admin
eToro is a popular social trading platform that provides investors with access to a wide range of financial markets, including stocks, commodities, indices, and currencies. The platform has become increasingly popular due to its focus on social trading, allowing investors to interact, share ideas and insights, and replicate each other’s trades. Let’s look at this broker in more detail to see why they are so popular.
eToro is a popular social trading platform that provides investors with access to a wide range of financial markets, including stocks, commodities, indices, and currencies. The platform has become increasingly popular due to its focus on social trading, allowing investors to interact, share ideas and insights, and replicate each other’s trades.
eToro was founded in 2006 and is headquartered in Tel Aviv, Israel. The platform has grown rapidly in recent years and now boasts more than 11 million registered users in over 140 countries. It is also fully regulated by top-tier financial authorities, including the FCA in the UK and the CySEC in Cyprus.
One of the key benefits of eToro is its user-friendly platform, which is designed to be accessible to traders of all levels of experience. Whether you’re a beginner or a seasoned trader, you’ll be able to use the platform to access the financial markets, research investment opportunities, and make trades with ease.
One of the standout features of eToro is its social trading network, which allows investors to connect with each other and share information about the markets. Investors can follow each other’s portfolios, discuss strategies and ideas, and even copy each other’s trades. This allows traders to benefit from the collective knowledge and experience of a community of like-minded individuals.
eToro also offers a range of tools and resources to help traders make informed investment decisions. This includes a comprehensive news section, detailed market analysis, and a range of investment products, including stocks, commodities, and ETFs. Let’s look at this broker in more detail to see why they are so popular.
| Broker Feature | Overview |
| Type of Broker | CFD Broker |
| Regulation & Licensing | · Australian Securities and Investments Commission (ASIC)· Cyprus Securities and Exchange Commission (CySEC)· Financial Services Authority of Seychelles (FSA)· Financial Conduct Authority (FCA) |
| Applicable Countries Allowed To Trade | Link to all applicable countries |
| Assets Offered | Forex, stocks, commodities, indices, crypto, ETFs |
| Platforms Available | eToro Web and Mobile Platforms |
| Mobile Compatibility | Yes |
| Payment & Withdrawal Options | · Skrill· Debit and credit card· Neteller· PayPal· eToro Money· Trusty Online Banking· Bank Transfer |
Facts About eToro
- 11 million registered users in over 140 countries
- eToro was founded in 2006
- It is headquartered in Tel Aviv, Israel
- Regulated by ASIC, CySEC, FSA, and FCA
- Can trade forex, stocks, commodities, indices, crypto, and ETFs as CFDs
- One trading account
- Copy/Social trading platform
- Great learning academy
Pros and Cons
PROS
- Easy-to-use platforms
- Very beginner friendly
- Able to trade CFDs
- Adjustable leverage per trade
- One account to suit everyone (great for beginners)
- Great trading resources
- Very popular platform
- Have over 11 million users
CONS
- Customer support is only through tickets
- You can only trade CFDs
- Spreads are not great
- Only one account, so you don’t have flexibility
Is eToro Safe? Broker Regulations
eToro is overseen by four financial regulatory commissions across the globe due to them operating internationally and in various regions. Most importantly, more authorities overseeing a broker is a good thing. This means that, in most cases, they are more reputable and can be regarded as a safer option to brokers who are not as regulated.
In the case of eToro, they are regulated by two top-tier authorities, the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC). Then they are also regulated by the Financial Conduct Authority (FCA) in the UK and lastly, by the Financial Services Authority of Seychelles (FSA).
You can find the information on their regulations by heading to their website and then scrolling to the footer section where the various entities are listed along with their regulators and their license number;
- eToro (Europe) Ltd is a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license # 109/10.
- eToro (UK) Ltd is a Financial Services Company authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.
- eToro AUS Capital Limited is authorized by the Australian Securities and Investments Commission (ASIC) to provide financial services under Australian Financial Services License 491139
- eToro (Seychelles) Ltd. is licensed by the Financial Services Authority Seychelles (“FSAS”) to provide broker-dealer services under the Securities Act 2007 License #SD076
In terms of awards, they have been nominated for having the best affiliate program by “forex-awards.”. If you would like to consider customer reviews in determining a broker’s legitimacy, you can also look at Trustpilot. In fact, eToro has its reviews embedded in its website. Clients give this broker a 4.3-star rating out of a possible five and this is based on nearly 19,000 customer reviews.
- Australian Securities and Investments Commission (ASIC)
- Cyprus Securities and Exchange Commission (CySEC)
- Financial Services Authority of Seychelles (FSA)
- Financial Conduct Authority (FCA)
What Can I Trade with eToro?
eToro deals in CFD trading for forex, stocks, commodities, indices, and crypto. They don’t give much detail on the number of assets offered, and you won’t find this information on their site. You will need to open up the actual market quotes page for each, and then you will be able to tell how many instruments for each asset class are available. Luckily enough, we have done this for you.
