Hi guys! It’s me. Again. And I’m with the new review of the certain platform. Today I’m going to introduce you eToro. I’ve made a complete research of it, so now it’s time to share some conclusions according to this “exchange”. If you’re still hesitating “to invest or not to invest” in crypto there, this article is for you. All main pros and cons, specifics of trading products, and manuals on purchasing cryptocurrency are offered here. Hope it’s useful, waiting for your feedback! 😉
Established in Tel Aviv in 2006 as RetailFX, eToro is a popular Israeli fintech startup which provides social trading services and network. The business does not belong to any bank or stock exchange. As a multinational brokerage, it is registered in several countries including Israel, Britain and Cyprus. Using their services comes with diverse benefits and drawbacks. Take a look at the below table to know more.
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| 1. Top quality customer support services | 1. High service charge |
| 2. Perfect integration of social trading | 2. No earning as it is not a real exchange |
| 3. Diverse market options | 3. Supports only Bitcoin and Ethereum |
| 4. Simple platform to utilize | 4. No deposit of digital money |
| 5. No deposit of digital money | 5. Anonymity is low |
| 6. No downtime | 6. Weekends customer support services not offered |
| 7. Demo account to use for learning | 7. Trading platforms not provided |
Trade Markets on eToro
Traders can trade with leverage using contract for differences. The lowest acceptable amount for all stocks in this site is one but their maxi varies as evident from the below table.
| Leverage | Max |
| Currencies | 400 |
| Commodities | 100 |
| Indices | 100 |
| Stock | 10 |
| ETFs | 5 |
| Cryptocurrencies | 1 |
Stocks
The ever-changing stock markets present dealers with plenty choices, making them good ventures for individuals with enough more to invest for a moderate or an extended time period. Every stock has unique market events affecting it. Various occurrences like the announcement of the introduction of a novel product, the release of earning reports and changes in the competitor’s stock prices can make a stock’s monetary worth to drop or increase.
For example, if the media comes up with a negative report about a maker of a smartphone as a result of an imperfection in a product series of theirs, the share prices of their direct competitors are more likely go up. Companies that make gains normally pay a fixed amount of dividend per share to their shareholders.
As from 15 January 2018, eToro will buy the underlying asset of any non-leverage Buy for any stock, and keep the same under the name of the client. Nevertheless, if applying leverage or shorting a stock is your desire, rather than buying the underlying asset, your transactions have to be carried out via a CFD. Apple and Facebook made the list of our favorite stocks. Google is also popular.
Commodities
Commodities trading has existed since the ancient time. They are unique because they are tangibly present. Commodities, be it energy sources like oil or gemstone including diamond or gold, are present in actuality on the globe. Consequently, earthly events affect them. For example, the availability too many oil reservoirs is likely to bring down the price of oil.
Furthermore, certain items regarded as safe-haven have the potentials of stabilizing a portfolio comprising assets with high volatility. Like, many forex traders will rely on gold future when there is an enormous rise in the volatility of the market. This is because of the overall stability of gold’s monetary worth in the market. With this, they will maintain their operation in the forex market. We cherish natural gas and gold but oil is also among our best-loved commodities.
Currencies
There is no market anywhere across the globe that is larger than the forex exchange market. Its standard trading-volume is over $5 trillion on daily basis. However, its volatility is incredibly high. Changes occur in the market in seconds. Consequent upon this, currency traders are always on alert. In certain situations, they can close a trade they just open in a few minutes ago.
The units for measuring currency movement is referred to as pips (0.0001). It takes a considerable sum of money for it to generate reasonable profits. Consequently, most networks for trading fix the ratio at which they do leveraged transactions. Like, if the given proportion is 1:100, it means the trader will receive $99 for any one dollar investment made.
Leveraging is beneficial but it can be a risk because the loan includes the losses. This resultant effect may give rise to a significant cut on funds. There are different factors affecting each currency and these include expert statistics of a country, the central bank’s decision on interest and other economic events. BTC is another currency that we cherish most apart from EUR/GBP and Eur/USD.
ETFs
ETF which is an acronym for exchange-traded fund refers to a financial tool which comprises a number of the assets put together to be traded as one. A particular market method or indicator made to satisfy the hedging requirements of a particular financial system is used in the buying and selling of ETF. Investors can also choose it as an option with minimized liability. A class of professionals normally creates ETF for financial bodies.
