Worldwide acting broker eToro is a pioneer in so called social trading (by copying other traders). The core of the innovation at eToro is the option to become a passive investor from an active trader, by letting a part of the trading orders be taken over from chosen, successful traders. Copying other traders with eToro is so attractive that from 2006, when the company was founded, the broker has gained over 4.6 million clients from all over the world. Broker offers its services with accordance to the European directive MiFID, has a licence from the British Financial Conduct Authority. Deposits of clients from the European Union are insured by law up to £50 000 and are held separately from broker's finances.
Trading platform – review
The motive behind development of their own trading platform was ease, speed and simplicity. Broker created trading environment called WebTrader, which does not require installation and runs on any modern internet browser. It uses HTML 5, but not Flash, so the application is fast and does not require the installation of any plugins and is also battery friendly. The same application is also available for fast smartphones running on Android, iOS or Windows.
Copy trading is simple with eToro. Clients go through the database of active traders and find the one best suited for them, be it based on their history on eToro, overall success, number of trades a day, country of origin, etc. Then they choose the size of the account with which they want to copy the trader and confirm.
From the moment the trader to be copied is chosen, all the trades done by the followed trader occur simultaneously in the account of the client in the desired amount. At eToro, with the correct set up, it is possible to create a diversified portfolio, which will steadily make money for the client, even when they sleep, for example.
The options in choosing the trader to copy are numerous and the most successful investors have more than 30% yearly returns and thousands of followers copying their trades. You can choose from thousands of traders to copy at eToro.
eToro social network
eToro is not only a broker offering online trading and copy trading; eToro evolved into a fully functional social network connecting traders from all over the world and giving them the space for discussion. Every eToro client gets his profile, on which he can, but does not have to be active. Nevertheless, regular participation in the community is a great added value for trading and keeps the trader up to date, while discussing their ideas with others.
Trading with eToro
With eToro you do not have to trade only by copying others, you can also do it the old fashioned way. There is a choice of over 850 trading instruments. Most represented are CFDs on American stocks, but you can also trade with european stock markets, currencies - FOREX, crude oil, precious metals, equity indices or exchange traded funds (ETFs). Trader/investor can, at every opening position chose the degree of leverage from 1:1 to 1:200, allowing for trading with only your money, without the use of broker's. Fees for trading, in form of a spread, fall under the better ones, when spread is from 2 pips for USD/JPY and 3 pips for the popular pair EUR/USD. This is considered as a decent spread for a majority of traders.
Bitcoin at eToro
eToro is one of the few brokers offering trading with crypto-currency Bitcoin. Exchange rate is following the biggest bitcoin exchanges bitstamp.net and the spread is only around 3 USD, great value when we consider that the normal spread on BTC on exchanges is 1 USD plus a fee of 0.5% based on the amount.
eToro demo account and test of platforms
Opening a trial demo account with eToro is easy and requires the client to only fill out a short online registration form, which does not take more than 30 seconds. At the moment of registration, the client gains access to the trading platform and the possibility of infinite testing with virtual currency.
Virtual funds are in the amount of $100 000 USD and the demo mode allows for the same trading experience as the real life trading, including the copy trading and achieving the same profits/losses.
eToro in media
The popularity of eToro is corroborated by the sheer extent of attention given to this platform by renowned foreign financial media, such as Financial Times, Bloomberg, The Telegraph, and CityA.M.
eToro is popular not only among the editors of financial periodicals, but also and foremost among its own brokers, as demonstrated by e.g. Facebook page eToro, with more than 1 150 000 likes (at the time of the review 16.3.2016).
Types of accounts, deposits and withdrawals
eToro offers one type of account for all its clients, regardless of the deposit. The minimum deposit is $50 USD, which allows anybody to try out the broker and the accompanying services.
Deposits can be done through a number of payment options, from standard bank wire transfer and credit cards, to a sophisticated online wallet Neteller and Skrill.
Withdrawal is possible from $20 USD, which is a very fair amount, proving that the broker is in no case a money trap, easy to deposit but difficult to withdraw. Withdrawal is essentially available through the same channels as the deposits.
Bonus at eToro
The broker usually offers the promotions on a monthly or quarterly basis, so there is a new bonus waiting for the traders at all time. At the moment - at the time of the review - March 2016 - it is possible to get a bonus of up to $ 9 750 USD when depositing $ 65 000 USD. However, there are also opportunities for smaller investors and the bonus starts at $ 250 USD with the deposit of $ 2 500 USD. Current promotion for Great Britain is also the bonus of $ 100 USD with the deposit of $ 300-999 USD and a bonus of maximum $ 1 000 with the deposit of $ 5 000 USD.
Another chance to get free resources from eToro is by sending invitations to your friends, when for every 10 invited friends, the trader gets $ 1 000 USD.
An interesting method of earning money on eToro is to become a so-called popular investor. When the trader is copied by more than 5 people, he earns a reward. The amount of the reward depends on how successfully he trades and how many other clients are copying him.
Licence and regulations
The residence of the broker is in the favorite European financial center, that is on Cyprus, the address of the broker is 42nd Floor, One Canada square, Canary Wharf, E14 5AB London.
The licence, issued by FCA (Financial Conduct Authority) is the accepted European licence, granting an insurance of 100% on the deposit of up to £50 000 and the security that the clients' deposits are held separately from the company's finances.
eToro offers quality customer support service, concentrating especially on email communication. Available is also an online chat room and unique discussion forum on the platform, similar to the Facebook wall. The benefit of the discussion forum is that the problems of others are visible and so the broker takes care that everything is attended to and solved correctly and on time. Overall, eToro's customer support is of a very high standard.
Experiences with eToro
Our experience with the broker has been positive. The new platform is fast and well designed. The profile browsing of traders available for copying is easy and it enables a quick creation of a passive portfolio, which will only be copying the trades and achieve the same results as copied traders.
The experiences of other traders, for example from online forums show that with eToro it is possible to achieve long-term passive revenue, but it is necessary to have realistic expectations. A result of around 10-20% a month is very good, 5-10% with copying a trader is a much more realistic estimate. Understandably, it is necessary to consider that previous results are not an assurance of future profits.
Join the discussion under the review and share your opinions. What were your results when trading with eToro and has copy trading worked to your advantage? What are your experiences with deposits and withdrawals? Share and discuss.
If you are thinking about copy trading at eToro and considering whether it can really work and become a source of carefree income, the easiest way to find out is to create a demo account and try out all aspects of eToro functionality. Demo account allows copy trading as if for real money and so you can find out on your own if eToro works or not.