eToro is a trading platform that was founded in 2007. It is headquartered in Limassol, Cyprus, from where it services some 5,000,000 social traders across the world. They have won numerous awards and are regulated by the FCA, MiFID, CFTC, ASIC, and CySEC. They are a unique trader, offering social trading in particular. This means Forex (foreign exchange) traders are able to share their knowledge and experience and retrieve information from other traders in order to manager their own accounts. Being social, it allows traders to connect through the trademarked CopyTrader platform, copying the performance of their trading portfolio. Let’s take a more in-depth look at eToro and what they offer.
eToro Trading Accounts
Recently, eToro increased the minimum deposit required to open an account in Arabic regions to $200. In all other areas, however, a $100 deposit or 40% of realized equity to a maximum of $50,000 are required. By depositing more than $20,000, a user becomes a Premium Member, which leads to various benefits.
Uniquely, eToro lists not just its spreads and commissions, which are vital considerations for anyone choosing a Forex broker, they also list their swap rates. The company does not charge commissions, which means the price quoted in the spreads is always accurate. Additionally, ‘Popular Investors’ receive lower spreads, some even being able to trade without any spreads. eToro’s maximum leverage stands at 400:1.
No fees are charged for copying other traders. Additionally, whether someone performs a manual trade or copies one, the spread is always the same.
An excellent feature is that eToro offers a demo account, which provides access to the social trading platform.
eToro Platform Features
With social networking now an integral part of everyday life, but also the world of investments, the fact that eToro pioneered social trading is important. Recently, they launched their new trading platform that encourages traders to connect with each other, allowing them to share their knowledge. The landing page lists eToro’s top traders as well as people who have copied them and what they have gained in so doing. Effectively, it enables people to trade as part of the crowd. The Copy Trading portfolio is set up to work automatically, offering transparent and simple methods.
eToro also offers a Personal Investment Program. Here, traders can earn both profits and a monthly income. Furthermore, people can access such things as a News Feed, Watchlists, Personal Portfolios, and more. It also offers easy search options, enabling people to find specific traders based on their returns, location, and other features.
The platform offers wide choice of investments, including stocks, precious metals, and commodities. Additionally, they now offer Chinese and Russian ADRs, ETFs, and Italian, Spanish, and US stocks. In January 2014, they introduced bitcoin as part of their trading choices, listing it as a stock instead of a currency. It trades on CFD basis, meaning traders do not own the underlying asset.
In the past, eToro used an OpenBook and WebTrader platform, but they have recently redesigned this. Now, they offer a HTML5 responsive web application. This can run on both desktop and mobile devices. The mobile app is fully highlighted on their website, which shows that some of the Copytrader features still have to be migrated over to the app.
eToro Deposits and Withdrawals
When opening an eToro account, traders can fund it through MoneyBookers, WebMoney, Neteller, Skrill, PayPal, credit cards, and bank transfers. Withdrawals are made through the online cashier. Deposit bonuses are not offered. However, it is possible to register as a Popular Investor, which provides access to various other promotions. These include a 2% management fee and a 1100% spread rebate.
The education center is designed to help people increase their knowledge through videos, training courses, and webinars. Additionally, they have various trading guides available ranging from absolute beginner to advanced traders. Live webinars are available and online trading experts are present to provide further tips. The e-courses that eToro offers are particularly good, enabling people to learn in an interactive way at their own pace. Additionally, the WebTrader platform has a news screen that shows live information on the different markets. Finally, a blog is available in various languages.
eToro has 24/7 live chat support. They also have tool free telephone support for those in New Zealand, Cyprus, and the United Kingdom. Email support is also available. With offices all over the world, customer support can handle various languages.
Key Features of eToro
Social trading is the most important feature offered by eToro and it does so much better than any other CFD or Forex broker. The website lists all top traders and people can customize their searches through the CopyTrader Program if they want specific information. No other platform offers this and it gives traders far more confidence in knowing who to follow.
