EToro Opinion and Updated Analysis

Getting to know eToro

eToro is a financial broker that helps you in managing your investments. The company already offers its services to more than 4 million clients in 140 countries around the world (this broker does not accept clients from the US and therefore this review is not focused on US traders). These data only confirm that we are dealing with a more than reliable company. Next, we tell you all the information of interest about eToro so you can decide if it is what you are looking for.

eToro initially decided to specialize in social trading . Thanks to this, you will be able to invest from its trading platform in CFDs on stock stocks, ETFs, indices, commodities, currencies and more. The great particularity that eToro has is that you can use functionalities of a social investment network. With this tool you will be able to follow and copy the investments of other traders without problem.

If what concerns you is the security of eToro , we must tell you that it offers good guarantees both for your deposits and to invest what you want through its trading platform. The company is registered with the Cyprus Securities and Exchange Commission (CySEC), a matter for which it is obliged to comply with European regulations.

EToro security and regulation

The fact that eToro is based in Cyprus is a very common question among specialized CFD traders. However, eToro adds yet another guarantee by also having offices in London. This means that it is also regulated by the UK's own supervisory body, the FCA. As if all this were not enough, Spanish customers can be even more reassured since eToro is registered in the CNMV registry with license number 3519.

Maybe so much data has made you lose a bit. Do not worry. The meaning of all this is that eToro is a reliable company that you can work with without problems. Our sincere opinion is that we are dealing with a reliable, serious and rigorous company. In short, it is a safe and 100% reliable online broker.

How does the eToro platform work?

eToro is, in essence, a website where various CFD investment platforms come together . In this company you can buy or sell CFDs on stocks, ETFs, indices, commodities and currencies. Despite this, the great added value of eToro is that you can do all of the above, also counting on the social investment component of its website.

As soon as you start your session, you will be able to access a classification of users ordered according to their investment performance. This allows you to opt for 3 very well defined possibilities:

• You can simply see what other users are doing with their investments.
• You can follow the best investors or specific users in such a way that you are notified when one places a trade.
• You can automatically copy the investments of the users you want. Of course, you can set a clear loss limit or stop loss . In this way, you can control your risk without having to be online when other users are too.

In general terms, we can say that the great bet of eToro is that users are able to generate profits and that they can help others. This is another reason that leads us to trust the company and consider it one of the best online brokers available. eToro does not win when your client starts to lose money, but it does when they trade in such a way that they will be the first interested in you to trade as much as possible.

Instruments available on the eToro platform

The first thing we must define will be the financial assets that we can operate with this broker. Keep in mind that CopyTrading services are based on copying other traders, who in turn invest in the following assets:

• Forex : you can trade in several currency pairs.
• Raw materials : their offer is much more limited, but you can operate in gold, silver, copper, oil, natural gas and even platinum.
• Cryptocurrencies : includes the main cryptocurrencies.
• Shares : you will find all those listed on the main Stock Exchanges, including the Spanish stock market. You will have many actions of all kinds to choose from.
• Stock indices : among them is the Ibex 35 as well as the most popular internationally.
• Exchange Traded Funds (ETFs) : these are investment funds whose shares are listed on a regulated market. There are more than 50 of these assets available to trade on the eToro platform.

EToro Demo Account

It is very common that, before launching to operate with real money, the users of these brokers want to try a demo account or free trading simulator. It is the best possible way to learn the most relevant without risk of losing money. eToro offers its users the possibility of using this type of free demo account so that they can try everything they want and as many times as necessary before even depositing funds in their accounts.

Its usefulness is evident since you will be able to carry out operations as if you were already working in the market. In addition, it is perfect for those who do not have much experience yet or to practice in those investment options that you do not know too much about. One of its best uses is the ability to implement technical analysis (to be combined with fundamental analysis). Thus, you can buy shares once they are in the so-called support zone and sell them once they are in the resistance zone.

But this also applies to other financial markets such as the Forex market, in addition to other assets such as stock indices or commodities. Thanks to the free demo account you will be able to experiment and make sure of the way in which the news of the financial world affects the price of each asset. All this without risking a penny. For this reason, we recommend the use of this useful and recommended trading tool.

