If you have some background about online trading and investments, chances are you may have already heard of eToro. It is one of the popular networks of this nature currently operating. If you are planning to open an account in this platform, read this eToro review to know more about it.
Why I Joined eToro
I like passive income because it frees up my time and gives lifestyle choices. To make money in stocks, commodity trading or Forex you have to buy when the prices are low and sell when high. Alternately you can engage in buy and hold strategy or invest in mutual funds but the returns are very modest. If you want returns in access of 15% then there is no other option other than trading……Buy Low Sell High.
I have no patience to sit in front of the computer all day long doing technical and fundamental analysis of stocks to decide what to buy or sell. Moreover how many stocks can I follow? I am also not an expert in forex or Bitcoins or for that matter commodity like gold, silver or oil. Each area needs its own expertise and it is not humanly possible for me to keep track of what is happening in the market.
If you are on a holiday and not in front of the computer and catastrophic event occurs then you are screwed because your share value will nose dive before you can take corrective steps. So how do you handle complexity of knowledge required for investing in variety of instruments and also manage risk. The simple answer is copy trades of experts in each field that eToro facilitates.
It is easier for me to just copy trades of experts in diverse fields like stocks, Bitcoins, commodities and forex that eToro provides. These experts are masters in their field and enjoy spending time in front of their computers following market trends. They do all the heavy lifting. We simply copy them.
All I do is visit EToro once a month check out which expert traders I can copy based on their performance over past several years. I check on returns they have made, their risk scores and portfolio they invest in.
I never put my eggs in one basket. I divide my money and copy traders who are experts in stocks, forex, commodities and crypto currency. This way I can diversify my risk in terms of experts I am copying and also have a very large diverse portfolio.
By simply following this strategy I have been making 15% to 30% every year.
Background of eToro Trading
eToro has been in operations since 2006 from its headquarters in Tel Aviv, Israel. Founded by brothers Yoni and Ronnen Assia and their partner David Ring, it was first established by the three as a financial trading and investment platform that everyone can use. Now, it has become one of the most popular social trading and online forex broker networks in the world.
This trading and investment platform counts among its users 5 million people spread around 170 countries. All the clients in its platform can trade in commodities, currencies, CFDs and indices. It continues to grow every day, with hundreds signing up daily.
Apart from all this, eToro has the social investment platform “Openbook” and the feature “CopyTrading,” both of which were launched in 2010. That same year, eToro also released its Android apps so that investors can trade even when they are not facing their computers. The apps used by the company have gone a long way now and all the functions have been merged into one application.
eToro Trading is managed mainly by the company eToro (Europe) Ltd. Since the company is based in Limassol, Cyprus, it is regulated by the country’s Securities and Exchange Commission as a registered Cypriot Investment Firm. eToro also has a British arm in the form of eToro (UK) Ltd. It has been authorized to run by the Financial Conduct Authority. Both the European and British limited liability companies are operating under the Markets in Financial Instruments Directive.
The companies are not operating in the United States and therefore, they do not have any clients in the country.
eToro started off as a bunch of platforms marketed mainly to inexperienced traders so they can try out trading. With the many advances in technology, the company has merged all the functions into one app that is available for iOS and Android devices. Just head on to the Google Play Store and iOS App Store to download the application to your smartphone or tab device.
The eToro trading software is also available for desktops and laptops.
Features of Trading Platform
There is a reason why eToro is a popular choice among online traders and investors. These cool features are among them:
EDUCATIONAL PROGRAM. One of the main advantages of eToro when compared to other similar platforms is the fact that it has an education program that you can learn from. Through the Financial Trading Academy, you will know more about how to maximize earnings through the trading app. You will also learn to take advantage of trends in the financial markets.
ACCESSIBLE PLATFORM. eToro can be accessed no matter where you are as long as there is Internet access. It has an all-in-one platform that you can use whether you are on a computer, smartphone or tab.
LARGE FINANCIAL TRADING COMMUNITY. eToro has one of the world’s biggest and widest online financial trading community. If there is one platform that you will be able to learn the most from experts, it is eToro.
AFFORDABLE FIRST TIME DEPOSIT. Due to different regulations, the minimum first time deposit of eToro depends on the region and country of residence of the client. But generally speaking, the minimum deposit ranges from $50 to $1,000.
PRACTICE ACCOUNTS. Still not sure if you are ready to make an account? eToro has practice accounts that you can try out without the financial obligation. It provides you with virtual currency of $100,000 to try trading.
Security and Customer Support
eToro has the most reliable customer service and support you can ask for. You can contact the team anytime of the day from Monday to Friday via phone or email. Email inquiries will be responded to within 48 hours after sending. Support is available in English, Spanish, Italian, French and German.
While the company does not have live chat representatives, the customer service page of the platform does have a Nano Rep that is personalized to help you with your questions.
The platform also has a Customer Service Wall. It is like a forum where queries are answered easily through the company’s Knowledge base and Online Guides.
As to the security, eToro is regulated by government bodies in the United Kingdom and the European Union. The platform utilizes Secure Socket Layer technology to make sure all data is secure.
Depositing and Withdrawing
While eToro is not in operations in the United States, the platform only allows trading in U.S. dollars. If a person deposits in another currency, the money is converted right away to the said currency.
Opening a live trading account is easy. The minimum deposit is lower compared to other competitors but will have to depend on regional and country regulations.
To make the deposit easier, eToro can receive payments from a few different payment options. This includes Visa, Diner’s Club and MasterCard credit and debit cards. PayPal and bank wire transfer is also accepted.
Withdrawals are also simple. You just have to fill out the withdrawal form in the Cashier section of the site. You will be sent an email if the transfer process has already started. Each withdrawal costs $25 and will be finished in at least five days.
If you are withdrawing for the first time, a client must submit a clear copy of their passport. Make sure that the passport shows the signature. Copies of a utility bill from the last three months and a clear copy of your credit card may be required from you.
In conclusion, eToro is a worthy platform to invest and trade in. You can be assured that you will be earning money in the platform without the danger of trading in an unsecure app.