Founded in : 2007
Headquarters : Cyprus
Regulation : CySEC, ASIC, FCA
Platforms : OpenBook and WebTrader
Leverage : 1:30
Minimum Deposit : USD 200 to USD 10,000
What is eToro?
eToro was created in 2007 by three entrepreneurs who had a vision to innovate the world of trading. They aimed to fashion a trading platform that was appropriate to all kinds of traders, albeit beginner or expert.
Since 2007, eToro sustained its easy-to-use trading platform and has become the biggest and most popular trading brokerage firm and network. They are utilized by millions of users in more than 150 countries, globally.
eToro have defined the world of financial trading by offering an array of features and innovation. eToro have provided traders with the ability to access financial markets immediately and conveniently; they also have the ability to reach traders from around the world without any financial compensation.
The only question now is, if eToro are worth the money you trade or are they unreliable?
Is eToro considered safe or a scam?
It is understandable that a trader would be uncertain when it comes to choosing the right brokerage firm. One of the options would be eToro. eToro have provided many regulations that the brokerage firm must abide by.
Since eToro is headquartered in Cyprus, therefore they comply with CySEC; they also have the UK Financial Conduct Authority (FCA) and the Australian (ASIC) licenses. All licenses must abide by the three branches of jurisdictions.
Along with the three licenses and its regulations, eToro comply with the MiFID that benefits the clients in Europe. The licenses that regulate the firm and its safety procedures will benefit Australian clients, European clients, and clients with the UK.
Considering that eToro is the largest and most popular trading platform, it is approved as a safe trading firm.
eToro have a few trading platforms, but they are effective and efficient to their clients in every country they are located in. They have their own trading platform, OpenBook. It is a social trading platform that allows clients to communicate and gives them access to trading communities and successful investors.
OpenBook provides the ability for new clients to find the best ranked traders, or a particular strategy to follow through with. Another trading platform that they offers to clients is WebTrader, another renowned trading platform that is completely safe. For both trading platforms, WebTrader and OpenBook, there is always the option for mobile trading. Mobile trading is the ability to trade through cellular devices. Both trading platforms are supported by iOS and Android devices, which facilitates for clients. Mobile trading with eToro Brokers is an advantage for clients because they can trade anytime, anywhere.
Trading Accounts and Conditions
eToro have only one trading account that is available to create a safe account for clients, the standard account. There are currently more than 200 million clients who are socially trading or investing at eToro; this means that the standard account is adequate for any required financial services. eToro have three conditions for any client, beginner or expert, who want to open an account at eToro Brokers. The three conditions are for beginners, a fixed spread, auto, and copy-trade. The conditions for eToro are simply manufactured through the single standard account; this is established to give access to tools for any potential to progress. The account has the ability for Premium services, with the ability to access professional tools and features; it also offers clients their very own personal account manager.
Etoro also offer new or existing clients a reward system. As an example, any client that brings on a client through partner programs, or through the social trading community, will be offered a reward program.
eToro trading leverage level is a ratio of 1:30, as per the regulatory requirements of Europe and ESMA, with the aim to protect clients from financial risk. Leverage is a loan given by the brokerage firm to the client; it allows trade to occur with a more significant size than the initial capital.
eToro allows traders to use a leverage multiplier with a maximum of x30 for major currencies, x10 for commodities, x5 for CFD stocks, and x2 for crypto-currencies.
As the leverage increases furthermore, then there is a higher level of potential gains. However, it also applies in reverse; it also increases the chance of risk on the client’s financial potential.
eToro does not charge any commissions whatsoever; their fees are produced and established into a fixed spread. In eToro, spreads may differ and are generally at a low and an average level, at least compared to the industry’s average spread level. As for the fees that concern the trader in eToro, there is a ten dollar fee for inactivity per month, if the account has been inactive for 12 months. eToro also provides an overnight fee that charges the trader, along with the trading fee, in case the trader holds their leveraged position for more than one consecutive day. eToro has an overnight fee of EUR\\USD 3.7%.
Deposits and Withdrawals
In eToro, the funding methods are simple, to the trader’s benefit. All financial interactions are made as safe as possible since they are secured by SSL technology. eToro has a minimum deposit, depending on the client’s regional and country regulations. It can vary from USD 200 to USD 10,000. As for withdrawal, eToro Brokers process withdrawal requests rather quickly and efficiently. eToro have a withdrawal fee of USD25; this occurs with every withdrawal request, while the minimum withdrawal amount is USD50.
It is considered to be a high withdrawal fee, especially since it will occur with every withdrawal request. Yet, there are benefits right and left from eToro that surpasses the high withdrawal fee.
The advantages overcome the drawbacks that come with eToro, especially since they are considered the biggest and the most popular social trading and brokerage firms. They are also safe and secure with their client’s information and financial accounts. eToro is a very popular and up-and-coming brokerage company; it is guaranteed to give a client what they need, along with the access to social trading and mobile applications.
Educational Material and Resources
With eToro, there is a research button that traders will find in the mobile application, where a message appears that any analysis or research will only be available with traders who have funded accounts. They also provide an internal blog that covers various topics on the Forex market and Forex trading in general; the most detailed and accurate topics that are tackled is crypto-currencies. eToro’s blog manages to provide all sorts of information about crypto-currencies; they do not talk much about Forex or analyzing the Forex Market. The blog topics on crypto-currencies mostly emphasize on the crypto-currency boost that occurred in 2017; blogs topics also include on crypto-currency technical or fundamental analysis.
eToro also offers a Trading Academy link that is provided in the footer of the website, instead of being listed at the top menu. Traders will also find a Live Webinar link at the bottom; they also provide a page that should contain programs and archives on all the topics that were covered in the Live Webinar.
They also have basic programs in PowerPoint form, along with an “Advanced Technical Analysis” course. The course explains all the information needed to know on technical analysis. There are no written materials on the eToro website, other than descriptions of the trading platforms and trading instruments in the FAQ; there are other educational resources. eToro maintains an informational and educational a YouTube video library, which covers all topics in the Forex industry. For the tutorial section, there are only how-to presentations, which is beneficial for novice traders.
Conclusion on eToro
eToro was established in 2007, with the sole purpose to establish a trading platform that was easy-to-use and appreciated by all types of traders. eToro is now one of the biggest trading brokers in the world, and a part of that global reputation relies on their security. The licenses that eToro registered under are the FCA, the ASIC, and the CySec financial licenses, among other things. eToro offers their clients two types of trading platforms; OpenBook is an in-house trading platform and WebTrader is a world-famous trading platform. They also offer the option for mobile trading, so that clients can trade at any time and at any place.
eToro offers only one trading account, the standard account. However, despite being only one trading account, there are also many Premium features that facilitate traders to progress and increase their funds. The trading leverage eToro provides for their clients is a ratio of 1:30; this is because those are the regulations for Europe and ESMA. eToro does not have high leverage; this is because it must abide by the financial regulatory agencies and it wants to protect their clients from any financial risk. With eToro, spreads may be different and are commonly at a low and an average level, compared to the average spread level.
eToro is a very safe and secure broker that encourages complete transparency when it comes to handling client’s funds and keeping their information private. Since eToro is one of the biggest and best brokers in the world; we suggest that you trade with them, and we guarantee you will not regret it.
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