Forex for a trader
Etoro forex

Etoro forexVisit Broker Risk Warning: Your capital may be at risk. Visit eToro Risk Warning: Your capital may be at risk. Founded in 2007, eToro is the world’s leading social trading platform. During its inception, eToro’s founders set out to create an online trading platform that is accessible to the masses, while keeping its professional and ethical values. With over 1,000 assets across five categories (commodities, stocks, currencies, indices and ETFs), and diverse social elements, it is no wonder that tens of thousands of traders worldwide choose eToro as their trading platform. eToro’s platform places high emphasis on usability, and has made great efforts to make its platform intuitive, and streamline the online trading process. The company offers Forex services, and trading of other assets via CFDs. The platform displays great amounts of information, both regarding its various instruments and on its users, so traders can have a lot of data to use when making their investment decisions. Since some traders need access to their accounts 247, eToro’s mobile app is based on the same principle of accessibility, and features an intuitive interface. Social Trading: From Openbook to CopyTrader.

When it comes to social trading, eToro is a pioneering platform, with an array of features and services that lean on the fact that it has so many clients. At first, eToro was composed of two separate platforms: Webtrader, which was a straightforward manual-trading platform and OpenBook. OpenBook, a social trading platform, was introduced back in 2010 (and has since been integrated into the platform). As both platforms were merged since, the social element has become one of eToro’s key aspects, enabling users to interact, follow one-another and copy other traders. A basic principle of the platform is giving users enough access to information, to make sure they make educated investment decisions. On top of the easy-to-understand charts, and daily financial newsletter, the social elements of the platform allows clients to learn from each other. Following the best traders to profit. The Copy Trading feature enables clients to invest some of their funds into another trader’s portfolio. Since eToro works in full transparency, each trader’s portfolio, track record and risk score are available for other users to see, so they have all the information they need to make their decision. Copy Trading is an excellent tool for people who want to invest online, yet don’t always have the time to constantly check recent developments in the market and actively monitor their portfolio. Additionally, by following and copying other traders, users can expand their understanding of the market and get a better idea of the trading style they wish to adapt. The Popular Investor (Guru) Program. Another feature which makes eToro unique is its Popular Investor program.

When a certain investor has enough copiers on eToro, they receive Popular Investor status, and gain certain benefits and special fees. Clients have great incentive to become Popular Investors, since they receive a monthly payment from eToro, and receive a spread rebate worth up to 100%, enabling top Popular Investors to essentially trade commission-free. eToro holds its clients to the highest regard, providing them service in 16 languages and operating 24-hour customer service, five days a week. When it comes to regulations, eToro adheres to the highest standards, operating under the approval of both the UK’s FCA and Cyprus’ CySec. Smart investors need to understand where and how they invest, particularly when it comes to online platforms. Our review of eToro Group, ltd. works to ensure you're given the best information prior to making a first trade. Originally founded in Tel Aviv, Israel by two brothers, Ronen and Yoni Assia and partner David Ring in 2006, eToro began as a vision of a popular financial trading and investment platform suitable for everyone. The company specializes in the field of social trading and has grown considerably since its inception, with eToro currently enjoying a top position among social trading networks and online forex brokers. eToro’s oversight comes from two agencies in the European Union and the UK. eToro (Europe) Ltd. is based in Limassol, Cyprus and is a registered Cypriot Investment Firm or CIF registered under the number HE200585. eToro (Europe) is regulated by the Cyprus Securities and Exchange Commission or CySEC under license number 10910. In the United Kingdom, eToro (UK) Ltd. is based in London and is a registered UK firm under registration number 7973792. eToro (UK) is authorized and regulated by the Financial Conduct Authority or FCA under the firm reference number 583263. Both eToro (UK) Ltd. and eToro (Europe) Ltd. comply with and operate under the EU’s Markets in Financial Instruments Directive or MiFID.

Currently, eToro has over 5 million users from over 170 countries who enjoy access to trading in currencies, CFDs, indexes and commodities via the broker. The company’s online platform attracts thousands of new accounts on a daily basis and theirs is considered one of the world’s largest social investment networks. eToro’s previous trading platforms have recently been replaced with an updated all-in-one platform that is also available on Android and iOS for mobile devices. A screenshot of its homepage appears below: In the United States, eToroUSA is not currently active, therefore eToro does not accept U. S. based customers. One of the most striking features about eToro is the company’s online financial trading community, which is ranked among the world’s largest. The company recently replaced its two popular WebTrader and OpenBook trading platforms and integrated their functions into a new all-inclusive platform that gives clients access to all of their services from both desktops and mobile devices. First time deposit minimums depend on what region and country the customer is domiciled in, with a minimum deposit for a live account ranging from $200 to $1,000, in addition to traders being able to fund an Islamic account with a minimum deposit of $1,000. eToro also offers a demo account to practice trading with, and this feature can be accessed by simply registering, and without having to actually fund the account. eToro also offers up to $100,000 in virtual currency for potential customers to try out their trading platform with. eToro does not charge commission on trades, but instead relies on quoting a slightly wider dealer spread to compensate themselves. A survey of the broker’s real time dealing spreads showed that they start at two pips for USDJPY, three pips for EURUSD, USDCHF and USDCAD, four pips for GBPUSD and AUDUSD, five pips for NZDUSD and seven pips for USDRUB. Dealing spreads for other less traded currency pairs widen to as much as 20 pips, while spreads in Bitcoin trades are apparently 225 pips, according to the broker’s website. As of April 29th 2018 eToro has moved from trading stocks as CFD to real stocks on their platform. All the countries will now be real stocks and only the listed countries will remain CFDs: Afghanistan Angola Australia Belarus Macedonia Iraq Liberia Libya Nauru New Zealand Nigeria Sierra Leone Zimbabwe Cote d’Ivoire Congo Congo Republic Myanmar. As of August 1st 2018 eToro is fully compliant with new ESMA rules. Read more here.

