People have been trading for a very long time. In the early days, people traded various items or goods, but things are a bit different in modern days.
Today, a trendy trading option is cryptocurrencies, a type of asset that is turning out to be more popular than stocks. The first several years since the first cryptocurrency, Bitcoin, was released, there was hardly any interest in it. Crypto trading has risen in popularity, and so did services where you can trade them.
Among the many is eToro, a trading platform that we’ll be reviewing today.
What Is eToro?
Back in 2007, eToro was released as a forex trading platform, but things changed once cryptocurrencies began to rise. Even though the upgrade didn’t happen in the same year that Bitcoin was released, once the hype reached a certain point, eToro got an overhaul. On top of the existing features, the service got a crypto trading section.
Most trading platforms work on the principle where you trade cryptocurrencies and cash out or deposit funds when you need them. In that aspect, eToro is identical, but there is a feature some people find very helpful. It is a social trading platform where you can copy other people’s trading steps on platform. Some may decide to remain private, meaning that you can only copy from the traders that want their investments to be public.
Some people compare it with a trading robot, and that is not entirely true. While the service will go on autopilot if you set it to, it will not be trading based on some algorithm. Instead, it will follow the trade from the account you choose.
🎉🎉20M eToro users!
As we celebrate this important milestone of 20 million users, we are excited about everything that comes next. Thank you ALL for taking part in this journey with us.
Thank you, our users. We cherish each and every one of you! You are what makes us great.
— eToro (@eToro) March 9, 2021
If we put the automated trading aside, you have a regular trading platform. You deposit the funds, find some good pairs, and start trading.
eToro is one of those services that has a ton of features. Today, though, I’ll be focusing on the elements related to crypto trading. Some of them are unique, while others are shared with the forex trading section.
The first thing that you notice on any service is the layout, and the one on eToro doesn’t disappoint. As soon as you log in, you have tons of graphs and charts that give you an insight into trading. You can see your past trading or check out how the price changed for a specific cryptocurrency.
The social trading section is the highlight of eToro, and it’s the feature that is available for forex trading as well. This section looks like a social media platform, where you can look at what other users are trading or read their opinion, like a regular social media post. As mentioned before, not all users will have their trading decisions private, so you won’t see everyone using them. Keep in mind that most of the public are already experienced traders, meaning that you’ll be getting useful advice.
eToro Virtual trading
Virtual trading is a feature that more and more trading platforms implement, and it is one that beginner traders find very useful. Once you log in to the dashboard, you have the option to switch between live and virtual trading. Going for the virtual one will provide you with an option to trade with virtual funds pre-loaded to your account.
First-time traders will find this feature useful, as they will be able to learn how the system works without risking their funds. Veteran traders may also find this feature helpful because they can use it to test their trading or come up with new trading strategies.
eToro will pre-load your virtual portfolio with $100000 that you can use for forex or crypto trading. Even though the funds on your account are virtual, the cryptocurrencies’ prices are real and change in real-time. In other words, you will be investing the virtual funds, but the result will depend on the actual prices of the assets. Keep in mind that no matter how much profit you make, those are virtual funds that you cannot cash out.
Most services have an FAQ or knowledge base section, but eToro turns things up a notch. The combination of guides and examples of potential trading options is excellent for first-timers to understand how trading works in general. They can also learn how the system works and how to use it properly. On top of that, the blog section is very active, and you can get access to news and reports.
One of the drawbacks of eToro is their limitation based on your location. Depending on the country you’re in, you may not get access to the same materials as people from other countries.
Services like eToro have an option for registration, meaning that you won’t have access to it without registering first. Depending on what you want to do, the procedure varies in length and steps. If you only want to access the virtual trading section, the process is simple, and you only need an email address, and you’ll be up and trading in a few minutes.
To trade real funds, the procedure will require you to verify your identity. For that, you’ll need to send a copy of your ID and wait for a few days for your account to be verified. The reason for that is the process isn’t done by the service; instead, a real person will need to do it.
In most of our reviews, we don’t speak about customer support too much. When it comes to eToro, we must make an exception. There isn’t anything specific about their support, the way you get it will depend on your portfolio.
There are several tiers called clubs that will decide what kind of support you can get. If you are new to trading and your portfolio is below $5000, your only support option is either to submit a ticket or talk to someone in a live chat. Over that mark, you will start getting into eToro’s clubs. The Silver Club is over $5000, Gold is over $10000, Platinum is over $25000, Platinum+ is over $50000, and the last one, Diamond, is over $250000. Once you start getting into the clubs you will gain access to webinars, trading signals, dedicated account managers or have priority when you reach out to the support staff.
This is the part that eToro gets often criticized for. Many users believe that they are too high, but considering what you get, some justify them.
They are spread fees, meaning that you pay a certain amount when you purchase some assets, and you pay the rest when you sell them.
There is an eToro minimum deposit, and that depends on the country you’re from. Residents of some countries will need to deposit $50, while others may need to deposit $200 before they can start trading. Another fee that depends on your country is the withdrawal commission. Also, inactive users will get a $10 fee.
eToro as a platform has been active for over 13 years. In that time, it managed to gain a broad audience, offering forex traders a chance to follow other people’s opinions. Once the crypto trading feature was implemented, the popularity grew even further, and today it’s among the most popular trading platforms on the internet.
In general, eToro is a social trading platform designed mostly for people that are just getting into trading. It is easy to use, packed full of features, and offers tons of statistics. All of that, plus the option to copy other traders’ steps, makes this among the best platforms for inexperienced traders. If you feel like you fall in that category, you should definitely check it out.