What is eToro? | SocialTradingGuru.com

What is eToro? How eToro Works

eToro Social Trading Network and PlatformeToro is a global social investment market place for people to trade currencies, commodities, CFD stocks and indices online. Their aim is to give new and experienced investors the opportunity to benefit from the collective potential of their diverse trading community in a simple and intuitive manner.

eToro

  • 5m+ Professional Traders to Copy from
  • $5k CryptoFund
  • $100,000 Demo Account!
Demo Account
Visit Now

They do this through their innovative social investment platform. This doesn’t just allows eToro customers to execute trades themselves (just like with any other broker), but it also allows them to interact, learn and automatically copy the trades from other successful traders (CopyTrading). These trades are copied in your account in real-time, as such allowing you to create a “people-based” portfolio.

Access eToro CopyTrader on The App and Web-Based Platform

eToro itself was founded in 2007 and as of November 2015 has over 4.5 million users in over 170 countries. The WebTrader web-based trading platform was launched in 2008. The OpenBook social investment network was launched in July 2010, with the CopyTrader feature released in May 2011. Since August 2011 eToro also made Mobile trader applications available on Android, iPhone and Blackberry devices. In November 2015 the “New eToro” platform was launched. It combines WebTrader and OpenBook into the same interface and works seamless across all devices (web, tablet and mobile).

Try Out eToro Social Trading With Unlimited Demo Account

To get started, eToro offers an unlimited free practice account with access to all the same features as their ‘real-money’ accounts (including the functionality to copy other traders) – click here to sign-up for eToro demo. Real-money accounts can be funded with eToro through a number of ways (bank wire, credit card, PayPal, MoneyBookers, Western Union, …) and are managed in $ USD. There are various funding incentives available, and depending on the amount you first deposit you sometimes can get up to $10,000 bonus. Since February 2016, the minimum deposit is $200 for all customers and all countries.

Find CopyTraders That Suit Your Goals and Control Your Risk Level

eToro also provides a range of responsible trading features such as pre-set leverage settings to help investors to easily calculate their risk. When you copy other traders you’re also restricted to allocating a maximum of 20% of your total capital per trader, hence protecting your equity by limiting your exposure. To find the people you might want to follow, eToro launched a “GuruFinder” feature in 2012, which since got revamped to the “Discover People” tool. This lets you filter the available traders to copy (aka Popular Investors) based on parameters such as their average exposure, winning ratio and risk level.

If you’re new to trading, there’s an online education centre with eCourses, live webinars, trading videos and tips. And obviously you can also learn from interacting with other traders on their social investment network.

eToro Costs and Fees

There are no costs or management fees for using the eToro social trading network and investment platform. Because eToro also acts as your broker, they solely make their revenues through the broker spreads of the instruments you’re trading on (i.e. the difference between the Ask and the Bid prices). In addition eToro, just like other brokers, also charges overnight rollover fees (or credits) for any trades positions left open overnight and over the weekend.

How CopyTraders Make Money By Sharing Their Trades On eToro

The “Popular Investors” are rewarded based on the amount of copiers they have. When they have at least 50 copiers they make $350 per month. The more popular they are the more they can earn, with a maximum of 2% annually of the copiers’ funds (AUM), paid monthly. They will also receive rebates on the spreads of their own trades up to 100%. I.e. the more people they get copying them, the more commissions they’ll make. Trading at eToro can be done on a diverse range of financial instruments: currency pairs, commodities, stocks, indices and ETFs (exchange traded funds). The amount of leverage you can use depends on the instrument.

eToro Europe Ltd which is regulated by the Cyprus Securities & Exchange Commission (CySEC). eToro UK Ltd. is regulated by the Financial Conduct Authority (FCA. Both companies also operate under and comply with the Markets in Financial Instruments Directive (MiFID).

 

eToro

  • 5m+ Professional Traders to Copy from
  • $5k CryptoFund
  • $100,000 Demo Account!
Demo Account
Visit Now

Broker Reviews

Check out our other broker reviews:

Ayondo Review

Swipestox Review

Copyop

Tradency

Tradeo

MyFXBook

Sirix

IronFX

Darwinex

Instaforex

 

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.