The original eToro trading platform targeted novice traders, with animated graphics depicting currencies in a race or tug of war. eToro’s previous OpenBook and WebTrader platforms were integrated in 2015 to become its current, award winning platform now called simply eToro. In addition to the eToro platform, the broker also has a new app for iOS and Android to replace its previous mobile app, known as The Mobile Trader. The new eToro app is currently available at the iOS App Store or Google Play. The screenshot below shows the basic functionality of the web-based eToro platform with menus on the right side for regular and social trading, investment in CopyFunds, as well as a watch list, a portfolio tracker and a news feed. eToro social investment network. eToro has added some NEW FEATURES… eToro Copy FUNDS! Hear all about it Here. Platforms: eToro WebTrader, eToro Mobile Trader. Deposits and Withdrawals. The minimum deposit required to open a live trading account at eToro is $200 to $1,000 depending on the payment method and country the client is domiciled in. Since eToro only allows trading in U. S. Dollars any deposit in another currency is converted at the prevailing exchange rate to USD upon receipt. Deposits can be made through Visa, MasterCard and Diner’s Club credit and debit cards, by bank wire transfer, Wirecard – Wire and Credit Card, Yandex, Neteller, Skrill Limited UK, China Union Pay, PayPal, Wire Card and Webmoney UK. Deposits also have a minimum and maximum among depending on the payment method. Credit and debit card deposits have a $20,000 maximum, while wire transfers have an unlimited deposit amount.

PayPal and Skrill deposits have a minimum of $200 -$1000 and a maximum of $5,000 and $10,000 respectively. Neteller deposits range from $200 – $1,000 with a maximum of $10,000; while Webmoney and GiroPay have a $200 – $1,000 minimum and a $50,000 and $30,000 maximum respectively. Russia based Yandex has a $200 minimum and a $5,000 maximum deposit. For withdrawals, the user must fill out a withdrawal form in the Cashier section of the website, clicking on the “WITHDRAWAL” tab. The amount is entered on the form, and eToro will then notify the client via email of the withdrawal process. For first time withdrawals, clients must submit a clear color copy of their Passport including their written signature, as well as a clear copy of a utility bill not older than three months and that is mailed to your address of residence. Also, if the deposit to fund the account was originally via credit card, a clear copy of both sides of the credit card must be submitted. eToro charges a $25 fee for withdrawals. Withdrawals take up to five days to process and may be delayed due to third party withdrawal payment methods. Customer support is available 245 throughout the trading week via telephone and email. Also, a personalized digital customer service feature by a company called “Nano Rep” is available on the bottom left corner of their customer service page, although no live chat service seems to be available. The company also features a “Customer Service Wall”, where customers can interact with customer service in a forum type format. Most customer service queries are handled by referring customers to Online Guides and eToro’s Knowledge base, which does not require a service representative. If a client wishes to speak to a representative, a ticket is opened and a representative contacts the customer as soon as possible. Customers can choose their customer service representative by clicking on their photograph, which is included with a brief bio of the representative on eToro’s customer service team page. Customer support is currently available by region and in the following languages: English, German, Spanish, French and Italian.

eToro has become a premiere network for social investing among online brokers. With their newly integrated eToro trading and social investment platform, as well as their mobile app, eToro offers traders an excellent service in the field of social trading. The eToro trading and social investment platform is easy to use and integrates all of the features previously available on the company’s two other platforms. In addition, the company offers a Trading Academy, a Blog, a Trading eCourse and live webinars to help educate novice traders. As well as offering a free practice or demo account just for signing up, eToro also rewards its most successful clients. In addition to making money in their own accounts, successful traders at eToro can also win in competitions, earn cash prizes, and get money by having other traders follow their activities. The larger the following of a trader, the larger the proceeds from eToro, which can significantly increase a trader’s income versus just their trading activity. The only significant drawbacks with this broker is the rather long five day fund withdrawal period. Additional cool features at eToro include mobile apps and stocks trading. The mobile apps that are available make quick trades on the go incredibly easy. Apps such as the eTrader mean that you don’t require to be at a computer to make your trades. Versions are available to run on a variety of different phones and androids, and they have some great technology on the app, such as the way in which it can prevent your phone from hibernating when you’re actively trading – just in case you need to make a split second decision. Unlike other social trading platforms, eToro also has functionality when it comes to investing beyond currencies – with the option to trade in a variety of stocks. All trading involves risk.

Only risk capital you’re prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. Please be advised that certain products andor multiplier levels may not be available for traders from EEA countries due to legal restrictions. eToro, initially established in 2006 as RetailFX, is an online Stocks, Currencies, Indices and Commodities social trading platform founded by two siblings Ronen and Yoni Assia and their partner David Ring. The two brothers and their partner established eToro with the goal of providing an online financial trading platform that is user-friendly and suited to traders of all levels of trading experience. The business concept proved to be hugely successful and currently serves millions of users from all over the world.

