In this eToro review, we’ll share with you our honest opinion about the broker. Let’s start with the company’s history.
eToro was founded in 2006 and it has made huge progress over the last 12 years. Today, eToro is the biggest social trading platform in the world. The rapid growth helped the company to raise almost $160 million in several funding rounds. By the end of 2017, eToro was reported to have 8 million opened accounts.
What makes this broker so popular? Why do only 65% of retail investor accounts lose money when trading CFDs with this provider? Why is this much lower than the average 85% losing accounts in the industry? Let’s take a closer look at eToro and compare it to an industry average broker to find the truth.
We’ll start with reviewing the first thing that the customer will see after registering with eToro – its trading platform. It’s absolutely fantastic, and in just a few moments you’ll see why we think so.
Watchlist is a standard feature of every trading platform, but eToro have made it effortless to use. Here you can see all your favourite trading instruments. Currency pairs, commodities, ETFs and stocks or cryptos are all in one place, with a very nice overview. You can see not only the current Bid and Ask prices like on any other average broker platform, but also a daily change, quick chart, and market sentiment, showing you how other people trade this instrument.
In the portfolio section, you can see your current opened positions on the markets. Although it’s a basic feature of any average broker trading platform, eToro have gone further and improved it greatly. The portfolio page on eToro is easy to use and very understandable, even for complete beginner traders. Here you can see your current trades, units, average open price, invested amount, profit/loss, current value, sell and buy prices. You can customise each column and change the view of your portfolio. Also, you can switch between your history and pending orders. At the bottom of the screen, you can see your available funds, allocated, overall profit or loss and the total current equity of your account.
The newsfeed is a page where you can see posts from other eToro traders and talk to them directly. This is the place where you can share your trading ideas and thoughts about the markets, and receive feedback from others. It’s like a Facebook for traders, which is helpful when you are looking for some fresh ideas or feedback. There are some other social trading platforms which offer such functionality, but only eToro’s community is really active, and only here can you expect that people will communicate with you.
Trade Markets (10/10)
On this page, you can see a few sections. They are Featured markets, the very recent market movers and main instruments of each category available on eToro. Ath the top of the page, you can choose the market you are interested in. Clicking on the market will load a page with all instruments that fall into this market. On eToro you can trade Cryptos, ETFs, Stocks, Indices, Commodities, and Currencies (Forex).
With an average broker, you would need to go through a few steps to trade the desired instrument. First, you look for it in a long MarketWatch list. Second, you open a chart of this instrument to see what’s going on here. Third, you open another instrument to compare. Fourth, you repeat it as many times with as many instruments as you want to compare. And actually doing this takes more time when reading about it. So you can see that eToro makes your life much easier. It’s also important to note that eToro offers you real stock trading. To trade real stock with eToro, simply open your position with an x1 leverage. If you choose a higher leverage, then you’ll be trading CFDs.
Copy people (10/10)
This page is a game changer in the CFD broker industry. We would say it’s the home of a ‘social trading’ – this is where the new era of trading began.
eToro was the first platform to offer social trading, i.e., allowing people to copy other people’s trades. All participants in social trading are divided into two groups – Popular Investors and Copiers. Popular Investors are people who provide trading signals and allow others to follow them and copy their trades. People who follow Popular Investor(s) are called Copiers. eToro pays its Popular Investors when other traders copy them.
Thanks to this feature, eToro have attracted many successful traders whose trades you can copy. They can now trade as usual and earn additional money for their trading activity. But not everyone can become a Popular Investor. You first need to prove with your real money account that you can achieve consistent results with adequate risks. It goes without saying that all other brokers are way, way behind eToro in Social Trading.
Invest in CopyFunds (9/10)
CopyFunds is a relatively new feature introduced by eToro in 2016 and it found its audience very quickly. It’s a portfolio management product that allows you to invest in several markets or people with just one click. Some of the CopyFunds have a 12-month return of over 100%! This is probably one of the best products available on the market for busy people. No need to trade your own or manage a portfolio! Unfortunately, this type of investment is only available for those who have at least $5,000 on their trading account.
Your additional benefits
If you open an account with eToro and make a deposit, we’ll invite you to a 30-minute one-on-one Q&A Skype session with our expert trader, who has 14 years of experience in real money trading and who is managing our corporate trading account. You’ll be able to ask any questions about trading and the financial market to get a good start in your trading career. Click here to find out more.
Risk Disclaimer. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. eToro also offers the ability to buy stocks and ETFs. Only 33% of clients who invest in equities lose money with this provider.