eToro Review – The Pros & Cons Of Trading With A Social Trading Account
- Regulated CySEC and FCA
- 10% All Deposits Bonus
- The Least Expensive Accounts
- eToro WebTrader Platform
- No Demo Account
eToro is a breath of fresh air in the endless sea of market maker brokers that are quite dominant in the financial industry. eToro is one of the leading Forex trading service providers that constantly seek to innovate its products according to the latest trends in the market. eToro is never shy to try new trading platforms or new technologies, by constantly incorporating innovative new products into their service portfolio. The broker’s ability to understand the market trends is seen as the major reason behind the company’s continued success in the Forex trading market.
eToro is indeed the largest social trading broker in the world that allows its traders to invest in the markets using recommendations provided by other professional traders and money managers. eToro has developed an advanced trading social trading platform that enables automatic copying of trades, which is a great aspect for amateur traders, professional traders, and institutional investors. The social trading platform, on the other hand, may also act as a deterrent for beginner traders from learning the dynamics of the markets, which can lead to potentially high losses and emotional turmoil.
eToro is primarily a European Forex broker that offers its services to traders from all over the world through affiliates and introducing brokers. eToro had initially offered its services to US traders, but the recent regulatory changes in the US has led the broker to quit the US markets and concentrate its efforts on the rest of the global financial markets. eToro has two branches in the EU, with its representative offices located in Cyprus and the UK. Therefore, eToro is regulated by both the CySEC and the FCA, bringing it under the watchful eyes of the ECB and the European MiFID derivatives.
eToro did have a few issues with its customers during its early years, but modern regulatory standards have helped the company to reform its services to offer a safe and secure trading environment to its clients. eToro traders can be confident in the broker’s ability to preserve their trading capital against all types of financial frauds and broker scams, which is further protected by the investor compensation funds provided by the FCA and the CySEC. Learn more about opening an eToro Forex account and other trading conditions by reading through the rest of this eToro broker review.
An eToro Forex Review Of The Trading Accounts & Cost Of Trading
eToro accounts used to be one of the least expensive Forex trading account options in the market, as the broker had initially provided a trading account for as low as $25. However, nowadays, a regular eToro account can only be opened with a minimum deposit of $100, while there is a VIP account option for a more expensive $20,000 initial deposit. We are not sure how traders will respond to the $20,000 deposit option for a regular market maker account, but the standard account is all you need for investing in the Forex market. The maximum eToro leverage for all accounts is set at 1:400, while the eToro spreads at market price may fluctuate between 3 and 7 pips on the main currency pairs. eToro also supports a wide range of payment options, with the eToro account dashboard offering you a clean and functional layout for managing your account in a professional manner.
Traders can also opt for an eToro bonus at the time of making a deposit, which is actually dependent on the magnitude of your investment and your account standing. Realistically, eToro offers a standard bonus of 10% on all deposits, but you may receive more by getting in touch with your account manager or the eToro customer support department. However, as is the case with all Forex bonuses, accepting a bonus from eToro ties your account to the broker’s trading terms and conditions, which will have to be satisfied before you can initiate a withdrawal of your trading funds.
What Is The Primary eToro Trading Platform?
eToro offers a web trading interface that can be accessed on all desktop and mobile devices. The eToro WebTrader has all the functionalities of a desktop platform without the need for installing any standalone trading platforms. Traders can simply point their browser to the WebTrader and access their account from anywhere in the world. The WebTrader is protected through state-of-the-art SSL security and other encryption protocols to secure traders against any phishing attacks or other online scams. Therefore, the web-based trader is one of the best web trading interfaces in the Forex market in terms of security.
While the WebTrader tries hard to improve on the safety aspect, the overall trading experience is excellent, when compared to traditional desktop interfaces. The eToro trading platform is a graphically advanced interface that is pleasing to the eye, which also grants access to all trading tools such as the OpenBook, the CopyTrader, and other social trading platforms all in a single terminal. Even the eToro mobile apps are customized for a unique mobile trading experience, which does help eToro customers to enjoy one of the best trading platforms that are available in the market. eToro mobile trading platforms can be downloaded for iOS, Android, and Windows devices from their respective app stores or traders can alternatively choose the web trader by accessing their smartphone or tablet’s built-in web browser.
A Short Introduction To CopyTrade & eToro OpenBook Review
eToro OpenBook, or now known as the eToro CopyTrader, is one of the most popular and advanced social trading platforms available in the market. eToro allows money managers and investors to take advantage of a the CopyTrader platform by offering different dashboards and functionalities according to their trading preferences. Money managers have the ability to offer their services as a trader by allowing other investors to copy their trades, while investors can customize their copy trade preferences by choosing their preferred trader, selecting the order size, and editing the trades to suit their risk appetite. Traders may also choose to spectate and analyze the trades of other successful traders in the OpenBook platform, but copying trades means that the investor will have to pay a small percentage fee to the trader that they follow.
The eToro OpenBook and CopyTrader platforms create a win-win situation for both traders and investors, with professional traders getting a fair share of revenue from followers, while investors get access to the best trading calls without having to analyze the markets. eToro estimates that more than 150 million trades have been copied through its OpenBook platform, of which the traders have achieved a staggering 80% profit ratio.
- Company Information
- Founded In: 2010
- Website: www.etoro.com
- Headquarters: London, UK
- Licences: FCA & CySEC
- Phone Support: +44 (0) 203 150 0308
- Instruments: Forex, Stocks, Indices, Commodities
- Trading Features
- Welcome Bonus: Up to $1000
- Max. Leverage: 1:400
- Min. Deposit: $50
- Trading Signals: No
- Mobile Trading: Yes
- Automated Trading: No
The Impact Of Social Trading eToro Accounts On Your Trading Profitability
The losses in social trading may be far more compounded than the broker would like you to assume, which is one of the largest drawbacks of assigning money managers for your investments. Regardless, social trading is fast catching on as the most popular investment choice, but as a trader, you should exercise your due diligence before following a trader in any social trading account.
If used correctly, social trading can significantly increase your bottom line through calculated risks. You should not depend on the trading stats and services of a single trader; instead, you should always diversify your trading capital by assigning your money to different traders. Therefore, even if a trader or a group of traders are experiencing any significant drawdown, you can be protected from a total account wipeout, thereby preserving your account equity for a longer duration.