Attracting thousands of new users every day, eToro has today become the world’s premier social trading platform. With eToro’s innovative and intuitive “OpenBook” trading platform, traders can now trade in various different types of financial instruments such as commodities, equities, currency pairs and market indices. The “CopyTrading” feature which comes with eToro’s trading platform also allows beginner traders to copy the trades of more experienced traders, offering the more experienced traders to leverage their trading skills into an additional revenue stream. To keep pace with changing trends in the industry, eToro developed and launched its innovative mobile trading app to allow eToro’s traders to trade the markets straight from their smartphones. In terms of regulatory oversight, eToro is regulated in 2 separate jurisdictions, UK and Cyprus. In the UK, eToro operating through eToro (UK) Ltd and registered by the UK’s Financial Conduct Authority (FCA) under the FCA reference number 583263. Since both CySEC and the FCA operate under the Markets in Financial Instruments Directive (MiFID), this means eToro is a MiFID compliant broker and is authorized to operate within the Eurozone. In Cyprus, eToro comes under the jurisdiction of the Cyprus Securities Exchange Commission (CySEC). Licensed under the Cyprus Investment Firm (CIF) license number 10910, eToro complies with strict regulatory requirements such as operating with adequate capitalization and maintaining segregated accounts for their clients’ funds. Over the past ten years since eToro first began its operation, the broker has earned a reputation among the online trading community as one of the most reputable online brokers existing in the industry. Their services and “OpenBook” trading platform have been featured in numerous international financial periodicals such as Forbes, Financial Times, Finance Magnates, Fintech Finance and even on America’s cable news network CNBC. As mentioned earlier, eToro is regulated by both the UK’s FCA and Cyprus’ CySEC. Both these regulatory agencies impose strict regulatory guidelines which eToro is required to abide by. In addition to the regulatory oversight, investors of eToro are further protected with the coverage provided by UK’s Financial Services Compensation Scheme and CySEC’s Investor Compensation Scheme.

All of eToro clients’ funds are kept in segregated accounts maintained at Tier 1 banks. For web security, eToro uses SSL encryption technology to ensure that all sensitive data are protected from any unauthorized intrusions. Finally, as a transparent and ethical broker, eToro doesn’t share any of clients’ personal data with anyone without their clients’ permission. eToro Trading Platform. What makes eToro truly unique from other online trading brokers in the industry is their proprietary “OpenBook” trading platform. When the trading platform was first launched in 2010, it was the first social trading platform of its kind. This earned eToro the distinction of being the first broker to introduce the concept of social trading into the online trading industry. In other words, eToro has earned its badge as being the pioneer broker for social trading in the online trading industry. Unlike the traditional online trading platform, eToro’s trading platform harnesses the wisdom of the crowd to help traders maximize their investment returns. The social trading platform lets traders see each others trading statistics such as their market positions, profit levels and the trading strategies adopted in real time. It is through this OpenBook trading method that eToro is able to tear down all the barriers between traders and hence help to accelerate the learning process among traders on the social trading network. Apart from the web-based trading platform provided by eToro, traders also can download to their smartphones an Android and iPhone app of eToro’s trading platform. The mobile app lets a trader view in real time the feeds of other traders in the eToro social trading network just like the web-based OpenBook platform.

In addition to the mobile trading app, traders can also view the prices of all the various instruments before placing their trades. They can also monitor their trading account as well as interact with other traders in the social trading network. eToro Trade TypesInstruments. In terms of the types of instruments that are available for trading at eToro, they include a wide selection of international stocks, indices, precious metals, commodities, currencies pairs (forex) and Exchange Traded Funds (ETFs). In early 2014, eToro also introduced trading for the cryptocurrency Bitcoin but unlike other brokers in the industry where Bitcoin is traded as a currency, Bitcoin on eToro is available to be traded as a CFD derivative. In other words, traders on eToro’s social trading network will be buying and selling the cryptocurrency as a financial security which tracks the prices of Bitcoin on the open market. eToro Cryptocurrencies Trading. 2017 has been a boom year for the cryptocurrency market. The bulk of the cryptocurrencies that are being traded on the internet have seen their value rise astronomically.

Leading the pack is Bitcoin with its peak price reaching as high as $20,000 per coin. As such, it is hardly surprising to find online traders gravitating towards crypto trading. To cater for the increasing popularity of cryptocurrency trading, leading online forex and CFDs brokers such as eToro have also begun to expand their cryptocurrency portfolio. Crypto trading is nothing new for eToro. In fact, eToro first offered Bitcoin trading as early as 2014. Today, the broker has expanded its range of cryptocurrencies in its portfolio to cover the following digital assets: Bitcoin Bitcoin Cash Dash Ethereum Ethereum Classic Litecoin Ripple. Cryptocurrency trading at eToro is simple. Instead of having to deal with the hassle of buying and selling the physical cryptocurrencies, eToro allows you to trade them using CFDs. The advantages of trading cryptocurrencies with CFDs include being more affordable, more secured and the ability to leverage your trades with a leverage ratio as high as 1:400. In addition to eToro, it is also possible to copy the trades of popular investors or CopyFunds. At eToro, things are kept simple, so traders, especially beginner traders, will not be overwhelmed by the number of decisions that they have to make regarding their trading account choices. As such, you can find 2 types of trading accounts at eToro, a standard trading account, and a practice account. To open a standard account, a minimum initial deposit of just $50 is required. As for the practice account at eToro, traders who sign up for access to the account will be given an initial deposit of $100,000 in virtual currency. This platform will allow the trader to conduct trial runs of their trading strategies without any financial risk to them.

It also gives potential traders of eToro an opportunity to test out eToro’s services and trading platform before they commit any real money. eToro IslamicSwap-Free Account. A Swap free trading account or Islamic trading account is also available upon request to traders who wish to trade the financial markets without violating the Islamic Sharia principles. eToro Commissions and Spreads. eToro does not charge any annual fees or commissions for traders joining its social trading network. Instead, eToro charges a spread on top of the price quotes that they receive from the markets. eToro ensures that its traders will not suffer from slippages when they make their trades. To give our readers an idea of the spreads charged by eToro, below is a list of the typical spreads which traders have to bear for some of the more frequently traded instruments (Spreads may vary according to the broker’s terms). Traders looking to harness the power of crowdsourcing to find trading ideas have ample tools on eToro’s social trading network to copy the trades of other users in real time across over 1000 instruments, including CFDs on popular cryptocurrencies. By Steven Hatzakis April 3rd, 2018 Updated: August 15th, 2018. As an early pioneer in social copy trading, eToro was founded in Israel in 2006 as a financial trading technology developer.

