Main things to know when trading with eToro

Posted on 30 June 2021
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Content on this page is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

A Contract for Difference (CFD) is a popular instrument that enables individuals to trade on margin, giving more freedom in the financial markets. A CFD is a type of financial derivative that does not force you to buy the asset itself. Instead, you buy or sell conventional units of that financial instrument depending on your forecast on the price movement. A CFD is a contract between a trader and a broker who agrees to exchange the difference in the value of the underlying security for the period between the start and end of the contract. There are many platforms for CFD trading nowadays and sometimes it is difficult to make a choice. We offer you an eToro review to learn more about this online trading platform.
eToro different platforms
eToro trading platform and app

About broker

eToro is an online platform for trading stocks, forex, CFDs, cryptocurrencies and ETFs. The company was launched in 2007 in Israel. It started as RetailFX, but three years later it was rebranded. So since 2010 the company has been known as eToro, which is currently the world's leading online trading platform.

The company is based in Europe and with offices spread around the world - the UK, Cyprus, USA and Australia. eToro is also available in many parts of Africa. The largest market is South Africa where they operate under an FSCA license.

eToro was originally exclusively a forex trader. But over time, CFDs were added to the list of services. In 2014, the eToro trading platform started to conduct eToro Bitcoin transactions, but unlike other brokers in the industry, you can deal only with crypto CFD derivatives. In 2017, cryptocurrency offering was expanded, allowing traders to operate with a whole list of popular cryptocurrencies. Today it is not only a Forex platform, but an extensive online site that deals with commodities and shares.

In addition to adding stocks and merchandise to its list of services, eToro has also undergone a massive technological transformation, bringing some of the most advanced online trading tools to the platform.
eToro about broker
Invest in what you love

Regulation

It is one of the most important factors to check once you select a platform for trading. So is eToro safe? The broker provides its services through its subsidiaries, and all of them are fully regulated in relevant jurisdictions.
FCA The United Kingdom Financial Authority
In the UK, eToro UK Ltd. is controlled by the Financial Conduct Authority (FCA) and acts under its license to provide services in the countries of the European Economic Area
CySEC The Cyprus Securities and Exchange Commission
In Cypress, the activities of eToro Europe Ltd. are regulated by the Cyprus Securities and Exchange Commission (CySEC) and its international license for the provision of services in the territory of the member states of the European Economic Area and beyond
Financial Crime Network
In the USA, the company operates as eToro USA LLC and is monitored by the Financial Crime Network
ASIC
In Australia, eToro AUS CapitalAustralia Pty Ltd. is controlled by the Australian Securities and Investments Commission (ASIC)
FCA The United Kingdom Financial Authority
In the UK, eToro UK Ltd. is controlled by the Financial Conduct Authority (FCA) and acts under its license to provide services in the countries of the European Economic Area
CySEC The Cyprus Securities and Exchange Commission
In Cypress, the activities of eToro Europe Ltd. are regulated by the Cyprus Securities and Exchange Commission (CySEC) and its international license for the provision of services in the territory of the member states of the European Economic Area and beyond
Financial Crime Network
In the USA, the company operates as eToro USA LLC and is monitored by the Financial Crime Network
ASIC
In Australia, eToro AUS CapitalAustralia Pty Ltd. is controlled by the Australian Securities and Investments Commission (ASIC)

Trading with eToro

On the platform, you can trade CFDs and Forex, as well as real stocks, ETFs and cryptocurrencies. Moreover, the broker also offers social trading - CopyTrader and CopyPortfolios.
eToro CopyTrading and CopyPortfolio
Practice Account

CopyTrader

It is a social trading tool that allows you to copy trades of other traders on the platform. You can view the profiles of other eToro traders by checking their previous performance on an annual and monthly basis. Their portfolio is also public information. There are many statistical parameters for each profile, such as trades per week, average holding time, profitability and risks. The minimum amount you can invest in one trade is $200. In addition, you can copy trades with a maximum of 100 traders at the same time.

CopyPortfolios

CopyPortfolios is practically an investment approach, but in essence it is a CFD portfolio. While with CopyTrader you subscribe to one trader, with CopyPortfolios you can invest in the industry or portfolio of top eToro traders. Investing in an industry means investing in a portfolio of large banks or cryptocurrencies. For example, the crypto portfolio consists of the largest cryptocurrencies, based on market cap.

