What is the eToro exchange?
The eToro exchange is slightly different to other platforms. It is a social trading platform – rather than just a peer-to-peer or financial trading site. eToro is based in the UK and operates under the company name eToro UK Ltd. This means that the company is regulated by the Financial Conduct Authority (FCA).
The primary aim of the site is to bring traders together to share knowledge and to promote accessible trading for all. The site is beginner friendly – but also offers many advanced options to keep the professional traders happy.
How eToro works?
The eToro exchange is a platform that is most known for social trading. Like with LinkedIn, there is the opportunity to follow the trades of known traders and follow the moves they make when trading. The eToro exchange makes trading accessible for all through this Copy Trading feature. Copy Trading is successful because there are over four million traders working through the site, meaning there is an extensive knowledge bank available to users. There is also extensive social interaction through the site between experienced traders in cryptocurrency.
Recently, there was a cryptocurrency fund added to the site, which allows traders easy and quick access to the top seven digital coins and tokens, including Bitcoin and Ethereum.
Despite the social dimension to the site, the eToro exchange is essentially a trading platform. It is designed to be simple and easy to use – and even offers a demo platform for people who want to learn about trading without the risk of losing money. To use the site, you must verify your identity – which is not surprising considering it is so focused on people – and the choices real people make. You will need to provide your passport – include signature – proof of address and a copy of your credit card details.
There are lots of options for trading on the site – including a markets option – and a function to create a watchlist of other users. This is not just a site for trading cryptocurrency – therefore, the filter option – which allows you to see stocks from certain sectors, is also a useful tool. There are also simple buy and sell buttons at the top of the screen – for ultimate ease of trading.
However, even there are options to trade in stocks, bonds and crypto – it is Copy Trader feature that stands out as the eToro exchange distinctive selling point. This is where you can follow the moves of others without fully understand the particular asset or trade yourself. It is possible to simply offer investment in the trades of others – and never make a trade of your own. You simply choose the traders who you think will help you make a profit.
It is possible to filter the traders you follow by location, performance and recent activity. You can look at the trader’s past performance – as there is monthly trading performance published on the site. If you like what you see – you merely need to click the copy button and you are set. The trades are then mimicked – though at a proportion to what you can afford to pay – be aware then that the profits are proportional too! If you copy someone that trader earns income from your choice – which is the incentive for top traders to use the site. It is a great way for them to receive a passive income from their work.
As you would expect with any good social networking site, there is a free mobile app – which allows you to trade on the move. Everything you can do on the website can also be done through your tablet and phone – including following the trades made by individual people who interest you. You can even fund your account through the app.
Key information about eToro
Before moving to our eToro review, it is important to provide you with key information that allows you to make your own choices and decisions.
The eToro fees are more complicated because of the option to take up leveraged positions and the option to maintain positions overnight and over the weekend. The more risk the site carries by maintaining your position, the higher the fee will be. This means as well as a percentage fee on trades, you may also incur a nightly charge. Despite how daunting this sounds, the fees are actually relatively low in comparison to other sites. However, one of the major downsides of the site are the withdrawal fees, which are relatively high.
Your eToro Review
- you can trade on stocks in over 250 companies – and there are over 30 currency pairs on the site – therefore the biggest advantage of this site is the amount of choice you have. If you are only interested in crypto – there are 15 different coins and tokens on the site – including Bitcoin, Ethereum, Ripple and more.
- it is possible to copy the moves of traders without ever having to know anything about the market
- there is a demo platform – should you wish to learn something about the art of trading
- the newsfeed and the charting tools makes this the go to site if you want to learn about trading in general, or specifically trading in cryptocurrencies. There is also a learn more area – where you can choose to educate yourself in trading before getting started.
- most complaints aimed at the site are because those traders copied might fail to make a profit sometimes – but this goes to show that copying without being informed might seem appealing but in reality is not that wise
- there can be delays in receiving withdrawals because of problems with verification
Overall eToro Review
Our overall eToro review is overwhelmingly positive. The reason the site is so useful is because you can trade there on your own terms. If you just want to copy – that is fine. If you want to be a leader – that is possible too – and you can receive a passive income for your troubles.