After launching its first product, it has since grown to service over 4.5 million users with an innovative platform that continually evolves to be one of the largest social networks globally, with clients in over 170 countries. eToro is regulated in the UK and Cyprus, with passports throughout Europe under MiFID. It also maintains a dormant US entity regulated with the National Futures Association (NFA). Since our 2017 review, eToro transitioned from its prior generation platforms, including its WebTrader and CopyTrader products, which have been integrated into the new eToro platform experience for web and mobile. eToro also offers CopyFunds, which are structured portfolios that use baskets of user-driven strategies, and provide a Top Trader module that automatically copies the most successful traders. In 2017, eToro nearly doubled the number of CFDs it offers, bringing the total up to 1,096, including on popular cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Dash, and Ripple (read our eToro Crypto review). Trading with a forex broker traders can trust is crucial to success. Unfortunately, forex fraud and scams are common in the industry. Here at ForexBrokers. com, we maintain the largest independent regulatory database available on the web. Using 28 different variables, we have created a proprietary 1-100 score (the higher the better) of overall trustworthiness, which we call the Trust Score. Here is our trust summary of eToro. Offering of Investments. The following table summarizes the different investment products available to eToro clients. eToro is a market-maker broker and lists a typical minimum fixed spread of three pips on the EURUSD, which is on the high end of the range when comparing brokers with fixed and floating spreads, making it a more expensive platform. Compared to eToro, other social copy trading platforms charge separate stand-alone fees andor commissions, such as ZuluTrade, Tradency, or MetaQuote’s signals market on MT4MT5.

For high volume traders who deposit over $20,000, eToro offers a premium account that provides additional perks such as withdrawal priority and access to an online trading room, among other VIP-style account benefits. It also offers a popular trader program that can further reduce spreads for those who meet strict performance criteria, as explained in the commission notes section further down the page. It is clear that when comparing fees alone, retail traders don’t choose eToro for its spreads, but rather for its platform and social trading capabilities tools (which are discussed further down), as its pricing is otherwise expensive. For our 2018 Forex Review, 129 customer service phone tests were conducted over three months. The data collected is institutional grade. On average, three questions were asked for each test. To score each test, the tests were divided into three separate groups and scores were given for the time taken to connect with each support representative and the ability of each representative to professionally (and thoroughly) answer each question. A Net Promoter Score was also given for the overall experience. Results: Average Connection Time: 2-3 minutes Average Net Promoter Score: 7 10 Average Professionalism Score: 6.4 10 Overall Score: 7.0 10 Ranking: 31 st (43 brokers) Beyond a standard economic calendar (which can only be viewed on the website) and news headlines (also found only on the website), there is little to no research on eToro in the traditional sense of technical and fundamental analysis. eToro does, however, incorporate many social elements into its available research tools when it comes to market sentiment. For example, rather than show sentiment based on all users – only the trades of top traders are used to calculate sentiment data (taking it a step above the usual sentiment tools brokers provide). In addition, collective commentary about an instrument will appear as a stream of updates from users to give you an idea of what other traders are posting about in the eToro network, compared to StockTwits, for example.

There are also screeners, and gainers and losers are shown within the platform. Overall, the research offering has a good foundation but can be improved. For example, adding news headlines and incorporating the economic calendar into the platform experience would help fill the gap in the research tools available on the eToro platform. After transitioning from its old WebTrader platform, decommissioned in April 2017, the latest generation eToro platform is web based and provides a richer experience. Starting with watchlists, it was easy to carry out basic operations and do things quickly, such as creating several watchlists and adding instruments by searching available markets, as well as placing a trade from each watchlist directly. Although there were only a few optional columns in the watchlist, they were the most essential for trading. Another nice feature was the ability to drag and move around watchlist items and change the view. The list is highly dynamic and has been incorporated throughout the platform. It is also the starting place to set an alert or open a chart window. For example, you can even add customer service to your watch list, which is an ingenious approach to innovation when it comes to watch list functionality.

Charting was seamless, with 66 indicators, 14 drawing tools, and easy zooming in and out of price data. The drawing tools could be made more accessible by moving them to the upper toolbar of the chart window. In the current setup, they are bundled together with the technical indicators. Drawback aside, the charts are user-friendly. Stepping away from charts, one very innovative tool is CopyFunds, where eToro does the work for you. By grouping top traders into a single fund you can copy trade. For clients who have a hard time deciding who to copy trade, CopyFunds can be an alternative solution as each fund consists of a group of pre-selected traders you will automatically copy by investing in that particular CopyFund. CopyFunds help bridge the gap for investors who want to use eToro on a passive basis, as they can create a portfolio based entirely on one or more CopyFunds. CopyFunds help bridge the gap for investors who want to use eToro on a passive basis, as they can create a portfolio based entirely on one or more CopyFunds. On the other hand, self-directed traders can also use CopyFunds to diversify their own trading, making it potentially useful for all eToro clients. Besides CopyFunds, other features such as the editors’ choice and popular traders serve as additional ways eToro attempts to find you the best traders to copy andor follow. With platform settings, eToro offers the ability to set a default trade size, leverage selection, and even a default stop and limit levels, per instrument traded. While similar functions exist at other firms, by reducing the number of clicks and mouse movements, eToro has made it seamless to do many of the things on its platform that would otherwise be time intensive, such as searching across thousands of users to copy trade. All traders on eToro trade manually. Fully automated trading systems are not permitted, which means when you copy another trader, you can be sure they are placing each trade manually. This is useful to know as many other social trading platforms that aggregate the performance of traders usually permit both discretionary (manual) trades as well as automated strategies, while eToro’s network consists solely of manual trading.

