Using social media channels like YouTube, you may have heard of eToro; a trading platform. Their ads were everywhere. One of their ads is so intimidating that you want to start trading asap. But you can’t invest without knowing them, right? So, here we have managed to research a bit and are sharing the knowledge in our eToro review.
eToro Review – All You Need to Know
A Little History
The first thing that concerns an investor is if his investment would be in safe hands or not. And to get relief from this worry the investor investigates. So, let’s start with the basics.
Yoni Assia and Ronen Assia (the two brothers), and David Ring found this eToro in 2006 in Tel Aviv-Yafo, Israel. The company has settled its bases in Cyprus, United Kingdom, and Israel. And offer her services worldwide through their trading app and website.
It would be amusing to know that none of the three founders have a degree in finance. But they have managed to successfully build this business. And more in this industry.
The company has legal presence in UK, China, Australia, Cyprus, and the US covering some major stock markets in the world.
The company is regulated by the Cyprus Securities & Exchange Commission (CySEC). eToro is licensed from FCA (UK), FinCEN (USA), and ASIC (AUS).
The company is operating in 140 countries with 11+ million users. The company has an SSL encryption making its online transactions safe and secure.
However, in 2013, the company was fined 50,000 Euros due to several organizational and operational structure weaknesses.
And after two years, the company was added to Quebec blacklist as eToro wasn’t registered with Autorité des marchés financiers (AMF).
eToro is also unable to offer stop-loss protection.
Commissions and Fees
Some eToro reviews would say that the company charges high commissions on withdrawals. I, on the other hand, disagree.
The company states that it charges a minimum fee of $5 (subject to change in the future) on withdrawals. But don’t charge a dime as clearance fees.
The product range is relatively small. You have 47 currency pairs, 15 commodity options, 94 (impressive) cryptocurrencies, and 1500+ shares.
So if you’re planning to invest for a medium- to long-term period, you have 1500+ shares to invest in.
Where eToro claims to have 2000+ financial instruments of various classes, this figure might be of less value if you’re already working with some big brokers. However, for a beginner broker like me, it’s good to start with.
Research and Insights
Unfortunately, you will not find many informative items on eToro. There’s a watchlist where you can get some past trends on an asset. This section will guide you where you have recently invested and where others are investing.
The news feed is a social platform where members share their knowledge. However, it isn’t very effective as people share their opinions or other informative material that doesn’t necessarily have to be authentic.
A more productive section is the eToro club. This section includes market analysis, live webcasts, daily market summary, and more. But it’s a paid service.
Yet, there are tons of trading websites and apps where you could get all the related news, analysis, and more. But most of them are paid.
CopyTrading, this is the most popular feature of eToro. And is free of cost. You simply view what traders on the platform are doing and then can copy their activity on a real-time basis.
This feature is best for beginner forex traders or busy professionals. This gives you a chance to stay profitable. However, staying too much away from the system or relying all on others is never advised.
Even the most successful traders could make a mistake making your investment all in vain. So it’s always advised to stay updated and keep a close eye on your mentor’s activity.
CopyPortfolios is another feature. It’s an instrument allowing you to invest in a group of assets or traders. So unlike Copy trading, where you copy one trader, here you follow either a group of traders or assets.
Your investment is automatically allocated according to that portfolio’s algorithm.
Yet again, these easy features must not be taken for granted. Just like the financial assets’ trends, these portfolios go up and down. So you must be vigilant.
This section is appropriately managed. Here you have some podcasts, some tutorial videos, and news and analysis. Plus they’ve their YouTube channel as well.
eToro Review – Start Your Forex Trading Journey
So, this was our brief eToro review. We’ve tried to give you the pros and cons keeping it simple for new forex traders.
However, we recommend to first read everything about eToro through their website and other social media channels.
And then sign up on eToro. This is the best way to understand them and come to a decision.