The social trading platform eToro is one of the most popular Forex trading brokers out there, and there are a lot of advantages that come with using eToro. But just exactly how reliable are they, and how do you know that you can benefit using eToro. We will explore all of that in this review.
The platform eToro is really a social investment tool. They have created one of the most interesting and advanced trading tools on the market today; combined with one of the best social tools out there for financial enthusiasts. Users of the platform can trade currency, commodities, CFD’s and even indices.</span
The platform eToro is really a social investment tool. They have created one of the most interesting and advanced trading tools on the market today; combined with one of the best social tools out there for financial enthusiasts. Users of the platform can trade currency, commodities, CFD’s and even indices.
Currently, eToro has a total user count of around four million and they come from more than 140 counties worldwide. The reason why there are so many traders with this platform should be obvious – everyone loves etoro. The major benefit of eToro is that traders are offered a comprehensive suite of tools and because of the social trading.
Imagine if you could pick someone who is making a great deal of money on the stock market and then get notified every single time they bought or sold stock. It would mean that you would also be making money – and if you invested the same amount that they did, you would be making the same amount. In other words, you can copy and follow other traders in real time.
One of the most important factors to look at when it comes to online trading platforms is regulation. If the platform isn’t regulated, there is the potential for you losing money. There are lots of brokers out there that don’t report to anyone and don’t have any agency or organization watching over them and making sure they have fair trading policies and giving customers a recourse if they do get scammed.
Luckily, eToro is not one of those brokers. They are regulated and have been since 2010. The Europe division of eToro is regulated by CySec, the most recognized oversight organization for trading in Europe and by the Financial Conduct Authority for the division in the United Kingdom.
Right now, residents of the United States are not able to participate in trades at eToro. However, eToroUSA may soon be available, since Tradonomi L.L.C., the company that operates eToro, is a member of the National Futures Association and that means that they would be regulated by the CFTC in the United States. Hopefully, eToroUSA will soon be a reality for U.S. residents.
Let’s get into a more detailed explanation of ”social trading” and ”copy trading.” Most of the time, with the other platforms out there, the trader must rely on their own knowledge and skill to make successful traders. But traders at eToro have other options.
The term ”social trading” means that not only can you follow traders move-for-move, but you can also comment on trades and posts, give them likes and a whole lot more. You can even see their entire array of investment statistics before you decide to follow them.
Basically, social trading takes advantage of ‘crowd wisdom’ to help traders make the optimal trades. Instead of just relying on their own strategies, traders can now follow more successful traders and replicate all or part of their trading strategies.
If you are skeptical about this method, consider this. Not only can the 4.5 million users testify as to the success of the eToro Copy Trade system, but there has been actual research on the method and proved its effectiveness. An MIT study that was done in 2012 showed that traders who copied other successful traders had between 6 and 10 percent returns. On eToro, you get an even bigger advantage, with the ability to copy up to 100 different traders at the same time.
There are four methods of copy trading that you can use to trade at eToro. We will explore each one in a little more detail so that you can see exactly how the process works.
”Copy All Trades:” This simply means that you will copy everything that your selected trader does. You will copy all of the trades that your selected trader is currently doing. So, if your traders changes his stop-loss position, yours will automatically follow suite. The only difference is, you will be opening trades at the current market rate rather than the rate that the trader got originally. The good news is, you can close any specific copied trade you want and it won’t affect the rest of your trades.
”Copy New Trades:” This is a copy action that will start after you begin following a certain trader and initiating the CopyTrade. Any trade that your trader makes from that point forward will also be your action.
”Copy Stop-Loss:” This feature is for you to mitigate risk while you are trading. The Stop-Loss is a specific price that you want to sell at and get out of the market. The default is 40% but you can change it to whatever you want. When your Stop-Loss reaches that specific amount, all positions will be closed and the money will be returned to your account. You don’t have to use this feature alone either. You can combine it with other methods like the ”Copy All Trades.”
”Pause Copy:” The last one is ”pause copy” which simply means that you won’t be copying anymore trades from someone you have been following but open positions will remain that way. These are just the four main features of CopyTrade. There are more offered by eToro.