Because they are a choice with reduced risk made to generate gains constantly overtime, ETF is normally taken to be instruments for making an investment over a long period of time. While we cherish the emerging markets index (EEM) as an investment tool, proshares Ultra S&P 500 (SSO) appeals to us as well. We also found the iSPDR gold (GLD) to be common.
Indices
The position of a particular aspect of the market at a specific time is indicated by one or various indices in the major world’s stock market. Unlike ever-changing individual stocks, indices are less dynamic because they comprise a lot of various kinds of the asset which stabilizes one another. Like, the tech sector’s main companies including Apple and Google is brought together by the index of NASDAQ on Wall Street.
Given that it includes competing companies, a business will often gain when the rival loses and this will help to bring the total indicator at a balance. Each stock has a unique impact on the indicator because of the differences in the volume and market capitalization of each company. Put differently, some stocks make more impact than others.
For instance, given that Apple’s market cap and size are larger than those of smaller businesses included in the NASDAQ’s indicator, a considerable rise in the stock of Apple is likely to affect the indicator’s total monetary worth. Nasdaq (NSDQ100) is a popular index just as Dow Jones (DJ30) is. Another common index is DAX Index (GER30).
Cryptocoins
With increased popularity nowadays, lots of forex dealers now turn to digital monies like BTC and ETH as reliable ventures. The owner of the Crypto CopyFund, namely, eToro investment committee, has continued to increase their cryptocurrency’s selections offering many options to traders interested in digital coin transactions and exchange. Their volatility is very high.
This explains why a double-digit percentage fluctuation can occur within 24 hours. BTC remains the market’s standard. It was the first to be traded before any other digital coin and has continued to dominate others in all aspects. Bitcoin determines the direction of other cryptocoins’ charts. Besides BTC, we also offer ETH and LTC (litecoin).
Manual on How to Trade on eToro
- Create an account on the site by filling in your name, email ID, a password and a phone number in the sign-up form.
- Develop a complete profile: Press the username icon, then tab on setting to complete your profile. This will involve series of stages, so fill up forms as you are prompted.
- Verify your details to enjoy all the company has to offer.
- Select your assets like currencies, cryptocurrency, or stock (each of them comes some benefits and drawbacks; so make sure that you learn each of them before making a choice).
- Familiarize yourself with the site using a demo account.
- If you are at home with a network, make it real by signing in to the platform to view the transactions taking place in the opening book and find out who the key players are and the instrument they use for their operations.
- Click on “people” by the menu board’s left side for the members rating and position to show.
Social Trading
This service helps dealers to duplicate the trading activities of professional and experienced members. You don’t have to be knowledgeable about the forex and stock systems to be able to use this service. Only the ability to duplicate the right trade is what is required of you. To make an informed choice, consider how successful a user has been and how many instruments they deal on – the implication of this is that professional traders do not base on one financial instrument. So, don’t copy numerous traders that exchange an asset.
How It Works?
Practically, eToro has aided millions of its members from over 140 nations worldwide to trade well and enhance their knowledge. For instance, the platform works with a technology trademarked as CopyTrader which makes it possible for users to automatically copy not just the trading operations of another trader but also their trading portfolio. Any person registered with the site is a follower and a leader at the same time even if they are there only for trade themselves. The site aims at giving its users the best possible trading experience.
Tools
eToro has 3 major tools for trading. These include the CopyFunds, Popular Investor Program and CopyTrader system. These instruments are leverage for members to utilize in developing their trading strategies, which can help them build others up by allowing others to tap onto their expertise and skills. Given the company’s innovative approach, chances are high that in the year to come they will introduce more interesting tools.
CopyTrader™
CopyTrader makes it possible for a registered trader to copy another member’s trading operations in real time. All deals are carried out by the network itself for the members. Thus, the technology serves the interest of members lacking the expertise and time required for conventional internet forex trade. The site keeps a track record of all registered users and allows all members access to them to enable them make an informed decision regarding the right trade to replicate.
CopyFunds™
This Instrument uses a predetermined strategy called the thematic investment to categorize successful traders or assets in the eToro platform. The grouping is also adjusted on a regular basis to reflect the performance of CopyFund. The tool is available in three types including the following:
- Partner CopyFund developed by partners of eToro according to their areas of expertise and knowledge.
- Market CopyFund brings assets with similar themes together in a group
- Top Trader CopyFunds group together only regular and active users who have yielded consistent results in the past .
