|Regulated by:||CySec in Cyprus and FCA in the UK|
|Headquarters:||London, United Kingdom|
Trading ProductsCurrencies, Commodities, Indices, Stocks, ETFs, Exchange and Industries
Demo AccountsYes (Available once you sign up for a regular account)
eToro is a global online brokerage firm with more than 4.5 million traders in over 170 countries. It allows you to trade stocks, commodities, ETFs and even cryptocurrencies, in a safe and transparent environment.
One of the unique features of eToro that makes it stand out among other online brokers is its social trading feature. eToro has built an online trading community that allows traders of all experience levels to interact with their peers in a supportive environment. Discussion boards and live chat messaging systems allow traders to share ideas and suggestions for investment opportunities.
Users can sign up for an eToro Trader Program and take advantage of the site’s personalized service. The market analysis team provides insight reports and the account teams are ready to address any issues you may have with your investment account.
eToro also ensures that traders who are still developing their skills will have the resources they need to build their proficiency. Free courses are available that teach the basic principles of trading. A free virtual account allows them to practice what they’ve learned through actual trading activities without having to risk real money.
eToro also promotes responsible trading. It wants its investors to realize that trading also involves risk that they should be aware of, and that they should manage their risk to avoid catastrophic losses. Traders should also realize that the markets can be volatile, and that past performance is not an indicator of how your investments will do in the future.
eToro – Pros and Cons
Before you decide to sign up for an account with eToro, you should first weigh the pros and cons. This will allow you to make an informed decision as to whether or not you should use them as your broker.
It is easy to open an account with eToro. Due to its seamless integration with social media sites, you can even use a social media profile, such as your Facebook account, to register for a trading account. And there are low minimum amount requirements to open a live account.
User-friendly trading platform. It won’t take you a long time to learn how to use it to start trading since it has a simple menu and self-explanatory labels for the various features.
Issues with security. When it comes to logging in to your eToro account, you only need to type in your password and username. There are no additional security features such as SMS alert or digital token which would make it more secure.
Relatively expensive trading fees. EToro charges a higher spread than other discount brokers, although its fee structure is transparent and they do not charge commissions.
Account Information and What to Expect
Opening an account with eToro is simple and takes just a few minutes. You don’t need to fill up a lot of data fields. In fact, you can register with a Facebook or Google+ account or even just an email account. Once you register, you will need to upload identification documents for customer data ID verification purposes. The documents you will need are a passport or personal ID and a recent utility bill with your address (for residency verification).
The minimum deposit you need to fund your account is relatively low, and once your account is active, you can immediately start using the eToro trading platform. You have the option of trading a live account or using a virtual account to practice trading before you start risking real money.
However, eToro does not allow traders from certain countries, such as the US, Japan and Canada. The site also uses only US dollars in its trading activities, so although you can fund your account with your native currency, eToro will convert it to dollars using its conversion rates.
eToro Trading Platforms
The eToro platform that is being used today actually evolved from two separate platforms the online broker used to run in its early days – the Web Trader and the Open Book.
The Web Trader was the platform that was used for managing your trading portfolio. It had an easy-to-read interface that allowed you to perform account management activities such as opening and closing positions, and setting and adjusting Stop Loss and Take Profit orders. The platform also gave you access to trading tools such as being able to view live rates in real time, and charting software so that you could analyze rates to identify trading opportunities.
The Open Book was the original social platform that eToro launched in 2011. It was the beginning of the social infrastructure that led to the community of 4.5 million eToro traders today. The platform was based on the concept of “social trading”, which uses trading tools created by the community to help traders make smarter decisions. For instance, you can look at the portfolios of successful traders and view their overall performance so that you can use their trading strategy in your own trades. If you are good enough, you can even achieve Popular Investor status, which is accorded only to those who have shown themselves to be consistently successful at trading as well as being a responsible member of the community.
One of the most popular trading tools to be developed from the social trading concept is CopyTrader. This feature allows you to automatically copy a trader’s investment decisions and portfolio. You can even follow Popular Investors so you can copy what they’re doing.
The platform allows you to practice by making paper trades so that you can develop your skills without having to risk real money. Once you have signed up for an account, you are allocated an account with a certain amount of virtual money so you can make practice trades on weekends when the markets are closed.
Aside from trading traditional investment products such as stocks, currencies and ETFs, you can also avail of CopyFunds, which provides you with a fully allocated portfolio. There are two types of CopyFunds to choose from – the Market Fund takes an existing market strategy or theme and then uses it to pick selected ETFs, CFD stocks and commodities. Top Trader Funds track what a particular trader is doing and lets you copy their trading activity. To ensure that you get maximum gains, eToro’s investment team professionally manages your capital and periodically rebalances your portfolio.
Mobile Trading Platforms – eToro has it all!
eToro also provides an app that you can download to your device and is available for Android and iOS. The app allows you to manage your trades from your tablet or smartphone. Of course, you can also use the social features of the site
Market Trading Options
Cryptocurrencies. These are digital or virtual currencies that are created and secured through cryptography. One of the first, and the most well known, cryptocurrencies is Bitcoin, which was introduced in 2009. Since then, other popular cryptocurrencies such as Etherium and Litecoin have also become popular with traders.
Many traders choose to trade cryptocurrencies because of the potential for high returns due to the possibility of price gains up to 1000% and more. However, there are also serious risks involved, such as the volatility of the markets that may lead to wild price swings. But for traders who have a tolerance for accepting high risk, cryptocurrencies represent a great opportunity to make large profits.
