eToro Review and Guideline

Wanna try your hand at trading business, but the very system of trading networks and opening trading deals seems complicated and confuses you much? Or, maybe you have already tried to become a trader, but failed? Do not give up this idea, because in the future – that’s a real chance to get a good profit with the help of your knowledge and skills. In order to avoid standard fails made by fresh steppers, it is a deal of big importance to choose a broker whom you can trust. Want to get more info about trading and start making money in this area? Then welcome! eToro will become your navigator in the ocean of trading deals.

Why is eToro your optimal guide in the financial market’s life? There are several arguments in favor of this broker:

  • Cleanliness and transparency of transactions, open stock market instruments and qualified broker assistance 24/7;
  • eToro is trusted by 7 million brokers and even more from around the world;
  • On the website eToro you can start a full game on the exchange and learn the basics of trading without threatening money;
  • An intuitive interface helps you learn the basic info about executing orders and buying/selling options with ease.

And this manual will enable the future trader to start mastering already with basic training. Carefully familiarize yourself with its major sections – and success will be one step closer already. It remains only to make it and have a good start with the broker eToro.

About eToro

Founded in 2007, brokerage company eToro in recent years has reached considerable popularity. In particular, it was recognized as one of the best trading brokers for European investors. Initially, eToro is a fintech company based in Israel. Today, it offers its services to traders from many other countries. In particular, in the framework of eToro there are separate representative offices for traders:

  • From the UK – as a separate legal entity of the United Kingdom;
  • From Australia – in the format of a registered legal entity in the country;
  • From other European countries there is a representative office of the company registered in Cyprus.

The dominant trait of the eToro company as a broker-dealer – that’s safe for the clients. Its activity is strictly regulated by the FCA. Therefore, the consumers of its broker services can simply apply to that organization for disputes on the trading questions. 

Thus, eToro users can conduct transactions in a much more secure mode than on other trading platforms or with other companies providing binary options transactions.

eToro’s main area of ​​work is social trading. 

What’s that? As one of the fintech strategies social trading is an interaction especially for traders in a special online space, i.e. on the platform where people come not only to communicate but also to trade on the stock, derivatives and foreign exchange market. Most often, such projects have built-in functionality for making deals in financial markets, as well as provide an opportunity to share the results of their trading, charts and trading signals.

The main idea of ​​social trading is the ability to repeat the actions of professional players and in such a manner to acquire no less profit, even if only taking the first steps in trading. eToro’s service successfully combines a social network and a trading platform’s traits. Here it is easy to find a suitable trader for copying. The search tool displays not only deals of interest, but also a list of realized assets, the number of profitable weeks and other indicators. There is an important function that helps to save funds for beginners: when connecting to one strategy, you can use no more than 40% of the deposit, so the multi-safety option for the rookies there is implemented greatly.

So, becoming a member of eToro broker service is a really good start as for the beginners.

Pros of Dealing With eToro Service

There are several major pros of working with eToro.

  • You can start working with the service absolutely free of charge – it is enough to make a deposit with which you will ensure the execution of transactions;
  • Convenient and easy registration system in a couple of clicks;
  • Open transactions with ETF trading in Europe;
  • The eToro company is a social trading pioneer, and over the years of its work, a huge body of knowledge and trader’s experience has been formed here that is open to all participants of the service;
  • The eToro quickly reacts and responds to the very new trend in financial markets and trading and reflects it in its assets;
  • The ability to start work in a demo mode is a great opportunity for beginners to find out what to start with and how it functions on the exchange;
  • A simple and intuitive interface makes it easy to find the type of transaction you need, to select an experienced trader to copy operations both by location and by recent activity on the service.

Cons of Trading With eToro

Despite all the obvious pro-thesis, working with eToro has disadvantages too (however, who doesn’t?).

  • First of all, it concerns service lack for customers – it does not always reach the level of older fintech organizations and more expansive brokers. However, customer service is constantly being improved and becoming more and more demand-driven by traders;
  • Many people point out regular closedowns of eToro as a drawback;
  • And, of course, not every customer is satisfied with the existing online training toolset offered by eToro. But it is 100% sufficient for getting acquainted with forex, CFDs etc. In addition, the risks when interacting with this broker are clearly defined and it is the task of the trader to assess if he is ready to buy or sell certain options or securities.

What Are The Specific Traits of eToro Broker

Why is it worth choosing eToro to play on the options market, currency exchange or securities? The specifics of this broker has its own unique points, which are worth discussing in more detail.

