eToro Review and Tutorial 2019
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|eToro Facts & Figures|
eToro pioneered the social trading concept, making CFD, Forex and Crypto investing accessible to everyone. FCA regulated.
|Instruments||CFD, Forex, Crypto, Stocks|
|Mobile Apps||iOS, Android and Windows|
|Auto Trading||Automate your trades via Copy Trading - Follow profitable traders. Open and close trades automatically when they do.|
|Trade Signals||via Copy Trading|
|FTSE Spread||1 pt|
|GBPUSD Spread||4 pips|
|Oil Spread||5 pts|
|Stocks Spread||0.24% Var|
|GBPUSD Spread||4 pips|
|EURUSD Spread||3 pips|
|EURGBP Spread||4 pips|
eToro lead the way in Crypto trading. The lowest spreads (from 1% for BTC), their own wallet service and the largest number of Cryptos to trade. FCA Regulated.
|Coins||BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, MIOTA, XLM, EOS, NEO, ZEC, BNB|
One of the most well-known names for social trading in the online trading industry is eToro. First founded in 2016 as RetailFx, the brand “eToro” is synonymous with financial social trading.
The reason behind this is the fact that eToro was the first broker in the online trading industry to introduce the concept of social trading to the world. The notion that a beginner trader can trade as well as any experienced trader by relying on the collective wisdom of the trading community revolutionized the way forex is being traded. By combining their collective wisdom through the trading platform social network, traders learnt that they can achieve higher profitability while at the same time shorten their learning curve.
Regulation & Reputation
As a financial services provider that is based in Cyprus, eToro is subjected to the regulatory oversight of the Cyprus Securities Exchange Commission (CySEC). Authorized under the CIF license no. 109/10, eToro has “passported” its authorization to the UK and is registered with UK’s Financial Conduct Authority (FCA). In addition in compliance with U.S financial legislations and regulations, eToro has also acquired membership with National Futures Association (NFA).
Since the launch of the revolutionary trading platform in 2010, the firm has improved on the trading platform tremendously. Today, the trading platform used is called the eToro CopyTrader. This new platform incorporates both the main features of the old Openbook trading platform and Webtrader hence giving clients access to the best of both worlds from a single trading interface.
In addition to being able to copy trades and trade independently, eToro also allow their clients to earn extra income by becoming a “Popular Investor”. As a Popular Investor, the trader allows others to view his trading activities. Once the trader has managed to achieve a minimum number of copiers, he will be rewarded with cash and rebates on the spreads that he pays. To qualify as a popular investor, you need to deposit a minimum of $1000. In addition, you must also recruit a copier for a minimum of 2 months with at least $500 equity.
In line with keeping their reputation as an industry innovator, eToro introduced the concept of “copy funds” trading. The new service appropriately named as “CopyFunds” will allow traders to copy a range of funds selected by eToro. These funds as categorized into Market CopyFunds and Top Trader CopyFunds.
eToro has also provided free mobile trading apps which their clients can download and install onto their smartphones and mobile devices in order to enable them to trade on the go. These apps have been designed for both iOS and android powered mobile devices to allow full mobility and access to the financial markets at the same time.
The apps are very well thought out. All the functionality of the main web platform is retained, but is well laid out so does not feel cramped. All versions of the app are regularly updated. The most recent update saw the android version reduced in size by 50% – with no loss of functions. The iOS version was similarly improved. Both saw a large increase in speed from the new, lighter programme.
Trading Accounts Offered
To simplify the trading process, the firm has opted to provide their clients with only one standard type of trading account. Opening a trading account is a simple and straightforward process which requires you to fill up and submit the registration form. Before you can participate in live trading, you need to place a minimum deposit of $200. And if you wish to participate in the “Popular Investor” program, you need to place a minimum deposit of $1000 before you can qualify for the program.
However if you are unsure and wish to try out the platform first before committing any real money, you can do so using the free demo account facility. The process is the same as signing up for a live trading account. Once you have signed up for the demo account, you can also switch to a live account status by selecting the “Real” account tab.
