eToro Australia Review 2022: How Good Is This Platform for Beginners?
Online trading is the emerging way to make money through investment in different stock markets. Choosing a wrong and underdeveloped trading broker would leave you in disappointment—the platforms which offer online trading play a critical role in your success.
For Aussies, eToro Australia is the talk of the town, and investors wanted to know about this platform. Since it was established in 2007 and provided the best trading experience, the chances of making a profit on it are high. So if you are a beginner and a resident of Australia, this guide is for you.
We deeply researched everything about eToro and came up with a comprehensive review. So, let's get into it!
What is eToro Australia?
eToro is an online trading platform launched in 2007 by David Ring, Ronen Assia, and Yoni Assia. The name used at the launch was Retail FX, which was changed to eToro. Since its creation, the platform has introduced many types of trading, including Forex, Stocks, Cryptocurrency, CFDs, Index-Based Funds, and two more.
eToro head office is in Cyprus and works all over the world. One of the features that makes a distinction in the overcrowded market allows social trading through social media platforms. If you live in Australia, eToro would be your go-to broker for its impressive interface and multiple trading options compared to other platforms and will probably help you in a way to moon your bitcoin live investment.
EToro has many investment options allowing you to choose a stock market. Currently, you can invest in 17 different stock markets, including NYSE and NASDAQ. Talking about cryptocurrency, you can trade in 30 other cryptocurrencies with the 49 forex trading pairs.
If you are a beginner and about to start your trading journey, eToro is the best choice for its easy-to-understand platform. Many other trading platforms have complex language and conflicted terms on the website. There is no exaggeration in saying that eToro will be the next leading trading platform if the developer team continues providing outstanding services and probably one of the best platforms for crypto trading in Australia.
How Does eToro Works?
You have to set up the eToro account first if you start on this platform. You will be asked to provide your user's name and contact details for that purpose. Then add a strong password and keep it private. Finally, before starting the first trade, you need to identify your identity and will be asked to provide a tax file number.
And after you are setting up an account, you have to deposit a minimum of $50 to start trading. This deposit can be achived through different payment methods, including credit card, PayPal, and Western Union. Since the platform currency is in US dollars, a 0.5% fee will be deducted as conversion charges if you deposit in any other currency. Over this, a 1% fee will be applied to every deposit. After receiving the amount in the account, you can buy different stocks and trade them.
|Spread||From 0.1 pips|
|Instruments||Currencies, Stocks, CFDs, Cryptocurrencies|
|Special Offers||Advanced Copy Trading Platform, Free US Stock Trading|
Features Offered by eToro and Australians should know
The popularity of any platform depends on the values provided to the customer. If eToro is standing in a better position and attracting many Australian customers, it has features worth noting. Here we listed the details of those features and how they will benefit users.
eToro interface is easy to use and equipped with simple yet practical information on the landing page. As a beginner, you won't feel any difficulty in understanding graphs, price charts, and other pointers on the home page. The portfolio and watchlists are on the right-hand side, while the menu is on the left with some detailed information.
No Commission on Stock Trading
Some platforms apply hefty fees on your trading, and the profit margin earned through the trading becomes low. However, eToro doesn't work like that. And it's quite appealing that you don't have to pay a single penny fee or commission while trading.
EToro has a mobile app available on the Google Play Store and Apple Store to provide ultimate convenience to the users. With an app on your mobile, you don't need a laptop or computer to set trading.
The stats on the Google Play Store shows that the eToro has been downloaded by 10 million users and has a 4.3 stars rating from 95000 reviews. This app helps you to check the news feed, watchlist, portfolio, and many other things at any moment.
30 Cryptocurrencies Listed
EToro is not a specialized crypto broker and has been used for many other trading's. Still, this platform provides 30 plus cryptocurrencies and allows users to trade in any one of them. In addition, all major crypto coins like BTC, ETH, XRP, ADA, and DOGE are listed on them, and you can even trade them with CFDs.
