eToro: Your Complete Review and Guide

This is a FX broker that has years of experience having launched its operations back in 2007. It's based in Cyprus and has managed to have far-reaching impact boasting of traders from all over the world. It has 10 million users who have registered accounts and trade on all the instruments available on this platform. Their main focus is social and copy trading which individual traders can implement without any complex requirements.

The website can be translated into 19 different languages and has a presence in 140 countries worldwide. It has over 250 million trades that have been opened over the years and has some 200 employees to run its operations smoothly.

This is the leading social trading broker that has a wide array of investing and trading tools that all users can utilize. It was founded by three entrepreneurs who set out to change the money management sector making it more accessible and easier for all traders to understand. They wanted to make trading not so complex and even traders can enjoy it as they invest and hope to make a profit. It was one of the first trading platforms to bring on Bitcoin trading back in 2013.

Is eToro a Reliable Forex Broker?

This is a broker that you can trust and rely on to give you the best services in the industry. It's licensed and regulated by some of the top and most respected authorities from across the world. One regulator in Europe is CySEC (Cyprus Securities and Exchange Commission) which is one of the main regulators for brokers operating within the EU. It's licensed to operate within this region under license number 109/10.

Within the same region, another regulator that this broker is under is the FCA (Financial Conduct Authority) located in the UK. The UK is one of the locations for FXTM's global offices. The license number for this broker under this regulator is 583263. In Australia, the ASIC (Australia Securities and Investment Commission) has approved of this broker providing financial services in the country. This is all under license number 491139.

Types of Trading Accounts

You only require a few minutes to register either a demo or live account. As an experienced trader, you can go ahead and set up a live account to start trading as soon as possible. However, beginners are better served by the demo account to learn what trading entails before they jump into the world of real trading.

Demo Account

As a beginner, avoid jumping into creating a live account without practicing the trading skills you learn with continuous research. Doing so is risky since you're investing with real money but not sure what you're doing yet. This is why brokers provide traders just starting with demo accounts. On a demo account, you get virtual funds that are used to trade and you can practice all your trading skills.

Opening the account is easy and free of charge meaning you won't be charged any commission for using this type. It might be a demo account but all the trades made are based on real markets and trade instruments. You can use any strategies here and train as much as you want before proceeding to the live account to apply what you learned. Take advantage of the education section on the website and use that information here.

Opening a demo account on eToro:

• Start a blank browsing page and input the eToro website www.etoro.com
• Once the homepage loads, navigate to the top right corner of the page and click on 'Sign Up'
• This leads you to a form you are required to fill with only accurate information to avoid complications later on
• Fill in your First name and Last name
• Fill in a preferable username that is unique. Remember it'll be visible on your eToro profile
• Fill in the email, a unique password known only to you, and your phone number
• There are two boxes at the end of the box that you must check. One is to accept the Terms and Conditions while the other is for the Privacy and Cookie policies.
• Finalize this by clicking on 'Create Account'
• Check your email for a verification link. Click on it to verify and activate the account.
• Once you click on the verification link/button on your email, log into your new account using the username and password
• This directs you to a live account that needs to be turned into a demo account by switching it.
• Navigate to the top of the page where your profile picture is located and click on the small button written 'Real'.
• There are two selections on that button for the 'eToro Live Portfolio' or the 'eToro Virtual Portfolio'. For the demo account, select the 'eToro Virtual Portfolio'
• Confirm you want to go to the demo account by clicking on 'Go to Virtual Portfolio' which gives you access to $100000 in virtual funds to train with.

Live Account

You must register a live account to start placing trades and creating an investment portfolio on this platform. The process is just as simple as that for the demo account and only requires a few minutes of your time. Ensure all the information you provide is accurate to avoid complications later on. Once you create the account, you must log in and complete your profile before proceeding to deposit money into it.This is mainly to verify your identity which is important.