  • Clear legal regulation. eToro works on a legal basis and its activities are subject to monitoring by official organizations. And traders can always apply for arbitration in case of disputed transactions or completion of trading by the broker;
  • Usually, eToro operates 24/7, but some assets may only be available while their market is open. So eToro gives an opportunity for the possibility to issue “orders” in case of unavailability of an asset indicating the preferred bidding price. When the market opens (f.e., for London shares in GMT), the price will be set and the “order” will be executed;
  • The intensive dynamics of eToro development: now more than 7 million traders use the services of that broker worldwide, and the assets provide for stocks, specific liquid positions, options for deals, and cryptocurrency transactions;
  • Convenient payment system and minimum commission rates for traders for brokerage services. Thus, the minimum deposit on the service is only $ 200, and the cost of the minimum transaction is only $ 25, while the maximum is limited to $ 100,000;
  • The presence of both a desktop version of the site and a mobile app for making deals from a smartphone or another gadget – in the era of mobility, this is a very important quality, isn’t? The trader has an ability to work at any time, any space or any conditions it’s up to him;
  • It was eToro that began to actively develop the idea of ​​social trading, offering to master trading on the stock exchange and this type of earnings for people with no experience due to the collective experience that is provided on the service for free to everyone;
  • The information security system at eToro is a two-tier one: it consists of two-step identification by telephone and an SSL request for confirmation. At the same time, the protection of traders’ interests in the case of disputed transactions lies with the traders themselves, but eToro is always a third party in disputes and seeks to maintain the trust of its customers;
  • The unique system of copying transactions of successful traders is one of the main characteristics for which eToro is chosen by thousands and millions worldwide. Using intuitive filters, you can customize the selection of successful traders and follow their strategies and the deals that they carry out for their earnings on the exchange.
  • So there are enough features the eToro combines to make the trader making his choice for this broker company as a providing broker for him.

Is eToro Legit?

Although the legislation of some states does not particularly welcome players in financial markets, eToro is a fully legitimized company. It has offices in the United Kingdom and Australia. Company’s main office is settled in Cyprus, and it is the general branch the traders from the European Union cooperate with.

There are some state financial organizations that are also involved in the regulative process of eToro dealing: in the Commonwealth countries, it is the FCA (Financial Conduct Authority). In Cyprus, the state’s CySEC and the European organization ESMA are also responsible for compliance with eToro’s laws.

How to Work With eToro? Short Guide for Traders

To start with eToro is a deal of ease: a fresh comer trader goes through a few-minutes registration – and he is already able to start making the first transactions on the site.

It’s quite adaptable for users worldwide – there is a common language choice for user’s comfort. To select an appropriate language the one has to click on a flag-designed button in the right corner of a start page and then to push the button with the appropriate language in a list that appears on the screen.

language-etoro

Step1: Registration

The one can open an account in eToro from almost every country in the world. In accordance with the legislative base of various states, this option is not available for a small list of countries. So, an account opening is unavailable only for citizens of the United States, Japan, North Korea, Syria, Sudan, Turkey, Canada, Brazil, Iran or Cuba. All countries outside this stop list can participate in trading on the eToro platform.

On the start page of the eToro website, there is a simple registration form, after filling in the new participant gets his own profile on the site and access to the main tools and information about assets with which you can interact.

There a new trader should put in the general information including

  • The first and the last user’s name;
  • The nickname the user chooses to be named on the eToro (it should consist of at least 6 letters of Latin alphabet);
  • The correct e-mail to get the correspondence and important info from eToro;
  • The password to get connected to eToro services (created by user code combination of letters, symbols and numbers);
  • The phone number – the eToro account is bounded to the real number the user has.
eToro-Registration

That’s all! Then it’s time to put a mark on the agreements with the service’s rules and conditions and to submit the registration.

There’s also an opportunity to log in via social networks accounts in case the person doesn’t want to get through the registration procedure or considers it boring and long-lasting one.

The positive moments of the registration on eToro are its ease and confidence. No real personal data is needed. So, no one should get it through the service means.

The approval of the registration process comes via e-mail. The newcomer has to confirm the registration finishing by clicking on the link in the letter he gets from service bot automatically. 

Step 2: Creating an Account 

The next step to start productive work in eToro is the client’s account. After registration, each user in the profile already has the basic tools for trading but opening and operating with a real account allows more tips for work. 

