Full eToro review: Social trading at its peak?

4.8

Our Summary

Web trading has continued to develop over the last two decades, taking varied trajectories according to the philosophy and marketing strategy of the financial groups at the head of financial investment platforms. Some take precedence over the competitiveness of management fee pricing. Others prefer to concentrate their efforts on substantially improving the profitability of traders’ portfolios with the help of innovative technological supports. Finding the best broker then becomes a time-consuming task. Fortunately, our reviews are there to help you make the best choice.

eToro falls into the second category. Why is it in the second category? The first point to remember is that the online broker is one of the pioneers of online trading with a start in the 2000s. Over the years developers and financiers have combined their respective skills to stay at the forefront of FinTech to provide a reliable, secure and profitable trading experience for the greatest number of people. EToro’s social trading is regularly cited as a flagship for social trading. This is perfectly justified in view of the energy and IT resources deployed for its unique approach to shared stock market investment

But can the online broker’s reputation be summed up with these 2 words? Doesn’t it have other remarkable assets that justify its regular positioning as a leading CFD broker? Dive into eToro trading.

How to open a compte eToro?

True to a spirit of autonomy and freedom of access, opening an eToro trader account is particularly simple. On the home page of the website the Register section is a must. Click on it to open the registration form. You can then choose between the eToro demo account and the real money account. Depending on your level and your goals, the choice is yours. The form is to be completed online by filling in the required data: name, first name, contact email, telephone, country of residence. When all the fields are filled in correctly, validate your registration by pressing Create an account.

The user is redirected to the home interface to start trading. The connection to eToro is secure and seamless. Real account investors must send supporting documents to Customer Support for account validation.

etoro opinion

eToro demo account

The regulated broker is not the only one to practice this way. In our opinion, eToro is strengthening its policy of popularising online stock market investments using its demo account. A fictitious capital of $10k is made available to the apprentice trader. The apprentice trader can dispose of it as he sees fit on the various financial instruments – currencies, equities, commodities, etc. – as he sees fit. – available. This is a great way to practice in real life and learn how to trade on eToro. No risk of financial loss. No stress when making decisions. It is a great way to get a practical understanding of the many concepts, varying in complexity, of the financial markets and the online stock market. It is also an opportunity to get a good understanding of what eToro trading looks like with a live account. The fictitious funds are renewable upon request. Ideal for testing an investment strategy.

Trading platform

eToro is one of the operators authorised in many countries to act as an intermediary between exchange markets and traders. It is a so-called regulated broker. It is certified by an independent regulatory authority that oversees a number of legal aspects of trading practices. Choosing a platform that is certified by the local regulatory authority (CySEC for Europe, FCA for the UK for example) is a guarantee of reliability and reliability. eToro is a Market Maker. It replicates the reality of stock market trends and allows investors to speculate on the rise or fall of financial product prices

EToro Social Trading

The great strength of the online broker is beyond doubt. It must be acknowledged that the platform was the first to offer its clients such a successful product. The eToro social trading project has grown to give birth to 2 tools that take social trading to another dimension: CopyTrader and Copy Portfolio

The first acts as an automatic trading robot. This means that it controls position openings and order closures in total autonomy. The major difference lies in the source of the trades made. CopyTrader replicates the order placement of the Top Popular Investors selected by the account user

Copy Portfolio is eToro’s social counterpart to trading. It includes all the investors tracked by the account, making selection easier. It also creates a flow of information related to the portfolio as a news feed. It is a privileged area to exchange and reinforce one’s knowledge of the stock markets

EToro’s social trading brings a human dimension to online trading by encouraging contact and exchange between users. It also makes portfolios more dynamic by showcasing high-performing eToro traders. It’s a great help for beginners who want to consolidate their funds quickly and easily.

etoro trading social

Mobile platform

The broker obviously offers a mobile application of its trading platform. Designed as a natural extension of the browser version, eToro’s mobile app offers outstanding performance for mobile investors. The mobile application provides all the options and menus found in the computer version, without losing any of the responsiveness and fluidity. The whole system is particularly stable and reliable.

