CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
- Free ETF and stock trading
- Social trading experience
- Access to almost 10000 financial instruments
- Gives access to 15 cryptocurrencies
- Easy to use
- Limited features in the US
- Only one account base currency
Table of contents
- What is eToro?
- How does the Copy system works?
- Copyportfolio features
- eToro´s Crypto offering
- Social Trading Platform features:
- Who eToro is best for:
- eToro fees:
- eToro vs competitors:
- Is eToro legit?
- How does eToro make money?
Trading has gone online these days. Different online trading platforms are working to make trading easier for investors. eToro is a well- known name in the market for online trading.
eToro is a famous fintech company established in 2007. It is a social trading platform. It offers different tools for everyday investors interested in doing trading.
This eToro review has all the necessary information about eToro. So, without any further delay, dig into the article.
What is eToro?
eToro is a social trading platform. The company has offices in Israel, Cyprus, USA Australia and the UK. It offers both simple trading options and also social trading options.
As part of social trading, eToro mostly allows its clients to follow the activity of other clients and using their Copytrader system. In other words, you can replicate everything that they do in real life. eToro functions in full transparency display the gains, risks, and portfolio composition for each user.
For manual traders, eToro provides multiple options to trade such as currencies, stocks, commodities, ETFs, and cryptocurrencies. It provides tools for you to track your investment and its activity. Moreover, it eToro has a vast deposit methods.
It also has CopyPortfolios, which is a ready-made investment portfolio that contains either top traders of the platform or various financial assets following a market strategy.
This is what users say about eToro:
How does the Copy system works?
Copy system is consist of two types as following:
The basic idea of the copytrader tool is simple. You need to choose the trader you wish to copy, decide the amount, and then copy everything they do automatically.
Important points to consider before copytrading:
Important points to consider before Copying:
- The minimum amount that you can invest in a trader is $200
- The maximum number of traders that you can copy simultaneously is 100
- The maximum amount that can be invested in one trader is $2,000,000
- The minimum amount is $1 for a copied trade.
Copyportfolio is an option for long-term double-digit returns. It aggregates several assets or different traders and is optimized by professional machine algorithms.
General portfolio considerations:
- The minimum investment amount is $5000 (in some cases $2000)
- The default stop loss is 10%.
- The weight allocation can change with time.
eToro´s Crypto offering
It offers different formats of trading in cryptocurrencies. Cryptocurrencies are categories by:
Covering top 16 cryptocurrencies, with the ability to buy the real crypto or for those who like to speculate they can easily do it by trading crypto derivatives( CFD’s)
*Owning the cryptos or trading them as CFD’s varies from one regulation to another with eToro
eToro currency only offers Gold/BTC as CFD, which is a unique pair. The traditional safe-haven gold trading vs the new potential safe haven.
eToro offers 14 CFD’s cryptos pairs.
63 different trading pairs crypto-fiat markets for GBP, CHF,NZD, EUR, CAD and some more. In the image below, you can see some of the 63 crypto markets at the platform.
The social trading platform offers CopyPortfolios which means that you have a basket of several cryptocurrencies that you can invest passively.
This portfolio allocates leading crypto assets from eToro’s asset universe. Each selected asset is weighted equally. The portfolio will be rebalanced at eToro’s discretion, pending market conditions.
This Copyportfolio offers exposure to Bitcoin and Ethereum based on marketcap dominance.
In addition, it offers exposure to the largest crypto assets by market cap today, Bitcoin and Ethereum. Both assets are allocated in this portfolio according to their respective market caps.
This portfolio provides investors with an easy single-click allocation to the world of crypto through a straightforward allocation weighted according to traditional market approach.
The portfolio will be rebalanced annually, or at eToro’s discretion, pending market conditions.
Social Trading Platform features:
The dominant and main feature of the social tradingplatform is having the facility of Copytrader and CopyPortfolios. The following attract the retail traders to this unique trading platform. CopyTrader enables the user to assign a portion of their capital for the purpose of copying others. Each trader keeps full control and can even exit positions. Copytrading serves as the success of the social trading platform and its community represents itself as one of the largest online trading platforms.
Copyportfolio functions the same as copytrading except it allows copy portfolios that are similar to mutual funds or other groups of assets. The eToro investment investment committee handles all the copyportfolios risks and allocations.
Another feature of eToro is the popular investor program. This program offer an additional revenue stream for social traders who has some solid copiers. This means that popular investors can generate additional income.
The more successful the popular investor is the more likely for him to attract users to allocate their money with him.
As the popular investor asset under management grows, so also his additional income.
To be a successful investor, you must have good consistence gains.
Who eToro is best for:
If you looking to gain access to cryptocurrencies, eToro can help you achieve that. With their intuitive and simple interface platform. eToro is outstanding in the trading of social copies and for cryptocurrencies. In addition, eToro offers an easy-to-use web platform and mobile app that is great for casual investors, including beginners.
You can make an account on eToro for free. There is no management fee on stock investment and charges no commission at all. It also doesn’t have any clearance fee. Please see below the breakdown of eToro fees:
For stocks and ETFs, the fee is 0.09%
Commodities, the fee starts from 2 PIPS
Cryptocurrencies, the fee starts from 0.75%
Indices, the fee starts from 100 PIPS
Currencies, the fee starts from 1 PIP
Other fees that can be charged are a $5 withdrawal fee (Waiver for Platinum and above customers)
Conversion fee starts from 50 PIPS (Waiver for Platinum and above customers for Wire transfer)
eToro vs competitors:
Is eToro legit?
With over 15,000,000 traders from 140 countries and a $162 million funding amount on its platform, eToro social trading platform proves to be one of the top social trading platforms. It expanded its branches to the cryptocurrency sector in 2018 and growing ever since it has been established.
Moreover, In Europe, it is regulated by the Cyprus Security and exchange commission (CySEC). In addition, eToro U.K. is regulated by the Financial Conduct Authority (FCA). In Australia, it is regulated by (ASIC) Australian Securities and Investments Commission and in the USA it is regulated by FinCEN.
eToro takes transparency seriously and it is a safe and secure platform according to the users.
All the necessary documents are available on the website. So we can proudly call eToro a legitimate platform.
How does eToro make money?
There are 3 ways through which eToro makes money. Firstly, it is a market maker broker that operates on the STP-NDD hybrid model. That means the platform gets to profit from losing trades although they balance it to make sure no conflict occurs. Secondly through trading spread for cryptocurrencies, commodities, and stocks. Finally, it earns by non-trading fees such as $5 withdrawal fee and $10 inactivity fee.
eToro is an online trading platform founded in 2007 in Israel and it is a zero-commission and safe broker. It allows investments in stocks, CFDs, currencies pairs, indices, ETFs and commodities. Opening an account is simple and easy. To get started you will need at least $200. It charges no deposit and management fee. You can also access the demo account, to get yourself familiar with zero risks until you decide to invest.
In short, it is a multi-asset platform that comes in 26 different languages. Simply put, eToro social trading platform is the best social trading platform with zero-commission trading. Make sure to understand CFD trading that is certainly not appropriate for all the investors.