This eToro review presents a complete overview of the platform and the eToro broker has become very popular due to copy trading and the ability to buy stocks without commissions.
We will talk about the eToro trading platform , highlighting its strengths, weaknesses, risks, and find out who it is suitable for. Everything you will read is based on practice, on our real experience of trading with eToro and using all the services it offers.
To test it immediately with a demo account without deposit, access this official page and provide the requested data.
What is eToro
eToro is a company specialized in online trading where it operates as a broker . Its role is to offer the tools with which to operate, make sure that everything works correctly and guarantee the transparency of the service.
Among the significant corporate characteristics we highlight:
- Numerous clients;
- Operating all over the world;
- Regulated in Europe and authorized in Italy by Consob;
- It allows you to carry out real transactions with stocks and cryptocurrencies;
- With CFDs, you offer leveraged trading on various assets, including currencies; ETFs for commodities, cryptocurrencies, stocks, stock indices;
- It offers the possibility to communicate with other users and copy experienced traders.
We are talking about a company that has more than 4.5 million users operating in more than 140 countries . These results are obtained only if, as in this case, it is possible to offer conditions of security and transparency that are universally accepted, regardless of the country in which it operates.
Analyzing it under the microscope, we discover that eToro was founded in 2007 and began its activity as a broker in the Forex market.
Today it has evolved a lot thanks to its new platform and its new functionalities, and it has obtained all authorizations to operate in several countries, including Italy.
EToro Ltd (Europe) in fact operates under the MiFID directive ( Markets in Financial Instruments Directive ), which is a directive that provides a harmonized regime for investment services in the euro area.
To this directive is also added the regulation of CySEC (license number 109/10) and registration in Cyprus (CIF, registration number HE200585). Bottom line: eToro is legal, secure, transparent, fair, and meets all regulatory requirements .
The eToro broker , through its online platform, allows you to trade currencies, stocks, commodities, indices, Bitcoins and ETFs using CFDs, and it offers the opportunity to socialize with other users and even copy your trade through Copy Commerce.
Review of the eToro platform
Let’s now review the eToro platform , which is the trading environment in which you can trade stocks and benefit from changes in their price.
It is an advanced trading platform and certainly the most advanced in circulation among those offering social commerce, or the ability to communicate with other users in social mode (write posts and comment on them).
Joining eToro means being part of a large user community that includes both amateur and experienced traders, but also beginners.
To get started, you can register here on eToro with a demo account without depositing.
It is a true social network dedicated to investment , in which all the necessary tools for trading are also available.
Features of the eToro platform
Here is what you can do with the eToro social trading platform :
- Trade the market on the rise or fall with currencies, stocks, commodities, ETFs and Bitcoin via CFDs
- Follow the operators as usual on Facebook or Twitter, to observe their operations and copy them manually with a simple mouse click
- Make Copy Trading , a useful function that allows you to configure the platform to automatically copy the trades of one or more selected traders (selected by the user)
- Do Social Trading , or share and discuss your own activities or those of others, through comments, publications, debates.
Also Read: Top Popular Investors To Copy
A large community of users
So, in addition to the artificial side, given by the trading tools, there is the human side, given by the large community of users with whom you can communicate, commenting or asking for advice, copying operations or being copied, or simply reading the published articles. on the eToro blog.
You can always see the percentage of return of a trader that you follow , to be able to “follow” him if he convinces you of his way of trading and even copy it in such a way that you take advantage of his ability to win personally.
The beauty is that, in addition to being real people , in addition to trading, you can even interact with whoever you want and, therefore, also with the traders that you are thinking of copying. Likewise, those who decide to follow you will also know the performance of your operations.
This situation is very different from the one we find ourselves operating with platforms in which we negotiate independently, without any comparison term, without any type of healthy competition or discussion.
In any case, the saying “de gustobus” applies, so each one chooses the trading platform with which to operate based on their styles and needs.
Demo account to learn free and risk-free
It is important to underline that the eToro platform is also suitable for novice traders , that is, users who for the first time decide to try trading practice.
In our experience on the platform, in fact, we have been able to notice the large number of novice users, along with that of amateur traders and true expert investors (among which the most advanced are called “popular investors”).
The fact that it is an optimal platform even for beginners is highlighted by two key functions, such as the demo account (free) and the social trading described so far.
The demo trading account allows you to practice on the platform trading with virtual money. By doing so, the novice trader can learn without any risk and at the same time communicate with other users for advice.
The free demo is not binding, so registration in the live account is at the user’s sole discretion.
To open a demo account, simply visit the registration page on eToro, sign up, and then choose demo mode.
Graphical interface of the eToro platform
Once you have logged into the demo account, the platform will appear as in the following screenshot:
- Favorites list or watch list or control panel : this is the main page where you have everything under control, where you can follow the markets (stocks, shares, indices, currency pairs, etc.), people, subscribe with rates on time real and therefore obviously trade. On this same screen, you can also create collections of markets or people based on your trading style and strategies. On the first launch, the most popular markets of the moment will be visible, but you always have the possibility to customize, add or remove specific markets and values.