But novice traders should first try their skills on a demo account (to switch to it is quite easy – all is needed – is to click on the tray in the left part of the screen and to submit the virtual account): this tool allows you to practice without investing your money. Though, for real money earn it will not work.

eToro is distinguished by strong support from its customers and tries to create all conditions for customers to conduct successful trading. In addition to providing extensive educational materials, eToro gives customers the opportunity to use a demo account for free and on an unlimited basis. With such a demo account, you can trade and test different strategies in real market conditions without using your money.

Creating-an-Account-Etoro

All settlements on the eToro service are carried out in US dollars at the internal exchange rate. But for the convenience of users, eToro offers opening accounts in the currency used in the country of residence of the client. What does this give? If the user wants to replenish his deposit with the card in the euro currency, he can use the eToro account in euros and receive an invoice with the details for the replenishment, and the service itself converts the deposit funds into the main currency. Otherwise, when replenishing an account with a card in another currency, the issuing bank will perform the conversion at the exchange rate on the day of the transaction (and the transaction itself will be considered as an online purchase).

So here is the next step – making the first deposit.

Step 3: Client’s Deposit and All the Things Concerning It

If a trader is up to start actively operating with the capabilities of the eToro platform immediately after registration, he needs to do two things:

  1. Complete the validation procedure. If for the demo version the real person and the location of the trader do not play a big role, then for the real account they are important. In order to validate on the service, you will need your ID and a document on registration of your country of residence. Their scan copies must be sent to the customer support service and after approval by the staff, you will be able to use your deposit and withdraw the funds earned in the auction.
  2. Replenish your deposit. You can read about replenishment amounts and how to withdraw money from eToro below. In the meantime, general information about the use of the deposit. Replenish it is necessary in order to make the first transaction. It is easy to do this – just press the large Deposit Funds button on the left panel of the screen and the form will open. Fill it in, enter the amount and currency of the deposit, the data of the payment instrument that you will use, and your contact information.

After depositing money on a deposit, you can start making new deals or copying strategies of existing traders.

Deposit-Etoro

Education on the eToro

eToro is declared as a platform, friendly for training new traders. To do this, the site has several options that a beginner can use to familiarize themselves with the selected training materials;

  • eToro Guide – the first thing you should familiarize yourself with when working with a brokerage service. Within 2 minutes you can get full information about what and where is on the site, how to access and switch between accounts, how to use search, etc.;
  • FAQ – a lot of useful information can be found in the section of questions and answers on the site;
  • eToro Trading Academy is a separate division of the platform where materials, webinars and training courses for new traders are collected;
  • YouTube channel is another source of knowledge for working with eToro. It has some particularly useful clips.

eToro Crypto Wallet

There was in March 2019 the eToro gave its customers a brand-new opportunity – a multy-currency crypto wallet. The wallet is now in active development phase. There is constantly updated and expanded lists of available cryptocurrencies. To protect user data in the crypto wallet eToro, a two-level electronic signature system is used, so the private key is no longer advertised when conducting transactions.

In addition, special mobile applications are being developed for the cryptocurrency wallet from eToro. With their help, all the basic operations for the purchase, sale and exchange of cryptocurrency will be available to users.

Already declared list of cryptocurrencies, which will be by default attached to the wallet. These are Bitcoin, Ethereum, Bitcoin cache and Latium. Other species will appear in access as the application evolves.

Currently, transactions on transferring one cryptocurrency to another are available for Platinum users of eToro, in the future the service and its creators promise to make them available to all registered traders.

The basic apps for a cryptocurrency wallet will be available both for the Apple and Android users.

Some Facts About Trading and No-Trading Fees

The main eToro fees & commissions are associated with leverage and are assigned for orders overnight or on weekends.

Commissions are charged as a percentage of the leverage amount and investment amount. On average, the overnight fee takes about 24 cents at $1,000. On weekends, it triples.

There are several fixed commission payments for all eToro users:

  • Commission for each withdrawal of funds in the amount of $25 regardless of the amount of withdrawals;
  • If you do not carry out activities on the service for more than 12 months, in the future from your account each month will be charged $ 10 for inactivity;
  • Commission for conversion, which was already mentioned above.

eToro Trading Platforms

The eToro trading platform is simple and intuitive.

It is adapted to work through the web. On the main screen in the left part there is a client menu with the ability to switch between real and demo modes, buttons for quick access to the portfolio, trade markets, eToro news.

The central part of the screen displays the basic information of the selected section. For example, the Watchlist section shows you available assets for placing orders with all the basic data that relates to a future operation.

