eToro Review
The Bottom Line
Despite eToro’s comparatively limited cryptocurrency offering, the platform makes sense for new traders simply because of its unique features that are education centric.
Highlight
eToro is a social trading and investment platform that allows users to invest in a wide range of assets, including stocks, cryptocurrencies, commodities, indices, and currencies. It was founded in 2007 and is headquartered in Cyprus, with offices in the UK, Israel, and Australia. If you are a new trader looking to invest in financial markets, eToro may be the right platform for you as it is education centric.
Pros
- Commission-free trading on stocks, ETFs, options and futures
- No minimum deposit to open a TradeStation Securities account
- Allows users to backtest and automate strategies
- Extensive educational material for novice traders and investors
Cons
- Commission-free stock and ETF trades max out at 10,000 shares
- Limited investment research for individual stocks, mutual funds, bonds, or ETFs
- Long wait times for customer service
- Platform can be technical for novices
Educational Offers From Etoro
eToro’s Academy is an educational resource for traders of all levels. It provides a variety of courses, e-books, and videos that cover topics such as trading strategies, market analysis, and risk management. The Academy is a great starting point for new traders who want to learn about trading before diving into the market. The courses are easy to understand and are designed to help traders build a strong foundation in trading. Check out eToro now!
eToro also offers a demo account that allows traders to practice trading without risking real money. The demo account is a great way for new traders to get a feel for the platform and to practice their trading strategies in a risk-free environment. The demo account is available for an unlimited time and comes with a virtual balance of $100,000.
The eToro investing community is a unique feature of the platform that allows traders to connect with other traders and share their experiences. eToro is well known for its unique feature called “Copy Trading.” This feature allows traders to copy the trades of successful traders on the platform, also known as Popular Investors.
Assets You Can Trade on eToro
eToro offers a variety of asset classes that traders can invest in including over 2,000 stocks, 150 cryptocurrencies, 45 currencies, 13 commodities, and 33 indices. Each asset class has its own risks and rewards, so it’s important to understand what you’re investing in before putting your money into the market.
To invest in stocks, traders can search for a specific company and buy shares directly from the platform. eToro also offers the option to invest in fractional shares, which allows traders to buy a portion of a share if they cannot afford to purchase the full share. eToro charges no commission on stock trades, but does charge a spread fee which varies depending on the stock being traded.
Pricing
eToro Security
eToro takes the safety of its users’ funds very seriously. The platform is regulated by the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investments Commission (ASIC) in Australia. eToro also uses SSL encryption to protect users’ personal information and funds are held in segregated accounts to ensure they are protected in the event of a security breach.
At the moment, eToro is only available in 45 states with New York among the state’s notably absent from the list.