All in all, the freshly launched eToro platform makes it easy to search for traders that meet specific performance criteria. Or, if you just want to use the platform for self-directed investing, it is balanced for that too, despite the unavoidable social elements woven throughout the experience. eToro has done well merging self-directed trading and copy trading together under a unified trading experience. It’s a winning combination. eToro had its humble beginnings as a simple forex broker, all the way back in 2006. Founded by two brothers, Yoni and Ronen Assia out of Tel Aviv, Israel, it was initially known as RetailFX. The goal of the company was forex trading made easy, and eToro marketed heavily toward retail and ‘non-expert’ traders . This could be seen in the design of some of their early trading platforms, such as Web Trader and Globe Trader, which looked more like an 80s Nintendo video game than a professional trading platform. For instance, the Web Trader interface featured images of various business people running a race; the system was called ‘Marathon’ and was supposed to present an alternative to the ‘boring’ trading interfaces.

Here’s an example, want to trade the common USDJPY pair? If you bet on the dollar, then the American Uncle Sam had to be ahead in the ‘race’ against the Japanese sumo wrestler, which showed that the dollar was gaining on the yen. There were no charts, analysis tools, or stop and order limits. eToro also featured the Globe Trader in the early days and this one was presented in the form of a world map. If you wanted to trade the sterling, then you would have to click on Great Britain. As you can imagine, these interfaces drove off some professional traders, but then again, those were not eToro’s target market in the first place. Bulls and Bears. eToro really took off in 2010, because that’s when it launched its OpenBook platform, putting eToro at the forefront of the social trading phenomenon with its Copy Trading feature (more on that below) . eToro also released its first Android trading app that year allowing people to trade from their mobiles. eToro’s success attracted the attention of investors, and eToro has successfully raised a significant amount of funds. Between 2007 and 2014, eToro had 5 rounds of funding and raised $58.5 million from Russian and Chinese investors. This has enable eToro to continue to expand, and it began its UK operations in 2013. At the end of 2016, eToro announced that it was launching in Poland. And through joint ventures with its Chinese investors and Russian investors (PingAn Ventures and Sberbank), eToro is also available in China and Russia. It has also expanded its product offerings into Contracts for Differences (“CFDs”), cryptocurrencies, and in the beginning of 2017 launched CopyFundsTM for Partners. This feature gives investment companies the ability to create bespoke funds on the eToro platform which eToro’s millions of clients can then invest in. With this step, eToro has taken a big leap from its days as a humble forex broker as it has now placed itself in direct competition with investment funds and financial advisors. They’re not just competing for the customers’ trading money, now eToro wants your investment dollars as well.

To give you an idea of just how far eToro has come, in 2015, it signed a 3 year sponsorship deal with the football club West Ham United. Not counting eToro’s joint ventures, eToro operates primarily through two companies, eToro (Europe) Ltd, registered in Limassol, Cyprus, and eToro (UK) Ltd, which is registered in London. eToro Regulation. When it comes to the case of forex brokers, binary options brokers, or just online trading platforms in general, one of the main questions that should be first asked is ‘is this broker regulated?’ Unfortunately, the requirements for setting up an online brokerage are not very high or stringent, and there are plenty of unlicensed and unregulated brokers out there. Take a quick search on the Internet and you will find numerous stories of unaware and trusting traders being scammed by such unscrupulous traders. This is not to say that a regulated broker is exempt from unscrupulous or fraudulent activity. In fact, plenty of regulated brokers have been caught in such activities. However, because they are regulated, customers at least have some recourse available and brokers are often penalized with fines. And the good news is that eToro is that eToro is indeed regulated. eToro (Europe) Ltd is regulated by the Cyprus Securities and Exchange Commission (“CySEC”), license number 10910, obtained in January 2010. eToro (UK) Ltd is regulated by the Financial Conduct Authority of the UK (“FCA”), license number FRN 583263 . Now, if you have been around the online brokerage scene for a while, you will know that when it comes to regulation, many such firms turn to CySEC.

Because Cyprus is a member of the European Union, being CySEC regulated allows the company to offer their services throughout the greater European Economic Area. This is due the Markets in Financial Instruments Directive (“MiFID”). Unfortunately, the image of CySEC isn’t the best. The island is heavily dependent on income from such investment firms choosing to register in Cyprus, which is why they have a favorable tax regime and have a reputation of being rather lax on regulation, especially in the early years. However, with the growing number of investment firms being registered in Cyprus, CySEC has in recent years gotten noticeable more stringent in their regulation and enforcement. For example, Cypriot Investment Firms are required to have a minimum of EUR730k in capital. In addition CySEC also has an Investment Compensation Fund, which is funded by payments from all the regulated investment firms in case an investment firm goes bankrupt and is unable to repay its clients. The total amount in the fund stands at over EUR17.5 million and each trader is entitled to a maximum compensation of EUR20k. However we should note that to date the conditions under which investors can claim from the fund are still unclear and the fund has rarely been used. We take further comfort in the fact that eToro is not just CySEC regulated, but FCA regulated as well. Unlike CySEC, the FCA has always been regarded as one of the premier regulatory financial authorities in the world. The fact that eToro was able to obtain an FCA license is a huge positive on their part and sets them apart from much of their competition. To summarize, at this point in time, we conclude that eToro is sufficiently regulated and customers should not have any worries in this aspect.