Other remarkable features include:
- A user-friendly proprietary platform that allows for social trading and copy trading on various instruments
- A wide range of trading instruments including most popular Forex pairs, exotics, stocks, commodities, and global equity indices
- Regulations by key industry centers
- Their trademarked CopyTrader technology that allows accurate and easy copying
- The Popular Investor program that makes trading cheaper and easier
- Thousands of existing traders with full analytics
eToro prides itself in being innovative. Hence, in November 2016, they launched their trademarked CopyFunds. This further improves on their copy trading opportunities as it makes it far easier to find investment strategies and traders to copy. Three CopyFunds currently exist:
- Top Trader CopyFunds, which are set according to the trading criteria of eToro, showcasing top performing traders. Two funds are included:
- The quarterly gainers (GainsQTR), in which 50 top traders are listed that are most likely to generate a profit over the next quarter. Reviews are regularly made to ensure the list remains accurate.
- The top active traders (ActiveTraders), in which selected traders must meet a tight “stop loss” in order to remain listed, with regular rebalancing events.
- The Crypto CopyFund, which was launched in July 2017, in which traders can trade in Ethereum Classic, Ripple, LiteCoin, DASH, Ethereum, and Bitcoin. A $5,000 minimum is required.
- Top Trader MarketFunds, which are based on market sector’s directional positions. No other Forex broker currently offers this. Two funds are included:
- TheBigBanks, in which “long” investments in financial sector shares are offered
- BigTech, in which “long” investments in tech companies are offered
The fact that eToro offers crypto trading is quite unique, particularly among the social trading platforms. It provides a truly unique opportunity for traders to make a profit, even if they do not have extensive understanding of cryptocurrencies. Bitcoin Cash, DASH, LiteCoin, Ethereum, Ripple, Bitcoin, and Ethereum Classic are all available.
The relevant Crypto CopyFund, as stated, was launched in July 2017. This made it possible for people to trade in cryptocurrencies and effectively diversify their portfolio. The algorithmic management that eToro offers has led to a number of key benefits. In particular, it enables anyone, regardless of how much experience they have in cryptocurrency investments, to have their funds professionally managed. It is important for investment portfolios to be diverse in order to mitigate risks. Thus, adding cryptocurrencies makes a lot of sense. Unfortunately, joining the eToro Crypto CopyFund does require a $5,000 minimum investment, which is expensive. Indeed, those with no experience in cryptocurrency trading are unlikely to be willing to do this.
That said, if someone does not want to or cannot deposit $5,000, it is still possible to trade in cryptocurrencies. This can be done through the regular trading platform. One can still follow other traders who include cryptocurrencies in their portfolio.
Those who can access the Crypto CopyTrader will be happy to know that it is incredibly easy to use. In fact, anyone, regardless of trading experience and knowledge on online trading, is able to use it. The majority of features are available both on desktop and mobile devices, which means people can trade wherever they are.
Daily cryptocurrency trackers are also included on the website. This is another thing that really sets eToro apart from other brokers, who tend to focus mainly on general news or Forex. eToro understands that digital currencies are a hot topic right now, and they emphasize it as it is so popular. A wealth of useful information is available through their website, including a unique analysis through which traders can become empowered to make profitable, informed trading decisions.
Anyone who wants to include cryptocurrencies in their trading portfolio, therefore, can do so through eToro with the safety of knowing they are supported by a highly regulated broker with a global reach.
What I Liked About eToro
- Leading provider of social trading with fantastic features
- Demo accounts are available.
- Highly regulated trader
- Excellent cryptocurrency trading options
What I Didn’t Like About eToro
- The spread is quite high.
- The Crypto CopyTrader requires a $5,000 investment.
- Two pip minimum
It is obvious that eToro is a leading provider of a social trading platform. Anyone who hopes to link to other traders in currencies or who want to learn about investments should consider this platform. Their OpenBook solutions also allow beginners to find their feet in the world of investing. Clearly, it is one of the most recommended platforms around and for good reason.