Is eToro safe? Can you earn money? Which ones without the main opinions of eToro?
POINTS IN FAVOR
You can trade forex, cryptocurrencies, CFDs and the stock market.
The investment platform is very intuitive and easy to use.
The social trading options are among the most complete on the market, you can follow the experts and earn money with them.
Founded in 2007 and based in Israel, eToro has millions of clients in more than 140 countries . At first, eToro was an exclusive forex platform but in recent months it is possible to trade cryptocurrencies on this platform. It is also possible to trade contracts for difference (CFDs) and stocks in a variety of markets around the world.
The platform is well designed for those with a basic knowledge of forex and cryptocurrency investing. Its most important asset, social trading , allows you to copy other expert users and earn money with them.
It has a controversial withdrawal fee of 5 USD (or its conversion at the time of withdrawal into euros).
In recent years eToro has become very popular as it has invested hundreds of thousands of euros in online advertising. On thousands of YouTube pages and videos we have seen these ads that have made many people sign up and start trading. In this article we wanted to analyze the opinions of eToro of all these people, as well as our own opinion.
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1. They do not charge commissions for buying or selling, but there is a commission for withdrawal of $ 5.
2. Easy-to-use platform even for new investors.
3. eToro allows you to copy the shares of other profitable investors.
Who is eToro for?
eToro has developed a platform to trade cryptocurrencies, stocks, contracts for differences and forex. All this with a very complete graphics and indicators environment to be able to do advanced trading.
The main feature of this platform is the ease with which an individual client can implement copy trading or social trading. You can easily find the brokers that allow this action, their results and followers to be able to follow them and imitate their actions manually or automatically and in real time . It should be noted that copy-trading itself does not guarantee profit or loss, although you will have a better chance of winning if you follow someone who has a profitable strategy in the long term. But keep in mind that the risk is always there, especially when you are not in control.
If you want to do this type of trading by following or copying the actions of other expert traders, eToro is the best platform for it and the opinions of users affirm it.
1. Possibility of trading cryptocurrencies, forex, CFDs and stocks in one place.
2. Easy to use website and mobile app.
3. Active community of investors to be able to do copy trading
1, The spreads are very high compared to other platforms.
2. A minimum investment of $ 25 is required to invest in crypto.
3. You do not have possession of the purchased assets, you buy a derivative of eToro.
- eToro increasingly brings us more assets to trade with. If before it was limited to forex or stocks, now it also includes more than 15 cryptocurrencies that together with CFDs make this platform one of the most complete in terms of assets.
- It is very easy to operate from its website , as well as from its application available for Android and iPhone . eToro is characterized by ease of use since anyone who has just entered the world of investments will be able to buy and sell assets easily.
- The main feature of eToro that makes it the first social trading network is that you can copy other users . Before copying their actions automatically and in real time, you will be able to see their results, what they think about their investments and even the number of users who follow this person. You can divide your portfolio into different traders to minimize risks. It is important to mention that although you can follow the transactions of some of the major traders, you will need to have a high balance to copy their transactions. Most require a minimum of $ 200 for each copied user .
- The spreads (difference between buy price and sell price) are huge on eToro. This means that even if you do not charge a commission per share, you have to pay this differential that can sometimes make your operation come out at a loss.
- To start investing in cryptocurrencies it is necessary to start trading with $ 25 . For those who want to start with small purchases, this can be a barrier to entry. You should also note that eToro charges $ 5 for each withdrawal .
- One of the negative opinions of eToro is that you do not have possession of the assets that you buy . When you invest in a stock on this website, you don’t really have that stock. What you are buying is a derivative of that action that eToro has designed.
Create new account
Opening a new account is very simple and we can do it online in the desktop version or in the app. Once you have submitted all the required information, you have to wait 1 to 4 days while your identity is verified and your account is opened.
It is necessary to deposit € 200 in order to open an account . However, we can always open a demo account at no cost.
You can fund your account with a credit card, as well as PayPal, Skrill, Neteller, Rapid Transfer, iDEAL, and Sofort.
Perform an operation
Placing a trade is simple: you just have to click on the “Trade” button once you have chosen the virtual currency, currency pair or share. To sell, you will also find a button for this action or in the drop-down of more options along with the name of the asset you will be able to find this action, it is very easy!
You can close an entire position or only part of it if you have bought it in several lots, but you cannot sell a part of an individual lot. For example, if you buy € 25 worth of Bitcoin and then sell it, you should close the entire transaction instead of just € 10.
In the “Markets” tab you can see all the available assets, which include around 1,700 stocks, 47 currency pairs and approximately 20 contracts for difference (CFDs), and you can also use leverage in these trades. Watchlists can be customized and shared with mobile applications.
Some asset classes allow you to set a loss limit (stop loss) when you enter a position.
