With the rise of online financial trading over the past few years, there have been a number of platforms that have popped up – one of these is eToro. However, with there now being so much choice
Is it safe to use?
eToro is an Internet based platform on which financial trades can be made. It was founded in 2007 and provides users with the opportunity to trade in cryptocurrencies, CFDs, ETFs, and stocks. Because of the variety of trading options that are available to users, the platform has attracted some 11 million online investors, whilst operating in over 140 different countries across the world. Despite the company headquarters being based in Israel, it has entities that are registered in several jurisdictions that are tier 1, including the United Kingdom, Australia, and the United States. As a result, it is regulated by numerous high tier authorities and so is very safe to use.
The pros and cons
Opening up an account with eToro is an easy thing to do, especially given the fact that the etoro minimum deposit is pretty fair, meaning that most people can afford to begin trading. The simple layout of the website allows those who have never visited it before or used a similar online trading platform to quickly get to terms with it. Similarly, thanks to the mobile app, which is equally easy to use, users are able to make trades regardless of where they are based or what time of day it is. For those wanting to experience and even enjoy the social side of trading. eToro is the platform to do it on. If you have a particular interest in crypto trading, then this platform is better than most others for doing that.
When it comes to taking your money out of the platform through a withdrawal, this is a long process that is more drawn out than what it is on other similar trading websites. The Forex and CFD fees are also high with eToro so this is something that you need to consider if you plan on trading these commodities on there.
Opening an account
Doing this can be done completely online, either through their website or through the eToro mobile app. The entire process only takes a matter of minutes. However, users are free to take a look around the website and the trading area before opening an account so that they are able to get an idea for everything and determine if they want to go ahead and do it or not.
Most countries throughout the world allow for their citizens to open an account on eToro, although there are some that do not. These include Serbia, Syria, Pakistan, Nicaragua, Japana, Jamaica, Iraq, Iran, Cuba, Canada, and Albania. Also, United States citizens who live outside of official US territory are unable to open an account either.
Types of accounts
When setting up an account with eToro, there are two different types that you can choose from; either a professional account or a retail account.
- Professional account – in order to qualify for one of these accounts you must first pass a test in order to determine what your level of qualification is. Once granted a professional account, you have access to a certain level of leverage; however investor protection and recourse against the Financial Ombudsman Service cannot be granted.
- Retail account – with this type of account you get access to manual trading, copy trading, and all of the assets that are available on the platform. Whilst cover against a negative balance by the investors compensation fund is available, the amount of leverage that you can get with a retail account is restricted.
Before you commit to depositing any of your hard earned money onto the eToro platform, you have the option to explore the online trading platform via a demo account. With this account comes $100,000 worth of virtual funds that you can use to trade with so that you can get some practice in before using real money to do so.
The level of customer service that eToro provides users with is good – that is despite the fact that it is lacking in some certain areas. Despite the website featuring a live chat box, it is slightly hidden away in the FAQ section of it, thus making it difficult to find in the first instance. This support is not available on the weekends and even during the week, the representatives on there can often be busy.
Should you use eToro?
eToro is as well regulated and safe as these online trading platforms come. It is very easy to use and even has an app that can be used on any mobile device for when you are out and about. Users can trade in ETFs, Forex pairs, stocks, and CFDs. However, what it is best for is cryptocurrency training and for copy trading. The process of opening an account on the website is a very easy thing to do and the level of customer support that is provided is very good.
Operating in over 140 different countries throughout the world, there are currently some 11 million people using the platform. One thing that attracts so many users is the relatively small deposit amount of $200. However, it is important to note that this is different for those people in the United States, Australia, Hong Kong, Macau, Russia, Taiwan, China, and Israel. When making a bank transfer, the minimum amount that can be deposited is $500. There are no fees that come with making a deposit.
Before you are able to deposit any money into your account you must first verify yourself with a valid piece of ID. However, prior to this you are able to set up a demo account where you are given a large amount of virtual dollars to trade with. Based on all of these things, we think that eToro is a great platform to do some social trading from – particularly stock trading as there is no commission involved in doing this.