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.
- 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
- 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
Assets Available for Trading on eToro
- Stocks: eToro offers more than 2,000 stocks from various markets, including the US, UK, Europe, and Asia. Traders can buy and sell stocks of leading companies like Amazon, Apple, Microsoft, and Facebook.
- Currencies: eToro provides access to over 50 currency pairs, including major pairs like EUR/USD, GBP/USD, and USD/JPY, as well as minor and exotic pairs like AUD/NZD and USD/HKD.
- Commodities: Traders can invest in popular commodities like gold, silver, oil, and natural gas on eToro. The platform also offers a unique feature called “Commodity CFDs,” which allows traders to trade commodities without owning them physically.
- Indices: eToro provides access to more than 20 global indices, including the S&P 500, NASDAQ 100, and Dow Jones Industrial Average. Traders can invest in the entire index or specific stocks within the index.
- Cryptocurrencies: eToro is one of the leading platforms for trading cryptocurrencies, offering more than 20 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. Traders can also trade crypto-to-crypto pairs on eToro.
Costs Associated with Trading on eToro
eToro charges fees on trading activities on its platform. The costs are transparent, and traders can easily access them before placing a trade. Here is a breakdown of the costs associated with trading on eToro:
- Spreads: eToro charges a spread on all trades, which is the difference between the buy and sell price of an asset. The spread varies depending on the asset being traded and can range from 0.75 pips for major currency pairs to 4 pips for exotic currency pairs.
- Overnight Fees: Traders who hold positions overnight are charged an overnight fee, which is also known as a rollover fee. The fee is calculated based on the size of the position and the interest rate of the currency being traded.
- Withdrawal Fees: eToro charges a withdrawal fee of $5 for every withdrawal made from the platform. However, the first withdrawal each month is free.
- Inactivity Fees: Traders who do not log into their eToro accounts for more than 12 months are charged an inactivity fee of $10 per month.
Benefits of Trading on eToro
eToro places its focus on this social aspect of investing more than any other platform. 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. Here are some other of the benefits of copy trading on eToro:
- Easy to Use: Copy trading is straightforward to use, and traders can start copying trades with just a few clicks. Traders can also choose to copy multiple Popular Investors to diversify their portfolios.
- Transparency: eToro provides detailed statistics on Popular Investors, including their performance, trading history, and risk levels. This information allows traders to make informed decisions
eToro offers customer support via email, phone, and live chat. The support team is available 24/5, which means that users can get help whenever they need it. The platform also has a comprehensive FAQ section and a community forum where users can ask and answer questions.