Getting to know eToro
eToro is a financial broker that helps you manage your investments. The company already offers its services to more than 4 million clients in 140 countries around the world (this broker does not accept US clients and therefore this review is not aimed at US traders). This data only confirms that this is a very reliable company. Below, we’ll tell you all the interesting facts about eToro so you can decide if it’s what you’re looking for.
eToro decided early on to specialise in social trading. Thanks to this, you can trade CFDs on stocks, ETFs, indices, commodities, currencies and more from its trading platform. The great thing about eToro is that you can use the features of a social trading network. With this tool you will be able to follow and copy the investments of other traders without any problems.
If you are concerned about the security of eToro, we have to tell you that it offers good safeguards for both your deposits and your investments through its trading platform. The company is registered with the Cyprus Securities and Exchange Commission (CySEC), which means that it is obliged to comply with European regulations.
eToro Security and Regulation
The fact that eToro is based in Cyprus is a matter of course for CFD traders. However, eToro adds a further safeguard by also having offices in the city of London. This means that it is also regulated by the UK’s own supervisory body, the FCA. As if all this were not enough, Spanish clients can rest assured that eToro is registered with the CNMV under licence number 3519.
Maybe so many facts have made you a bit lost. Don’t worry. The bottom line is that eToro is a reliable company that you can work with without any problems. Our honest opinion is that this is a reliable, serious and thorough company. In short, it is a safe and 100% reliable online broker.
How does the eToro platform work?
eToro is essentially a website that brings together a number of CFD trading platforms. Here you can buy or sell CFDs on stocks, ETFs, indices, commodities and currencies. However, the great added value of eToro is that you can do all of the above with the social trading component of their website.
As soon as you log in, you will be able to access a ranking of users according to their investment performance. This allows you to choose from 3 very well-defined possibilities:
- You can simply see what other users are doing with their investments.
- You can follow top traders or specific users so that you are notified when one makes a trade.
- You can automatically copy the investments of the users of your choice. Of course, you can set a clear stop loss limit. This way, you can control your risk without having to be online when other users are online.
Generally speaking, we can say that eToro’s big bet is that users are able to generate profits and that they are able to help others. This is another reason why we trust the company and consider them to be one of the best online brokers available. eToro doesn’t win when their client starts to lose money, they win when they trade in such a way that they will be the first to want you to trade as much as possible.
Instruments available on the eToro platform
The first thing we need to define is the financial assets that we can trade with this broker. Please note that CopyTrading services are based on copying other traders, who in turn invest in the following assets:
- Forex: you will be able to trade in several currency pairs.
- Commodities: the choice is much more limited, but you can trade gold, silver, copper, oil, natural gas and even platinum.
- Cryptocurrencies: includes the main cryptocurrencies.
- Shares: you will find all those listed on the main stock exchanges, including the Spanish stock market. You will have many shares of all types to choose from.
- Stock market indices: these include the Ibex 35 as well as the most popular international indices.
- Exchange Traded Funds (ETFs): these are investment funds whose units are listed on a regulated market. There are over 50 of these assets available for trading on the eToro platform.
eToro Demo Account
It is very common for users of these brokers to try out a free demo account or trading simulator before they start trading with real money, and this is the best possible way to learn the basics without the risk of losing money. This is the best possible way to learn the basics without the risk of losing money. eToro offers its users the possibility to use this type of free demo account so that they can test as much as they want and as many times as they need to before they even deposit funds into their accounts.
Its usefulness is obvious, as you will be able to trade as if you were already working in the market. In addition, it is perfect for those who do not yet have much experience or to practice in those investment options that you do not know too much about. One of its best utilities is the possibility to practice technical analysis (to be combined with fundamental analysis). You can buy shares once they are in the so-called support zone and sell them once they are in the resistance zone.
But this also applies to other financial markets such as the Forex market, as well as other assets such as stock indices or commodities. Thanks to the free demo account you can experiment and see for yourself how news from the financial world affects the price of each asset. All this without risking a single cent. That is why we recommend the use of this useful and recommendable trading tool.
eToro Commissions and Spreads
As usual, the fees charged for their services are a basic element in our analysis of a broker. If commissions are too high, investors will be the biggest losers, as this forces them to pay a lot just to trade.
In the case of eToro, these fees are more than reasonable in that there are no operating commissions. The broker takes a spread on the price of the asset to be traded.
You may be aware that the spread applied varies depending on the asset being traded. It is quite possible that other brokers apply higher spreads so, although you will find everything, in general terms, this is a generally cheap option.
Currency Pairs on eToro
Cryptocurrencies at eToro
Commodities at eToro
Stock Indices at eToro
How do I open an eToro account?
