ETORO REVIEW
Your time is too valuable to lose it reading hundreds of lines about eToro, so we are going to do a condensed and quick eToro Review.
Index: eToro Review
2.1. Easy to copy other traders
2.2. Are there Real users? How much?
2.3. Who are the traders with largest track record?
2.4. How much information about traders is published?
2.5. Can I copy other user’s portfolios?
2.6. What investment products can be traded?
3.1. Easy to trade by yourself
3.2. Can you trade by yourself while copying other traders?
3.3. Financial instruments allowed
6. Promotions
1. Brief Introduction
Created in 2006 as a retail FX, released etoro openbook social platform in 2010 becoming one of the most important sites of Copy trading. Nowadays, eToro has the widest range of available assets for traders, allowing you to trade in CFDs, crypto currencies, stocks, commodities, funds and more.
They’ve been one of the first companies to create and promote portfolios of traders, this way you can copy more than one hundred professional traders with a single click.
2. Copy trading reliability
eToro is one of the most reliable copy trading sites and this is one of the main reasons to be the site with more users copying strategies from professional traders. But they also have other strengths, for example the ease of use, the wide range of real traders to copy or their awesome range of assets to buy with low fees. All this together situates eToro in the top of copy trading sites.
2.1. Easy to copy other traders
eToro is very simple. There is a list of traders with various filters to choose the best, if anyone of them fits your needs you can copy the trader in a single click. By doing so, you can easily copy 10 or 15 traders in a diversified portfolio of traders within 5 minutes. This is one of the easiest to use copy trading sites, no doubts!
2.2. Are there Real users? How much?
Yes, many of the top traders are users with real accounts who had been trading for several years. This is a great way to differentiate experienced traders from beginners, so having thousands of real traders to choose is a major advantage for eToro users.
2.3. Who are the traders with the largest track record?
There are traders with more than 6 years of trading history, but most of them started around 4 years ago, which is more than enough to see if someone is a professional trader or not.
2.4. How much information about traders is published?
eToro publishes aggregated information about traders, that means, risk level, returns, worst operations and so on but you don’t have access to the full history. This is not a problem for many investors who feel comfortable with aggregated data, but if you want to perform your own analytics this can be a problem.
2.5. Can I copy other user’s portfolios?
Even though this is not a native option in eToro, you can handle to search copyfunds or simply ask people who are they copying. eToro is a social site, so feel free to ask people for recommendations and tips, most of them had been doing copy trading for years! Can you imagine a better way to learn about copy trading?
2.6. What investment products can be traded?
Can you imagine a copy trading site offering access to equities, derivatives, forex, crypto currencies and more? Sounds good, right? eToro is this copy trading site. You can find almost everything at a more than reasonable price thanks to the low fees policy of eToro. Create a demo account and check all the options offered by eToro, the range is very broad, you can simply copy an index or you can follow warren buffet’s portfolio.
3. Trade by yourself
3.1. Easy to trade by yourself
eToro is a platform thought for beginners and intermediate level traders, if you expect high end tools you shouldn’t use eToro, but for a experienced trader their platform is more than enough. The platform is very easy to use, even a kid can open an operation and setup a stop loss.
The key advantage is the ease of use for traders who want to share their strategies, everything is thought to be easy and automatic, so you only need to trade as usual and if you perform well other people will start to copy your strategy. eToro allow the trader to focus in his operations and forget about being a popular trader among others.
3.2. Can you trade by yourself while copying other traders?
Yes, of course you can. And, as we said more than once before, is as easy as you may expect. You can copy other strategies while you buy and sell your owns assets. The combination of both tools makes eToro a special site, where you can keep trading with your strategy while you increase your profit thanks to strategy diversification.
3.3. Financial instruments allowed
eToro allow many financial instruments, the most important categories are:
– Forex
– Commodities
– Indexs
– Equities
– ETFs
This allow you to correctly diversify your strategy and also copy people who are experts in equities, commodities, forex or a combination.
4. Trading platforms
eToro has a self-developed platform available for computer or mobile. The mobile app is great to manage your investments wherever you are and the computer allow you to do more complexs operations that are not allow through mobile phone. The disadvantage is the lack of a mt4 or mt5 platforms, but even considering that point eToro platforms are very well positioned and very user-friendly.
5. Account types
As usually, users can create a demo account to try all the tools offered by the company and later on create a real account to start copying other’s strategies.
Real accounts can have different fees depending on your trading volume, so be ready to negotiate with eToro to get lower fees if you are a high-end trader.
6. Promotions
Promotions in eToro are usually available for demo users but not visible for external visitors. We recommend you to create a demo account and be ready for promotions to appear. If there are not promotions now, don’t worry, you will have low fees anyway.
7. Deposits & Withdrawals Options
eToro allow users to withdraw money within a day. You can choose between credit card, PayPal, bank transference, china union pay, neteller, skrill and webmoney. Some of these options can take more than 1 day and the minimum withdrawal amount are 20$.
Currency trading with leverage implies an important risk for the investor and there is always the possibility of losses. These instruments carry a high risk if they are not managed properly and a profit can quickly become loss as a result of price changes. Due to the risk factor inherent to this type of trade, only funds intended for risk investments should be used. If you do not have extra capital you may be willing to lose, you should not trade in the forex market. It has never been proven that there is any system or portfolio of systems that is completely safe and no one can insure future profits or losses. Before you start trading in the forex market you should think carefully about your goals as an investor, your level as an investor and your risk aversion to determine if this is the type of investment you want to make. If you are in doubt you should seek advice from a professional financial advisor to advise you about the investment.