Forex
Heading to the quotes section of the eToro site for forex, we can see that they offer 49 currency pairs. You can expect to find all the typical major and minor pairs, along with some exotics. The assets list for forex is not that large in this case, but it does cover what traders usually deal with.
Stocks
In the case of stocks, this broker does not give a fixed number at all. As such, we can’t speculate on how many stocks they offer as tradable CFDs. However, the most popular stocks, like Meta, Amazon, Google, etc., can be found.
Commodities
Clients will be able to trade or copy trade (we will discuss this) 26 various commodities, including metals, energies, and staples. This includes wheat, oil, gold, silver, natural gas, etc. You are even able to trade LiveCattle through this broker.
Indices
The quotes page for indices pulls up 20 of the most popular indices that track companies across the globe. Here you can expect to find everything from the DAX to the Hang Seng, not to mention the S&P and the FTSE 100.
Crypto
When it comes to crypto, eToro has 57 different coins that you can trade 24/7. Remember that crypto trading is not like forex, and the markets for this asset class do not ever close. All the popular coins can be found here, along with emerging ones.
ETFs
Lastly, eToro also has numerous ETFs that traders can take positions on. Remember that ETFs can be considered similar to an investment pool that operates like a mutual fund. eToro lets you trade these as CFDs, and you will be able to find 300 various “baskets” tracking various sectors of many economies.
- Cryptocurrency
- Stocks
- Forex
- Commodities
- Indices
- ETFs
How to Trade with eToro?
There are only two ways to trade through eToro: their mobile app or their web platform, which can be logged into as long as your device has browser compatibility. eToro is unlike other brokers that use MetaTrader; in some cases, this might not be a bad thing. Nowadays, logging onto a web-based platform is much easier than needing a desktop machine to download and install a program.
However, top-tier brokers (most of them) use MetaTrader for a reason. This is because it has been considered to be the industry standard since its release in 2005. The features and services in MetaTrader are “bar none,” some of the best that any trading software offers.
The web platform that eToro has is sleek and well-designed, but it is essential to understand that this broker’s platform is really geared toward beginner investors and copy traders.
You then have their mobile app, specifically designed around the web platform, and you will be able to trade using it just as you would with the web terminal. That is to say; it still includes copy and social trading features.
It should be noted that not much information with regard to either platform is given, and the broker has CTA for clients to signup and experience the software for themselves. This is quite a good marketing strategy, but clients who know what they want in their trading platforms will first need to sign up to get the full experience.
| Feature | eToro Web Platform | eToro Mobile App |
| One-Click or One-Tap Trading | Yes | Yes |
| Trade Straight off Charts | Yes | Yes |
| Email Alerts or Push Notifications | Yes | Yes |
| Mobile Alerts | Yes | Yes |
| Stop Order | No | No |
| Market Order | Yes | Yes |
| Trailing Stop Order | No | No |
| OCO Orders (One-Cancels-The-Other) | No | No |
| Limit Order | No | No |
| 24hr trading | Yes | |
| Charting Package | No | No |
| Streaming News Feed | No | No |
- eToro Web Platform
- eToro Mobile App
How Can I Open eToro Account? A Simple Tutorial
eToro has made registration very easy indeed, and heading to their official site; you will be prompted with a “start investing” CTA straight away.
If you decide to navigate their site, you will need to click on the “sign up” button on the right side of the main menu. Either way, both links will redirect you to the same registration page.
Once you are redirected to the registration page, you will need to fill in your username, Email, and password and accept all their terms and conditions. If you intend to signup with this broker, then it is in your best interest to read through these documents.
You also have the option to sign up through Google or Facebook if you so choose. For the purposes of this tutorial, we will sign up with an Email account to show you the proceeding steps. After inputting your details, you will then be directed to another screen where you will need to verify your Email.
After you have inserted the verification code and clicked on “activate now,” your registration process will be complete, and you will be taken to the client dashboard area, where you will have access to your account.
At this stage, even though the registration process is complete, you will need to verify your account, and that involves you submitting verified documents such as your ID, proof of address, and banking details. If you plan to deposit and start trading, you will have to do this.
- Head to the eToro website
- Click on the CTA on the home page, or if browsing the site, click on the “sign up” button
- Fill in your Email, username, and password to register or register via Google or Facebook
- Verify your email account if you signed up with credentials
- Log into your eToro client dashboard
- Verify your account to deposit, trade, and withdraw funds
eToro Charts and Analysis
eToro has its trading resources and education material neatly stacked under the menu heading of “education,” which is aptly named. Trading resources and education when it comes to beginner investors is a must for international online brokers. It gives beginner traders a reason to trust and remain on the platform and provides clout to the broker while helping new traders and investors learn the ropes.
