Overview of eToro
eToro is the most popular forex broker platform for social & copy trading with a large customer base. That’s why we have decided to have a quick review of eToro, its services, trading tools, analysis methods, education resources, etc. It will help you to decide whether to go for this broker or not.
It is a popular trading destination, especially for copy traders regulated by tier 1 & tier 2 financial institutions, including Financial Conduct Authority, the Australian Securities & Investment Commission (ASIC), & Markets in Financial Instruments Directive (MiFID). You can trade cryptocurrencies, gold products, commodities, stocks, ETFs, and various financial instruments on the platform. It has established itself as a popular choice for crypto traders, and offers more than 80 cryptocurrencies to invest in.
The trading platform is available in most countries, including the UK, France, Germany, Italy, Spain, etc. While the majority of brokers do not accept US clients due to regulatory restrictions, this platform is a popular choice for US traders.
It has a user-friendly desktop system and mobile trading app with distinct, customizable features. The account opening procedure with eToro is quite hectic. It requires verification and information submission. It also asks different questions, but all this is to safeguard the interest of its clients and provide a reliable system.
eToro can be a good choice for beginners or traders with a lack of market knowledge, as it offers terrific copy trading services. You can get access to quality trade ideas and strategies. Also, it provides traders a platform to share their plans, discuss them and watch the profitable traders. You can manually or automatically copy the trade recommendations of successful traders.
However, even copy trading requires knowledge. You cannot solely depend on these trade ideas. So, be quite vigilant while using copy trading mode.
Apart from copy trading tools, The platform also offers economic calendars, market news, trading alerts, analysis system to help you throughout the trade. You can get access to over 160 drawing & 100 charting tools. You can open your trading account with 10 Dollars. However, the minimum account balance for different account types is different. It offers premium and customizable services for taking VIP membership. You need to have at least 5000 dollars for tier 1 VIP services and to get access to the diamond account type, a trader must have 250,000 dollars.
Also, there is a compulsory stop loss and take profit strategy for trading in certain assets. Some traders might see it as a disadvantage, but it is essential for risk management.
Our Assesment on etoro
eToro is an overall good and trustable broker to start your trading journey with an experience of more than 15 years in the industry and a large client base. It serves more than 140 countries and has over 25 million clients worldwide. The pricing structure of etoro is competitive with the currency market standard. Plus, the platform does not charge any commission and makes money through spreads in forex, indices, and comex products. However, it does charge withdrawal and inactivity fees, which can be a problem for some traders.
You can access quality research and education materials, including videos, blogs, articles, webinars, expert briefings, etc, created by its own team. Also, it provides 24/5 customer support so you can connect and ask your queries. The best part about subscribing to this broker is you will get quality technical analysis tools, including charts, & indicators. The trading strategies are generated using such indicators, so it will increase the effectiveness of your trade.
Based on our eToro review, we give it a trust score of 93 out of 100 and a 4.5 rating on a scale of one to five. You can get all you need on the trading platform, including market reports, analysis tools, signals, news, economic calendars, video, written educational material, etc.
However, before subscribing to the platform, it is important to find out whether it suits your needs. It also provides the facility of a demo account, so you can try and test its services.
- It provides a secure interface to the trader and abides by all the rules related to leverage limit, guaranteed stop loss orders, and account opening procedure. It also warns the traders several times regarding the excessive risk and provides efficient management tools that makes the platform more credible and reliable.
- You can access technologically updated & innovative tools for social trading and Smart Portfolios. It provides the option to customize the trade tools accordingly. Also, the quality of technical analysis tools is up to the mark.
- The cost of trading with eToro is competitive as per the current market standards. The platform does not charge any commission on stock, currency, and forex trading. However, it earns from the difference between the ask and bid price of the currency pair.
- eToro offers services in many countries; however, it is not available in Minnesota, Nevada, New York, or Hawaii. So you have to check whether it is available in your country.
- Meta Trader 4 & Meta Trader 5 are the most popular and widely used trading platform globally. However, eToro does not support them because these platforms are not compatible with its services. So it can be a huge drawback for Meta trader users.