Thanks to SMS and email alerts, you are instantly alerted to stock market signals. This allows you to remain alert and vigilant in the management of your asset portfolio

The eToro application is available for iOS (iPhone / iPad) and Android (via Google Play smartphone and tablet) support.

Deposit and withdrawal methods

Before being able to make a deposit to your trading account it is mandatory to have your account verified by customer support. Nothing could be simpler. When you create an account, or when you switch from a demo account to a real funds account, documents are required to prove your identity: a valid identity document (CNI or passport) and proof of address less than 3 months old (electricity or telephone bill for example). Then a minimum deposit of 200$ finalises the process.

Several payment methods are allowed for the transaction:

  • visa and Mastercard bank cards
  • Paypal
  • Rapid Transfer
  • bank transfer
  • electronic wallets / eWallets: Skrill, Neteller, WebMoney, UnionPay

All these payment methods are instantaneous and free of charge.

EToro Cashout is only available with the same payment method used for eToro Deposit. The threshold is set at $50 with a flat fee of $5. Our advice is to wait until you have a sufficient positive balance before making any requests. Customer service is committed to processing all requests as quickly as possible

EToro Customer Support

This theme comes up regularly in the notable drawbacks of doing web trading with eToro. The choice of the broker was to only offer a ticket opening system to report incidents, questions and problems with the operation of the online trading platform. When we know how much technological innovation and the FinTech spirit are part of the broker’s culture, we are entitled to ask ourselves why relying on an archaic and far from sufficient approach to customer service

Customers are now used to getting almost immediate answers through live chat or expert traders’ phone lines. It seems a little dangerous to us to favour such a customer policy. Contacting eToro quickly proves to be unpleasant and disappointing. Withdrawal requests are treated as a matter of priority

The customer service is multilingual which remains a major asset to establish eToro in UK with English-speaking online stock market investment advisors .

Training

since its inception, eToro has cultivated a genuine passion for passing on the knowledge and skills inherent in trading. Social trading is a means of facilitating, in theory, an increase in the profitability of a diversified and dynamic portfolio with copy trading and live exchange of real-life experiences with other eToro traders. However, that is not all.

This is why the broker provides his clients with a wide variety of learning materials. A kind of eToro Academy that gives all levels the chance to progress in line with their needs, objectives and investment strategies. The formats are varied: eToro tutorials, explanatory videos, expert articles and advanced technical analysis, and a theme-based blog. From the most basic concepts such as “How to sell on eToro” to the most in-depth presentations on the impact of China’s economic policy on the US Dollar.

Beginners, intermediaries and experts will thus strengthen their knowledge and improve their performance. And then share it with others. Beyond a purely monetary wealth, a human treasure.

Security

The security concept is at the heart of the eToro system. It’s a point that the regulatory authorities cannot ignore. On this aspect, the online broker is largely up to scratch. Personal data is protected by 256-bit SSL encryption. This kind of encryption protocol is used by banks or social networks / remote communication applications (Messenger, WhatsApp). In addition to this, there is a reinforced protection of banking and financial data. All incoming and outgoing transactions are subject to a 3D Secure control check. This method is widely used by banking institutions and an ever-increasing number of e-shops.

It is an excellent guarantee of seriousness and reliability. With a satisfactory level of security a certain amount of pressure disappears from the already stressed shoulders of the trader.

EToro rates and fees

What about the broker’s pricing policy? Is there a real interest in favouring this platform over another?

Trading fees

EToro’s fees vary depending on the financial instrument being traded.

