eToro Review

Introduction

The Bank for International Settlements states that globally, the daily market cap for the forex market is over USD 6 trillion. On the other hand, cryptocurrencies have a market cap of over USD 200 Billion, while in the USA, the trading volume of stocks is about USD 200 Billion. These show that the financial market is awash with opportunities. With the proliferation of the internet, the total number of traders across the world currently stands at over 70 million. Banks, Hedge funds, investors and financial institutions are all part of this new opportunity.

Once you get accustomed to trading, you will realise that indeed you can make money from trading. True, you may not become an overnight millionaire, but as you take your time to learn and master your trading strategy, you progressively realise that you can generate consistent income over time. In this review of eToro, we will check what it takes to open an account with them, execute trades and, hopefully, become better traders.

Is eToro Safe?

Etoro has established itself as one of the most forward-thinking trading platforms. This platform continues to develop ingenious products for its traders as this industry evolves. All these show that this is a trust-worthy platform and one that is considered one of the safest platforms in the world. The company has offices across Europe, the UK, USA and Australia. It is regulated by the UK’sFinancial Conduct Authority, the Cyprus Security and Exchange Commission and the Australian Securities and Investment Commission. You can check their addresses on the site or you can give their offices a call.

The platform also has an active customer service desk that has self-help instructions on how you can handle any problems you encounter when working on this platform. They also have a live customer care desk. In the event that you send them an email, they take a maximum of seven days to respond. Many times, they respond sooner. This is in sharp contrast to some other platforms that may take up to one month to respond. Won’t mention names.

The platform also has a privacy policy where they disclose the data they get from you and what they use it for. All this information is guarded using secure encryption.
The funds that are deposited on the site are kept safe by Tier One banks across the world. The platform also has real users and it encourages its members to upload real photos on their accounts.

It is also good to note that this platform is regularly featured on the news. If it were a scam or it was considered unsafe, then this would have been known by now. You can also check a review of eToro on the internet, just to be sure that the platform is legitimate.

Review of eToro Features

eToro enables multiple financial assets to be traded on its platform. In this review of eToro, we will look at some of the financial assets you can trade on this platform. They fall under five broad categories that include Indices, ETFs, Currencies, Crypto Assets and Commodities. The platform gives traders an opportunity to make trades through their EtoroOpen Book, web platform and Mobile trading.

This platform allows users to purchase US-based stocks with zero commission. Of course, you will have to check if you qualify and the type of stocks you can buy as a trader.
It also enables traders to engage in crypto trading. Some of the cryptocurrencies you can trade on this platform are BTC, XRP, ETH and LTC.

This platform also enables currencies and commodities to be traded as CFDs. CFD stands for Contract for Differences. It enables traders to trade in an asset without necessarily owning that asset. Traders can also leverage by up to 30 times when trading CFDs on the Etoro platform.

Etoro also supports ETF trading.ETFs are basically several assets that have been grouped together so they can be traded as one fund. Traders can purchase these assets and get dividends from them sent to investors from time to time.

Indices are also offered for trading on this platform. Indices generally reflect the performance of a particular segment in the stock market. Indices are made up of multiple stocks in the market so that if one falls, another may rise and this gives balance to the index.

Review about Etoro Fees

In this review of eToro, we will look at what it costs to open an account, transact and withdraw from this platform. If a trader opens an account on this platform, then it is free. No fees are charged. There are also no management fees charged on this platform. If you purchase stocks on this platform, there is also 0% commission.

The Etoro platform is a dollar-denominated platform. It basically means when you deposit funds on this platform, it has to be converted into dollars. The platform deducts a conversion fee. This fee is different from one currency to another and is calculated in pips. The method you use to make the deposit, whether it is through bank transfer or online payment methods, will directly affect the amount of fees that you’ll be charged. The most cost-effective method so far is through the use of wire transfer. Currencies that can be deposited are EUR, GBP, RUB and AUD.Fees for depositing and withdrawing these currencies range from 50 pips to 250 pips.

No fees are charged on this platform when buying unleveraged assets. However, when you are buying other asset classes such as currencies, commodities and crypto, then there is a spread fee charged that is specific to the asset that you are purchasing. Commodities and currencies will attract a slight fee in pips. Cryptocurrencies and Stock attract a fee of 0.09%. These fees are usually included in the asset.

This platform also charges an overnight fee for CFD trading. This is a fee that enables them to lend you money to hold the asset overnight. It applies to leveraged assets. The fee is dependent on the position that you have taken and also the type of asset you would like to hold. For example, for a stock position that has an investment of USD 1000, then the overnight fee will be USD 0.22per day for a buy position and USD 0.12 per day for a sell position.