Performing a trade on a mobile device is very similar to the web trading experience. There are fewer analytical capabilities in mobile apps, but otherwise the experience is similar.
eToro offers only cryptocurrencies to residents of the United States, but in countries like Spain and most of Europe the options are huge , as well as leverage and short sales.
- 16 cryptocurrencies
- 47 currency pairs
- More than 30 contracts for difference (CFD)
- Approximately 2,000 stocks and 150 exchange-traded funds (ETFs) from 16 countries
Types of orders
All types of orders on the market will be available on your eToro account. You can add stop loss, take profit and invest with leverage . In addition, you can choose to place an order at a market price or limit it to a price to enter the conditions that you mark and not the market.
This option, again, is only available for user accounts in Europe and some other countries. Orders for US accounts are limited to market orders.
EToro fees depend on your location and the asset classes you are trading on.
Assuming you open an account with eToro Spain, you will not have to pay a commission for the shares you buy. Of course, open positions short incur a commission of 0.18% of the value of the operation .
If you buy assets in a currency other than your country, such as if you buy a US share, you will pay a currency conversion fee .
The inactivity fee is $ 10 per year for accounts with no activity for 12 months. The withdrawal fee, whatever the amount, is $ 5.
Transferring a cryptocurrency from eToro to your own wallet generates a fee, and there is a minimum for each currency that you can check on the eToro website itself.
The spreads are very high and disparate compared to other brokers , so if you make many movements or there is little variation in price, you may have losses due to these and you can consider them as an additional commission.
Accounts under € 5,000 can access customer service online and, in an emergency, submit a ticket to eToro’s own customer service. You can chat with a live agent once you open the link that gives access to the chat service.
If you are a member of eToro’s Club , which is activated once you have a balance of € 5,000 or more, you are assigned a dedicated account manager. Accounts with € 25,000 or more, at the Platinum Club level and higher , obtain benefits that include priority customer service.
Since it can take seven days or more to resolve a problem for all other customer service users, priority service is appreciated.
Telephone assistance is not available and it does not have live broker support, so we consider it a point to improve customer service. When our money is at stake, it is nice to have a phone on the other side to contact in case of a big problem.
Social Trading / Copy trading
eToro presents itself as the first social trading network and, to be honest, it is. Although it has been followed by many platforms that have wanted to copy this model, many times with great success, the first one that opted for social trading was eToro.
Let’s start with the negative, and that is that you need to invest at least € 200 to start copying someone. For smaller accounts it is a problem as they will not be able to get the most out of this broker.
Beyond this, the functionality of social trading is enormous. You will be able to see and order by ranking of profitability, investment, followers and valuation the stories of thousands of traders that this platform has.
In addition, you can organize your portfolio by traders, to diversify risks and ensure profits . Thus, you can copy the 5-6 that have the best profitability and in case one of them has a bad streak, it will be compensated with the rest.
You cannot forget that this is not an investment recommendation and even if you do this strategy, you can lose a lot of money since you leave the money in the hands of other people who do not know what they can do, that is why it is always recommended to invest the money that do not you have. But it is true, that it is very safe to copy the operations of a trader that we have analyzed and that in the last 4 years has always given positive returns. Of course you can also choose risk traders, since there are many who, although they have great profitability, their volatility is enormous and your portfolio can be very exposed.
Selecting, filtering and operating with this copy trading system is very simple and in a few minutes you will be able to have your portfolio configured. Something that other brokers do not have and that eToro developed from the beginning.
Although not regulated by the National Securities Market Commission, eToro can operate in Spain as it is regulated in Europe by the Cyprus Securities Market Commission (CySEC) with license no. 109/10.
In the UK it is also authorized and regulated by the Financial Conduct Authority (FCA) under license FRN 583263.
It is, therefore, safe to invest in this platform that has been operating since 2006 and has not had liquidity problems.
However, you should be careful as always when you operate with an online broker and have a secure password that you do not share with anyone. This broker has biometric entry enabled for mobile applications.
eToro has an extensive training program with very useful resources for those who are starting to invest in cryptocurrencies, forex or CFDs.
One of the training features of this platform is that it broadcasts weekly training webinars taught by industry leaders, popular traders, and finance professors that are really helpful for those just starting out.
From the Training portal of this broker you can find all the educational content.
This online broker is designed for those who want to start in the investment world . There are very different opinions about eToro, but what is clear is that if you want to start trading and want to have all currencies, cryptos, stocks and CFDs in one place, it is a very good option.
On the positive side, we highlight all that variety of operations and the ease of use of its platform, as well as social trading that will allow you to copy the best in the sector. All this with the security of a broker with more than a decade of experience and regulated by the Malta Stock Market Commission.
On the negative side, we have to stay with the withdrawal fees, excessive spreads and customer service that is only by email or chat and a telephone number is missing.