Review of eToro

EToro is undoubtedly one of the best known CFD brokers as well as the most popular at present and for good reason. In particular it was the initial company in the sector of social trading and even today provides trading tools that are technologically advanced and highly practical as well as easy to use by investors of all levels. Created in 2007, it benefits from numerous approvals which make it one of the most reliable brokers on the market.

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Review of eToro
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Rating: 4.52 27 votes

 

 

The various authorisations and approvals held by the eToro broker:       

The broker eToro is of course renowned as a reputable and professional broker that fully respects all legal regulations concerning security and confidentiality in Europe. It has in fact received numerous approvals from financial entities such as that of BaFin in Germany, the FSA in the United Kingdom, CySEC in Cyprus and the MiFiD which is the standard authority of reference in Europe.

Whatever the country from where you complete your transactions, you therefore have the guarantee of benefitting from a high quality service and the best possible protection of your personal data and financial information related to your completed transactions.  It is therefore strongly recommended to trust eToro for your CFD trading.

 

The account opening conditions for eToro:

To subscribe with the eToro broker you will simply need to complete a new account form online and deposit your investment capital. The minimum deposit required by this broker is around $50.  

Once you have completed your registration you will be able to access different trading platforms and global financial markets with a large range of different kinds of assets. A free demonstration account will notably enable you to learn and train while discovering the different functions available to you including the famous OpenBook which offers a social trading module that is arguably the most advanced at this time.

The maximum leverage effect offered by eToro is 1:30 depending on the type of asset, this is of course one of the most attractive on the market. It should however be used prudently to avoid any possible major losses of your capital.

 

The documents required by eToro to confirm the opening of an account:

As with all the brokers approved and regulated by the European financial authorities, eToro is responsible for verifying the identity of its users as well as the origin of the funds they speculate with. It therefore has the right to request certain documentary proof before confirming the opening of your trading account. Among the documents you should prepare are the following:

A documentary proof of identity such as an identity card or valid passport featuring your full name, date and place of birth as well as a legal identification number.

A documental proof of your address, less than three months old, which is in your name and corresponds to your actual residential address. Authorised documents are those from a financial entity, public utility services, government authorities or judicial authorities. You may therefore provide a bank or credit card statement, an electricity, water or gas bill, council tax invoice, telephone bill or one from your satellite television or internet provider.

Finally, eToro may need to verify the origin of funds that you deposit into your trading account, often with a scan or copy of your credit or debit card or information relating to your bank account.

In the case whereby eToro requests one or several of these documents it is important that you understand your trading account will not be activated until you have supplied them. The advantage is that you can send these documents electronically. You then simply need to wait until they have been verified by this broker’s administrative team who will confirm when verification has been completed.

 

EToro: Fixed spreads that are known in advance:

The eToro broker offers fixed spreads that are therefore known in advance and do not change according to the market situation. These spreads are equally attractive on the majority of the most popular assets including stock market shares. For example, Apple shares incur a spread of 8 pips, Boeing shares 20 pips and Bayer shares are at 0.24%. It should be noted that European shares are noted here in terms of percentages and not in pips.

Concerning commodities, the spread on gold is 45 pips, for oil it is only 5 pips and for natural gas it is 10 pips.

 

The different trading platforms of the eToro broker:

To respond effectively to the requirements of its users, the broker eToro has made several modern trading platforms available for the use of its clients which are constantly being updated through numerous innovations.

The WebTrader platform by eToro was previously the portfolio management platform of this broker. It integrates various useful and practical trading tools through a simple and modern interface.

OpenBook is undoubtedly the platform that has launched eToro to its current level of success. Implemented in 2011, it was the first platform to offer social trading as a function. By doing so it enabled registered traders to communicate and exchange information. Recently this platform has been synchronised and merged with the WebTrader platform to form a single platform.

Finally, the Mobile Trader platform is the mobile trading version of eToro for Smartphones and tablets. Available for download for iOS and Android, it integrates the functions of the WebTrader and OpenBook platforms for a complete experience of online investment with, of course, a simplified design that is perfectly adapted for small screens.

