Is eToro Good for Trading? A Complete Walkthrough for the Beginners
Online trading is the new normal of the investment industry, and many platforms are available to quench your thirst for trading needs. All these platforms have their specialties and features to make more profit for you. However, the platforms where you can do everything in a single place are rare.
In 2007, eToro was launched and became an industry leader in the next few years. Seeing the progress of this platform, one question might pop up in your mind: is eToro good for online trading? From the experts, you have listened to different views about its credibility and utility in the world of trading.
However, in this article, we covered all the aspects of eToro and concluded whether it's good or not. So go through the post, and you won't hesitate to make your next decision.
What is eToro?
eToro is the first online social trading platform that went live first in 2007 and making progress with every passing day. The idea behind the platform was to incorporate a social element into investing, which is why eToro's popularity in this era. People call it Facebook for trading, and currently, the platform is serving above 4.5 million users.
The concept of eToro was unique, and with time, they introduced more exceptional features like CopyTrader. This term is relatively new but impressive for beginner traders to get a high-profit margin through the expert's strategy. Over this, the platform rewards different users in the name of 'Popular investors.'
By introducing copying features and social help, eToro is a blessing in disguise for newbie traders. In 2014, the platform allowed cryptocurrency for trading purposes on its CFD. Today, eToro supports almost 27 cryptocurrencies and adds more with time. There is no exaggeration in saying that eToro would be the future of online trading because of its exceptional features and dedication.
|Spread||From 0.1 pips|
|Instruments||Currencies, Stocks, CFDs, Cryptocurrencies|
|Special Offers||Advanced Copy Trading Platform, Free US Stock Trading|
How Does eToro Works?
After landing on the eToro official website, you need to set up an account that requires some basic information about you. Don't worry; your data will be highly encrypted and never shared with a third party. To start trading, a minimum of $50 is required, and you can deposit it by connecting your bank account or credit card.
Since the platform currency is USA dollars, depositing any other currency needs to be converted, and some charges will be applied. Now, if you don't know what the next step is, go for a CopyTrader feature and replicate the trades of an expert fellow. However, the platform offers a demo account with virtual $100,000, and you can use them for learning.
Who Should Choose eToro?
If you are a beginner in trading and want to learn every aspect of it, eToro is for you. From providing demo accounts to social news feeds features, this platform puts everything in traders' access. With the help of your fellow traders and applying different features with virtual money, you can quickly get every bit of the platform.
On the contrary, if you are an expert, this platform has a lot to offer you by showing your trading skills. If you applied profitable trading strategies and newbies copied your trade, you would get a commission from the platform. Moreover, your followers on the platform can make an annual 2% commission for you.
But if you are someone just looking for a crypto exchange platform and only want to trade in crypto, eToro is not for you. Because the fees are relatively high for crypto traders and you can find some other platforms offering low charges on transactions.
eToro Commission and Fees
Many eToro rivals called its fee structure a Bermuda triangle. They demotivate beginners by stating that the fee structure of the eToro platform is highly complex. However, the platform described everything clearly so that there is no chance of confusion. The term introduced by eToro in their fee structure is 'spread,' depending on the coin and market condition.
It means when you have to pay a specific amount of spread on purchasing and transferring cryptocurrency. Each coin has its spread fee for trading and has been listed on the eToro official website. However, if you hold your currency for a long time and stay active on the platform, you have to pay less spread at the time of selling.
The minimum spread applied for Bitcoin is only 0.75% of the total amount and goes to 5.0% for Tezos. These fees are not fixed and vary depending on the condition, like competing with higher crypto exchanges. However, it doesn't go beyond the specific range.
Normally, you have to pay 0.5% on depositing the amount in your eToro account from the credit card. However, there is no commission on your trading, and everything you earn goes to your account. The transferring fee for crypto-to-crypto depends on the market rates and usually lie between 0.1% to 0.2%.
eToro Mobile App
EToro developed a mobile app for Android and IOS users for ultimate trader's convenience. The app's main idea is to allow the user to set trade from anywhere. Apart from the eToro app, the platform has an eToro Money app for transferring crypto and money, and both can be downloaded from the Apple Store and Google Play Store.
The app maintains the look and features of the web version, including both the dark and light theme mode. Also, you can be synced watchlists across different devices to unify the experience. Clear price charts are the major concern of the users, and eToro did it best. You can easily read those charts as they are responsive and contain all the details available on the web version.
EToro Money app is a different platform that allows you to save and transfer cryptocurrency. These crypto assets will be held by eToroX and keep your private keys highly credentialed. The eToro Money app is almost the same as the eToro app except for a few features. You can also perform social trading on eToro Money which is secure and user-friendly.
eToro Features Overview
Every trading broker has something special in their features box. Talking about the eToro, there is a list of characteristics that make it unique and worth investing in. Out of all here, we mentioned the most prominent and exceptional features of eToro.
Not having enough experience in making profitable trades is the biggest problem of every learner. Sometimes, we can't afford to invest in trading just for learning purposes. eToro picked a problem and came up with the CopyTrader feature to solve the need of the hour. Using this feature, you can easily copy the trading strategy of an expert and apply it to yourself.
However, you don't need to spend as much as your favorite high-performer trader is doing. The platform allows you to choose an amount of your choice, and then it will automatically set the trade for you. That is not a bad feature for experts as the platform gives monthly commissions based on the number of replications made of their strategies.
- All Major Cryptocurrencies
With the evolution of cryptocurrency, crypto enthusiasts desperately want the integration of their digital assets in real-world use. Although it was not possible a few years back, it is better now. eToro introduced cryptocurrencies back in 2014, and now you can set trade in them.