Account types

You can use one of the two accounts on the platform: retail and professional. Account types are based on the experience and level of knowledge of the investors.
Standard
for retail customers. Such an account can be individual or joint (for two people)
Professional
for legal entities or certified traders who have an asset management license
Standard
for retail customers. Such an account can be individual or joint (for two people)
Professional
for legal entities or certified traders who have an asset management license
Account types
The amount of leverage always depends on what asset the speculator is working with.

eToro club program

Clients with large deposits are assigned special statuses in the eToro Club program. Depending on their rank, users can enjoy additional privileges. The criteria for obtaining statuses and the main bonuses in the eToro Club are shown in the table below.
Status/details
Silver
Gold
Platinum
Platinum+
Deposit amount
$5,000
$10,000
$25,000
$50,000
Personal manager

eToro crypto staking
85%
85%
85%
90%
Credit line
Exclusive analytics
Diamond
$250,000
90%
Zero commissions for withdrawals

Invitation to major financial events
Annual VIP meeting

Platform

eToro launched online trading platform WebTrader in 2009 and a year later, its social trading platform, OpenBook, started to work. In 2015, the two platforms were merged into one intuitive interface.

The company is constantly upgrading it. You do not need to download and install anything - you can access the platform directly using your web browser. After registration, you get access to over 2000 financial instruments, including Forex pairs, stocks, indices, commodities and cryptocurrencies. The trading terminal has successfully combined user-friendly interface and functionality. In simple words, it is packed with advanced graphical features to enable its users get the most out of trading.

The terminal is represented by 2 windows. The left panel contains functional buttons, customer data, etc. The central part contains a list of assets and statistical data on the choice of the direction of the transaction, expressed as a percentage. At the bottom of the window, you can see deals of successful traders opened in real time, as well as statistics of their profitability

Some of the platform's features include:
eToro demo account.
All eToro customers can open a free and unlimited demo account and get $100,000 for training. You can start your trading career by creating a virtual portfolio and accessing all of eToro's brokerage services without risking money.
Research Tab
The exclusive Research Tab provides comments and opinions from experts and professionals from the world's leading financial institutions.
One click trading
You can make trades with one click. This feature ensures that traders never miss out on their optimal prices in a fast and dynamic market.
Risk management orders
There are innovative risk management orders such as stop loss, trailing stop and take profit, which ensure that traders are always in control of their risks and rewards in the market. Stop loss orders help limit losses when prices go against you, and trailing stops help you lock in partial profits when prices go in your favor. Profit-taking orders help traders secure their profits when a predetermined price is reached.
Interactive charts
The platform offers interactive charts with plenty of fundamental and technical analysis tools to help investors make better decisions when trading their favorite assets. The available Watchlist tab allows traders to pull out a list of their favorite assets and view trading conditions such as leverage spreads and rollover fees (if any).
Offline trading
At eToro, traders can literally make money around the clock. Investors can place certain orders during offline hours or even during platform maintenance.
eToro demo account.
All eToro customers can open a free and unlimited demo account and get $100,000 for training. You can start your trading career by creating a virtual portfolio and accessing all of eToro's brokerage services without risking money.
Research Tab
The exclusive Research Tab provides comments and opinions from experts and professionals from the world's leading financial institutions.
One click trading
You can make trades with one click. This feature ensures that traders never miss out on their optimal prices in a fast and dynamic market.
Risk management orders
There are innovative risk management orders such as stop loss, trailing stop and take profit, which ensure that traders are always in control of their risks and rewards in the market. Stop loss orders help limit losses when prices go against you, and trailing stops help you lock in partial profits when prices go in your favor. Profit-taking orders help traders secure their profits when a predetermined price is reached.
Interactive charts
The platform offers interactive charts with plenty of fundamental and technical analysis tools to help investors make better decisions when trading their favorite assets. The available Watchlist tab allows traders to pull out a list of their favorite assets and view trading conditions such as leverage spreads and rollover fees (if any).
Offline trading
At eToro, traders can literally make money around the clock. Investors can place certain orders during offline hours or even during platform maintenance.

eToro App

In 2012, the broker made it possible for its clients to trade via their mobile phones – it launched an application for both iOS and Android. The app completely replicates the capabilities of your personal account. Here you can deposit and withdraw funds, trade and use candlestick charts, as well as copy trade and communicate with other participants.

