eToro platform gives traders and investors access to more than 2,000 different financial assets, including stocks, cryptocurrencies, ETFs, indices, currencies and commodities which can be invested in both with and without leverage. When you open a long, non-leveraged position on a stock or ETF on eToro, you pay 0% commission.
- Best Social Trading Platform
- 0% commission on Stocks and ETFs
- Free Demo Account
- Over 2000 assets
- CopyTrading & Popular Investor Program
- Trading only in US Dollars
- Missing technical analysis tools
- 5$ withdrawal Fees
- Currency conversion Fees
Etoro, The world’s leading Social Trading Broker Review, with over 15 million users, and therefore one of the most important brokers in Europe.
This broker knew how to stand out by developing the largest social investment network in the world. It is, therefore, possible to communicate, share, debate with traders on the eToro network, but also to do copy trading. All the details are below.
Table of Contents
eToro Multi Assets Platform
Etoro offers around two thousand assets spread across six markets: stocks, commodities, currencies, indices, ETFs and cryptocurrencies.
On Etoro, you can find two types of investments:
- Real Assets, Equities Shareholder available on stocks, ETFs and cryptocurrencies.
- CFDs, which will allow you to take action short (SELL) positions (speculate on falling financial assets). And also use leverage to multiply the exposure on the position. CFDs also allow you to take positions in fractional assets.
The use of CFD’s are recommended for professionals and carry a high risk. A study by a European regulator revealed that 75% of retail investor accounts lose money when trading CFDs.
Buying stocks on eToro by opening a buy position, without leverage, means you are investing in the underlying asset and the stock is bought and held in your name.
However, eToro also offers additional functions using CFD trading. With CFDs, you can open SELL (short) positions, use leverage and buy fractional shares. For example, on eToro, you can invest as little as $ 100 in a stock that actually costs $ 500.
Increasingly popular in recent years, crypto-assets, such as Bitcoin and Ethereum. With an ever-growing selection of cryptos added to the platform and a CryptoPortfolio investment strategy that offers market exposure and is managed by eToro’s investment committee. EToro presents plenty of options for those who wish to trade and invest in the crypto market.
Buying crypto on eToro means you are investing in the underlying asset, and the crypto is purchased and owned by eToro on your behalf. These trades are without leverage. The buying and selling of the underlying assets is unregulated and has no investor protection.
Long positions in cryptocurrency (BUY) are unregulated products without investor protection. However, Open Short Positions (SELLs) for cryptocurrencies on eToro are executed using CFDs and, therefore, operate under CySec and FCA regulations.
Commodities are traded on eToro only as a CFD, which means you don’t need to buy the underlying asset to trade them. In addition, CFDs allow you to “sell” (short) positions, leveraged trades and fractional ownership. Even for assets that do not offer the option in traditional trading. For example, on eToro, you can invest as little as $ 100 in gold, even if a single unit of gold costs $ 1000.
Examples of Commodities available on Etoro: Gold | Oil | Natural gas | Money | Platinum.
The foreign currency exchange market is the biggest market in the world, with a trading volume average of more than $5 trillion a day.
Movement in currency is measured in very small units, known as “pips” (0.0001), and require substantial capital to generate noticeable profits.
For this reason, most trading platforms offer leveraged transactions at a fixed ratio.Leveraging is considered a double-edged sword, since losses are also leveraged, and can result in funds depleting rapidly.
Currencies are traded on eToro only as CFDs, meaning you don’t need to purchase the underlying asset to trade them. In addition, CFDs enable SELL (short) positions and leveraged trades – even for assets that don’t offer the option in traditional trading.
Examples of Currencies available on Etoro: EUR/USD | GBP/USD | AUD/USD | USD/JPY | USD/CAD.
Investing in ETFs on eToro by opening a BUY (long), non-leveraged position, means you are investing in the underlying asset, and the ETF is purchased and held in your name. However, eToro also offers additional functions using CFD trading. With CFDs, you can open SELL (short) positions, use leverage, and buy fractional shares. For example, on eToro, you can invest as little as $250 in an ETF that actually costs $500.
Examples of ETFs available on Etoro: SPY | VXXB | TLT | HMMJ | QQQ.
Etoro Social Trading Network
eToro offers the largest social trading network in the world.
Not only a Broker, but eToro is also the world leader in social trading networks. With several million users in hundreds of countries, eToro has successfully tapped their knowledge and experience to create practical trading tools. From your news feed on your account, you can communicate with more or less experienced traders to share information, analyzes and more. Consult the portfolios of different traders on the network, so you can follow or copy your favourite traders.
Etoro Copy Trading
- Choose a Trader
- Set the amount
- Click Copy
Etoro allows you in 3 simple steps, to copy the strategies of the best traders among millions of users, while keeping full control over the management of your portfolio. The personalization is quite extensive, as you can stop copying, pause copying, and add or remove funds at any time.
Copy trading is Etoro’s exclusive tool, allows you to choose one or more Traders and benefit from the same performance and results proportionally.
For example if I copy a trader with $ 1000 over a period of 6 months and this Trader made a 10% gain in his portfolio over this period. I will therefore have earned $ 100 on my copy of $ 1000 this trader. The operations are done automatically according to the operations of the copied merchant.
On Copy Trading at Etoro, the copy stop allows you to manage your risk on each trader by setting a copy stop. If the value of the copy falls below an amount or percentage between 5% and 95% of the copy.