If the client needs to access all major markets, it’s enough to click the Market menu. The filter system installed on the site will help select suitable types of assets that are of interest to the trader. Also, all upcoming assets can be added to “my list” in the Watchlist.

To complete a purchase / sale transaction, simply click on the asset and click the Trade button in the window that opens, and then set the parameters for the future transaction in the expanded field.

The same functionality is appropriate for the mobile version of eToro broker service. 

Web Trading Abilities

With the implementation of sales is nothing complicated. At the very top of the window that opens after clicking the Trade button, the trader indicates whether he wants to buy or sell on the selected asset. The page displays not only the basic number of fields in which you need to specify the amount of funds pledged to the transaction but also the size of the leverage (you can select it for each asset). At the same time, all information about the risks and profits of the transaction is immediately displayed on the screen in the form of stop loss and take profit indicators.

In addition, when opening an order on each asset, the price and its fluctuations are indicated at the top. And at the very bottom of the client can immediately meet with the commission for the whole night and weekend commissions on this order.

If all the data is specified and the information is studied, it’s time to press the Set Order button. Even if during the placement the market is closed, the order will be placed immediately after it is opened.

Web-Trading-Abilities-eToro

Mobile Trading Abilities

Use eToro on the go? It is possible! For the convenience of traders, the company launched its own application, which is available both for owners of smartphones and tablets on Android, and for fans of the iOS platform.

The eToro app has the full functionality of the site, while it is very convenient, constantly updated and supplemented by various functions. In particular, the latest updates have reduced the size of applications for both Android and Apple gadgets by half, without losing functionality. Therefore, its use is very convenient for those who spend the whole day traveling but want to stay up to date with the latest assets of the broker and not to miss the profitable trading operations.

The safety aspect is on top for the mobile eToro app. There is a 2-levelled login system to prove no one else has access to the system in spite of the owner of a gadget.

Deposits & Withdrawals

Depositing and withdrawing money on eToro is very simple and diverse. In this case, it is necessary to distinguish directly the deposit and its withdrawal and the procedure for withdrawing funds earned by trading.

In the first case, there are rules:

  • The minimum amount of the first deposit after registration is $100 for all but Israeli customers;
  • The maximum size of the deposit has a ceiling of $100,000;
  • Deposit can be made in various ways (e-wallets, debit or credit cards, electronic bank transfer);
  • Do not forget that when transferring money from an account in a currency other than the US dollar, you will be charged a conversion fee;
  • You can withdraw money deposited only in the same way that it was deposited: eToro returns deposit funds by a return transaction to the same account.

With regard to the withdrawal of funds earned in trading, the minimum amount for withdrawal must be equivalent to $ 50 or more. At the same time, the basic commission of the eToro service in the amount of $ 25 is charged for withdrawing funds. Also, when withdrawing funds to a card or purse in another currency, the conversion will be withheld from the withdrawal amount. The withdrawal fee is charged at each withdrawal. The term for which the money will be transferred to your account is approximately 8 banking days.

It is important to remember that in order to effect withdrawal of funds, data verification is also necessary, as is the case with the first deposit of a deposit on a real account. A client who wants to withdraw money will need a color copy of the ID card with a signature, an example of the last account or receipt with your address (to confirm the registration address), and in the case of a withdrawal to a bank card, also a photo card with a blurred CVV and the last digits).

eToro Customer’s Support

User support in eToro is online 24/5. You can ask any question and get a detailed answer or specialist help directly on the site or through a mobile application. In addition, the service provides a large and informative FAQ section, which contains basic questions from all new users and detailed answers to them.

Also, eToro has powerful social networks in which you can find answers to questions regarding trading, both from brokers professionals working in eToro and from like-minded brokers. In addition, a lot of information you can find on the site itself on the wall at the venerable traders if you subscribe to them. If Twitter and Facebook service accounts are more likely for analytics, then communities on Facebook or, for example, on the Russian social network Vkontakte, allow you to interact with real traders and service specialists directly.

How to Copy Traders on eToro?

At the beginning of their journey, novice traders can not thoroughly know the features of each asset. This is also the principle of social trading – to move after those who know these features and repeat its actions. At the same time, eToro traders can not make orders on their own, but choose an object or a couple of objects to follow and invest in their activities, hoping to get the same profit as traders with experience.

To copy a trader, just go to the People menu and configure the filter system to search for those traders who are the subject of interest for a beginner. Criteria for selection can be the location of the trader (for example, if a novice wants to follow the traders of his own country), as well as the latest activity and success of their orders. All together, these parameters will help beginners to choose the trader who will become their guide.

