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eToro Review | Trade Stocks, Crypto, ETFs, CFDs and commodities

coinmonks profile image CoinMonks Originally published at Medium on ・8 min read

eToro Review

If you are looking for an investment platform and believe 13 million traders and investors can’t be wrong, you will definitely want to explore eToro. With that large trading base investing in a wide variety of stocks, cryptocurrencies, ETFs, CFDs, indices, and commodities, you can correctly assume that they are doing something — or perhaps even a lot of things — right. in operation since 2007, eToro set out to change the way the public invested, giving people more access to online trading.

Over 10 years later, they have done that and more, creating a vibrant social network community, where traders follow successful traders, communicating with each other, and learning and benefitting from other customers. These innovative social trading tools, including CopyTrader and Copy Portfolio, complement eToro’s education wing, the Trading School, in explaining and showing more novice traders the ins-and-outs of the markets.

In addition, eToro has been at the forefront of opening cryptocurrency trading to the masses as well as to a VIP population of institutional and algo traders via a professional exchange, eToroX, offering features aimed at their unique needs.

eToro Review: Summary

  • Established, reputable, regulated
  • Rich choice of assets, including cryptocurrencies
  • Professional crypto Exchange eToroX
  • Social trading aspect
  • Many ways to learn the industry
  • Low fees
  • Parent Company: eToro Group Limited
  • Mobile trading

eToro Review: Features

Trusted eToro has several market-leading features–such as highly reliable cybersecurity and strict regulation from some of the world’s top investment authorities. Therefore, eToro appeal to those just getting their feet wet as well as highly skilled and experienced traders.

The same is true across the spectrum of assets: from those eager to try CFDs as well as heavy hitters focused on a particular niche, crypto, or commodity market. Here is a selection of some of the key features traders may want to explore as well as some of the general benefits eToro offers.

Let’s talk about CopyTrader for a minute. CopyTrader lets investors copy the actual trades made by other eToro users whose past performance is presented according to several factors such as risk, success and so on.

While users are sure to learn a lot from those they copy, a section devoted to news and analysis is a great way for traders of all degrees to bone up on changes in the markets, specific assets, and economic news that could influence holdings. Additional educational tools can be found in the Trading School and in the pages of the Complete Guide to Fintech.

eToro’s Investment Portfolios offer ready-made themed portfolios so users can jump easily into a predetermined portfolio based on such varied themes as particular industries, a specific approach to research, and the portfolios of highly successful or popular traders.

Similar to the feeds in other social networks, eToro’s News Feed gives users the ability to interact, sharing insights, posing questions, and getting to know and learn from one another.

New traders in particular will appreciate the demo account that lets users explore the eToro platform with $100,000 in virtual money. It’s a great opportunity for newcomers to discover the platform and all its features while sharpening their trading skills.

One of the biggest draws to the site is its focus on trading markets , more than 2000 in total. eToro provides customers the opportunity to invest in over 90 cryptocurrency markets including Bitcoin, Bitcoin Cash, Binance Coin, Ripple, IOTA, Ethereum, Ethereum Classic, NEO, Cardano, TRON, Dash, Stellar, Litecoin, Zcash, EOS, and Tezos. Additionally, users can choose from more than 150 ETFs, 40 currency pairs (CFDs), and scores of commodities, indices, and stocks.

eToro Fees

Because no two investors are the same, eToro offers several ways to trade including with leverage. Other features include low fees and commissions , which are sure to rank high with users. In some cases, there is no commission at all, meaning no spread, fees or charges; in other cases, eToro offers very low spreads, such as 1 pip in many of the top Forex currency pairs.

For traders interested in crypto, there is a professional crypto exchange , eToroX. Designed for industrial-grade, corporate, and algo investors, it offers the backing of eToroX, plus several powerful features ideal for professional crypto traders. Its product suite includes a spot credit trading program for increased liquidity, a Fiat Gateway with a bank option for immediate transfers, a professional FIX API, military-grade cold Custody as a Service storage, and personalized VIP onboarding.

How eToro Works?

It’s pretty easy to get started on eToro.

  1. Click “Join Now” or “Trade Now” from eToro.com.
  2. Enter the required personal data for opening a new eToro trading account.
  3. Read and agree to the Terms & Conditions as well as the privacy policy.
  4. Hit the Sign-up button to submit your information.
  5. All users are required to complete a KYC process. Fill out the KYC questionnaire and supply the requested documents when requested to do so.

eToro Review: Comparison with other products

With 2000 trading markets, eToro stands apart from many in the industry, and with its multi-asset platform, users can find all these assets on one easy-to-use, regulated platform. And with traders from over 140 countries, including the United States (eToro USA), it obviously is connecting with a varied community of users. (Please note that eToroX is not currently available to US residents).

Created as a Social Trading platform, the social component is certainly a major way it differs from competitors.

eToro: Frequently Asked questions

  • No commission? Please tell me more about that.

eToro has no deposit or trading fees , though it does have spreads and a $5 withdrawal fee. Other charges could include overnight and weekend fees related to open CFDs.

  • How do I deposit on eToro?

Users can deposit with several payment methods such as major credit cards, bank wire transfers, Skrill, PayPal and other e-wallets. The minimum deposit is $200.

  • What is the maximum leverage amount?

eToro offers a maximum leverage of 1:30. Professional traders are eligible for higher leverage.

  • Can I withdraw my money from my eToro account to a credit card?

Withdrawals, which are made to the same funding method as used when depositing, can be sent to credit cards and several other funding sources including PayPal and banks.

eToro User Experience

eToro is committed to making trading easy and straightforward for users, and that is evident in the platform, where you can sort by industry and exchange, quickly access your portfolio and Watchlist, and explore investing in CopyPortfolios or other traders.

eToro Review: Performance and Security

  • Thirteen million users from more than 140 countries.
  • Regulated by CySEC, FCA, ASIC, GFSC, FinCen, and FinRA.
  • 14 years in business.
  • Segregated client accounts kept at Tier 1 European banks, plus the highest standards of client fund protection.
  • Free insurance to protect eligible clients for up to 1 million Euro/GBP/AUD should they suffer losses due to eToro insolvency or misconduct.
  • eToro Club with five tiers dependent on portfolio value, offering special features according to each level.

eToro Pricing

With a free account, zero commission on stocks, and no deposit fees, eToro proves itself different from many investment sites right off the bat. Spreads are kept low, though there are account frees for inactivity, as well as conversion fees, depending on payment methods (which include credit cards, PayPal, Skrill, UnionPay, and others).

eToro: Pros and Cons

Pros

  • Easy-to-use regulated platform
  • Trustworthy, transparent trading
  • Low fees (including zero commissions in some cases)
  • Huge range of assets
  • Social trading opportunities

Cons

  • Limited leverage
  • US traders in only some markets

eToro Review: Conclusion

eToro, a start-up just a few years ago, is smoothly making its way in the investing industry with a plethora of cool features that keep users connected. Its easy-to-use platform, a wide choice of assets and friendly site make trading accessible to millions of investors, whether highly experienced or just taking their first steps in the arena. If you are in the first category, you will appreciate the features created for traders like you (leverage, insurance, fiat gateway); less-experienced traders will benefit from and appreciate the emphasis on education and access to other more successful traders. Either way, eToro is a solid, reputable, transparent platform with lots to offer global traders.

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