There are four sections that cover eToro’s trading resources, and they are;
- News and Analysis
- eToro Academy
- eToro Plus
- Digest and Invest
The “news and analysis” section is your typical blog that is updated almost daily, and you can find relevant news impacting the markets here. They also have articles dedicated to “weekly roundup” and ones on crypto and forex can also be found. The topics that you have available as a filter include, CopyTrader, Crypto, Investing, Market Insights, Stocks, Trading, eToro Money, and a few others.
Next is the eToro Academy, and this is something anybody would want to take a look at. Whether you are new to trading or a seasoned pro, whether you use the broker or not, the Academy section is filled with hundreds of videos, podcasts, and webinars covering most aspects of trading and the financial markets. Guides, basic concepts, and summer school are just some topics that this Academy covers.
It is truly one of the better Academy sections that a broker has provided, and best of all, all the content is absolutely free, and there are no hidden signup costs, fees, or “gotcha” situations here.
eToro plus is a section dedicated to weekly and quarterly summaries that dive into market trends and where you should go if you need a catchup of an overall picture of the markets and what has been occurring.
It is a great “blog” to get a nice roundup on the overall feel of the markets. Ben Laidler is the economic specialist here, and most topics will be covered and written by him. Everything from “natural gas impact” to “covid still driving the markets” can be found here.
The last section of trading resources you will find is the “digest and invest” section, where much like the blog and eToro plus section, you will find videos from experts covering different aspects of the markets. This section can be compared to a “Bloomberg” news feed where interviews can take place, insights into specific sectors, and general overviews are shared.
- News and Analysis
- eToro Academy
- eToro Plus
- Digest and Invest
eToro Account Types
Many brokers have different account types that will differ from each other. This is because trading is not just straightforward, and many individuals require different accounts for specific trading styles. For example, some brokers have “Cent” accounts that allow you to trade at fractional values, helping you test strategies. You also sometimes get “ECN” accounts or “Zero Spread” accounts where spreads for specific forex pairs will start at 0. Though these accounts usually have a commission-based approach.
With eToro, there is only one account. Moreover, they don’t even have a name for it, so it is just considered the standard account that anyone who signs up for the platform will have. This makes things a lot easier for new traders because deciding which account suits your situation best is not typically known unless you have experience with trading.
With eToro, one account fits all. You should also remember that this broker only trades in CFDs. This means the futures, options, and shares are not available. Also, the platform and the broker generally are based on copy and social trading, especially catering to new traders. This means that one account is perfectly suited for everyone, and nothing special is required.
Take note that many brokers also charge fees. This can be for different aspects that take into account the broker’s various features—for example, inactive account fees or deposit and withdrawal fees. In the case of eToro, there are no fees or hidden fees.
However, there are some things to note about the account. The leverage is variable, and for indices, it goes up to 1:20. For forex, the leverage is 1:30. Spreads are not specifically given in pip form because the platform does not show this type of information. Remember, it is again suited toward ease of use for beginner traders. For any additional information on specific assets, you will need to open an account; go to the asset and click on the “invest” button to see all available options. Lastly, the minimum deposit to trade on the account is 50 USD for most countries, but it will vary depending on what country you are in.
| CFD Broker | Standard account |
| Features | One account for all traders |
| Account Currencies | USD, GBP, EUR |
| Available Leverage | Varied |
| Minimum Deposit | 50 USD |
| Commission Per Trade | N/A |
| Decimal Pricing | N/A |
| Trading Instruments | Forex, stocks, commodities, indices, crypto, ETFs |
| Min. Lot Size Per Trade | N/A |
| Max. Lot Size Per Trade | N/A |
| Spreads | Varied |
| Demo Account | Yes |
| Swap/Rollover Free | Yes |
| Hedging | No |
| Scalping | Yes |
| Copy Trading Support | Yes |
| Available to US Residents | Yes (bitcoin) |
- Standard account (For all traders)
Do I Have Negative Balance Protection with This Broker?
In the event that your equity becomes negative, eToro will implement a margin call and close your position(s). They will then absorb any loss that you may have incurred and reset your balance to zero. This means that you can never lose more than what you deposited into your account.
This information regarding this policy that eToro has can be found here. Additionally, this is a good policy to have and is standard when it comes to many international (especially the “famous”) brokers. This helps to incentivize potential clients to have less stress when trading and learning how to do so. Thinking that your account could go into the negative and cost you thousands of dollars if you do not know what you are doing is a huge “barrier to entry” for many individuals.