eToroUSA is operated by Tradonomi LLC, a member of the National Futures Association (“NFA”) which is under the regulatory purview of the Commodity Futures Trading Commission (“CFTC”). However, eToro USA is not active at the moment, meaning that residents of the USA are unfortunately not permitted to use any of eToro’s services. eToro Trading Platforms. As we mentioned above, eToro had various trading platforms over the years, with the most prominent being their WebTrader trading platform launched in 2008, followed by OpenBook in 2011 which was its first social trading platform and the base for the current platform available today. In November 2015, eToro’s WebTrader was integrated with OpenBook plus all the mobile platforms, and today eToro boasts a singular trading platform that has all the features of the previous platforms, plus more. Since the integration into eToro’s current platform, both WebTrader and OpenBook have been deactivated. eToro’s integrated platform offers two different functions: retail trading, and social copy trading. Retail trading is your standard trading and eToro functions as a normal broker in this respect. What differentiates eToro from the competition is its Copy Trading and Social Trading feature. Copy Trading allows you to automatically replicate the trades of your selected traders on a proportional basis while Social Trading describes the general umbrella under which Copy Trading falls. More on that in the section below. Like most brokers, eToro also offers leveraged trading, which allows you to trade notional amounts far higher than your trade amount. Currently, the minimum leverage is 1x for stocks and 2x for all other assets. Maximum leverage ranges from 5x for stocks to 100x for indices and commodities, and all the way up to 400x for currencies. However, eToro’s default ‘Responsible Trading’ setting does not allow you to trade leverage ratios above 50x or place trades that exceed 20% of account equity , although this can be manually changed.

When it comes to leveraged trading, one important feature that can help mitigate a trader’s risk is negative balance protection. At the moment it is unclear, whether or not eToro offers this feature. By offering CFD trading, eToro was able to evolve from offering merely forex trading into five different asset classes. Currently you can trade currencies, commodities, indices, stocks, and ETFs using eToro. eToro offers hundreds of different assets you can trade in under these classes. As is common with other brokers in the business, eToro does not charge any commissions but makes its profit through trading spreads. And while eToro’s trading platforms are excellent and are probably the company’s biggest draw, one of its biggest drawbacks are its spreads. eToro may have some of the best trading platforms in the business, however it also has some of the highest ( if not the highest ) spreads in the business. The spreads are prominently listed on eToro’s website, and the lowest spread is 2 pips which only apply to the USDJPY pair, in the case of currencies. The average spread ranges from 4 to 6 pips for currencies, which is very high considering that other brokers have spreads as low as 0.1 pips! eToro Social Trading and Copy Trading. Basically, social trading takes advantage of ‘crowd wisdom’ to help traders make the optimal trades. Instead of just relying on your own strategies, traders can now follow more successful traders and replicate all or part of their trading strategies. Social trading is a broad umbrella term; not only can you replicate other traders’ strategies but you can also ‘follow’ them (comments, likes etc.) as well as see their investment statistics in order to find the best traders to copy.

And research shows that copy trading is indeed effective. In an MIT Study conducted in 2012, Dr. Yaniv Altshuler found that traders on eToro who used guided copying (copying a suggested trader) performed 6 to 10% better than manual traders, and 4% better compared to traders that were merely copying random investors of their choice. Due to eToro’s large network of over 4.5 million users, its social trading is particularly effective. eToro’s main social trading tool is the CopyTrader which is the feature that allows you to discover and copy the best traders on the eToro network. You can copy up to 100 different traders at once, with a minimum amount of $100 each with a maximum amount of $500,000 per trader. The minimum trade amount of a copied trade is $1. CopyTrader has 4 main features: Copy All Trades: You will copy all open trades of your selected trader. These positions will have the same Stop Loss and Take Profit limits as the original trade and will also follow the copied trader’s future actions. For example, if your copied trader changes his stop loss position, yours will be changed as well. Note that you will have to open your trades at the current market rate, not at the copied trader’s original rate. However, you do have the option of closing specific copied trades while still copying the other trades. Copy Only New Trades: You will only copy your copied trader’s trades that he or she makes after you have initiated the copy action. Copy Stop Loss: This feature allows you to manage your risk across your whole copy portfolio. After the stop loss is breached, your copy account with the selected trader and all associated positions will be closed and remaining funds returned to your balance.

By default it is set at 40% however it can be manually changed. This feature can be used in conjunction with the other features and is highly recommended for risk management purposes. Pause Copy: This feature allows you to pause any new copy trades being opened with a copied trader, however all open positions will still remain open. In addition to the above, eToro also has several other features to enhance its copy trading program. People Discovery: This is eToro’s internal search engine to find traders to copy. You can filter your search according to country, invested assets, minimum gain over a certain time period. And that’s just the basic filter. If you use the Advanced Search function you can narrow it down even further with criteria such as portfolio allocation, average trade size, risk score, number of profitable months etc. Top Traders’ Insights: This is a feed which collects data from eToro’s Top 1,000 most profitable traders and provides insights into their most traded instruments plus a breakdown into buy and sell positions. Economic Calendar: A highly detailed economic calendar that shows data such as export growth, GDP, jobs data, industrial production etc. of various countries. The data is even broken down into actual, forecast, and previous. Market News: Live news updates, trends, fundamental analyses, and technical insights. Pips Calculator: A quick tool to translate movement in pips into actual dollar profits and losses.

