What is worth knowing about the Etoro broker? Description, offer, opinions about the FX broker
Added: June 5, 2021
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If Alec Baldwin didn't ask you to use eToro in one of his ads, it's likely your first time on the internet. Let's take a look at the platform with characteristic "types" in the logo to see if marketing translates into the quality of services, and the broker itself can play with the rest of the top companies.
eToro - broker description and basic information
The eToro broker is a company registered in 2007 in Limassol, Cyprus. The originators of the platform - the Asian brothers from Israel, decided to use the infrastructure based on the model available from social networks. In 10 ways that users have the opportunity to exchange ideas, previous other decisions.
Until today, the so-called Social trading (social trading) is eToro's great recognition and attracts a multitude of clients from all over the world who are able to speculate on around 2,000 current instruments, including Forex, Cryptocurrencies and CFDs.
The broker not only stands out with interesting ideas, but also has the appropriate licenses. In terms of security, all of the company's activities are subject to regulatory control by three recognizable bodies - the Cyprus Securities Commission, i.e. CySEC, the UK FCA and the Australian ASIC.
And for those who haven't seen the Alec Baldwin movie, here's also:
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EToro Education Department
For beginners who know English well together, eToro has a lot to do with education. Trade Academy, in which the employee learned the basics, in order to gain access to the school The school of trade. In addition, we gain access to Market Insights bets, which the broker also updates in Polish:
eToro opinie, as the Daily Market Analysis. We will get acquainted with experienced traders on the current situations of the selected.
It is impossible to linguist that the English version is more extensive, proposing, inter alia, additional videos and podcasts. Even using counting by counting on numbers, there is no more than the principle of operating the platform itself, as well as analytics and management management analysis. This is a bit more than the gray standard that the newbie will be based on.
The broker gives us two types of accounts to choose from:
✔ demo account, i.e. Virtual Portfolio and
✔ classic live account, we invest real funds on each account.
The eToro demo would allow us to stress-free strategy testing, with no progress made of technical progress.
How does Virtual Portfolio account work in eToro?
In the electronic counter eTo works in a system in which you can "jump" between the counters account and the demo account. "Virtual funds, which we enter at the start up to $ 100,000", by the way, in the case of employees of their race, something else, one of the service account service department about the reset, so we can trade again.
The mere control with company employees yet to a demo account can be considered a minor drawback as you have to do it with a few users.
It must be remembered that although the virtual portfolio is a demo account, all posts listed on the profile will be visible to real users of the protocol.
Live account on eToro
Accounts have become at other points of sale and the next group:
For the first type with the only problem to be limited to 1:30. This blockade does not apply to problems for website users who can use a trick even up to 1: 400. This practice is intended to limit the risk in terms of investing money by a handicapped person.
Both types of accounts are protected against a negative balance, that is, in the event that the "debt" to the account opened by us has been opened, eToro will cover it, returning the account to the "bank".
In order to beat the competition, the minimum amount, rather unattractive for a retail client, the same currency is $ 200 or its equivalent in PLN.
A separate payment is also made for transaction fees and margins charged for the withdrawal of funds. At eToro, we are spreading not only because of - on each payout, the platform will charge us a margin of $ 5, regardless of what is paid out. The minimum amount that will be paid out is $ 30.
An additional, characteristic type of fees charged by eToro brokers is ... the inactivity fee. In the event that in the last 12 months, the system does not record our profile at anyh actions, we will pay a kind of "parking" in the amount of $ 10.
Retail client Professional client
Full ESMA restrictions and protection. Yes No
Negative Balance Protection Yes Yes
Account currencies PLN, USD, EUR PLN, USD, EUR
Minimum deposit: $ 200 $ 10,000
Platform and tools available on eToro
EToro trading platform. Description of functionality
The eToro broker does not give us the opportunity to use the popular Metatrader, but in this case - nothing is lost. The proprietary platform is not only visually attractive and relatively easy to use, but also offers functionality that is only slightly (if at all) inferior to popular retail applications.
Forex etoro broker
The inventory includes a surprising amount of technical indicators, from the simplest moving averages, through trading volume meters, to the Ichimoku Kinko-Hyo set.
etoro broker platform
Although, compared to Metatrader, the platform performs much better in many respects, it shares the biggest disadvantages with it, focusing on technical analysis, while omitting the tools for analyzing the order flow.
