ETORO BROKER REVIEW

Investing in CDF is one of the most challenging investment options. It comes with high leverage such that any loss is enormous. While most investors might believe this is a reason to shy away from the sector, it is indeed a valuable option to consider.

Most of the ardent investors understand that the higher the risk, the better the returns. That is why, in as much as 75% of CFDs accounts make losses; it is still an ideal trading zone for most.

Investors need to understand the different assets; cryptocurrencies, CDFs, among other options to make it in copy-trading. Once you know, the next step is to find an ideal trading platform. Of all the trading platforms, eToro has set itself as the industry leader.

Starting as a general trading platform, it has grown to become the undisputed trading platform over the years.

Here is a detailed review of eToro, to help traders make an informed decision.

Background

With currently over a million traders on the platform, eToro is all about sustained growth. Started in 2007, the trading platform is a highly regulated platform for traders. Although it began as a general trading platform, the site has continually grown to include cryptocurrency and several other assets.

It has also been instrumental in the start and development of social trading. It provides some of the most advanced social tradings in the form of CopyPortfolios and CopyTrading.

eToro has, over the years, reduced the dependence on banks and the traditional money system. It has achieved this by providing integrated financial instruments and a range of trading tools for users.

The company has embraced innovation through the years of its operations. The company has introduced some of the game-changing tools over the years: WebTrader professional guiding tool in 2009, CopyTrader in 2011, and launching a mobile app in 2012.

For further growth, the company launched CopyPortfolio in 2016, while introducing crypto trading in 2016. So far, it supports some of the top cryptocurrencies like Litecoin, Ethereum, and XRP, capping it off with a full crypto exchange in 2019, in the form of eToro X.

Generally, the company is all about customer experience. It employs a highly intuitive and interactive interface for the users.

Table; Pros and Cons of eToro

Regulation

Trust in online trading can never be forgone. eToro seeks to build trust through in-depth regulation. Authorized by the Cyprus Securities & Exchange Commission, the site also complains to several other regulatory bodies’ provisions.

It is licensed by the Financial Conduct Authority that allows for user access to information on all risks and related details. It also operates within the European Securities and Markets Authority regulations for more assurance. All the major European countries regulate the operations of the trading platform for assured safety.

The only concern that comes with using EToro is the limitation of the regulations outside the jurisdictions. For example, with the broker able to hold assets outside of the European economic block, the rules might fail to protect the trader by then. Still, it assures protection of up to $ 50,000 with the brokers.

The regulations also provide for negative protection such that no trader can lose money beyond 0%.

Deposit and Withdrawal

The ease of deposit and withdrawal is one of the leading considerations for most traders. Like any other trading platform, eToro provides an extensive guideline on deposit and withdrawal. The trader should take time to read all the instructions on the platform before considering signing up.

Once assured they have what it takes to comply with the rules, they can deposit. eToro provides multiple deposit methods for trader convenience. It accepts the traditional money transfer like wire transfer, Visa, Mastercard, and bank transfers.

The tech-savvy traders who prefer electronic money transfer have PayPal, Skrill, Webmoney, among other possibilities.

eToro provides for minimum deposit limits of $50 and $500 when using wire transfer. It supports deposits of up to $10000 in a day.

It allows traders to either keep the money in the account for continual trading or withdraw any amount above $50. It takes around 3 – 5 days for the money to hit the recipient's account.

Security

Security is one of the most critical factors in trading. The trading world has been rife with fraud, money laundering, and money loss, which calls for extra caution. To ensure its users' security, the site uses a secure socket layer system (SSL) for secure data transfer and user authentication. There is never any risk of any unauthorized party accessing the user data.

Other than the security features offered by eToro, the company also encourages users to stay protected. The company advises the traders to employ the 2-Factor authentication for extra security.

It urges the users to protect their passwords at all times and never use the password on any other platform. It is also for regular browser and operating systems updating and staying extra careful when using public computers.

Ultimately, the company is highly responsive to security issues. It allows users to report any instance of a security breach. It also operates on the premises of transparency by disclosing all fees and costs of operating an account.

Mobile Program

With internet access becoming predominant over mobile devices in recent times, eToro looks to make it possible for users to make the most trading from their mobile phones. Currently, the site is one of the top mobile-friendly sites.

It provides for an easy to use the android app. The app integrates responsive trading charts, almost like it is on the web.

Other than the mobile app, eToro also provides for a cryptocurrency wallet in the form of eToro X. The app holds the coins securely while trading until when the user is ready to sell. The money wallet is also easy to use and access.

Generally, albeit with little difference, accessing the mobile site is more or less the same as using it over the web.

Customer Service

eToro provides relatively reliable customer service for its multitude of users. The primary contact system is the ticketing, where traders can launch cases on a wide range of issues. Even though the system is not popular among most companies today, it is useful.

Even before raising a ticket, the page has an in-depth FAQ page for most customer concerns. It also provides an interactive live-chat on the website for most of the issues.

The only customer service concern with eToro is the lack of full-time cellphone contact. Otherwise, it also keeps a vibrant social media presence for marketing and communication. Besides, it is available in 14 different languages.

Assets to Buy and Sell in eToro

One of the misconceptions that come with the trading site is the belief that users don't own assets. Even though it started with CFDs, the site has expanded to allow trading in stocks and cryptocurrencies. Purchasing stocks and shares from eToro is like investing in any other stock market.

One can either buy the short term stocks based on speculation of prices going up or go the long-term way and opt to gain from dividends.  

Trading cryptocurrencies on the site has also been popular due to the secure nature. The site supports over 16 crypto-to-dollar pairings, great for those looking for variety. Otherwise, one can only withdraw your crypto as either Binance or Coinbase.

eToro also runs Forex, indices, ETFs, and commodities.

Fees

Even though eToro does not charge trading fees or commissions, using the site is not free. They charge fees in the form of spread. Most of the cryptos come with a spread of around 5%, with others getting to lower to 0.5%.

Understanding also involves how much there is to gain. Given the main reason for trading is to win, eToro is such an excellent place for those looking to earn more. While the amount to gain depends on the asset and your location, there are high leverage and overnight fees to take into account.

Bottom Line

Following the review, it is easy to note why eToro is one of the world's most established trading platforms. The site takes pride in offering a wide range of investment options. It is also part of several regulations that have built a reputation for security.

By supporting several payment methods, eToro has increased access and ease of trading—same case to providing exceptional customer service.

All these positives come at a cost, though. Trading in the site is a little costly, with the spread charges varying from assets. In the long run, though, the gains outway any other cost. Anyone looking for an ideal financial trading platform must have eToro as the top if not only option.