eToro Popular Investors. With almost 5 million traders on the eToro platform, finding the right traders to copy can be a bit of a challenge, even with the People Search function. That’s why eToro has implemented its Popular Investors program, which not only highlights its best traders but enables these traders to earn money from being copied as well. This is not unusual, as one of the criticisms of copy trading is that is essentially investment management. After all, if thousands of people are copying your trades, aren’t you basically just investing their money for them? The only difference is that there is no real contract between the copier and the copied trader. Popular Investors can earn money via an ‘asset management’ fee of up to 2% ( assets under management would depend on how many traders are copying you ) plus up to a 100% spread rebate. This is all in addition to their own trading earnings. And the payments to Popular Investors are not just bonus credits; they are real funds that can be immediately withdrawn. We should note that all Popular Investors must trade using ‘Responsible Trading’ settings.

eToro currently has four levels of Popular Investors. They are: Cadet: Requiring only 1 trader to copy you, plus a minimum deposit of $1,000. Doesn’t earn any monthly premium but instead earns a 20% spread rebate. Rising Star: Minimum deposit of $5,000 and 50 traders copying you. You get a spread rebate of 30% and a monthly payment of $500. Withdrawal fees are also waived. Champion: Minimum deposit of $5,000 and 250 traders copying you. You get a spread rebate of 50% and a monthly payment of $1,000. Withdrawal fees are also waived. You get access to a Premium Account and Trading Central. Elite: Minimum deposit of $20,000 and assets under management of above $300,000. You get a spread rebate of 100% and a monthly payment of $1,000 plus 2% of assets under management. Withdrawal fees are also waived and you get access to a Premium Account and Trading Central. In addition, you get a $500 monthly marketing budget, a $500 quarterly education budget, and a $5,000 annual events budget. In early 2017, eToro launched its CopyFunds feature which moves eToro towards a universal investment and trading platform. As we explained above, copy trading is already conceptually similar to investment management; by copying another trader’s trades, he is essentially ‘managing’ your money for you. Each CopyFund will have its own investment strategy and asset allocation. The minimum investment amount in a CopyFund is $5,000 and there are two kinds of CopyFunds available: Market CopyFunds: A CopyFund that is comprised solely of financial assets such as stocks, currencies, ETFs etc. Top Trader CopyFunds: This CopyFund consists of actual traders instead of assets.

The traders that comprise a certain CopyFund will be selected based on each individual CopyFund’s strategy. For example, if a CopyFund’s strategy is long term equities then it will select traders that have high stock allocations with long timeframes. Unlike investing in a typical fund or financial services firm, there is no management fee associated with using CopyFunds. This puts it ahead of even the low cost ‘robo-advisors’ which are so popular right now, most of which still charge management fees. The only fees will be via eToro’s spreads on the transactions initiated by the CopyFund. Also, unlike traditional funds which have very stringent redemption conditions and even ‘redemption gates’ to prevent a run on the fund, you can halt your CopyFunds investment at any point in time. The only delay is that if you initiate a stop when the markets are closed, you will have to wait until the markets are reopened for the system to close your positions. There are a few other salient differences between CopyFunds and traditional funds. For one, there is no need for a CopyFund investor to deliver capital to an investment manager, rather the ‘manager’ just opens and closes positions from the investor’s own accounts according to the CopyFund’s strategy. Second, leveraged trading still applies meaning that your notional investment amount can be much larger than your actual investment amount. And finally, eToro’s CopyFunds allows the usage of short positions unlike traditional ETFs, which only take long positions. Over time, every investment portfolio experiences what is known as ‘portfolio drift’. This is what happens when due to individual price movements of the assets within a portfolio, its allocation starts moving further and further away from the target allocation. Because of this, a portfolio needs to be rebalanced on a periodic basis.

eToro rebalances its CopyFunds periodically and automatically however the rebalancing period differs between each CopyFund. You can refer to each individual CopyFund’s prospectus to find out its rebalancing frequency. Of course when it comes to investment funds, what everyone wants to know is, what is the return on investment? Unfortunately, since eToro’s CopyFunds is not even 3 months old as of April 2017, its returns cannot yet be compared to any benchmark. However, as per most investment funds, investors should look at a timeframe of years for ideal returns. Remember, investment is not trading. eToro Account Types. eToro currently offers 3 types of trading accounts. They are: Standard Trading Account: The most common account with a minimum deposit amount of $50 up to $1,000 depending on country and region. Demo Account: A demo account with $10,000 in virtual credits. Can be used simultaneously with a standard trading account; traders have the option of switching between the live and demo accounts on the platform. Islamic Account: A big plus for its competitors, eToro also offers sharia compliant Islamic accounts. Trades conducted on the Islamic account implement immediate buying and selling without delay with no interest on trades, thus avoiding potentially usurious interest, known as riba. An eToro Islamic account also provides you with interest free leverage, and there is no interest on contractts over 24 hours, nor does eToro take any additional commissions for contracts over 24 hours.