It should be remembered that the vast majority of people who engage in trading on stocks, Forex or CFD instruments lose the money invested, and this is due to, among other things, poor analytical methods. Trend lines, moving averages, and support / resistance levels can be useful, but in the hands of an inexperienced trader, they can lead to a significant capital slide.
etoro broker platform
EToro mobile application
The broker also proposes to use its mobile application. Thanks to the platform dedicated to devices with iOS and Android systems, we can manage positions from virtually anywhere in the world. The creators promise that we will gain access to the full functionality of the "large" platform from personal computers on the smartphone. It is worth noting that the “smaller version of eToro” is quite popular, collecting 4.3 stars on Google Play.
Social trading - that is, copy other people's moves
The broker's biggest attraction is the innovative social trading system that allows users to copy the best-performing traders or join the duplicate group themselves, with numerous benefits.
The first option attracts crowds of interested people who do not want to spend time learning or analyzing the instruments on their own, and this is mainly where the positive opinions about eToro come from. On the platform, next to the profile of the selected trader, we will find detailed statistics, thanks to which we can assess the potential profitability of copying his activities.
Opinions about the etoro platform
If you are a beginner trader on eToro, the description of social trading may be perceived by you as an ideal alternative to savings accounts, but the matter is not that simple.
There are some risks involved in basing your trading decisions on someone else's portfolio. First of all, we make our funds dependent on a stranger who, although tested by the platform's algorithm, may still have a "bad day", which will result in serious losses. Another issue is the fact that regardless of whether the trades we copy are successful or not, after closing the position, we are at the same point, without gaining any experience in the market.
Fortunately, the social nature of the platform is not limited to copying inputs. The eToro broker provides users with a space where they can exchange insights and comment on market circumstances on an ongoing basis.
What is social trading etoro
Popular Investor for those who want to be copied
The path of a more ambitious trader to eToro is divided into four stages, determined by special rankings:
✔ Cadet,
✔ Rising Star,
✔ Champion
✔ Elite.
To enter the first level, we need to deposit at least $ 1000 in the eToro account and be copied by at least one person. Then, for promotion, we need a minimum of two months of consistent trading, which will be assessed by the broker's algorithm for security.
At the Cadet level, there is a profit in the form of a 20% discount on the spread. When we manage to advance to the Rising Star rank, the real benefits begin. In addition to the 30% discount on the spread, we will be exempt from margins charged on withdrawals, and we will also receive $ 500 every month.
The next level is a higher rebate, double the monthly "salary" and so on up to the Elite level, where they wait for a 100% discount on the spread, a kind of "subsidy" for marketing and education, $ 1000 a month and 2% of the profits made by the general public capital of people who follow us.
Of course, everything looks attractive on paper, but the levels from Rising Star to Elite are reserved for a small group of the most successful traders. In the case of beginners, the whole thing should be treated rather as a curiosity.
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Company stocks on eToro and the Copy Portfolios feature
An account opened with eToro allows you to additionally invest in stocks of companies, with the exemption from transaction fees. Among the available options, we will find not only the most popular, such as Apple, Microsoft, Tesla or Facebook, but also niche instruments - in total, the broker allows you to choose from about 800 shares.
Copy Portfolios is, in turn, a unique feature for eToro, thanks to which the user, instead of buying individual shares, has the opportunity to copy entire investment portfolios. If you decide to track the movements of the most successful traders, we can use the Top Trader Portfolios option. The second, slightly more interesting option is Market Portfolios, which is basing trading decisions on full portfolios, gathering instruments from various classes - from stocks of listed companies, through raw materials, to ETFs.
Cryptocurrencies on eToro
However, eToro is not only about stocks - among the biggest advantages of the platform are also easy access to around 100 cryptocurrencies.
In addition to pure speculation on the rates, the broker also allows you to transfer assets to a special eToro Wallet. Token enthusiasts will also not be disappointed in social trading - on the platform we will find many traders operating in these markets, and their movements can be copied by us on a regular basis.
eToro reviews - how do clients rate the broker?
Social trading is an interesting option that, if used properly, can be useful for traders, and the platform itself has many advantages. Unfortunately, despite the innovative solutions and expensive, quite aggressive advertising campaigns of eToro, the opinions of users about the broker sometimes leave much to be desired.
The list of the most frequently mentioned defects of the company includes mainly:
• high spreads,
• problems with withdrawing funds
• serious complications in the process of personal data verification (these, in turn, according to some users, may only be an excuse to freeze the client's funds).
Next to them, recurring topics are heavy commissions on withdrawals themselves, a relatively high initial deposit - even for retail clients, and very low-quality customer service. Opinions about eToro can be put into a certain buckle - a platform with interesting solutions and potential that spoil frequent problems with which a good broker should not have problems with.