Is eToro Right for You?
Promoted as a social trading network, eToro promises protective measures to manage risks effectively when investing in leveraged products.
Tel Aviv, Israel-based eToro introduces users to smarter investing eToro introduces users to smarter investing by automatically copying the leading traders in the firm’s community. And what’s more, by becoming a popular trader, you get to earn additional income by sharing your trading insights and helping other traders improve their financial performance. The more-than-a-decade-old firm claims to have six million registered traders.
Apart from its main R&D facility, the firm has legal entities registered in the U.K. and Cyprus. It has a presence in Australia through a tie-up with IC Markets.
In Europe, eToro is regulated by the CySEC, it is authorized by the FCA in the U.K. nd a registered NFA member in the U.S.
eToro is fully regulated and works under top European regulators, with the funds of clients being parked in Tier 1 European banks. The firm promises confidentiality of the private data of clients.
Who Should Use eToro?
It’s likely that the following types of traders and investors will stand to benefit the most from eToro:
- Novice investors
- Investors who are looking for an intuitive, easy-to-use option
- Savvy social networking investors
eToro makes investing fairly simple, as it allows trading through three ways: retail investing, copy trading (replicating trades of professional investors one is tracking) and copy funds, which allows thematic investing or copying the investment portfolio of top investment or hedge funds.
For novice investors, the free demo account allowed upon signup is a godsend for investors who wish to test the waters before making a plunge. In addition, the wide array of instrument options it allows and the easy interface of the trading platform make eToro worth a peek.
- Commodities through CFD, or contract for difference
- Cryptocurrencies through a CryptoFund, which also incorporates cryptocurrencies such as Bitcoin
eToro's offerings span various financial asset classes.
Commissions and Fees
eToro charges no trading fees, but its income comes from the relatively high spreads and overnight fees. The minimum first-time deposit for an eToro live account ranges between $50 to $1,000, depending on where in the world you reside.
As a special offer, the firm pays up to $200 for inviting friends.
Platform and Tools
eToro provides a whole suite of online investment solutions across all devices, depending on your individual needs and preferences.
The company’s web platform evolved through years, with the eToro Web Trader and eToro OpenBook. Both of these are now deactivated and all their features are now integrated into the new eToro. However, it lacks a desktop platform.
For on-the-go traders, eToro has the new eToro app for iOS and Android, which was an improvised version of its previous mobile platform called The Mobile Trader. The app can be downloaded from the iOS App store or Google Play.
The firm uses its patented CopyTrader technology to automatically copy the trading portfolio performance of other traders.
For on-the-go traders, eToro offers a new web platform, as well as the new eToro app for iOS and Android.
eToro offers interactive trading courses with video lessons to take your trading to the next level. The courses are designed to help all levels of traders, from beginners to seasoned investors. Access to these courses can be secured by registered and with no fee. Some of the courses include:
- Forex Advantage
- Basic Forex Terms
- Types of Orders
- Effective Strategies
- Glossary of Concepts
- The World of Global Trading
- Trading Psychology
- Capital Management
- Market Analysis
- Basic Technical Analysis
- Advanced Technical Analysis
The eToro blog page has varied education resources under the following topics:
- Daily Cryptocurrency Tracker
- eToro voice, which carries articles, opinion pieces and any other form of expression by its team and community members
- From the Markets, which has daily market analysis and wider overviews of upcoming trends and economic events
- Investment Management Reports from fund managers
- Partners Talk
- Product Updates
- Social Trading
- Team Members Talk
eToro has a webpage on its website dedicated to customer service. The mode of contact is by raising a ticket for any query or issues faced. To access the customer service center, one has to go to the “help page” and access the “Write to Us” option located at the top right corner of the page.
To assist clients, the deposit page has live chat support.
Ease of Use
Creating an account with eToro is fairly simple and seamless, and you can be up and running in a day. You would be required to key in your first name and last name, choose a username, input your e-mail address, create a password and submit your phone number. After inputting all these details and agreeing to the terms and conditions, you can open an account with the firm.
The firm also allows signing in using your Gmail or Facebook account.
On creating an account, you are required to key in personal details such as address, phone number, income source, annual income, savings, investable surplus, risk-return disposition, etc. to complete your profile.
Various options are available to deposit money such as credit card, debit card, PayPal, Skrill, NETELLER, WebMoney, Yandex, UnionPay, Wire Transfer, etc.
Ultimately, eToro is a pioneer and front-runner in social investing, offering the convenience of trading through web and mobile trading platforms. Additionally, educational resources available with the firm come in handy for those investors looking to get better trading insights. There is also the lure of additional income for successful traders, whose trades are copied by the community.
However, the deterrents are the relatively high spreads and lack of a desktop platform.