EToro Commissions and Spreads

As usual, the rates that apply to their services are a basic element in the analysis we do of a broker. If the commissions are very high, the big losers will be the investors since this forces them to pay a lot just to operate.

In the case of eToro, these fees are more than reasonable in that there are no operating fees. The broker takes a spread on the price of the asset with which it is going to operate.

You may know that the spread that is applied varies depending on the asset with which it is traded. It is very possible that other brokers apply higher spreads so, although you will find everything, in general terms, this is a generally cheap option.

Currency Pairs on eToro

Cryptocurrencies on eToro

Commodities on eToro

Stock Indices on eToro

How to open an account on eToro?

You already know all the features of the eToro platform and you know what it takes to open a real or demo trading account with this broker. The next step we can take is to know well how the registration process works. It couldn't be easier.

All you have to do is access their website and register by providing a short list of very basic personal data. Among them, neither your name and surname nor your email address from which you will be registered can be missing.

Keep in mind that opening an eToro account is completely free and that you don't even need to make a deposit to complete your registration. Of course, remember that to start investing with real money you must make an initial deposit, the minimum of which is 200 euros / dollars.

Deposit funds on eToro

In four simple steps you can deposit money in your eToro account:

1. Log in.
2. Click on “Deposit funds”.
3. Enter the amount and currency.
4. Select a payment method.

Several systems are offered to deposit money , depending on the chosen one the process will take more or less. This is a short summary:

• Credit or debit card (Visa, Mastercard, Diner's Club) : the transaction is done instantly and the maximum deposit is 40,000 USD.
• Neteller and Skrill : instantly and maximum deposit of 10,000 USD.
• PayPal : instantly and 20,000 USD.
• WebMoney : instantly and $ 50,000.
• Bank transfer : between three and five days, without a maximum limit, but with a minimum limit of $ 500.
• The minimum deposit (except for the first and whatever the chosen payment method) is $ 50.

Withdrawal of funds on eToro

Withdrawing money is simple and has to be done with the same method with which the deposit was made. If this is impossible, the investor will be asked to choose another system. Whichever is chosen, withdrawals on eToro must be at least $ 30 USD and have a commission of $ 5 .

These are the options and their characteristics:

• Credit / debit card or bank transfer : it can take up to 8 business days.
• Neteller, PayPal, Skrill, WebMoney : 1-2 business days.

As you can see, this broker offers a wide variety of payment methods with which to make deposits and withdrawals in your trading account. A clear advantage when it comes to trading with eToro .

Advantages of trading with eToro

• Its regulation is in line with our requirements.
• It is the specialized and leading broker in social trading.
• Its trading platform is very easy to use.
• It offers a wide range of financial instruments.
• Reasonable rates apply.

Disadvantages of trading with eToro

• High commissions on some assets.
• Customer service can be improved but not bad.
• Does not allow Scalping.

Conclusion and opinion of eToro

If you are interested in social trading , eToro is the best option since it is a broker specialized in this type of trading. In terms of safety and reliability, it also passes all tests and is suitable for both retail investors and the more experienced.

Its trading platform is intuitive and easy to use and you can access it from your mobile device. The social aspect of eToro will allow you to learn from other traders and even copy their trades but this does not ensure satisfactory results.

Remember that when trading CFDs you assume risks of capital loss and that you have to ask yourself if you can take the high risk that we mentioned. These are complex instruments and many retail investors lose money due to leverage.

Disclaimer

eToro is a multi-instrument platform that offers the possibility of investing in stocks, cryptocurrencies or trading CFDs.

Please note that CFDs are complex instruments that carry the risk of loss of capital due to leverage. 75% of individual clients lose money when trading CFDs with this broker. Before trading CFDs you should ask yourself if you understand how it works and if you can take the high risk of capital loss.

Past benefits do not ensure future results.

Cryptocurrencies are volatile instruments whose value can fluctuate greatly in short periods of time, so they are not appropriate for any type of investor. Cryptocurrencies are not regulated (except when making use of CFDs) so their operation is not supervised by any European institution.

EToro USA LLC does not offer CFDs and does not represent or assume responsibility for the degree of reliability and accuracy of the content of this page, which has been published by our partner using public and non-specific information about eToro.