has a $30 minimum amount limit on withdrawals.
Withdrawal options are the same as the funding options: you can withdraw money using bank transfer, credit/debit card, or electronic wallets, similar to other CFD brokers.
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Markets Offered By eToro
eToro offers the following assets:
- Currencies – you can trade in several currency pairs.
- Cryptocurrencies – eToro currently offers 16 cryptocurrencies. They are: (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Dash (DASH), Litecoin (LTC), Cardano (ADA), Iota (MIOTA), Stellar (XLM), Eos, NEO, Tron (TRX), Zcash (ZEC), Binance Coin (BNB), and Tezos (XTZ).
- Commodities – you can operate in gold, silver, copper, oil, natural gas, and even platinum.
- Shares – you will find all those that are listed on the main Stock Exchanges, in which you will have many actions of all kinds to choose from.
- Stock indices – they measure a stock market, or a subset of the stock market, that helps investors compare current price levels with past prices to calculate market performance. They are currently the most popular internationally.
- Exchange-Traded Funds (ETFs): these are investment funds whose shares are listed on a regulated market. There are more than 50 of these assets available to trade on the eToro platform.
Trade Experience
As eToro is one of the best platforms for trading thanks to being very user-friendly, placing a trade is simple. First of all, you just click on the “Trade” button while viewing the coin in question on your watchlist. The “Buy” button in your portfolio listing. To sell a particular coin, click or tap the drop-down arrow and select ”Sell” from that list.
Some non-U.S. asset classes allow you to set a stop-loss when you enter a position but that capability is not found in the version of the product available to U.S. residents. If you copy a trade, you can set the maximum drawdown.
The trading experience on a mobile device is pretty similar to the web version. The only thing that may slightly different is that there are fewer analytical capabilities on mobile apps, but otherwise, the experience is similar.
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eToro Copy Trading and Stock Trading
The weel known social trading and copy trading feature on eToro that we discussed before is used to invest in company stocks and shares. Copy trading is where you can follow other traders and investors on the eToro platform using eToro proprietary CopyTrader and CopyPortfolio copy trading platform features. Users have the opportunity to browse through thousands of financial instruments and find the right investor who matches their trading strategy and requirements.
The copy trading feature on eToro gives its users access to the trades of over 20 million users from around 100 countries. This unique feature opens up new potential investment strategies and revenue using copy trading eToro. Your copy trading eToro portfolio can be connected to the portfolios of other eToro traders. Once you do that, all of the trades that belong to the user you chose are copied to your account. Any future buy or sell orders are automatically copied on your eToro account.
Is eToro a Safe Platform?
Compared to other brokers who rely on third-party solutions to trade, eToro provides you with its own proprietary trading platform, and it offers immediate access to all system options.
Markets can be filtered by various categories such as currencies, commodities, stocks, and indices. eToro is registered in Cyprus and has a biometric entry enabled for mobile apps. eToro has an optional safer two-step login system. This can make it more complicated to log in, but, in turn, it provides you with added security.
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Advantages of eToro
- Offers Negative Balance Protection
- Offers STP
- Low minimum deposit required
- eToro is one of the cheapest places to buy stocks. When clients buy a stock at 1x leverage they are buying the underlying stock. This is not always the cause with some brokers.
- Very intuitive platform.
- It offers a wide range of financial instruments.
- Reasonable rates apply.
- Little minimum deposit money required.
- Many savvy investors are available.
- Established cryptocurrency platform.
- The website and mobile app are nearly identical, attractively laid-out, and easy to navigate.
- Traders can see what others on the platform are doing and follow the recommendations of certain members who allow you to copy their trades.
Disadvantages of eToro
- High commissions on some assets.
- Customer service can be improved.
- Slow money withdrawals.
- The accounts are only available in dollars not in euros.
- Scalping is not allowed.
- Though you can follow the transactions of some leading traders, you’ll need to have a higher balance to copy their trades. Most require a minimum of $200 for each copied trade.
- Outside the U.S., the withdrawal fee is $5.
- Transferring a cryptocurrency out of eToro and into your own wallet incurs a fee, and there are minimums for each coin. Refer to the pricing and fees table for details.
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Conclusion
To sum up our complete eToro review, there is no doubt that eToro is the perfect trading platform for people who just began to get familiar with this field. It is incredibly easy to use and provides the users with many guides and educational articles which make the platform really attractive for newcomers.
It’s a very different experience for U.S.-based customers compared to those outside the U.S., who can trade additional asset classes and stocks from 15 countries.
It offers a safe and secure environment, with a host of different investment options, and is especially geared towards ensuring that beginners can use the platform effectively.
As one of the most popular and well-established trading platforms, eToro can certainly be recommended for users of all levels of experience.
Compared to other CFD brokers, eToro is much more fun to use thanks to its unique trait of operating as a social investment platform. Users have the opportunity to share their investments so that others are able to benefit from their knowledge and learn from people with more experience.
There is no doubt that every detail was taken into consideration when eToro was created. Having a history of 14 years gaining success constantly, it is obvious that eToro is one of the best platforms when it comes to trading and investing. We hope that this complete eToro review helped you in gaining the needed information. In case you are already familiar with this tool, feel free to share your experience.
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