Currently eToro is therefore a single platform that combines the functions and advantages of each of these previously independent platforms; WebTrader, OpenBook and Mobile Trader, within a single dashboard and interface that is available with or without download and suitable for all media supports. 

 

The tools and functions offered by eToro:

The eToro broker is an innovative broker that places technology at the service of its clients with numerous tools and practical functions available through its trading platform. Amongst these you can find the following particular functions:

  • Stop and limit orders that enable you to better manage your positions by taking profits at the right time and cutting your losses if the market moves in a negative direction.
  • Customised watchlists that enable you to follow the performance of certain particular assets.
  • A direct newsfeed that enables you to follow events in real time relating to all the markets and thereby implement a high quality fundamental analysis. 
  • Ergonomic and intuitive charts that can be fully personalised on which you can display all the high performing indicators.
  • A leverage effect that is available depending on your capital and open positions that you can vary within a certain limit but which can, for certain positions, reach 1:30.
  • The social trading modules that have heavily contributed to the success of this broker which offer you the opportunity to follow the positions taken by the best traders on the platform in real time and even copy them automatically in proportion to your investment capital. You are also able to discuss ideas and trades with other traders to obtain information relative to implemented strategies.  

A new function enables the user to obtain assistance in real time on the platform with a simple button.

 

The accompaniment of traders using the eToro broker:

With eToro, you can learn various skills and information relative to online investment using a variety of mediums that are pertinent to traders of all levels. From the basics of online investment to highly complex strategies, information on chart analyses and also using the platform and its functions, all the subjects are introduced through various documents that are accessible free of charge.

You will also notably find explanatory videos, webinars and even interactive tutorials classified according to the level and experience of each client, some of which have even been created for highly experienced traders.

EToro also accompanies its traders through a current events blog that enables their users to follow events that may impact the markets, as well as a free demonstration account that enables users to test the platform operations and implement their investment strategies risk free.

 

The different assets offered by the eToro broker:

The broker eToro offers you access to different types of assets, around a hundred in total, among these we see:

  • 30 different stock market shares of which the majority are assets of international technological and digital companies.
  • 7 commodities including gold, oil, silver and natural gas.
  • 30 currency pairs from the Forex market.
  • Around 30 ETFs.
  • Certain types of virtual currency such as Bitcoin.

These assets are each matched with a leverage effect that varies between 1:1 and 1:30. It is advisable to be prudent when using this leverage effect to ensure you keep any losses to a minimum.

 

Deposits and withdrawals with the eToro broker:

Deposits with eToro are a minimum of €50 and the methods of payment accepted are debit or credit card, bank transfer, PayPal, Neteller, 1-Pay, Skrill, Webmoney and GiroPay, with variable minimum transaction amounts.

Withdrawals are generally completed within a minimum of 5 working days. The withdrawal fees are $5 for a withdrawal of between €20 to €200, $10 for withdrawals of between €200 and €500, and $25 for withdrawals of over €500. For withdrawals by credit card a copy of both sides of your card may be required.

 

Our full review of the eToro broker:

The CFD broker eToro is certainly to be recommended for all investors that wish to experience their first success in the domain of online trading. Due to a simple, intuitive, advanced technology but user friendly platform, it offers clear but practical services that are perfect for traders that are not used to this type of investment.

Although the number of assets available may be less than with some of its competitors, eToro concentrates on the most popular assets including some international stock market shares with the largest stock market capitalisations.

Social trading is of course one of the major advantages of eToro as it offers numerous possibilities through its network that unites over 4.5 million traders. The functions are also easy to use and assistance is always close to hand with a customer service that is both professional yet proactive.

It is also important to remember that eToro benefits from numerous European financial sector approvals.

Finally, eToro does not appear to have any major disadvantages although we note the fees related to withdrawals which remain however minimal and are compensated by more than reasonable fixed spreads.  

Our conclusion regarding this broker is that it definitely merits its current status as the most popular broker through its strategy of constant innovation and care in providing the individual investor with a truly pleasant experience in online investment. We therefore highly recommend this broker to everyone.

 

The trader communities of eToro:

The broker eToro has quickly distinguished itself from the others with its innovations relating to social trading. In fact, this broker was the first to offer a community solution to online traders with the specific OpenBook platform that unites all the traders registered with this broker. On OpenBook, traders can freely view the positions taken in real time by the other traders together with their past investments in order to learn or be inspired by them or simply copy their positions in an automatic manner.