Account Features
The company has only two account types. The first is for real deal which requires at least $50. You practice and learn about the network on the other.
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On signing up on the account for learning, you will get $100,000 worth of virtual currencies for your practice. With it, you will build up your proficiency and have a good grasp of the workings of the site without risking any real money. After the practice, the decision to fund your standard account or not is up to you. |
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eToro also runs an Islamic trading account or Swap free trading account which is designed to incorporate Islamic clients that would want to operate in compliance with the Sharia laws of Islam. |
Payment Methods
The steps to put money into your account are quite simple. Banking choices abound. Though the site pays, the payment processing time is actually longer than advertised.
Deposit
| Payment Provider | Country | Max Deposit | Transaction Time |
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UK | $20,000 | Instant |
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UK | $10,000 | Instant |
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Luxemburg | $10,000 | Instant/5-7 business days for e-cheque |
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UK | $10,000 | Instant |
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Germany | $30,000 | Up to 1 business day |
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UK | $50,000 | Instant |
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All | Unlimited | 3-5 business days depending on value date |
Withdrawal
eToro offers numerous withdrawal options like PayPal, plastic and bank transfer. From what we have seen, the stipulated time it will take for users to receive their payment is long. Besides certain circumstances can also increase that.
The site expects to get all the required information from you. $25usd fees are charged for any transfer of money from the site. $50usd is the least amount you can withdraw. Take a look at the below table to get more details.
| Payment Provider | Transfer Time | Fees |
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Up to 5 working days | $25 |
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1-2 working days | $25 |
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1-2 working days | $25 |
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1-2 working days | $25 |
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1-2 working days | $25 |
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1-2 working days | $25 |
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Up to 5 working days | $25 |
Note that the conversion deduction of withdrawal in currencies other the US dollars is taken directly your bankroll fund. Bear in mind as well that $25 fee excludes other charges that may be taken by the providers of the fund such as your credit card provider, bank or intermediary bank.
Customer Support
eToro offers customer support services morning and night every day except weekends. Interactions can be done using a number of languages including English, and other European languages like Italian, French, Spanish, German and others.
eToro Regulation
The company has offices not just in Britain but also in Europe. It has licenses with which it operates in these locations. eToro (Europe) Ltd controls the European branches where it is registered by CIF (an acronym for Cypriot Investment Firm) with the no. HE20058. As the licensing authority, Cyprus Securities & Exchange Commission (CySEC) regulates eToro’s activities.
Their license no. is 109/10. On the contrary, operating with the registration and reference numbers 7973792 and 583263 respectively, eToro UK comes under the regulation of FCA (Financial Conduct Authority). Both obey The Markets in Financial Instruments Directive (MiFID).
Mobile Trading Platform
The business’ operations are web-based. It can also be accessed via mobile platforms that can work with smartphones, including iPhone and Android. Members using portable devices can trade and access all the services of the brokerage just as they can do via their web-based app.
They can see prices of different instruments and other traders’ feeds, chat with other members and monitor their account using their mobile devices. It comes with other impressive features which make trading easy and enjoyable.
FAQ
1. Which Cryptocurrency Fees and Commissions Does eToro Have?
Users can trade cryptocurrencies without incurring overnight or weekend charges. But there are charges for keeping leveraged ethereum or bitcoin positions or for shorting digital coins. Overnight charges are not constant. The same applies to credit. If a position continues untill Wednesday night, its daily fee or credit will triple and this will be applied by 17:00 NY time.
- Expiration dates are not steady.
- Open position on itself closes at the end of the market or 15 min before the day’s break once the expiry date reaches.
- Indices may be modified if there is a dividend on a stock that is part of the index in question.
2. Are there Stop Loss and Take Profit on Cryptocurrencies?
3. Does eToro Offer Leverage on Cryptocoins?
4. What is the Minimum Withdrawal Amount on This Platform?
5. Is Depositing on eToro Safe and Secure?
eToro Platform Awards
eToro has won several awards since its inception. Here are the various awards:
FinovateEurope 2015 award for the best of the show for 5x
FinTech 50
2010 MoneyAM Online Finance Awards
2010 World Finance Award for Most Innovative Trading Platform
2011 Global Banking and Finance Review Award for the Best Social Trading Platform
2011 Global Banking and Finance Review Award for the Best Mobile Trading Platform
2011 Best of Show at FinovateFall