Also, for the selection of traders, you can use eToro ratings – they will also help you choose successful traders.

Copy trader orders – easy. Near the window, with information about the trader, there is a “Copy” button. In the open window, you need to specify the number of funds that you plan to invest in this transaction and start the copy process. After that, all open orders of this trader will be reflected in the newbie account, as his open orders. The trader himself receives a commission from the service for his merits and each new copier.

How to Copy Portfolios

Portfolio copying is another option for a newbie. This time it is not about copying orders of one selected trader, but about copying a set of investments according to the following criteria:

  • It can be a portfolio on a specific topic, for example, a portfolio with investment warrants in the activities of large companies or in the sale of gold.
  • It can also be following in the footsteps of several top traders in the orders selected from their portfolio.
  • Another option for copying a portfolio is to copy cryptocurrency protocols.

Despite the fact that copying a portfolio is a riskier business because in its essence it is a quasi-fund investment, a system has been developed in eToro how to save newcomers from global mistakes. First, the amount of investment in the portfolio is limited: the client can invest from $200 to $10,000 depending on his citizenship and place of residence. Also, when placing an order, eToro checks the financial readiness of the client to participate in such a transaction.

EToro Promo Code

eToro appreciates each customer. So, there is a great opportunity to deal with the service using high-levelled discount options. Such as promo code mentioned bellow. Having such code will help a customer to get more income with the less deposit payments. And operating with the promo codes is really easy!

Customer Reviews &Reputation

The users of the eToro service basically give a positive feedback on the use of the services of this broker. They are attracted by the simplicity and ease of working with the site, as well as the opportunity to practice before investing their own funds and work as a trader on large orders.

In addition, the availability of additional options also becomes a source of positive feedback. In particular, customers highly appreciated the possibility of mobile trading on the eToro platform – the application is considered one of the best in its segment.

The presence of a cryptocurrency wallet, launched this year, also added to eToro attractiveness, because besides transactions involving cryptocurrencies on the stock exchange, users can now also buy and sell cryptocurrencies, converting them without any problems.

The training factor also makes eToro attractive in the eyes of traders: here you can look for an example to follow and learn the strategies of experienced traders, read updates from the local news feed, or get acquainted with text and video materials of trading courses for beginners.

But the main indicator of the successful and productive work of the eToro broker is the number of its clients, which is growing steadily.

Q&A

Q: Tell me where can I see my subscribers on eToro?

A: Click on your nickname. Your profile will open, there you can see your subscribers and copyists.

Q: Is it possible to open a second account in eToro to copy the deals of the second trader, without closing the copying of the deals of the first trader?

A: You can copy multiple traders on one account. But, at the same time you can open a second account in your name.

Q: Is there any bonus for a permanently applying trader on eToro?

A: There is no fixed bonus system because of the requirements of the CySEC possessed. Though the trader can get a bonus fee for copying him from the service. And also eToro provides a promo-action “Refer a friend to eToro and get $20 for him”.

Q: How many assets are no available on eToro site?

A: eToro is well-known for its huge number of assets – today, there are more than 53 ETFs and currency pairs in a similar number. Number of commodities is 7, and stock types are getting to the record 1000 number.

Q: What is the maximum leverage used in the eToro orders?

A: The maximum leverage in eToro is 1:400.

Q: When buying cryptocurrencies, stoploss and takeprofit are automatically set, can these settings be removed?

A: No, stop loss and take profit functions cannot be completely disabled, since the eToro is in favor of responsible trading and these measures have helped save capital to many of our clients.

Q: Can I buy cryptocurrencies for storage in my eToro wallet using a credit card?

A: Yes, you can purchase cryptocurrencies directly to your eToro wallet with your credit card.

Q: Can I be an eToro Wallet client without having a trading account on the eToro platform?

A: In order to become the owner of the eToro Wallet, you need to be a fully verified user of the eToro platform.

Q: When I make a deposit on eToro, where does my money go?

A: When you make a deposit on eToro, your money is not deposited in the company, they are deposited primarily in the two largest banks – Barclays and Goldman Sachs. The distribution of customer funds across separate accounts (different banks) is a fundamental requirement for each regulated broker. This ensures that the client’s funds will not be used by the broker for any needs and that if the broker becomes insolvent, the clients ’funds will not be lost or used to obtain the appropriate loans.