Bonuses & Promos
In line with the new regulatory requirement issued by CySEC, eToro today no longer offer any kind of trading bonuses. However, traders can still earn a commission of $20 for every friend that they refer.
Instruments & Assets
Over the years, eToro has expanded their assets to cover additional assets. Today, traders can trade with 53 currency pairs, 53 ETFs, 12 market indices, 7 types of commodities and 957 types of stocks from all over the world.
The firm have also been long time pioneers of cryptocurrency trading. They offer the largest range of cryptos anywhere and are focussed on expanding this market whenever an established token reaches the mainstream.
eToro now offer a multi-crypto on-chain wallet. The phased roll out will see the feature opened up country by country, and the available list of cryptos will also expand as time goes on.
The wallet offers high level of security, with multi-signature sign in supported – this means users can view their blockchain transactions without having to expose their private key.
The mobile app (available from Google Apps, and the Apple store) will allow the buying and selling of cryptocurrency using fiat currency. It will also allow the conversion of one crypto to another. Four cryptos will be included at the launch (Bitcoin, Bitcoin cash, Ethereum and Litecoin). Others will be added as the app scales up.
Conversion will initially be limited to Platinum Account holders, but ultimately expanded to all traders. The app is open to any registered eToro customer and makes accessing an otherwise complex market easily.
Customer support is available Monday to Friday, 24 hours a day. To contact the support team, traders can do so by submitting their query on the web contact form provided on their website. Alternatively, traders can also reach out through support team by emailing the relevant departments concerning their queries.
Deposit & Withdrawal
There are several ways which you can fund your trading account at eToro. At present the supported methods include deposit through credit cards such as VISA, Mastercard or Diners. eWallets such as China UnionPay, Neteller, PayPal, Skrill, WebMoney and Yandex are also available for traders to deposit their funds with. For traders who do not possess a credit card or eWallet, they can also fund their trading account through a bank wire transfer.
Processing of withdrawal requests typically takes 3 business days. However, traders should ensure that the withdrawn amount should be a minimum of $50, or else their withdrawal requests will be rejected. Take note that eToro charge their clients a withdrawal fee of $25 for every withdrawal made. Apart from the withdrawal fee, an additional cost to traders will be the currency conversion fee. At present, the conversion fees are as follows:
AUD/USD: 100 Pips
CAD/USD: 250 Pips
EUR/USD: 250 Pips
GBP/USD: 50 Pips
JPY/USD: 250 Pips
RMB/USD: 50 Pips
RUB/USD: 50 Pips
Is eToro suitable for day trading?
If you are a beginner trader who is just starting out, then eToro will be the right broker to trade with. The ability to conduct social trading is indeed a feature that can greatly enhance the profitability of a beginner trader. However if you are an experienced trader looking to day trade, then eToro might not be the right fit. This is due to the fact that that the spreads charged by eToro are higher than average. In addition, as a day trader that relies on small margins and a large number of trades to make an overall daily profit, the additional cost incurred will erode away at any gain that is made from day trading.
eToro’s head office is located at 7th floor, Kanika International Business Center (KIBC), 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus.
What is the minimum deposit requirement to open a trading account?
The minimum deposit requirement at eToro is $200.
How fast can my withdrawal request be processed?
Typically, it takes 3 business days to process a withdrawal request.
Is eToro a reliable broker?
Yes. eToro is a well established broker that is regulated in multiple jurisdictions.
What kind of trading platform does eToro have?
eToro uses a proprientary trading platform called “CopyTrader”.
What is the maximum leverage available at eToro?
The maximum leverage that is available at eToro is 1:400.
eToro accepts traders from Australia, Thailand, Canada, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.
Traders can not use eToro from United States, Iran, Turkey, Japan.
|eToro pioneered the social trading concept, making CFD, Forex and Crypto investing accessible to everyone. FCA regulated.|