Worldwide acting broker eToro is a pioneer in so called social trading (by copying other traders). The core of the innovation at eToro is the option to become a passive investor from an active trader, by letting a part of the trading orders be taken over from chosen, successful traders. Copying other traders with eToro is so attractive that from 2006, when the company was founded, the broker has gained over 4.6 million clients from all over the world. Broker offers its services with accordance to the European directive MiFID, has a licence from the British Financial Conduct Authority. Deposits of clients from the European Union are insured by law up to £50 000 and are held separately from broker’s finances.
Trading Platforms and Features
We spoke about “reinventing the wheel” at the beginning of this review. As you’d expect from this pioneer in social trading, the platforms offered are proprietary technology and exclusive to eToro.
eToro provide its customer with three platforms to invest in Forex and CFD’s. These are called, eToro OpenBook, eToro WebTrader, and eToro Mobile Trader. Whereas most brokers offer multiple platforms that tend to be standalone entities, the eToro platforms can be viewed as an extension of one another. They work symbiotically to provide their clients with a complete and transparent trading experience. A brief overview of each platform is provided below to illustrate this better.
- eToro WebTrader –This is eToro’s all-in-one portfolio management platform. It has a number of options including those that allow you to trade and manage your manual and “CopyTrader” portfolios. CopyTrader is a huge selling point of eToro. It allows eToro’s clients to see the progress of other traders and copy successful trading strategies with the click of a button. Like all eToro platforms, the WebTrader platform uses a sleek and simple interface to display live rates, comprehensive charts, open positions and orders. It allows traders to easily edit Stop Losses and Take Profit orders, or even to manage their Copy Trading activity. WebTrader is synchronised with your OpenBook activity, making it the ideal place to manage and analyse your trading portfolio. Compatible with both Mac and PC based devices.
- eToro OpenBook –This is the main social trading platform at eToro. This slick and intuitive platform allows you to connect with the global eToro network in real-time and presents a range of information. It is presented in the familiar social media format and eToro encourages traders to interact therefore it provides discussion walls, personal messages and various feeds. The platform also allows you to follow traders to receive the latest updates on their activity and the CopyTrader tool allows you to then copy successful trades with the click of a button. This transparency on successful traders and their strategies will appeal to traders with little or no experience. It also rewards more experienced traders as having their trades copied elevates traders to “Popular Investor” status and earns them additional cash rewards. It is also a fun alternative to a more traditional isolated trading experience. Compatible with both Mac and PC based devices.
- eToro Mobile Trader App –eToro provide free apps compatible with all Android and IOS mobile devices. These can be found at Google Play or the Apple App store as relevant. The apps are a fully functional, yet scaled-down version of eToro OpenBook. App users can view the latest discussions, news and view market pages. They can also manage their trading portfolios by accessing live rates, charts and viewing open and close positions or even editing stops and much more. These truly allow traders a fantastic way of staying connected with the eToro trading network.
eToro social network
eToro is not only a broker offering online trading and copy trading; eToro evolved into a fully functional social network connecting traders from all over the world and giving them the space for discussion. Every eToro client gets his profile, on which he can, but does not have to be active. Nevertheless, regular participation in the community is a great added value for trading and keeps the trader up to date, while discussing their ideas with others.
Trading with eToro
With eToro you do not have to trade only by copying others, you can also do it the old fashioned way. There is a choice of over 850 trading instruments. Most represented are CFDs on American stocks, but you can also trade with european stock markets, currencies – FOREX, crude oil, precious metals, equity indices or exchange traded funds (ETFs). Trader/investor can, at every opening position chose the degree of leverage from 1:1 to 1:200, allowing for trading with only your money, without the use of broker’s. Fees for trading, in form of a spread, fall under the better ones, when spread is from 2 pips for USD/JPY and 3 pips for the popular pair EUR/USD. This is considered as a decent spread for a majority of traders.
