eToro is a multi-asset trading platform founded in 2007, regulated by high trust regulators ASIC and FCA, and authorized by a tier-2 regulator. It offers a user-friendly web platform and mobile app, with over 3,000 tradable symbols including CFDs, forex, and exchange-traded securities. eToro is known for its social copy trading and cryptocurrency trading capabilities, and offers VIP-style perks for higher tier clients. However, pricing for forex and CFD trading is considered slightly higher than competitors, and automated trading strategies are not supported.
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eToro Trading Instruments
eToro offers a wide range of trading instruments across multiple markets, providing traders with ample opportunities to diversify their portfolio and take advantage of market movements. Here are some of the trading instruments available on eToro:
- Forex: eToro offers a variety of currency pairs for trading, including major, minor, and exotic pairs. This market is known for its high liquidity and potential for significant price movements.
- Cryptocurrencies: eToro is well-known for its cryptocurrency trading options, with a range of popular cryptocurrencies available for trading, including Bitcoin, Ethereum, and Ripple. Traders can buy and sell cryptocurrencies on the platform or trade CFDs on cryptocurrencies.
- Stocks: eToro offers access to thousands of stocks across global markets, including popular companies such as Apple, Amazon, and Facebook. Traders can buy and hold stocks or trade CFDs on stocks.
- Commodities: eToro provides access to a range of commodities, including precious metals like gold and silver, as well as oil and natural gas. Traders can buy and hold commodities or trade CFDs on commodities.
- Indices: eToro offers trading on a range of global stock indices, such as the S&P 500, the Dow Jones Industrial Average, and the NASDAQ. Traders can buy and hold indices or trade CFDs on indices.
In addition to these markets, eToro also offers trading on ETFs, bonds, and futures. With over 3,000 tradable instruments available on the platform, traders have plenty of options for building a diversified portfolio.
Trading Conditions
eToro offers a range of trading conditions for its clients, including competitive spreads and leverage, as well as a variety of order types and risk management tools.
Broker offers competitive spreads on a range of markets, including forex, commodities, and indices. Spreads on major currency pairs start from as low as 0.7 pips.
eToro offers leverage of up to 1:30 for retail clients and up to 1:400 for professional clients, depending on the market being traded. Leverage can amplify potential profits, but also increases the risk of losses.
Also eToro offers a range of order types, including market orders, limit orders, stop-loss orders, and trailing stop-loss orders. These order types can help traders manage their risk and take advantage of market opportunities.
Broker provides a range of risk management tools, including negative balance protection, which ensures that clients cannot lose more than their account balance, and the ability to set stop-loss and take-profit levels on trades.
eToro charges no commissions on stock trading and recently introduced zero-dollar commissions for U.S. stock trading. However, there are spreads and overnight fees that apply to CFD trading and other markets.
eToro Account Types
eToro offers two types of trading accounts: a retail account and a professional account. Here are some of the key features of each account type:
- Retail account: eToro’s retail account is available to all clients who meet the minimum deposit requirement. With a retail account, clients can access eToro’s full range of trading instruments, including forex, CFDs, stocks, and cryptocurrencies. Retail clients are also eligible for negative balance protection and can take advantage of eToro’s social trading platform.
- Professional account: eToro’s professional account is available to clients who meet certain criteria, including a minimum trading volume and relevant experience in the financial industry. Professional clients can access higher leverage than retail clients, which can amplify potential profits but also increases the risk of losses. Professional clients are not eligible for negative balance protection.
In addition to these account types, eToro also offers a demo account, which allows clients to practice trading with virtual funds before risking their own capital. The demo account is a great way for beginners to learn about trading and for experienced traders to test out new strategies.
Regulation and Security
eToro is a highly regulated broker, authorized and regulated by top-tier regulatory authorities in multiple jurisdictions, including:
- Australian Securities and Investments Commission (ASIC)
- Financial Conduct Authority (FCA) in the UK
- Cyprus Securities and Exchange Commission (CySEC)
As a regulated broker, eToro is required to adhere to strict standards of transparency, client protection, and financial stability. eToro is also a member of the Investor Compensation Fund, which provides up to €20,000 in compensation to eligible clients in the event of the broker’s insolvency.
In addition to regulatory compliance, eToro uses advanced security measures to protect its clients’ personal and financial information. These measures include SSL encryption, two-factor authentication, and segregated client accounts, which keep clients’ funds separate from the broker’s own operating funds.
Conclusion on eToro
Overall, eToro is a reputable and user-friendly broker that caters to traders of all levels, from beginners to experienced professionals. With a wide range of trading instruments, including forex, CFDs, stocks, and cryptocurrencies, eToro offers a comprehensive trading experience.
The platform’s social trading features also make it an attractive option for traders who want to follow or copy the trades of experienced investors. Additionally, eToro’s commitment to regulation and security ensures that clients can trade with confidence, knowing that their personal and financial information is protected.
While eToro’s trading fees may be slightly higher than those of some competitors, the platform’s ease of use and social trading features make it a compelling option for traders looking for a well-regulated and user-friendly trading platform.
Easy to use platform for beginners to the more advanced user. Helpful tips and daily updates plus the benefits of having an account manager to guide you through any tricky areas, Charlie Kaur has been fantastic at looking after two of our accounts plus she also taken us on an unforgettable hosted night to see Elton John courtesy of eToro and looked after us exceptionally well.
Yes, the website has potential for improvement, but it is the very best platform I know. You can trade shares and cryptos, but also special portfolios and – best of all – you can copy other traders. Especially when you are new this is a fantastic opportunity to start. On top you have a community with interesting informations and a dedicated portfolio manager (Andreas Aresti in my case) for every question you have. Contact by mail, whatsapp or zoom meeting. Bonus is the eToro club with additional benefits. And last but not least: there is a virtual mode where you get 100000$ to try before you risk your own real money.