This function has the objective of enabling investors to benefit from the experience and performance of other investors to improve their own profitability and performance. However, it is obviously the individual trader that remains in charge of their decisions and therefore these possibilities are optional and offer no guarantees in terms of profits. For the eToro community to be of true assistance it is therefore necessary to understand the path of the strategies implemented by the other traders, even the most experienced, and then finally make your own decisions with full understanding of the strategy. To do so, you are able to use numerous tools provided by this broker that will assist you in your decisons, including excellent analysis tools together with high quality financial and economic news and events updates.

It is actually possible that a trader who is considered as highly profitable can actually make a significant amount of profit with a single trade, even if they have lost money on all their other trades. It is therefore only by analysing this type of data and understanding the overall trading strategies of the traders before copying them blindly that social trading can improve your chances of success. It is therefore necessary to start copying other traders you choose at the right time and continue with this strategy for a sufficient length of time to obtain satisfactory results.

As profits are not guaranteed when using social trading, you may wonder what the real advantages of this function are. In fact, the eToro investors community represents a formidable means of improving your strategies and performance through communicating with other investors. You in fact have the possibility of exchanging ideas with the latter in real time and discussing your strategies and feelings concerning the various assets. It is important not to forget that when it comes to trading it is the traders and their personal feelings that engender the movements of the prices. Another point, although online trading is generally reserved for those who already understand the markets and are able to distinguish the elements that influence the price of assets, the social trading available through eToro enables any investor to improve and learn if they truly wish to.

Due to the practical functions such as the forum, a live chat and a classification of performances by different traders, OpenBook actually offers lots of opportunities to learn from other traders, both highly experienced and relative novices.

As you have surely understood, the eToro social trading network is undoubtedly the major advantage of this broker that differentiates it from the others and that pays particular attention to the opportunities it offers its community. However this platform can be even more profitable if you are one of the best traders on the platform. To attract traders that are both highly experienced and profitable, which are here called ‘Guru Traders’, eToro has implemented a system of supplementary commissions when you are copied by another trader. To summarise, the more you improve your performance and attract other followers, the more you are rewarded by the eToro broker. 

 

The advantages of the new trading platform available through eToro:

It is also important to underline the quality of the new eToro platform that continues to develop new functions that simplify the traders’ experience enabling them to benefit even more from all the tools that can assist in their decisions to improve and succeed with their strategies. In fact, this platform already has the advantage of offering access to a great number of highly varied assets such as currencies, commodities, company shares and stock market indices. However it also enables, as we noted above, the opportunity to exchange ideas with other traders of which there are over 5 million that use this platform, these originate from over 170 different countries.

Certain particular tools on this platform merit a closer look. This is notably the case of the trading tools and live newsfeeds that can be found on the most recent platform of this broker. Investors using this trading platform will benefit from highly practical functions such as the personalised Watchlists that enable you to follow the performance of specific assets, manage your positions and take new positions using different screens with an overall view that is both ergonomic and well designed.

As for the newsfeeds, these enable you to access all the fundamental analysis data in a matter of seconds through the technical analysis panel and the charts. Thanks to these supplementary functions, eToro offers a high performance trading experience with the advanced technology that high level professional investors require whilst remaining easy to use due to a flexible and intuitive navigation.

We can equally extol the quality of the mobile trading platform on eToro. Whereas other brokers generally offer an adapted version of their principal platform for these devices, eToro offers an independent platform that was specifically conceived for Smartphones. The latter is perfectly compatible with all types of popular mobile phones and tablets, whatever the size of the screen, with a fluid navigation that is pleasant to use. Available in both iOS and Android, this application is also highly secure, notably concerning withdrawals and deposits, as well as personal data protection, and which functions perfectly while you move around to ensure you benefit from all the opportunities the markets offer.   

Social trading with eToro:

eToro is still the current leader in social trading using CFDs. Wait no longer and join this major trading community. Follow and copy the best current investors and exchange tips and opinions through the network.

Register with eToro now!*
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.