ETFs. Exchange-traded funds are securities that track a basket of assets, bonds, indices, or commodities. These funds actually own the underlying assets that constitute them, and issue shares to investors. Shareholders are entitled to a percentage of the profits based on the number of shares they own. They can trade their shares on exchanges as if they were stocks, and the prices can also change based on trading activity. It costs less to invest in ETFs compared with other securities because they have lower fees and higher daily liquidity, which makes them a better choice for individual investors.
Stocks. These are shares issued by a company that entitles you to a share of its earnings and assets. There are two types of stock – common and preferred. Both entitle you to receive dividends, if the company declares them, but common stock holders are also allowed to vote during shareholder meetings. Stocks are a popular long-term investment since they will outperform most other investments over time. Hence, they are usually regarded as one of the safest investments, and are ideal for those who are building a portfolio to save for retirement.
Indices. Index funds are mutual funds that track a particular index, such as the Dow Jones Industrial Average. The purpose of an index is to follow the performance of the stock market by creating a portfolio of stocks that is designed to represent it. Any changes in the value of the index are supposed to reflect a proportional change in the stocks that constitute it.
Index funds are affordable investments that cost less in management fees, since they are not actively managed. The fund manager is simply copying the benchmark index’s performance. They are also considered ideal long-term holdings for retirement investment portfolios.
Commodities. These are basic necessities which are either directly consumed, such as food, or used in industry, such as metals and oil. They are traded in commodities markets using contracts, which entitle the holder to sell or buy a certain quantity of a particular good at a named price. Investors can trade commodities either through ETFs or options, which work like contracts but do not require the holder to buy or sell a good, but only give them the right to do so. You can also invest in mutual funds that hold stocks in companies engaged in commodity-related activities, such as mining.
Currencies. Also known as foreign exchange (forex) trading, when you trade currencies, you are actually making two transactions simultaneously – you are buying units of one currency and selling units of another. For instance, when you trade the currency pair EUR/USD, you are buying euros and selling US dollars. Forex traders make money when the currency they bought increases in value against the one they sold. Currency trading is a speculative activity, meaning that you only hold on to your investment for a short time before selling it when there is a favorable price change. You should only undertake it if you are willing to accept the risks associated with forex trading.
Bonuses for New Traders
At present, there are no welcome bonuses available for new traders who sign up for an account. This is due to regulations imposed by CySEC. But the lack of bonuses should not deter you from joining the eToro community.
Is eToro a Scam?
There are many reasons why you should trust eToro. It has offices in the UK and Cyprus and is regulated by the Financial Conduct Authority and the Cyprus Securities and Exchange Commission. Their offices also comply with and operate under the Markets in Financial Instruments Directive, which is the legal framework of the EU for regulating investment intermediaries and organized trading of stocks, bonds and other financial instruments. It is definitely not a scam, and is actually one of the most reliable online brokers in the market.
Demo Accounts and VIP Programs
One of the main advantages of practicing using an eToro demo account is that it feels exactly the same as if you were trading with real money, but without actually having to risk your trading capital. Thus, you will be poised to make profits once you’re ready to make real trades.
When you’re ready to make trades using actual money, you can qualify for various eToro clubs depending on how much you deposit into your trading account. You can enjoy various perks including access to webinars, membership with the technical analysis research provider Trading Central and a personal account manager.
Deposit and Withdraw Your Funds
You can easily make deposits to your account using payment methods including Skrill, Neteller, Visa and MasterCard credit and debit card and WebMoney (in the UK) and wire transfer (available in all countries).
Withdrawals can be made using the payment methods named above as well as PayPal and China Union Pay. It generally takes 1 to 2 working days for the funds to appear in your account, although wire transfers and credit/debit cards can take up to five working days.
There is an FAQ section where many common concerns and issues are addressed. If your concern is not included, you can get in touch with customer service by opening a ticket. Languages supported include English, Spanish, German, French and Italian.
The eToro Trading Academy offers a variety of educational resources. There are interactive courses that teach the basics of forex, how to use orders to manage risk and effective trading strategies. There are also short training videos.
eToro is one of the top online brokers in the world, with more than 4.5 million users in 170 countries. It has a unique social trading platform that allows you to interact with members of its online trading community so that you can learn from more experienced traders.
It is registered in Cyprus and has offices there and in the UK. eToro is regulated by the Cyprus Securities and Exchange Commission and the Financial Conduct Authority, ensuring that it follows the best practices of the industry.
New traders can practice making trades with a demo account and virtual money before they make live trades and risk their trading capital. Once they are ready to make real trades, they can qualify for VIP clubs based on the amount of their deposit. Membership entitles them to perks like access to webinars and a personal account manager.
Thank you for reading our eToro review and we hope you found it helpful!
HeadquartersLondon, United Kingdom, EU
SupportAvailable only through a ticket system on eToro’s website
24/7 supportYes, only through messages on eToro’s website
Support during weekendsYes
Contact MethodsOnline Forms / Tickets through eToro’s website
Support LanguagesEnglish, German, Spanish, French and Italian
Account CurrenciesUSD, EUR, GBP, BTC
Available for US TradersNo
Minimum Deposit50 euro
Minimum Trade1 euro
Maximum Trade5000 euro
DEMO accountOnly available for users holding a regular account
Deposit OptionsVisa, Master Card, Diners Club, PayPal, Skrill, Neteller, Union Pay, WebMoney, Yandex
Withdrawal OptionsCredit Cards, PayPal, Bank Transfer, Union Pay, Debit Cards, Neteller, PayPal, Skrill, WebMoney, Wire Transfer
PlatformeToro WebTrader, eToro OpenBook and Mobile Trader
SignalsYes, through Social Alerts™ (A mobile trading app)
Trading with products promoted on Binaly.com is highly speculative and carries a high level of risk.