- Virtual or real wallet : in the upper left you can easily and quickly set the demo or real mode.
- Buy / Sell Position Buttons – These are buttons that report the real-time quote of the securities you can trade with. To continue, simply click on buy or sell and then configure the specific data in the next window (units, leverage, stop loss, take profit)
- People : in the lower area is the area dedicated to people. The concept is that you can invest in both people and markets. Then you can diversify your portfolio by copying other investors. To do this, click on “People” in the left column. A page will open showing eToro users, which you can search based on various filters, including origin, market type, return, and risk.
- CopyPortfolio : it is the great novelty of eToro, always selectable from the convenient left bar, which consists of funds created through an algorithm that will collect the assets and traders with the best performance
The two keywords to remember with eToro are “comments” and “returns”. These two simple words will be enough to help you get better results and, above all, more stable because they are reasoned and even discussed.
In our eToro trial period, we operate with real funds and a modest overall budget. The two factors that continually jumped on us were the comments of the traders and their return percentages , but above all of some who managed to obtain really important results (which we will discuss in the next paragraph).
The eToro charts, in fact, are decidedly smart, as well as nice, so they highlight all the most useful data for users online trading.
For example, it highlights the Top Investors (that is, the best investors, those with the highest profitability) and the “Trending”, that is, those that at any given time have received a strong increase in the number of followers.
To make a comment, a question, follow someone, just one click and everything is at your fingertips.
Copy Trading y Popular Investor
EToro Copy Trading should be seen as an opportunity from two different points of view. In fact, it is an opportunity both for those who decide to invest in people , and so therefore copied what the traders more experienced (perhaps by selecting them from Popular Investors or popular investors, also called “Popular Investors”) to those who decide to use their skills and win.
In fact, with Copy Trading, those who are copied get small commissions, so the more followers you have, the more you earn. To get more followers you need to do it well and gain credibility. Our advice is to create as detailed a profile as possible.
Also read: Becoming a popular eToro investor.
As mentioned in the paragraph dedicated to the demo account, eToro has launched a new feature called Copy Portfolio . This section includes collectors of the best performing assets and traders. Therefore, these are selections created automatically by eToro’s own algorithm.
Also read: eToro launches CopyPortfolio.
Looking for flaws
As we already announced in the introduction, in this review we also list the flaws that we found with the use of eToro, in order to ensure maximum objectivity of this review , also because if there are flaws it would certainly be very unpleasant on the part. we let you discover them.
That is why we are going to highlight here some of the aspects that we liked the least and for which an improvement would be desirable.
So far we have said that on the eToro social trading platform everything happens under the sunlight: each user can be found, tracked, copied, replicated. However, and here is the first flaw: many profiles are not exhaustive .
For example, a user’s performance is displayed on a histogram chart on a monthly basis, with the percentage value of gains and losses compared to the previous month, as well as an annual total. Therefore, there is no chart that indicates equity, an important piece of information to verify the performance of the trader.
To compensate for this issue , eToro made return-to-return percentages independent of withdrawals and deposits, and better yet added an algorithm that calculates the trader’s risk percentage. The risk score (Risk Score) is calculated monthly on a scale of 1 to 10. This calculation takes into account factors such as financial leverage used, the portfolio volatility, correlation between instruments, etc.
The goal of this eToro algorithm is to make public the percentage of risk that may involve manual or automatic copying of a trader.
All of these efforts by eToro show how close it is to its users and how it truly commits itself to constant and incisive improvement of its platform.
With each passing year, the features get better and better and get smarter . We also know this well, because it is not the first time that we have tried to trade with eToro and we can say with great certainty that its developments are increasingly in favor of the quality of trading and the satisfaction of the trader.
No platform is perfect, but eToro always shows a lot of commitment to improve the conditions of traders and thus find greater satisfaction in the user community.
Costs and commissions
EToro costs and fees include:
- Zero commissions for purchases of real shares
- Overnight rates for CFDs
- Spread for opening CFD positions
- Fixed $ 5 fee per withdrawal
We highlight that CFD spreads vary depending on the instrument traded and for EUR / USD it is only 3 pips. For more information, see the CFD spread information page
Trading with eToro does not involve any registration, activation or monthly costs.
The minimum deposit for the first deposit is $ 200 (via credit / debit card, Paypal, bank transfer, Skrill, Neteller, Webmoney). For deposits after the first, the minimum is $ 50.
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You need to consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Crypto assets are volatile instruments that can fluctuate widely in a very short period of time, and therefore are not suitable for all investors. Aside from CFDs, trading crypto assets is not regulated and is therefore not supervised by any EU regulatory framework.