eToro actually began back in 2007 with three entrepreneurs who wanted to make trading more accessible for every day users.
At the same time, they wanted to reduce dependency on banks and other traditional financial institutions. eToro started off as an online trading platform with graphs representing financial instruments and an intuitive interface.
In 2009, eToro launched the trading platform, WebTrader, with a range of professional tools for traders of all skill levels.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
A big step forward came in 2011 with OpenBook, the first social trading platform in the world. This included the then-new CopyTrader feature, which let anyone copy successful traders. In 2012, eToro added stocks to its other assets, like currencies and commodities.
Origins of the eToro trading platform
EToro was created in Israel, an idea that the brothers Ronen and Yoni Assia had in 2006. eToro is one of the first brokers in the market to offer access to trading assets to novice users regardless of their location and without dependence on institutions traditional financial institutions.
Currently, eToro is headquartered in Cyprus and also has an office in the UK, offering its users the opportunity to trade with Cryptocurrencies like Bitcoin since the year 2013, making the eToro trading platform a revolutionary in its market. In addition, the eToro app is available for Android and iPhone smartphones and tablets, making it even easier to use and access from anywhere.
EToro offers a free demo account for novice users to get to know the eToro trading platform until the moment they want to make an initial deposit and start trading in a real way. During our review we found that due to the fact that it has operational headquarters in Cyprus and the United Kingdom, eToro is regulated by CySEC (Cyprus Securities and Exchange Commission) and also by the FCA (UK Financial Conduct Authority). That is why the eToro trading platform is safe for all its users. In addition, due to being a FCA-regulated platform, eToro must meet all your requirements. One is that if eToro goes bankrupt, all of its users are covered by up to £ 80,000 from their account. However, the chances of this happening are practically nonexistent at the moment.
Its platform is used by millions of people in more than 170 countries, including Brazil, and has one of the largest availability of assets in the world, confirming the security we noted during our review of eToro.
How does the eToro trading platform work?
Being the first online platform to trade financial assets, eToro is also a leader with the most advanced technologies on the market, because it has a very intuitive and easy to use platform for its customers, ranging from beginners to experienced, where they can trade cryptocurrencies, stocks, ETFs, and raw materials and foreign currencies.
In our review of eToro, we found that one of its main qualities is its Social Network, and its CopyTrading function. Due to the fact that trading is a difficult skill to master and usually requires a lot of time, money and effort to really generate profit, they introduced an eToro guide, in the form of a Social Trading platform, which allows its users to start in this market with the support of experienced dealers, and in a relatively secure manner.
One thing we really liked during our review of eToro was the ease that the platform offers for novice users, when they are learning how to use eToro, because you can copy the businesses of users who have been successful and profitable for years , in addition to seeing the history and assets they trade. This knowledge is invaluable, because you can compare smart users and decide who fits your risk profile and follow them and your business. You can then profit from the transactions of specialized winners and make the same percentage of earnings as they do.
The mobile versions of eToro for iOS and Android allow easy synchronization between platforms, with well-organized menus, but with less graphics resources and limited customization. The indicator menu has been reduced to five basic types, while the order entry system is identical to the web version. The watch list does not include customer positioning data, unlike the web version, marking a strange omission, given the eToro’s commercial focus. Users can define custom price alerts while also receiving push notifications about market events and account issues.
The eToro social trading platform is web-based and oriented to facilitate use on complexity. Less experienced customers, as well as more experienced traders, can appreciate the simplicity, although the platform does not have an independent version. The graphics are surprisingly complete, with 66 indicators and numerous drawing tools. The graphics platform does not have backtest functionality, although the platform has performance data from CopyTraders and CopyPortfolios. The News link is disappointing, opening up on a social forum, with customer posts, but not much in terms of current news or streaming. Watchlists can be customized and saved, while order entry lacks risk management capabilities. The broker does not offer MetaTrader or other third party alternatives.
EToro focuses closely on its strength, namely social and copy trading, social sentiment data on the platform, as well as automated trading of customer and portfolio copies. They provide negative balance protection to professional clients as a voluntary incentive, because it is not required by ESMA rules. The lack of a volume discount program prevents the platform from being less expensive, although the company offers an eToro Club program that offers some extra discounts and services based on the size of the account. Face-to-face comparisons between the most popular forex brokers and eToro can provide an unfavorable comparison if you don’t consider the main strength of this platform.
Still, there are some things that the platform could improve on. Order management and guaranteed stop loss protection would go a long way in reducing the risk of major losses, especially with cryptocurrency coverage that has limited stop loss functionality. These weaknesses can also be addressed by an API interface or VPS hosting on platform alternatives, but these options are not available. Therefore, the platform is strong for those looking to rely mainly on taking portfolios from portfolios of advanced clients (in the CopyTrader program) or in proprietary algorithms (robot consultant in the CopyPortfolios program).
Deposit and Withdrawal
There are several ways in which you can deposit funds to your eToro trading account. Currently, the supported methods include depositing via credit cards such as VISA, Mastercard or Diners. EWallets such as China UnionPay, Neteller, PayPal, Skrill, WebMoney and Yandex are also available for merchants to deposit their funds.
For traders who do not have a credit card or eWallet, they can also fund their trading account via bank transfer. Processing withdrawal requests typically takes three business days. However, merchants must ensure that the withdrawal amount is at least $ 50, or their withdrawal requests will be rejected. Please note that eToro charges its customers a $ 5 withdrawal fee for each withdrawal made (recently reduced). In addition to the withdrawal fee, an additional cost for merchants will be the currency conversion fee.
Currently, conversion rates 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
If you are a novice trader who is just getting started, eToro will be the right broker to trade. The ability to conduct social negotiations is in fact a resource that can greatly increase the profitability of a novice professional. However, if you are an experienced trader who wants to trade with the day, eToro may not be the right fit. This is due to the fact that the spreads charged by eToro are higher than the average. In addition, as a day trader who relies on small margins and a large number of trades to obtain an overall daily profit, the additional cost incurred will lessen any gains made with trading the day.
Free demo account
As soon as you complete your initial registration you will immediately have access to a free demo account so you can get to know the tools offered and try the platform.
Access is quite simple:
To complement this, there is also a tutorial that shows, step by step, the main features of the broker. Buying and selling any asset on eToro is an intuitive and quite simple process. In reality it is easier to understand than it looks.
At the basis of the explanation is, as we have already seen, CFDs and the way in which they allow you to gain both by increasing and decreasing the value of an asset. That is:
• If you believe that the price of a particular asset will rise, then you must open a long position. We call this “going long”. This way, you will profit from the positive change in the price of the asset in the period in which your position is open;
• If you believe that the price of a particular cryptocurrency will go down, then you should open a selling position. This is called “going short”. That way you will profit from the asset price drop.
During the opening of the position, you can also define various trading parameters according to the tools offered by the platform and which can help you a lot in trading.
Users have access to a panel of questions and frequently asked questions to be informed of all their operating policies. EToro also provides a Chat for a more practical and direct contact of the user with the broker, something that is very useful and increasingly used in the main platforms.
Users can also contact employees via e-mail, and responses are usually sent within 1-2 business days. In rare cases, the resolution can take up to 7 working days. In summary, the following means of support are available:
• Support center with frequently asked questions;
• Online chat;
EToro is a platform in operation since 2007, which has a lot of experience and popularity. The platform’s tools and the simplicity they introduce to trading assets such as cryptocurrencies are its real asset and what distinguish it from other options. Among the features that stand out the most is social trading, which revolutionizes the way of trading and which is certainly a welcome tool for many users.
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