In the start, only two crypto coins were available to trade, and no other currency was allowed. But now, all the major and stable coins like Bitcoin and Ethereum, along with 25 others, are tradable on eToro. Over time, the platform is looking forward to adding more coins to the list.
- Social Trading Community
The feature which is the soul of eToro and difference-maker is social trading. In your trading journey, you often want expert advice or just answer any query. At that point, looking for an expert is not a piece of cake. But eToro coped with this problem by introducing a social trading community.
On the landing page, you will find the general feed, where the experts have answered the queries of different traders. Over this, you can select any one coin and get the answers about that specific offering. Here you can find the impressive trading ideas and the tactics to improve your portfolio from the trading giants.
- eToro Club
It's a feature for those who purchased premium membership of the platform. However, not everyone is eligible for this club. To be a part of this club, eToro maintained a restriction of $5000 investment on crypto assets or equivalent cash holding for a long time.
You can enjoy the perks by accessing premium membership by attending live webinars and analyst reports in the newsletter. Over this, you will receive dedicated expert support and early access to all new features and products.
What Could be Improved in eToro?
Although the features of eToro impress the trading community, there are still some areas that need to be improved. After reading thousands of customer reviews, we found some common critics listed below.
- Limited Cryptocurrencies
This platform offers a total of 27 cryptocurrencies for trading, and you can't trade in any other coin. Although all major crypto coins are listed, many customers demand more variety. Since the eToro platform is not dedicated to crypto users, they didn't pay attention to this drawback. But the complaints are increasing day by day, and now the platform is thinking of adding more coins.
- High Transaction Fees for Digital Assets
If you are a crypto influencer and not interested in any other type of trading, choosing eToro would be bad. The transaction charges and commissions of the platform are slightly high compared to the other platform. So, for the crypto user, this is not an ideal option.
- Limitation for USA Traders
If you live in the USA, you can only trade in cryptocurrency, and no other option is available to withdraw and deposit. Since the huge traffic on trading platforms belongs to the USA, it should entertain them with more features. The good news is that the eToro developer announced more stocks for USA users and will be available soon.
- Only Available in 43 States of USA
Every citizen can sign up for the virtual trading platform in the USA. But only 43 states are allowed to do trading with actual money, and many big states like New York and Hawaii are not listed yet. However, the company is looking forward to adding more states shortly.
Is Your Cryptocurrency Safe on eToro?
Yes, your crypto assets are highly safe on the eToro platform. But if we compare it with the other bigger platform, there is a margin of improvement. To ensure high security, most exchanges use cold crypto wallets, and no hacker or scammer can access your assets. EToro uses both hot and cold wallets to save your currency.
We aren't sure about the insurance policy for USA-based users as the eToro platform is specifically designed on the structure of the European insurance policies. However, the cash balances have been assured for the USA residents. The platform can hold $250,000 in FDIC-insured custodial accounts. All these measures have been taken from the company, but if someone's account gets hacked from the device, eToro is not responsible for it.
Pros & Cons of Selecting eToro
- Regulated with tier-1 and tier-2 jurisdictions for safe trading
- Excellent platform for the social copy trading and crypto trading
- User-friend mobile app and web version for the newbies
- Multi-asset broker with over 3000 options available
- Indemnity insurance for the UK, Australia, and Europe
- Premium features for the club members after reaching high tier status
- All major cryptocurrencies are listed
- Demo account to learn about the trading
- Social community help from the experts
- Only limited features are available for the USA customers
- Cryptocurrencies options should be more
- Fees are relatively high for crypto trading
- Forex and CFDs are expensive compared to competitors
- Premium features should be allowed for every trader
Values of eToro Platform
The values offered by the platform reflect the credibility and the mission of the team. Here are five major points that have always been made to satisfy the user's needs.
One of the major problems of all trading brokers is the complex interface and hard-to-read information. However, that's not the case with the eToro. The website design and mobile app interface are really simple for the newbie. Moreover, the information is well-organized and listed on the landing page. The platform is offering more services without any confusion.
There is no use of any platform if it doesn't upgrade features with the changing atmosphere of online trading. If we look at the history of eToro, the company always strived hard to meet the need of the hour. Also, they constantly researched the market problems and came up with an innovative solutions.
Everything can be compromised, but there is no match of top-tier quality. From signing up your account to trading the billion dollars, you won't feel any difficulty performing operations. Also, customer support won't leave you in the problem.
The eToro platform is more than a trading forum and feels like a family of same-minded people. Through the social feature, you can discuss your queries with the other traders and share your experience.
The transparency of any platform is the major factor in gaining the user's trust. EToro is entirely open and transparent for its users. Nothing will happen secretly, and all information will be shared with you.
1. What are Automatic Recurring Deposits on eToro?
Once you perform any deposit in your eToro account, you will be asked whether you want to do it again or not. By clicking yes, the specific amount will be transferred from a bank account to an eToro account after a defined period. The second time, you don't need to perform the whole process.
2. Which currencies does eToro support?
On eToro, everything is measured in USD, and if you have any other currency, it will be converted first. For conversion, there are specific charges based on whether you are doing It through a bank account or credit card.
3. What is the minimum amount for first-time trading?
If you are starting out and didn't perform any trading before, you can start with as little as $50. After that, you deposit even $10 from your bank account, but the trading can't be performed for less than $50.
Conclusion: Is It Good to Invest?
Before concluding the platform's credibility, it's important to access your information. If you live in a State not included in the 43 mentioned, then go for an alternative like Binance
On the contrary, if everything is according to the conditions, nothing is better than eToro. You would have complete guidance from start to end and foolproof protection of your assets. Moreover, you can earn different commission types with time and perform staking if you are not interested in trading.