However, it has one of the highest account opening minimums, at $1,000. Premium Account: Automatically given to Popular Investors who have achieved ‘Champion’ status and above. However if you have $20,000 in account equity or have made net deposits of $20,000 over an 11 month period, you too can qualify for a premium account. Premium Account holders have a personal account manager, faster withdrawals, direct access to eToro’s trading room, free access to its Trading Central investment research platform, weekly market analysis videos, plus a personal credit card. They may also receive a 25% deposit bonus upon the upgrade and further their referral commissions are higher at $2,000 per invitee with each invitee receiving a $5,000 special deposit bonus. eToro Deposits and Withdrawals. eToro’s minimum deposit amounts range from as low as $50 to as high as $1,000 depending on region and country. eToro also accepts a wide range of payment service providers; in addition to the usual Visa, MasterCard, and wire transfer, eToro also accepts China Union Pay, Diner’s Club, Giropay, Neteller, PayPal, Skrill, WebMoney, Wirecard, and Yandex. All eToro accounts are USD-denominated and deposits made in different currencies will be converted into USD which will be subject to eToro’s posted spreads. Depending on the payment option, there is also a maximum deposit amount (unlimited for wire transfers), ranging from $5,000 to $50,000. All transactions are protected using Secure Socket Layer (“SSL”) technology for maximum data protection and privacy. eToro Deposits and Withdrawals. We should also note that while it is possible to deposit money into your eToro account without first verifying your account, unverified accounts are limited to a total deposit amount of $2,250. Account verification requires proof of identity, proof of address, and phone number verification. When it comes to withdrawals, only customers with verified accounts can withdraw funds. The minimum withdrawal amount is $20. eToro takes 1 business day to process a withdrawal request, which we note is extremely fast, while the time it takes to reach a customer’s account will vary depending on the payment service provider. In general, it may take anywhere from an additional 1 to 8 working days after the withdrawal has been processed. Withdrawals are also subject to fees, which are described in the section below.

Video ad of eToro below: Note: Remember to read our conclusion of eToro at the end of the review. eToro’s primary method of income is the spreads it takes on all trading transactions, which are already some of the highest in the industry. Further, eToro applies the same high spreads for currency conversion of a customer’s funds when depositing or withdrawing funds (since all of eToro’s accounts are denominated in USD). In addition to these spreads, withdrawal fees are also applicable, depending on the withdrawal amount. Withdrawal amount of $20.00 – $200.00: Fee of $5.00 is applicable. Withdrawal amount of $200.01 – $500.00: Fee of $10.00 is applicable. Withdrawal amount of $500.01 and up: Fee of $25.00 is applicable. Based on the withdrawal fees above, it is clear the eToro’s withdrawal fees are very high, especially if you express them in percentage terms. If you withdraw $100 your withdrawal fee is 5% and if you withdraw $1000 your withdrawal fee is 2.5%! Only when withdrawing thousands of dollars does the withdrawal fee become small in percentage terms. Overall, it’s not just eToro’s spreads that are high, its withdrawal fees are as well. Definitely a negative that should be considered. eToro Trader Education. eToro Trader Education. eToro features an educational ‘Trading Academy’ section which has three main features: live webinars, a trading e-course, and trading videos. Currently there are 7 previous live webinars posted which can be accessed via the eToro website or on their YouTube channel.

Their trading videos are more of ‘how to’ videos and are designed to show users how to properly use their platform and its features. This is also available through their website and hosted on their YouTube channel. Their trading ecourse, while free, is only available to registered members. Currently there are 11 lessons in the ecourse, covering topics such as basic and advanced technical analysis, effective strategies, trading psychology, and market analysis. In addition to their trading academy, eToro also maintains an active blog which has a wide range of topics from cryptocurrency news, top investor spotlights, market analyses, and of course, eToro updates. eToro Bonuses and Promotions. eToro has a ‘Refer a Friend’ program, which can earn you $100 in eToro credits for every friend you invite. Further, each friend you invite will himself or herself receive $200 in eToro credits! However, the caveat is that each of your invitees must deposit a minimum of $500 with eToro for you to receive the bonus credits. The invitation process is easy and can be done entirely via email. Premium Account holders receive higher commissions when using this program. In addition to ad-hoc promotions, eToro offers two main promotional programs; a First Time Depositor promotion and a Re-Deposit promotion. eToro did not specify the amount of credits available under these promotions, however it did note that any credits as a result of these promotions have a six month expiry date from the time they are first deposited.

While eToro’s main website pages are easily navigated to from the main page, we found that the site has a high number of inner pages which are not intuitively laid out. As an example, information about eToro’s Islamic account and leverage ratios can only be found by navigating through its inner pages. Further, we note that a lot of details about eToro itself require you to be a member to learn about them. While overall eToro’s website is adequate, there is still much room for improvement. eToro Customer Support. eToro offers customer service on a 245 basis, that is 24 hours a day from Monday to Friday. eToro has a ‘Customer Service Wall’ feature, which is similar to Twitter for non-urgent inquiries. All complaints posted on the wall are visible to everyone; further, this feature is only available from 8AM to 5PM GMT. For private or urgent inquiries, eToro customers can use their 245 Live Chat feature or submit a complaint to them via web form. It should be noted that complaints submitted via web form may take up to 48 business hours to receive a reply. The downside of eToro’s customer support options is that unlike their competitors, they do not offer any phone support.

eToro Customer Complaints. Given the massive popularity of eToro, with almost 5 million users, complaints are inevitable. Our research showed that most of the complaints against eToro were very minor and mostly revolved around the lack of customer support, high spreads, withdrawal fees, and their focus on social trading over retail trading. With regards to the final point, it appears that more than a few traders were disappointed that the traders they had copied were not successful; but this is a risk you must accept when using social trading. In addition, back in 2010, CySEC fined eToro EUR50,000 for weaknesses in their operational and organizational structure related to their early days in 2010. eToro paid the fine and all the weaknesses have been rectified. eToro Social Media Accounts. eToro is active on all the usual social media accounts and you can find them on Facebook, Twitter, LinkedIn, Google Plus, and YouTube. When it comes to social trading, eToro has pushed itself ahead of the pack. Already one of the first in the game, its features such as the Popular Investor program and the latest, CopyFunds, puts it ahead of the competition. And with such a large user base, its social trading capability is only magnified. That said, it does have significant drawbacks, namely very high spreads and withdrawal fees. But since top traders can get spread rebates and their withdrawal fees waived, eToro may be the kind of broker where the top traders truly thrive while unsuccessful traders might find themselves left far behind.



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