eToro Review
Introduction
eToro is a regulated broker that aims to revolutionise the financial literacy of its clients. When eToro was established in 2007, it quickly became a leader in the industry by inventing the concept of social investing. Clients of eToro can see what other members are investing in addition to opening and closing their own positions for assets like cryptos, ETFs, and stocks. This act is known as social trading. In addition to its user-friendly interface and great educational materials, eToro is a great broker because it enables users to interact with other investors, explore their profiles in detail, check out their strategies, have market discussions, and eventually, copy their strategies.
In 2007, three businessmen in Israel introduced eToro. The platform initially specialized in forex trading but quickly gained popularity, expanding its line of products and becoming a truly global service. OpenBook, one of the first social trading experiences, was developed by eToro in 2010 and allowed users to observe and mimic more experienced traders. By extending its offerings to include stock trading, ETFs, automated portfolios, and cryptocurrency, the broker continued to demonstrate its innovative nature. With 20 million users, eToro operates in more than 140 nations. Furthermore, eToro supports multiple languages such as Arabic, Chinese, Czech, Danish, Dutch, English, Finnish, French, German, Indonesian, Italian, Malay, Polish, Portuguese, Romanian, Russian, Spanish, Swedish, Thai, and Vietnamese for the comfort of their clients.
Regulatory Bodies:
eToro is regulated by several regulatory bodies which implies that it is a safe broker. Finally, client funds are safely segregated from the business’s operating capital by being kept in Tier 1 banks.
- FCA
- ASIC
- CySec
- FINRA
- FinCEN
- Seychelles
Features Offered by eToro
Academy:
A wide range of educational tools, which include eBooks, articles, video courses and more can be accessed on eToro academy. As soon as a client signs up for the platform, they have access to this free content, which gives them the knowledge they need to comprehend various markets, strategies for investments, different types of assets, etc. Furthermore, you can quickly switch between the educational library’s beginner and advanced content using a filter, allowing you to adjust the learning environment to your level of expertise.
Assets:
eToro provides access to assets such as Stock, ETF, Forex, Options, CFD, and Crypto. Note that there are no mutual funds, futures, or forex contracts, and all trading is restricted to long positions only—short selling is not permitted.
ProCharts:
Clients of eToro can access sophisticated charting and analysis tools through ProCharts. Users of ProCharts can customise the way charts are displayed, view multiple instruments simultaneously with various parameters, and change other settings to perfectly match more intricate strategies.
CopyPortfolios Feature:
This feature organises traders into separate funds for copy trading, which is one of the most significant features eToro provides. CopyPortfolios fill in the gap for investors who want to use eToro passively because they allow them to build an entire portfolio out of one or more CopyPortfolios. However, CopyPortfolios can also be used by self-directed traders to diversify their trading.
Account Types:
eToro provides two types of trading accounts— Retail and Professional accounts. There are no joint accounts, retirement accounts, trust accounts, or custodial accounts. This is why traders looking to open accounts that are better suited for a wide range of goals may find it difficult because eToro does not support margin accounts.
Order Types:
eToro offers order types such as market, limit, trailing stop loss, etc. Also, support for more complex order types, such as order-triggers-other (OTO), is offered because they enable traders to quickly enter and exit positions, manage risk, and capture profit opportunities.
Stock Screener:
The traditional, comprehensive stock screener that lets you filter by price-to-earnings, market cap, and other factors is absent from eToro. It does, however, have a list of the top daily movers that can be further sorted by industry or exchange. With a percentage of people buying listed, filtering the list will also show the mood of platform users. The biggest movers can also be added to a watchlist.
Social Trading:
eToro provides the best social trading experience in the market. You can copy the positions of successful traders and make profits when they do so. Also, you can watch their trading moves and learn how to deal with different market conditions.
Cash Management Service:
By allowing you to manage more of your money in one location, the eToro Money cash management service gives you greater control over your finances. You can send and receive money easily, deposit and withdraw money, and store cryptocurrency.
Customer Service:
To improve this aspect of eToro, attention is needed. You frequently have to wait a long time to speak with a representative when calling or using live chat. Response times haven’t sped up despite the existence of a web ticketing system.
Trading Conditions:
In terms of pricing, eToro generally has a transparent platform. Trading stocks and ETFs is free, though some ETFs may have additional costs of their own. eToro charges no commission, rollover fees, ticket fees, or any additional fees. Also, the minimum deposit is quite low– 10$.
Spreads on eToro include the cost of the copy-trading service. Therefore, even though eToro is free in terms of commissions, trading expenses like bid/ask spreads still apply. Other than spreads and carry costs, there are no additional fees associated with holding positions overnight.
Pros of Trading with eToro
- Does not charge rollover fees
- There are no margin interests
- Low trading costs for Forex and Contract for Differences (CFDs)
- The platform is user-friendly and easy to navigate
- Best broker for cryptocurrency trading
- Provides cash management service, which is rare
- Provides comprehensive educational services
- By watching moves of professionals in social trading, you will develop trading skills
Cons of Trading with eToro
- Customer support is mediocre
- High trading charges
- Provides access to only one base currency
- Charges $5 as withdrawal fee
- Short selling is not allowed
Conclusion
eToro has established itself as a trustworthy investment platform in addition to adhering to regulatory requirements. eToro claims that it uses the highest-grade encryption standards for both the security of funds and data as well as a security system for its servers to guard against cyberattacks. For those looking for a top-notch mobile app with low-cost trading of stocks, CFDs, forex, and cryptocurrencies, eToro is a great option. Free stock and ETF trading, simple account creation, and one of the largest selections of cryptocurrencies are all provided by eToro. The trading platforms offered by eToro are simple to use and intuitive, making them appropriate for both beginners and experienced traders.