Bitcoin at eToro
eToro is one of the few brokers offering trading with crypto-currency Bitcoin. Exchange rate is following the biggest bitcoin exchanges bitstamp.net and the spread is only around 3 USD, great value when we consider that the normal spread on BTC on exchanges is 1 USD plus a fee of 0.5% based on the amount.
eToro demo account and test of platforms
Opening a trial demo account with eToro is easy and requires the client to only fill out a short online registration form, which does not take more than 30 seconds. At the moment of registration, the client gains access to the trading platform and the possibility of infinite testing with virtual currency. Virtual funds are in the amount of $100 000 USD and the demo mode allows for the same trading experience as the real life trading, including the copy trading and achieving the same profits/losses.
eToro accepts traders from around the world, making this a truly international broker. They are currently authorised and regulated by the following regulatory bodies:
- Europe:The Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (UK). eToro also operates under the Markets in Financial Instruments Directive (MiFID), and offers cross border services to all member states of the European Union.
- Australia/Asia Pacific Regions:The Australian Securities and Investments Commission (ASIC) covers activity from all traders in Australia and the Asia Pacific region.
- USA:eToro is regulated by the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA) or America, however, they do NOT accept US traders at this time.
eToro offers quality customer support service, concentrating especially on email communication. Available is also an online chat room and unique discussion forum on the platform, similar to the Facebook wall. The benefit of the discussion forum is that the problems of others are visible and so the broker takes care that everything is attended to and solved correctly and on time. Overall, eToro’s customer support is of a very high standard.
|Name of the Broker||eToro|
|Headquarter’s Location||Limassol, Cyprus|
|Founded in Year||2007|
|Regulation(s):||NFA, CySEC, ASIC, CFTC, MiFID|
|US Clients Accepted|
|Telephone Number||357 2 5030234|
|Fax Number||44 866 350 881|
|Type of Broker||STP|
|Islamic Account (Swap Free)||Yes|
|Deposit Options:||Credit Card, Debit Card, Wire Transfer, Moneybookers, Paypal, Webmoney, Moneygram, Westerrn Union, Neteller|
|Withdrawal Options:||Credit Card, Wire Transfer, Moneybookers, Paypal, Webmoney, Neteller, Moneygram, Westerrn Union|
|Platform Type||eToro webTrader, etoro Openbook, eToro Mobile Trader|
|Platform Languages||English, French, Spanish, German, Russian, Italian, Chinese, Arabic, Turkish, Portuguese, Japanese, Polish, Greek, Dutch, Swedish, Finnish,|
|OS Compatibility||Microsoft Windows,Mac OS, Web Based, Android, iPhone, iPad|
|Trade From Charts||No|
|Guaranteed Stop Loss||Yes|
|Guaranteed Limit Orders||Yes|
|Interest on Margin||No|
|Streaming News Feed||Yes|
|Customer Support Languages||English, French, Spanish, German, Russian, Italian, Chinese, Arabic, Turkish, Portuguese, Japanese, Polish, Greek, Dutch, Swedish, Finnish, Multi-lingual|
|Customer Service Hours||24/5 Mon-Fri.|
|Place Trades Over the Phone?||No|
|Bonuses & Rewards|
|No Deposit Bonus||No|
|Bonus for First Deposit (FTD Bonus)||Yes|
|Is the Bonus a % of the total deposited amount?||Yes|
|Other Bonuses & Promotions||Yes|
Bonuses & Promotions
Bonus offers and accounts
There are different accounts at eToro depending on your deposit amount. When you deposit between $50 and $999 you’ll get a Bronze account, with $1,000 – $4,999 a Silver account, etc. Unfortunately, eToro does not offer bonuses with stone-cold cash any more. There are other incentives like a better VIP support, webinars or daily analysis.
Invite your Friends for an Amazing $100 + $50 Bonus with eToro!
eToro encourages all their traders to enrich their trading experience by inviting their friends to join the eToro trading community.For every friend you successfully refer to eToro who deposits a minimum of $100, you’ll receive a personal bonus payment of $100. Your friend will receive an automatic referral gift of $50, that’s $150 for you to share. There is no limit on using this promotion except the number of friends you have and who you think could benefit from the very best of Forex trading together with eToro
Deposit and Withdraw
To make a deposit or withdraw at eToro you can make use of the following payment options: credit cards (VISA, Mastercard), Paypal, Skrill/Moneybookers, wire transfer, instant cash and Neteller. It’s very simple to make a deposit and a withdraw at eToro.
eToro Bitcoin Trading:
If you’re aiming to trade Bitcoin as a long-term investment, eToro lets investors trade the highly volatile digital currency through a contract for difference, or CFD. Real-time eToro Bitcoin trading lets you open short or long positions and respond quickly to market changes.