For example if I copy a trader with $ 500, and I fix $ 400 in the stop copy then my maximum potential loss on that trader is $ 100.
This tool offers us the option of copying the trades currently opened by the trader or that the copy starts only on these future positions.
What are the statistics of eToro Copy Trading
Performance, they are shown as a net percentage per month and total over the year.
- Risk, a score of 1 to 10 is evaluated on each trader,
- Copiers, the number of copiers and the total amount of assets under management.
- Trade, trading history and current positions can be viewed.
- additional information, such as the number of trades per week, the average holding times of positions and others.
The tool is complete and transparent overall, there are no management fees and no commitment on the retention period of the copies. The minimum required to copy a trader is $ 200. It is possible to copy up to 100 traders at the same time, also recommended to copy several traders in parallel in order to diversify and spread the risks.
eToro Popular Investor Program
The traders who are copied are called “Popular Investors”. They are simply clients who have an active portfolio with Etoro and must respect criteria of risk, performance and management of their portfolios. On Etoro’s trading copy to find some Popular investors with over $ 10 million in assets under management.
How to become a popular investor on Etoro
Create an account on eToro Make a deposit and have a capital of at least $ 1000. Start trading for at least two full months of statistics on the platform and maintain a low level of risk. You will need to maintain a risk score maximum of 6 out of 10 for at least two full months.
To update your profile, you must have a business biography and a professional profile picture of yourself.
The most important thing will be to respect the leverage restrictions.
Then you will have to register for the Popular Investor Program.
eToro offers free investment insurance up to € 1 million
eToro offers its customers free insurance underwritten with Lloyd’s of London. One of the world’s leading specialist insurance providers, offering coverage up to EUR 1 million, GBP or AUD (depending on region).
Insurance is automatically given to all eToro customers – registration is not required.
The insurance covers the claims of eligible customers suffering losses due to the unlikely event of eToro’s insolvency and in the event of a fault event.
The insurance covers: up to EUR 1 million, GBP or AUD. Up to the global limit purchased by eToro; and subject to an excess amount.
The insurance covers cash, all CFD positions and securities. Note that trading in crypto-assets (not CFDs) is not covered by insurance, as stated in the applicable policy.
eToro Trading School
This engaging and highly informative one-day course in London is perfect for anyone looking to take a crash course in trading. On this day you will explore the basics of trading to help reduce noise. The course covering topics such as markets and moving averages of leverage and margin.
The London-based course is divided into several categories, Types of trader – find out what type of trader you are. Key terms – understand terms with simple examples. Trading – explore the basics of crypto, stocks and currency trading. Questions and Answers – your chance to ask our trader anything.
Webinars are perfect for those who cannot attend eToro’s highly acclaimed face-to-face trading classes but want to learn online. The 90-minute three-part webinar covers crypto, stocks, and currencies and will delve deeper into topics such as market cycles, strategy, risk, and money management.
Market Watch webinars are perfect for those who want to stay on top of what’s happening in the market, these are live on a weekly basis and last around an hour. Including time for a question and answer period. where you can submit your question.
Digest & Invest Podcast
Hear the latest financial news, for anyone interested in trading and investing. The podcast is published weekly and is approximately 20 minutes long.
Meet an eToro Markets Expert. Classroom courses and online webinars are taught by eToro’s highly experienced market expert, who has over 10 years of experience in trading, risk management and market analysis.
There are different types of accounts at Etoro, depending on the balance on the account. Benefits start from $ 5,000 for the silver account and $ 250,000 for the diamond account.
Members of the eToro Club will enjoy complimentary additional services, reduced fees and a variety of other benefits.
- The Silver Account ($ 5,000) get exclusive access to in-depth eToro Marketplace webcasts. A dedicated Customer Success Agent to enhance their Club member experience, and access to exclusive CopyPortfolios based on data. You will also be eligible to receive an eToro debit card which is not yet available.
- Gold level members ($ 10,000).Get benefit from the same offers as Silver level members as well as access to live webcasts, market analysis, an eToro line of credit as well as access to a dedicated account manager.
- Platinum members ($ 25,000) get the same benefits as Gold members as well as additional benefits: no withdrawal fees; a free subscription to the Wall Street Journal, access to the Delta PRO app with connections to unlimited exchanges and wallets, real-time prices and automatic synchronization across multiple devices; and our Trading Central signals platform that helps make reliable, timely and informed investment decisions.
- Platinum Plus members ($ 50,000) will benefit from the full range of offers and services from previous levels. As well as one-on-one meetings with their dedicated Account Manager through Zoom, exclusive access to special sporting and cultural events and more.
- And finally the Diamond account ($ 250,000), members receive all the benefits of other accounts. Plus a Financial Times subscription as well as waiver of exchange fees and one-on-one meetings with their dedicated Account Manager via Zoom. Diamond level members are also invited to participate in eToro’s prestigious Diamond events held in locations around the world.
eToro Review Conclusion
To conclude this Etoro Broker Review, Copy Trading is probably the best Copy Trading system among the various brokers that offer this kind of service. This tool will be of interest to beginner traders, investors seeking broad diversification, passive investors and small portfolios. On the other hand for experienced Traders who want to share their strategy, do this copying and enjoy the benefits of the popular investor program.