There are a number of other features connected with the CopyTrade tools that are very useful to those who use eToro.
People Discovery: The first is the search engine that you’ll be using to find traders to copy. You can set a lot of parameters for your search in order to find the perfect trader. For example, you can search for traders from a specific country, for a total of invested assets or for a specific gain within a period of time. There are many other advanced features such as average trade size, risk score and more.
Top Traders’ Insights: this tool collects data from eToro directly, showing insights into what the 1000 most profitable Traders are doing including instruments and a breakdown of buy and sell positions.
Economic Calendar: The economic calendar shows the growth of exports, the current GDP, data from jobs and even production from various countries.
Market News: Market news gives you analysis, technical insight, real time updates and information on trends.
Pips Calculator: This simple but useful tool translates movement and pips into something you can actually use, like dollar value profit and loss.
One of the coolest things about this platform is the way that they allow traders to become “popular investors” and make even more money. There is a big benefit to new traders as well, since the list of popular investors contains the top earning investors on eToro. But once a new trader gets some experience, they can actually take advantage from being on that list.
eToro believes that you should be compensated if traders are following you. After all, investment management professionals are compensated for the advice that they give, and this is very similar. But since there is no contract between the two traders, there was no way for the copied trader to make any money for their advice.
That’s why this program from eToro is so great. Popular investors who have people following and copying them will earn a fee of all of the assets that are copying them for 2%, and they get a 100% spread rebate as well. Of course, they are also earning money with their own trades. This money can be withdrawn immediately, and they can continue to be a popular investor as well as they trade responsibly and still have people copying their trades.
Here are the levels of Popular Investors along with the perks that they get for being one:
Cadet: At least one person has to be copying you with a minimum deposit of $1000. No monthly payment but there is a 20% spread rebate.
Rising Star: 50 traders have to be copying you with a minimum deposit of $5,000. Your spread rebate is 30% and you get a monthly payment of $500. You also have no withdrawal fees.
Champion: Minimum deposit of $5,000. 250 traders copying. Your spread rebate is now 50% and you get a monthly payment of $1,000. In addition, you get a premium account and access to Trading Central.
Elite: This one is a little different. The minimum deposit is $20,000 and you have to have $300,000 in assets that are copying you. You get $1000 a month and 2% of all of the assets you are managing. You get all of the perks of the Champion level like a premium account and access to Trading Central and you get $500 a month to spend on marketing, $500 every three months to spend on education and $5000 a year to spend on events.
There is an entire online trading academy offered by eToro that is split into three sections. The first is the trading course, which teaches you everything that you need to know about basic trading and is intended for new traders.
The second is the huge selection of trading videos and third, there are several webinars that you can watch in order to learn how to invest better. You can watch these videos and webinars through the eToro website or on their YouTube channel.
You just have to be registered to take the electronic course offered by eToro. There are 11 lessons, covering everything from basic technical analysis for beginning traders to the most effective strategies out there for making money.
There is also a blog that reports on a large variety of topics and keeps investors up to date with everything that is going on in the world of finance, particularly the stuff that would affect any of the trades that they are making or assets they are involved in.
You can choose from two basic types of accounts on eToro. The first is the normal trading account. They also offer an Islamic trading account. There is also the demo account which we’ll get to shortly. Let’s go over each one in a little more detail.
If you make a minimum deposit of $200, then you get a standard trading account. This is simply the most basic account that eToro offers.
Muslim traders who want to trade on the foreign exchange market can open an Islamic account. There is a minimum deposit of €1,000, but there is no interest on overnight positions and you don’t have to worry about paying commissions.
Finally there is a demo account that will allow you to try out eToro without having to spend any money. This means that you’ll get all of the features and see just how much money you can make before you deposit a penny.
