Table of Content
A leveraged broker with a difference
eToro is a leveraged broker with a difference. They describe themselves as The World’s Leading Social Trading and Investment Network.
There are two main ways to use this exchange. The social trading section is very interesting and, in a nutshell, gives you the ability to check the performance of other traders on the exchange and choose to copy their trades automatically through the site. The second way to use eToro is simply buying and selling your own trades as normal. They have a diverse variety of crypto markets, FX, commodities, stocks, indexes and even ETF’s available to trade with varying levels of leverage.
Check out what eToro has to offer
Leverage available for each sector:
- Stocks ranges between x5 and x10
- Currencies ranges between x50 and x400
- ETF’s are x5
- Commodities and indices ranges between x10 and x100
- Cryptocurrencies (no leverage)
Ease of Use
We honestly think this is the easiest to use exchange we’ve ever seen. The layout is extremely user friendly, very easy to navigate and has a great selection of ways to view and manage your portfolio.
Copy-trading is as easy as it gets. eToro has a list of traders who opt to share what they are trading so other users can copy them. Almost like an investment fund, you are able to search through lists of profitable traders/funds, and based on their past-performance, invest as much of your portfolio as you wish in what they are trading. The site will automatically use the equity you wish to allocate, to enter and exit their trades. If the trader you are copying makes money, you make money. Of course, if they lose, you lose too. But if you’re looking for a very simple way to enter markets with almost none of the work required, then copy-trading can be a valuable option.
For standard buying and selling on the exchange, the platform can actually be a little too simplistic. More sophisticated traders will probably be looking for a bit more control, but regardless, eToro is still very functional and allows traders to buy and sell a wide variety of instruments quickly and easily.
eToro Fees
All deposits are in USD and are free, minus any required exchange rate if USD isn’t your depositing bank’s currency.
Withdrawals come with a standard $25 fee for any amount.
The fee structure for trading is based on spreads which are vastly different for every instrument you buy or sell. Overnight fees vary on each instrument, also depending on whether positions are long or short, you will either pay or accrue equity from open positions.
The fee structure on eToro is actually a little complicated and over-priced in many instruments. This simply means do your homework before you invest in anything as swaps can add up and spreads can be wide and unforgiving.
eToro Support
eToro is a well-established company and has been in operation since 2007. They have a long record of good customer support on various channels through their website and company addresses.
eToro Limits
Your account will need to be verified by your I.D. and proof of address. This exchange is properly regulated, and you can expect to be asked for tax I.D. too. All this regulation means your funds are safe and insured. If you’re used to unregulated crypto-markets and exchanges, then this may seem a bit intrusive. But in finance, regulation and insurance are standard and if you are serious about investing for the long term, this is something you are going to have to engage with.
Reputation
eToro has been building its reputation as a user-friendly, global, CFD brokerage. Since 2007 it has added many features and grown a user-base in 140 countries. It’s not a standard, unregulated crypto-exchange. It’s firm business model, in a highly regulated market-space, has allowed them to grow successfully across the world.
Security
As eToro is regulated brokerage, and all deposits are held in USD. You can deposit from a credit card or bank acc. from your home-country’s fiat currency and eToro will convert the deposit into USD. You cannot hold cryptocurrencies or any other currency apart form USD. However, your funds are as safe as their business. There is no chance of your coins/money being hacked as this exchange operates in the traditional banking system – they do not take crypto-deposits, plus if you buy crypto on the exchange they hold them and you cannot withdraw. All funds are credited and withdrawn through standard banking channels.
The Review
e-Toro
e-Toro is super easy to use! Its platform is well designed, executes very nicely and has a great range of features to help you see where your money is invested. There’s a great tutorial feature that will take you through the UI, and with the ‘demo’ account they also offer, you can test out the exchange and try everything without risking any money. The copy-trades and copy-funds are an excellent way to invest in your chosen market with automatic trades the exchange can facilitate for you. As a more sophisticated investor you may go looking for more detailed trading UI’s and order options, but for beginners and veterans alike this exchange has a lot of value. There are no concerns about wallets being hacked or funds going missing. And for us, being able to very easily find and invest in the portfolios of a whole list of popular traders is a great addition to any search for value.
PROS
- Excellent User Interface
- Simple and clear view of your portfolio and funds
- Secure USD deposits and withdrawals
- Wide variety of tradable instruments
- Leverage available
- Ability to copy other traders automatically
- High level of account security
CONS
- Can have wide spreads
- Possibility of expensive overnight swaps
- Account verification necessary