It means if you purchase any crypto coins in CFDs, the price rise after a few days will pay back you a profit. On the contrary, you will have to bear that loss if the prices go down. Over this, these CFD assets have a fixed contract period, and the price difference in that time will be your profit or loss.
49 Tradable Forex Pairs
Another best feature of eToro is 49 different Forex Pairs, and you can trade in any currency you want. The most common currencies, USD, AUD, GBP, NZD, and many more, are available in Australia. Trading in any pair is not a tough nut to crack as you select the currency and type S or B on the next window.
You will be asked to set different values like total amount, leverage, Loss orders, and Take profit orders. If you are a beginner and going for a high leverage amount, you are probably at high risk. So, this feature is best for only experienced traders and demo accounts.
As everyone is not an expert in trading, eToro allows new users to use this platform for demos. During this phase, you learn the technicalities of the platform and understand every bit about the trading. The feature that will be discussed shows how dedicated they are towards their customer base.
In the demo account, you get $100000 virtual money and trade in different stock markets. Paper trading is the best feature if you are starting. After that, you can spend your actual money, and you will be confident enough about your decision.
Let us clear it first for those who don't know about CFDs. CFD stands for 'Contract for Difference,' which means you select any asset and trade it as CFD. Then, after a fixed period, that asset will be evaluated and paid you back in the current value of that asset.
It's a great way to earn a high margin commission. However, the chances of loss are also high in this case. eToro allows you more than one digital asset that can be traded as CFD. Before selecting any currency or trade, read about the bitcoin price prediction or any specific currency. In this way, you will be on the safe side.
In the conventional banking system, you can earn yearly interest by holding your cash in the account. However, it's also possible to earn a commission by staking your coins in the crypto world. For example, on eToro, you can stake Cardano, Ethereum, Tron, and many more without any problem. For ADA Yoroi staking wallet it's one of the most known solutions out there.
eToro will pay you rewards monthly and yearly by holding these coins. If you want to earn a stable income through your crypto assets, that's the best feature for you. Moreover, the platform decided to add more coins for staking in the future.
The feature which many trading experts love is the Copy Portfolio, where you have a chance to invest in the portfolio of your choice. This feature helps you to separate the portfolio that is value-based, risk-free, and equipped with advanced technology. The best thing about the copy portfolio is that it doesn't involve any management fees.
If you are a beginner or don't have time to trade appropriately, eToro has a solution for you. Copy trader helps you choose the perfect trade and then clone it for yourself. eToro automatically copies their trading plans and replicates them for your portfolio. This feature is a life savior for beginners and experts who want impressive results.
eToro offers you a borrowed amount which you can use in the CFDs trading. This category is named margin trading, and it's beneficial to double your profit. But we don't recommend it to beginners. Although you can make more money using this feature, it can be the worst-case if prices decrease.
For instance, if your borrowed amount creates leverage of x10, it means your profit will also be x10 from the initial price. If you are an expert or using a demo account, you can give it a try. Otherwise, don't opt for this feature at the early stage of your career.
Social Media Interaction
The feature, which is also the base of eToro's popularity, activates social media platforms. Using the news feed feature on the forum, you can contact the eToro community and seek the solution to your problems. This is a great initiative to grow with each other and help beginners. They can ask out their queries, and experts will help them.
Drawbacks of eToro Australia
Despite all the above outstanding features, there are still some drawbacks to the platform. By improving those areas, eToro will gain more support from Australia and worldwide.
Currency Conversion Fee
A conversion fee of AUD to USD will be a hurting feat for Australian traders. For example, if you deposit AUD cash from your bank account to eToro, the platform will deduct 0.7% of the total conversion fee. Unfortunately, this rate sometimes goes high and touches 1.38% per transaction. This should be eradicated and allowed to trade in any currency.
Fee Structure is Slightly Complex
There are different fees on the platform, and beginners can quickly get confused. eToro charges currency conversion, variable trading, withdrawal, CFD, and inactivity. Therefore, it should have a simple integration that is easy to understand.
