ETORO
Founded in 2007, Israeli broker eToro offers a multi-asset platform consisting of CFD, stocks, crypto currencies and Forex. eToro regulated by the FCA (UK), CySEC (Cyprus) and AFSL (Australia) has become well-known for its leading social trading network allowing traders to follow and copy other people’s trading strategies. eToro has offices located in Tel Aviv, Cyprus, UK, and Australia.
Markets Offered
Traders can trade CFDs, Forex, ETFs, indices, stocks, commodities as well as Crypto currencies with eToro.
eTroro does not accept clients from the following countries:
- USA
- Canada
- Brazil
- Japan
- Turkey
- Iran
- Syria
- Sudan
- Cuba
- North Korea
Account Types
eToro keeps client funds in segregated accounts using tier-1 European banks. The broker does not charge European clients broker fees, however this does not apply to leveraged or short trades nor for CFD’s held over weekends.
Overall fee structure for non-European clients is considered low.
eToro does not charge any management fees and only charges an inactivity fee of $10/month for inactive accounts over 12months.
eToro charges and account withdrawal fee of $25 which is on the high side. There is no charge for funding/ depositing into the account.
Overall fee structure is transparent.
Accounts are only available in USD currency.
Trading Platforms
eTroro offers three trading platforms eToro web trader, eToro open book, etoro Mobile app.
eToro Webtrader is a user friendly platform offering professional tools for beginners and advanced traders. Their trading platforms however do not support MT4.
The eToro OpenBook was launched in 2010 and is the innovative social trading platform that allows traders to follow and copy successful trading strategies of other traders or to be followed by others.
The eToro Mobile App available for both Apple and Android allows traders to access both eToro Webtrader and OpenBook on the go.
Customer Service
Sadly, eToro does not provide telephone support. Customer support is only accessible online.
Opening an account at eToro is fast and uncomplicated. eToro requires a minimum deposit of $200 when funding the account. Funding can be done via wire transfer, debit/credit card (Visa / Mastercard) or via electronic wallet.
Education
eToro is a multi-platform crypto exchange that supports over 30 different cryptocurrencies. It also offers an online brokerage platform that can be used to trade stocks and exchange-traded funds. This is a good option if you are looking for a more communal trading experience.
eToro claims to be the world’s largest social investing community. Its features, including elaborate tools and ongoing conversations on the News Feed, are aimed at helping new users become more engaged in the community.
Since eToro is big on community, one of its main selling points is CopyTrader™. This social investing tool allows users to copy and trade the moves of other investors simply by selecting an investor, choosing an amount and clicking a button.
In order to support the communal trading experience, eToro developed Smart Portfolios, allowing users to invest in curated assets to minimize trading risks. To use this feature, you must have a minimum investment of $500.
eToro also has the Popular Investor Program for individuals who want to allow others to copy their strategy. To be a Popular Investor,you must have at least $1,000 in equity. The various benefits offered by the Popular Investors program include monthly payments, spread rebates and management fees.
You can become VIPs at eToro with a balance between $5,000 and $250,000. These VIP accounts come with various perks, such as access to eToro’s Trading Central and a dedicated account manager. Besides these, other perks, such as reduced deposit fees and withdrawal fees, are also included in the package. eToro also provides a demo account, which you can use to practice trading with a $100,000 virtual trading account.
Unfortunately, while eToro offers a great communal trading experience, its YouTube channel could use better playlist management to differentiate between educational, promotional and research content.
Safety
Over 13 million traders globally use eToro, and it is licensed to provide brokerage services in various countries. The company is a reputable platform and compliant with the regulations of various organizations such as CySEC, FINCEN, the FCA, and ASIC. eToro’s funds are also kept in top-tier banks, and its clients’ personal information is protected using SSL. This makes it a low-risk broker for investors who are looking to trade foreign exchange and contracts for differences.
Different authorities regulate the company in different countries. Some of these include the UK’s Financial Conduct Authority and the U.S. Financial Industry Regulatory Authority. eToro’s U.S. customers are protected against platform failure (up to $250,000) through the Federal Deposit Insurance Corporation (FDIC).
eToro takes pride in its privacy policy. It claims to never share your personal information with third parties without your permission. When you sign up for an eToro account, the company will collect certain information about you, such as your name, telephone number, and email address. The company will use this information to create and maintain your eToro account, provide you with a better service, and improve its features. It will also use this information to send marketing messages.
Trust in financial services is a complex process that involves various factors, such as the company’s operational history and regulatory licensing. eToro has demonstrated its ability to meet these requirements and has a good track record of providing its customers with excellent service.
Most of the funds on eToroX, eToro’s crypto exchange, are stored in cold storage to minimize the risk of losing funds due to an operational error or a hack. The exchange has partnered with a leading cybersecurity firm to provide a secure and resilient solution.
In addition to keeping user funds in cold storage, the exchange also encourages its users to set up two-factor (2FA) authentication.
FAQ
What is eToro’s CopyTrader™?
CopyTrader™ allows users to follow and see what other investors are doing in real-time. It also lets them copy their investing activity right from their desktop. The minimum amount one needs to invest to start copying an investor is $200. eToro also allows users to copy up to 100 investors at once using its CopyTrader system.
Do I have to pay extra fees to copy another trader?
Unlike other platforms, eToro does not charge additional fees for copy trading. Through its social trading platform, users can easily copy other traders. This allows them to automatically open their accounts with a proportional portion of their funds.
The commission that eToro collects from the sales and purchases is based on the spread between the prices you place and the buyers. If you’re a successful trader, you can also join eToro’s Popular Investor Program and become a part of its community and get paid for copy trading.
How do I get paid as a Popular Investor?
Every month, eToro distributes payments to Popular Investors based on their level. eToro also looks at a Popular Investor’s Assets Under Copy (AUC) to determine who to pay. The payments are then automatically sent according to their selected payment methods.
How do I level up as a Popular Investor?
You become a Popular Investor by reaching the Cadet level, the first of the four levels. You must meet the various criteria, including the number of copiers, risk score and minimum time on the level, to upgrade to the next levels — Champion, Elite and Elite Pro.
If you meet all the requirements, the upgrade will happen before the 10th of every month, which is when eToro makes payments to Popular Investors.
How do I find traders to copy?
The eToro platform allows users to find the traders that meet their trading needs and preferences. To refine your search, go to the Discover People page and click on the CopyTrader filter.
Pros
- Offers largest social trading network
- User friendly platform
- Regulated by UK, Cyprus and Australia,
Cons
- Poor customer support
- No scalping
- Platform does not allow use of MT4
Fixed spreads
Variable spreads
Stop losses
Limit orders
One-click trading
Trailing stops
Expert advisors (EAs)
Virtual private server
Direct market access
STP broker
ECN broker
Market maker
Price alerts
Signal trading
Watchlists
Charting tools
iOS App
Android App
Windows App
Major Stock markets (US UK Germany)
Indices
Penny stocks
Forex
Majors
ETF
CFDs
Bitcoin
Commodities
ETFs
IPO
Options
Futures
Bonds
Hong Kong stocks
Japanese stocks
Listed on Stock Exchange
Scalping
Hedging
Demo account
Islamic account
Micro account
Standard account
VIP account
Zero spread account
Managed account
Credit cards
Bank transfer
PayPal
Neteller
Skrill
Electronic wallets