The process of creating a live account entails:

• Start a blank browsing page and input the eToro website www.etoro.com
• Once the homepage loads, navigate to the top right corner of the page and click on 'Sign Up'
• This leads you to a form you must fill with only accurate information to avoid complications later on
• Fill in your First name and Last name
• Fill in a preferable username that is unique. Remember it'll be visible on your eToro profile
• Fill in the email, a unique password known only to you, and your phone number
• There are two boxes at the end of the box that you must check. One is to accept the Terms and Conditions while the other is for the Privacy and Cookie policies.
• Finalize this by clicking on 'Create Account'
• Check your email for a verification link. Click on it to verify and activate the account.
• Once you click on the verification link/button on your email, log into your new account using the username and password
• This directs you to a live account which requires you to complete the profile for verification purposes
• Verification entails answering questions about your financial situation, job, and salary received.
• Take the 'Trading Knowledge Assessment' to test your trading know-how followed by 'Attitude to Risk'.
• Upload the requested personal documents Passport/Driver's license, Bank Statement as proof of residency, and Tax Identification Number.
• Submit the documents then wait to be verified before you can start using the live account. Verification takes some time so it's best to wait and then proceed to fund your new trading account.
• In case you require an Islamic account, contact customer-care to assist you to convert your live account into one.

Trading Platforms

Copy Trader

eToro has millions of users in 140 countries that have embraced its style of investing that involves social trading. This platform makes use of Copy Trader investment strategies to keep all these users happy and active while investing in the hopes of making a good profit. eToro is described as one of the leading companies when it comes to Fintech Revolution and this is largely due to the use of Copy Trader. Copy Trader is quite simple to grasp and doesn't require any professional help to grasp as a concept as you engage in social trading.

You only select all the different traders that you want to copy followed by inputting the amount you wish to invest in this trade. The step that follows is simply copying all that those traders do in totality and in the present time by only clicking one button. Keep in mind a few essential details on copy trading besides just this. A copied trader is the one you're copying and investing in. The copier is you who invests.

For Copy Trading, there is a limit to the minimum amount you can invest which is $200. You are only permitted to copy up to 100 traders which is the limit set by this broker for all traders. You can't invest more than $2000000 and the minimum amount to invest in a copied trade is $1. $1 opens a trade and nothing less. In case you want to close a trade, do so manually for the funds to revert to your account in the form of a copy balance.

When working with the Copy Trader, you get a chance to copy all the trades open on the side of the copied trader. Keep in mind that all open positions that exist in the present are opened using the account of the copier with the available rates in the market. This is not to be mistaken with the rates when the trades were first opened. The trades you copy have the same characteristics as when first opened. This is in terms of Take Profit and Stop Loss.

All the copied trades get to mirror the actions of the trader you emulated including any changes made to the TP and SL. Even closing the trade works similarly from the moment you start copying them. The SL you have adjusts in case the copied trader adjusts his/hers by adding more money to it to extend its life. But the point to note is the amount you placed remains the same and requires no adjustment. Therefore, don't worry when you see differences in the balance you have and that of your copied trader.

The option to close one trade that you copied without closing the whole account is possible. In case the copied trader opens a trade in a closed market, you get a market order opened on your end. It becomes active once the market opens the next day and is executed using the initial rate in that market. All the copied trades are displayed in your portfolio which you should visit often to evaluate the progress made.

CSL (Copy Stop-Loss)

As a copy trader, this is a feature that enables you to manage your portfolio in the best way possible. This is accomplished by the provision of assessment of risk with every relationship of the copy. This is based on profit/loss values in the present moment. The percentage of CSL is automatically set by the system at 40%. This is a default value of the invested copy value in totality per every relationship of the copy. CSL works to limit the amount of exposure you get to one trader by offering protection. This is why there is flexibility when it comes to SL (Stop Losses).

Trading Instruments

Trading in various instruments is important to ensure you diversify your portfolio and spread the risk involved. You can trade on forex, cryptocurrencies, stocks, and commodities.

Forex

Forex is one of the most popular markets among all traders in the marketplace. It's short for Foreign Exchange which is an international market that has no headquarters and solely exists online. It involves trading in currencies that are normally paired up. No singular currencies are accepted. You get currencies from individual countries like CAD for the Canadian Dollar or regions like EUR for the European Union.
There are major currencies in the world that come from the top economies and are preferred by many traders involved in forex trading.

These currencies are the GBP (Great British Pound), JPY (Japanese Yen), USD (US Dollar), and the EUR (Euro). To trade using these and other currencies, they must be paired up. An example of this is EUR/GBP. Trade involves a buyer and a seller. The exchange rate for the two currencies determines the price to sell and buy.

Trade takes place 24 hours for 5 days a week. No trades take place over the weekend when the market is closed. Traders are required to transact the currencies by opening deals and finalize them by closing them after. You get to calculate the profit derived by subtracting the difference between the selling price and the buying price between the pair of the currency selected for trade.

To start trading in forex as a beginner, start by learning as much as you can the practice it all on the demo account. In the demo account, you learn which strategies are the best and which aren't without risking real money. You use virtual funds to trade without any risk involved.