Equities and any long-term unleveraged position are exempt from trading fees. No eToro commission on dividends. No rollover fees to be charged on an order that remains open from one session to the next.

eToro, being largely a CFD broker, applies a standard compensation policy for CFD brokers. The eToro spread on each of the investments that matured. In addition, there are fixed fees that vary depending on the type of product and are charged on a daily basis. For example, on eToro’s Bitcoin Currency Cryto, there is a fixed fee of €3.4 per day per unit 0.75% spread at position closure (the difference between the opening price and the selling price at position closure). On currencies the fees are as follows: €0.000005 per day and per unit 1 spread between 1 and 50 pip depending on the currency pair concerned.

Non-trading expenses

There are few management fees to be borne on his eToro trader account. Most notable is an inactivity fee of €10 per month for any account that has not placed an order for 12 consecutive months. This is a far cry from the vast majority of platforms that apply such charges after 90 days.

We can conclude that eToro’s fees are very much in line with its nature as a CFD broker. Some positions are less competitive than other online trading sites. However, the virtual absence of account management fees creates a very attractive overall balance, even for small portfolios.

Financial markets and products on eToro

There is no doubt that eToro is a regulated, CFD oriented, full service broker. Thanks to its Market Maker positioning and its latest generation software, it is perfectly feasible to invest its funds in a very diversified manner. This is a well thought-out and profitable strategy to grow your capital:

  • the eToro Forex section with 47 currency pairs to trade up or down: EUR / USD, GBP / EUR for example
  • 12 raw materials are open to speculation including gold, gas, oil and other commodities
  • No less than 17 crypto currencies are available. These include the famous Bitcoin, but also Litecoin, Ethereum, Ripple or Dash. This is one of the most beautiful catalogues for a broker of this type
  • 13 stock market indexes are to be found with the CAC 40, Dow Jones and many others
  • it is possible to trade around 150 ETF trackers from international companies
  • More than 600 shares are accessible on more than 13 world stock exchanges (Paris, Amsterdam, Zurich, New York, Tokyo, etc.) via the Stock Market

In total there must be at least 800 financial instruments available for trading from any online trading account opened on the platform

Leverage effects are offered on all CFD products in order to multiply the investment capacity. Up to 30:1 on currency pairs. However, be careful when using them as they also multiply losses.

Conclusion

Does this mean that eToro has built its reputation solely on Social Trading? Does the broker have any other valuable arguments to make? The answer is obviously yes.

We quickly scan the real black spot in the eToro system: its customer service. Indeed, the technical means implemented are insufficient and unsuitable for the new needs of the customers of the online stock exchange. Moreover, some customer returns are quite disastrous in this respect because of a lack of reactivity, or even professionalism. However, many other elements amply compensate for this not very reassuring aspect.

We will not dwell on the pricing sphere as it is very much in line with the eToro business model: CFD Forex, CFD equities and CFD stock indices which are subject to fees that represent almost the only source of remuneration for the broker.

We can say without hesitation that eToro is by far the best social trading platform on the market. As a pioneer in the field, eToro has continued to build on its success with innovations that are always at the service of novice traders. CopyTrader and Copy Portfolio are the epitome of eToro’s social trading.

The technical interfaces and structures are extremely reliable, responsive and secure!

Finally, it is important to underline the high quality of the support in terms of free training accessible from the platform. From the demo account, immersion is total and supervised. The learning materials (eToro tutorials, articles, technical analysis and graphics) are excellent invoices. The Live News Feed and real-time analysis are important benefits for any intraday trader who wants to make small or large profits.

75% of retail investors’ accounts lose money when trading CFDs with this provider

eToro is a multi-asset platform that offers both equity and crypto asset investment as well as CFD trading.

Please note that CFDs are complex instruments and have a high risk of losing money quickly due to leverage. 75% of retail investors’ 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.

Past performance is not indicative of future results.

Cryptocredits are volatile instruments that can fluctuate significantly in a very short period of time and are therefore not suitable for all investors. With the exception of CFDs, the trading of cryptocredits is not regulated and is therefore not subject to the supervision of a European regulatory framework.

eToro USA LLC does not offer CFDs and makes no representations or warranties as to the accuracy or completeness of the content of this publication, which was prepared by our partner using public information not specific to eToro.

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