The software created by eToro for traders is some of the most advanced trading software in the business. Somehow they have been able to maintain a balance between a platform that is user friendly and still comprehensive enough to satisfy more advanced traders. The three basic platforms at eToro include the following:
Let’s start with a detailed overview of OpenBook. This is a terrific trading platform that combines trading with the social media experience. The platform is named OpenBook, because the company believes in total transparency at all times. Traders can see what other traders are doing and every single day there is something new to learn by looking at the actions of successful traders, copying them and examining the data that is provided by eToro. It is simply one of the most unique and profitable platforms out there for trading.
There is also WebTrader, which is a platform that will allow traders to access any of their options no matter where they are. The WebTrader platform is not that difficult to use, a snap to navigate and you can get very social on there, including chatting with other traders. They also allow you to log in without anyone knowing so that you can still do your business without anyone even knowing that you are online.
Finally, there is the mobile trading platform, which is extremely popular due to the extreme shift towards phones, tablets and other mobile devices. This app is available for iOS devices as well as Android devices, and offers the same functionality and ease of use that you get with the other trading platforms, all in the palm of your hand. You can access both OpenBook and WebTrader through the mobile platform as well as all the social functions that come with it.
Some of the other things that you might get excited about at eToro includes their referral program, which can get you as much as $100 for each person you refer to the site. Plus, because you referred them, that friend could get $200 in eToro credit. Make sure that whoever you invite has some money to invest however, because there is a deposit minimum of $500. You can invite your friends via email and if you open a premium account with eToro, you will get even better offers for referring friends.
For first time traders, there are a couple of really great offers that you’ll want to take advantage of. The first is a generous “first time depositor” promotion, which varies depending upon the month. There is also an offer for your second deposit. You get six months to use these offer credits any way you see fit.
There are lots of other special offers that are offered regularly. They always have monthly specials, referral programs and of course, the premium account which has some amazing features.
If you are thinking about investing with eToro, one of the first things you’ll run into is your initial deposit. The actual amounts will vary a little depending upon which country you are in, but the standard minimum to open an account is $200 and the standard maximum is $1000. Some deposits will have a maximum ranging from $5,000 to ten times that, depending upon which payment option you use.
China Union Pay, Diner’s Club, Mastecard, Giropay, Neteller, Visa, PayPal, Skrill, WebMoney, Wirecard, and Yandex are all accepted payments with eToro, and you can even do a bank transfer if you prefer. All deposits are converted in USD, because all of the accounts are in that currency.
eToro uses Secure Socket Layer (SSL) technology to protect your data and ensure that the platform is protected by the top security available. In order to verify your account for deposit and withdrawal, you need to show proof of your identity, your current address and your phone number, all of which are usually very simple to provide.
Of course, the other side to deposits is withdrawals. As long as you have a verified account, you will be able to withdraw your funds. You have to withdraw at least $20, but the really great thing is that eToro will process your deposit within 1 business day, which is quite unique among trading platforms. It will take a few business days to get into your account after that, depending upon your bank’s normal policies. There may be fees as well, but they are minimal.
There are five different markets that you can choose from at eToro. First is Forex, or currency exchange, then there are commodities, indices. Stocks like Facebook and Google are included. You can choose from indices like Dow Jones 30, NASDAQ100 and SPX500. There are many currency pairs for you to choose from as well and if you prefer to trade in commodities, you get to choose from a wide variety include gold and silver.
There are several support options if you have an account with eToro. You can choose to get support via live chat, or you can give them a call and get support over the phone. The numbers are toll free. They offer support five days a week, 24 hours a day. There is also email support, and in some cases, there may even be an eToro office near you.
So, should you invest with eToro? if you want a good and trustful broker, yes. This is one of the most advanced and profitable platforms out there. This social trading platform has a very user friendly website which is adapted for both beginners and advanced traders. The customer support is one of the best in the business and you will get help with any questions regarding trading.
It´s a great idea to use a social trading platform like eToro since you can copy and following other traders to make profits. The good purpose with eToro is its business model since it wants its clients success and helps them to gain successful trading.
Risk Warning: Trading may not be suitable for everyone, so please ensure that you fully understand the risks involved.
Minimum Deposit: $200
Minimum Trade Amount: $0,01 lot
Maximum leverage: 1:400
Regulation: CySec and Fca
Trading Platform: Etoro platform
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