Commodities

The commodities you get from this trading platform include spot metals like silver and gold that are known for their stability in the market. Commodities are a great way to diversify your portfolio and spread the risk involved in online trading. This increases your chances of turning a good profit at the end of the day. All the commodities you trade on have fluctuating prices that you speculate on but never get to own the underlying asset. The different commodities you can expect to find on eToro are Gold, Silver, Wheat, Gas, Copper, Oil, Palladium, Platinum, Cocoa, Cotton, Sugar, Nickel, and Aluminum.

Stocks

Trading in the stocks of the major companies in the world is another great way to diversify your portfolio and spread the risk involved. You get feeds of the top markets in the world in real-time and get to speculate on market prices. This is done without ever owning the shares themselves. All you need is the price when opening the trade and one when closing it. The major markets in the world are like NYSE.

Cryptocurrencies

Cryptocurrencies are the new beloved choice for many traders for their uniqueness and simplicity. With eToro, you can access many of them including Bitcoin, Etherum, Litecoin, Ripple, Dash, among others. This diversity gives you a chance to speculate on more than one type at a time. This increases your chances of turning a profit. The fact that cryptocurrencies are purely online attracts many traders hence their rise in popularity.

How to Deposit on eToro?

After setting up the live account, you must deposit money into it to start trading on the instruments and create a portfolio. Depositing money is an easy and quick process that won't delay you in any unforeseen way. You must use the recommended methods to fund the trading account. These methods are Accepted Debit or Credit Cards, Paypal, Neteller, Skrill, Rapid Transfer, Wire Transfer, Sofort, Online Banking, and Union Pay.

The process of funding the account entails:

• Load a blank browsing page and input the eToro website www.etoro.com
• Once the homepage loads, click on 'Log in' and input your username and password to access your live account
• Click on 'Deposit Funds' to start the process
• Fill in the amount you wish to deposit into your trading account and select the preferred currency
• Pick from the list provided the preferred method for depositing funds the click on 'Deposit' to complete the process.

How to Withdraw Money

To withdraw money from your trading account is just as easy as depositing it. You are allowed to request at any time but can only withdraw the amount you have in the account. You can only withdraw using the method you deposited funds with as per the Terms and Conditions of this broker. The complete process takes 24 hours but also depends on the method you use to withdraw the money.

Difference Between eToro and Other FX Brokers

eToro is in a league of its own when it comes to the number of trading instruments you can success. You can delve deeper into Cryptocurrency trading using the various investment tools available. This is also a social platform that makes use of copyportfolios. This is a managed portfolio that is long term for building your assets. It's used by top traders with a strategy in mind.

Pros

• Social platform using copyportfolios
• Easy account registration process
• Easy deposit and withdrawal processes
• Payouts processed within 24 hours

Cons

• Complex concept that takes time to grasp
• Tedious account verification process

eToro FAQ: Frequently Asked Questions

⚖️ Is eToro regulated in India?

Yes, this broker is regulated in all the regions and countries it operates from. It has licenses from authorities like CySEC, FCA, and FSA.

🙋 How to open an eToro Demo Account?

Opening an eToro demo account involves completing the process to register a live account. Once it's activated, underneath the profile picture, click on 'Real' then select the 'Virtual Portfolio' to switch from the Live account to the Demo one.

💸 How much in terms of Virtual Funds do you get in the Demo account?

The demo account comes with $100000 virtual funds to use as you sharpen your trading skills

🔐 How can you close an eToro account?

You must log into your account then access the Self-service Account Closure link. This is located at the bottom of the Account setting page. Follow all the instructions given to successfully close the account.

🎁 Does eToro provide investors with any bonuses?

Yes, there are bonuses provided by this broker. You get $50 credited to your trading account if you successfully refer a friend to eToro. As a new customer, you also get $50 if you register by using the referral link.

⚙️ What instruments are can you access from this FX & CFD broker?

Forex, Commodities, Stocks, Cryptocurrencies

📱 Does eToro have an app?

Yes, there is an official mobile app that you can download on your Android or iOS smart device. It has a user-friendly interface and is accessible 24/7.

Conclusion

eToro is a social trading platform that brings a new method to traders who enjoy exploring. It can be challenging to understand for beginners but with practice, you're bound to master it in no time. Registering a live account involves a complex verification process that may take some time to complete. You can trade on various instruments using a copy trader.

Read eToro review also in other languages: Spanish.