EToro has a minimal number of cryptocurrencies listed on the platform compared to the other exchange platforms in Australia. One reason for this limited approach is not dedicating this platform to crypto. However, the improvement is necessary as many new and stable crypto coins are now out in the market.
Price Structure of eToro
There are five different fees on the eToro platform: many beginner traders get confused about the fee structure and want to switch to another platform. It's a little tricky, but our following guide will give a complete walkthrough for better understanding.
- Deposit Fees: Normally, there are no charges for sending an amount to eToro. But if you are living in Australia and depositing in AUD from the bank, there will be a 0.7% fee for the conversion into USD. But if you are using PayPal, POLi, or credit/debit card, the cost will be 1.38%.
- Trading Fees: There are different fee structures for every type of trading. Stocking your asset costs nothing, while cryptocurrency and forex trading charge 0.75% for bitcoin. For CFD trading, the charges will be 0.75 – 2 pips.
- Withdrawal Fees: The minimum amount allowed to withdraw is $30, and the fee for this amount is $5. This is the same as the conversion fee, which is 0.7%.
- Crypto Transfer Fees: A 0.5% fee will be charged on transferring cryptocurrency to other platforms, starting from $1 to $50.
- Other Fees: eToro will charge $10 for every month if you don't log in to your account for one year continuously.
Is eToro Good for Beginners?
Yes, if you are a beginner in trading, it's hard to find an option better than the eToro. This platform is highly supportive for the newbie and guides everything. Even this platform provides a demo account with virtual $100,000 to give you proper knowledge. Moreover, the news feed feature makes it more like an investor community than a trading broker.
eToro Customer Support
Unlike other trading brokers, eToro is highly sensitive about customer satisfaction and solving queries. The platform support is equipped with three categories: live chat, email, and phone call. In addition, you can get help in different languages, including German, English, French, Italian, and Spanish.
Live Chat Support
According to user reviews, the live chat option of eToro is up to mark. You can send a message, and within three minutes, a member from eToro will be there to help you. Those representations are highly cooperative and try to solve your problems. Upon this, you can ask any question in a different language, and you'll surely be answered accordingly.
Email support of eToro is also excellent as per user reviews. They reply to your every email compared to other platforms, which don't even bother to open. The minimum time of receiving a reply is 2 minutes and a maximum of 3 hours. Like live chat, representatives of responding emails try to cope with your problems.
Most of the trading platforms don't offer phone call support. However, few of them allow but not up to the mark. That's not the case with the eToro as it provides exceptional phone support, and your call will be answered in less than a minute.
Pros & Cons of eToro
- Start investing with a minimum of $50
- Multiple payment options
- Staking opportunity to earn passive income
- Copy Trading for multiplying your profit
- The user-friendly interface of the website and mobile app
- Social trading for expert advice
- Demo account to get familiar with everything
- Conversion should be eliminated
- More cryptocurrencies need to be listed
- The fee structure is tricky for a newbie
- Withdrawal fees should be less
- ASX shares are not allowed
Is eToro safe?
Yes, we can confidently say that eToro is a highly secured platform for trading purposes. EToro keeps all information under SSL encryption and in tier 1 banks to ensure ultimate security. In the history of eToro, not a single incident of hacking happened.
How much money is required to start trading on eToro?
You can start trading on eToro for as little as $50. When you deposit AUD in your eToro account, make sure the receiving amount is greater or equal to $50.
Can you trade cryptocurrencies in Australia?
Yes, you can trade crypto coins through the eToro platform worldwide. However, you have to pay all the taxes and capitals mentioned by the government. There are many crypto trading tax software out there that you might use.
Trading is a highly tricky thing and takes a considerable amount of time to understand every aspect. However, you have the eToro platform, which is highly dedicated to its customers and wants to make them more out of trading. If you are an Australian resident, we would highly recommend the eToro Australia stock market to start with. You will enjoy all those you always have in any trading broker for yourself.