If you are inactive and fail to log in to your account for 12 months on your platform, then an inactivity fee will be charged. This is usually charged at about USD 10 per month.

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What Trading Platforms does eToro Offer?

In this review of eToro, we look at the various platforms supported by this application. eToro enables traders to make trades using the eToro Open Book, web trader or through their mobile app. The mobile app can be downloaded using Android or Apple phones. The Etoro open book is a revolutionary platform that enables traders to share their trading positions via social media as posts. You can post these on Twitter, Linkedin or Facebook. The platform has established a niche for itself as a global leader in social trading. You can check feedback and reviews about Etoro concerning this online. Social trading is where investors are able to interact with other traders on social groups, share information and also trading strategies. This platform also allows for copy trading. What this does is that it allows a trader to copy the trading positions of experienced traders and investors.

Review of eToro - Regulation and Reputation

Etoro is regulated by financial regulatory authorities in four different jurisdictions. These are the USA, the UK, Europe and Australia. The platform has also been in existence since 2007 and has received wide media coverage. It is a widely popular platform that has set itself apart as a social trading platform. It currently has over 3 million users in more than 200 countries.

Review of eToro - Trading Accounts

Etoro has multiple account offerings that may appeal to traders at different levels in their career. In the event that you have just joined and are still sharpening your trading skills, then you may opt for the virtual trading account. On this account, you are assigned USD 100,000 of virtual currency and you can use this to trade in the platform. Everything on this account mimics actual trading.

Once you have mastered your trading strategies you can opt to copy trade or proceed to manually set up your trades.

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Is eToro Suitable For Day Trading?

The Etoro trading platform allows traders to set up short time frames from which they can engage in day trading. Etoro also supports asset classes that are highly volatile and, thus, are ideal for day trading. Some of these are commodities, CFDs and cryptocurrencies. You can also check out any review of eToro online to see what other day traders say about our social trading platform for day traders-it a game-changer.

How To Trade With eToro?

In this review of eToro, we will have a look at how you can proceed to trade on this platform. Once you sign up on eToro, the next step will be to verify your account. After you are done, you can then proceed to make your first deposit. Once your deposit has been confirmed, you will be ready to trade. You may decide to start as a copy trader where you get to copy trades from other established traders on the market. This is a good way to start in the event that you are still learning how to trade or you do not have time to study the markets. You can search for top traders on your account and filter them based on success rates and assets they are trading.

You may also decide to practice trading using a virtual account. In this account, you are given USD 100,000 of virtual money which you can use on your practice account. With this cash, you can open positions, experiment with different strategies and generally sharpen your trading skills.

Once you have mastered your skills on trading, you may decide to open trading positions manually. You can take advantage of different features offered by this platform such as creating stop losses and take profit levels and inserting trailing stop losses. You can also use Pro charts to get technical analysis on the different assets.
You can trade stock positions on this platform with 0% commission. You can also trade CFDs on this platform by shorting them or even open leveraged positions.

Watch this video: eToro- How to Trade Stocks(00min 13secs)

Review of eToro - Funding Methods

To deposit funds on to your Etoroaccount, you first have to log in to your account. After this, you can select the “Deposit Funds’ option. Then, select the currency you would like to deposit. Finally, go ahead and choose the method you would like to use to make your deposit. This platform currently supports nine methods for making deposits. These are Credit/Debit Cards, Paypal, Neteller, Skrill, Rapid Transfer, Sofort Banking, iDEAL, Wire Transfer and Online Banking. The deposits are usually reflected on your account instantly. Each deposit method has a specific jurisdiction that it supports. Most of them are supported internationally. There is a limit on the maximum amount that you can deposit. This ranges from USD 10,000 to USD 50,000. However, wire transfers have an unlimited maximum deposit limit.

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Conclusion

This Etoro broker review has attempted to take you through all you’ll need to get started.
As a learner, you can experiment with short time frames. Once you get accustomed to the platform, it would be good to target longer trading time frames. Daily time frames are usually the most ideal. Try to diversify your trades. Do not trade huge sums of money in one trade. You can have a portfolio of assets that you are trading that may include stocks, forex and cryptocurrencies. Finally, only trade what you can afford to lose. When you make a profit, make small withdrawals from this until you have recouped your investment. As you continue to sharpen your skills and make more profits, you can gradually increase the sizes of your portfolio across different asset classes. We hope this review of eToro has given you more information on what it takes to open an account with eToro and become a trader.