You already know all the features of the eToro platform and you know what you need to know in order to open a real or demo trading account with this broker. The next step is to find out how the registration process works. It couldn’t be simpler.
All you have to do is go to their website and register by providing a short list of very basic personal details. These include your name and surname and your e-mail address from which you will register.
Please note that opening an account with eToro is completely free and you don’t even need to make a deposit to complete your registration. Just remember that in order to start trading with real money, you will need to make an initial deposit, the minimum of which is 200 euros/dollars.
Depositing funds with eToro
In four easy steps you can deposit money into your eToro account:
- Log in.
- Click on “Deposit Funds”.
- Enter the amount and currency.
- Select a payment method.
Several systems are offered to deposit money, depending on the one chosen the process will take more or less time. Here is a brief summary:
- Credit or debit card (Visa, Mastercard, Diner’s Club): the transaction is done instantly and the maximum deposit is USD 40,000.
- Neteller and Skrill: instant and maximum deposit of 10,000 USD.
- PayPal: instant and USD 20,000.
- WebMoney: instant and USD 50,000.
- Bank transfer: three to five days, with no maximum limit, but with a minimum limit of $500.
- The minimum deposit (with the exception of the first deposit and regardless of the payment method chosen) is $50.
Withdrawal of funds at eToro
Withdrawing money is simple and should be done using the same method as the deposit was made. If this is not possible, the investor will be asked to choose another system. Whichever system is chosen, withdrawals at eToro must be a minimum of 30 USD and are subject to a 5 USD withdrawal fee.
These are the options and their characteristics:
- Credit/debit card or bank transfer: may take up to 8 working days.
- Neteller, PayPal, Skrill, WebMoney: 1 to 2 working days.
As you can see, this broker offers a wide variety of payment methods with which to deposit and withdraw from your trading account. A clear advantage when trading with eToro.
Advantages of trading with eToro
- Their regulation is in line with our requirements.
- It is the leading specialist broker in social trading.
- Its trading platform is very easy to use.
- It offers a wide range of financial instruments.
- Apply reasonable tariffs.
Disadvantages of trading with eToro
- High fees on some assets.
- Customer service could be improved but not bad.
- Scalping is not allowed.
Conclusion and opinion of eToro
If you are interested in social trading, eToro is the best choice as it is a broker that specialises in this type of trading. In terms of security and reliability it also passes all tests and is suitable for both retail and experienced investors.
Its trading platform is intuitive and easy to use and can be accessed from your mobile device. The social aspect of eToro will allow you to learn from other traders and even copy their trades but this does not ensure satisfactory results.
Remember that when trading CFDs you are taking risks of capital loss and you need to consider whether you can afford to take the high risk mentioned above. They are complex instruments and many retail investors lose money due to leverage.
eToro is a multi-instrument platform that offers the possibility to invest in stocks, cryptocurrencies or trade CFDs.
Please note that CFDs are complex instruments that carry a risk of capital loss due to leverage. 75% of retail clients lose money when trading CFDs with this broker. Before trading CFDs you should ask yourself whether you understand how they work and whether you can afford the high risk of capital loss.
Past performance does not ensure future results.
Cryptocurrencies are volatile instruments whose value can fluctuate greatly over short periods of time and are therefore not suitable for every type of investor. Cryptocurrencies are not regulated (except when using CFDs) so their operation is not supervised by any European institution.
EToro USA LLC does not offer CFDs and makes no representations or warranties as to the accuracy or reliability of the content of this page, which has been published by our partner using publicly available, non-specific information about eToro.
FREQUENTLY ASKED QUESTIONS
❶ WHAT IS ETORO?
eToro is one of the best online brokers and one of the best known brokers in the world thanks to its promotional campaigns and the fact that it has millions of customers from all over the world.
This is an online broker that allows social trading, also known as social trading or mirror trading.
❷ IS IT A SAFE BROKER?
The safety of each broker’s clients’ deposits is one of the keys to knowing if it is a reliable broker. eToro is a reliable broker and its clients’ money is safe.
Another aspect to consider is the regulation of each broker. Detailed information on eToro’s regulation can be found on our website.
DOES SOCIAL TRADING WORK?
It does work but it is not foolproof. If what you have heard is that you only have to copy a broker to make instant money, then it is better not to trade this way.
On our social trading page we provide detailed information on the ins and outs of social trading and the reliability of the eToro broker.
DO YOU HAVE A DEMO ACCOUNT?
The demo account is useful for many things and most brokers that are considered quality brokers offer a dummy money account for their clients to make use of.
Of course, eToro is one of the brokers that offers a demo account. On our demo trading accounts page we explain how to make use of a demo account.