Over 5 million users have already installed the application to enjoy trading on the go. It is available in the official app stores, and you can find a link to the program on the official website of the eToro forex broker.
eToro mobile app
eToro mobile app
Mobile platform

Commissions and spreads

And be ready to pay a special charge for an inactive account. If you are not making any transactions from your account for over a year, a monthly fee is $10.

Сustomer support

There are several ways to contact eToro technical specialists:
through the feedback form on the broker's website;
via private messages on social networks Facebook, Instagram and Twitter.
There are several ways to contact eToro technical specialists:
through the feedback form on the broker's website;
via private messages on social networks Facebook, Instagram and Twitter.
eToro social trading platform
As eToro is used by a large number of traders from around the world, technical support is provided in many languages.

Based on eToro's reviews. Messages sent through a form are not responded to instantly. The broker itself warns that there are too many queries being received. Please note that we may currently take up to 14 days to respond to your request.

Deposits and withdrawals

eToro allows you to deposit funds into your account using the following payment methods:

  • Bank card
  • Debit card
  • Bank transfer
  • Neteller
  • Skrill
  • Paypal

With most of these payments, your deposit will be instant, so you can start trading or investing right away. An exception is bank transfer, which can take up to 3 business days.

In terms of deposit fees, there is a 0.5% currency conversion fee - if you deposit using anything other currency than USD. For example, if you deposit €1,000 into your account, you will be charged €5. With regard to withdrawal requests, you will be charged $5 for each withdrawal.

Education and analytics

The broker has a special section devoted to training - Trading Academy. It combines three basic categories of materials:
Webinar recordings;
Videos with instructions;
An introductory course for beginners with a step-by-step explanation of the principles and nuances of trading in the financial markets.
Webinar recordings;
Videos with instructions;
An introductory course for beginners with a step-by-step explanation of the principles and nuances of trading in the financial markets.
No physical training is provided to users. Instead, everyone can get access to training materials even without registering on the site absolutely for free.

eToro provides full access to the widest social service, where millions of professional forex market participants communicate and share their opinions. You will definitely be able to find interesting ideas, diversify your investment portfolio and solve a huge variety of other similar problems. In addition, traders are provided with free daily market analysis and an economic calendar for more efficient planning.

Earn with eToro

The platform offers you to get profit not only through trading. You can become a partner of the broker. There is a separate website - www.etoropartners.com – with all the information on the cooperation. Passive earnings are provided to everyone who is able to attract referrals via an affiliate link with the subsequent replenishment of the deposit and trading. There is no division of partners into different levels and payment formats. It is enough to create an account and get the contact details of a personal manager for consulting. After that, you can start working through your personal account.
eToro social trading platform
eToro affiliate program

Wrapping up

Pros
  • 2000+ trading instruments and a free eToro demo account
  • Simplified registration and the ability to log in via Facebook or Google
  • No need to install applications: terminal and social network with traders' chat is available through a web browser
  • The ability to trade real cryptocurrency from the eToro wallet with the ability to transfer it to any blockchain user
  • There are strategies for copying trades that are managed by eToro experts with no management fees
Cons
  • Spreads are quite high
  • Poor performance of technical support
Pros
  • 2000+ trading instruments and a free eToro demo account
  • Simplified registration and the ability to log in via Facebook or Google
  • No need to install applications: terminal and social network with traders' chat is available through a web browser
  • The ability to trade real cryptocurrency from the eToro wallet with the ability to transfer it to any blockchain user
  • There are strategies for copying trades that are managed by eToro experts with no management fees
Cons
  • Spreads are quite high
  • Poor performance of technical support
eToro broker
eToro is one of the most famous social trading platforms with advanced investment opportunities. You will hardly find an eToro alternative in this respect. For novice traders, the eToro platform has prepared a number of favorable conditions: quick registration, a functional personal account, and free educational materials. Broker eToro strives to become the undisputed leader in the online trading market.

GENERAL RISK WARNING:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
87% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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