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When searching for a solid social trading platform, Etoro is currently the best choice due to:
- large user-base adding to the social power of the site,
- lots of profitable traders to follow,
Check out my full review for more details.
But by now you probably know that already and would like to review some Etoro alternative options due to one reason or another. Despite doing most of my social trading ventures over at Etoro, I’ve also tested the waters with other alternatives as well.
Here are the alternatives:
Interested in using Etoro, but you’re from the states? Sorry buddy, but Etoro still doesn’t have an approval to be allowed to use by the people from the US.
Because companies trading in CFD-s are not allowed to provide their services to the people in the United States. People in the rest of the world are allowed to trade them, but the US government has decided to levy a bann on those companies.
The main reason for the US banning CFD brokers is because the market is not as highly regulated as other markets that allow trading in various instruments.
Etoro alternative for people from the USA
The best alternative that I’ve managed to find is Etoro’s closest competitor – Zulutrade .
As you can see, it’s a broker that offers the option to copy other traders, share trading ideas and monitor the strategies of the professionals. It’s very similar to Etoro with only a few minor differences:
- Zulutrade is open for traders from the US, while Etoro is not
- Zulutrade showcases a longer term trading history for traders you can copy.
- Zulutrade has slightly smaller spreads.
- Zulutrade has less traders to copy, although the selection is enormous.
- Etoro only has the ability to use their internal brokerage service, while Zulutrade lets you choose between them, and many other external brokers.
Quick Facts About Zulutrade:
- Zulutrade was founded in 2007
- Minimum deposit 300$
- HQ: Athens, Greece
- Regulated by:CFTC
- Users: 500’000+
The company was founded around the same time as Etoro, but has managed to lure in a bit less traders, current user-base is around 1 million people. Despite that, it is the second biggest social trading platform in the market.
Zulutrade has some advantages compared to it’s bigger competitor, it allows you to choose either their in-house broker AAAfx, or you can choose to open an account with over 50 different brokers on your own. This enables you to have more options in terms of which platforms you like the most (Metatrader 4 is compatible with the broker). You will be able to customise the charts to your liking.
Another key benefit when comparing to Etoro is that Zulutrade accepts traders from the United States and hence is the Nr 1 social trading option for American traders.
In 2013, Zulutrade also added the possibility to trade Binary options. While this is an instrument that I personally recommend to stay away from, there are still countless number of people that like to dabble into the world of BO-s and they are welcome to do that via Zulutrade.
One neat tool that Zulutrade has is the inbuilt Zuluguard, which provides users the option to discontinue copying traders when they change their strategy. A very clever feature to protect your funds.
Another key competitor to Etoro is Tradeo. This company was a little late to the party, being founded in 2012, although they have managed to reach a significant amount of active users around the world. The smaller user-base is also a reason why there are less good traders to follow which is why Etoro and Zulutrade are better options.
In addition to their in-house platform, you are also free to use the famous Metatrader 4 for all your special charting needs and expert advisory tools. In this sense it does have an advantage to Etoro, although being a social trading platform, I’m not too sure if having MT4 availability is vital.
With maximum leverage at 1:200 and minimum deposit at 100$, it is very much comparable to all the others, although the above-mentioned competitors do offer more leverage, if that’s what you’re after.
One clear benefit that Tradeo has is the no dealing desk functionality. Meaning that your trades will be directly taken to the liquidity providers without having positions against you.
Tradeo also claims that their trading platform is a quantum leap in terms of trader’s overall online experience. In my personal experience, yes, their platform was neet, but all in all, when it comes to social trading, it is important to have more professionals to follow, which comes with a bigger user-base.
Founded in 2010, Mydigitrade has not become a major player in the sector. Due to being a smaller platform, the current list of existing traders to copy is under 300, which is only a small fraction compared to Etoro, but it doesn’t mean that there are no good traders in Mydigitrade.
The platform doesn’t include an inbuilt broker, which means that you can choose a broker by yourself. They currently include 14 options, most well known brokers have been included in the selection.
You have a myraid of options to analyze other traders’ past performance to help you decide who to follow with your own funds.
The minimum deposit amount is 100$, which puts it at the same level as most social trading options.
Ayondo is really similar to Etoro, it allows you to copy other traders and assign a proportionate amount of funds to follow each trader with. The company was founded in 2008 and has managed to emmass around 210 000 users from 195 countries by 2017.
In total, there are over 2000 traders to follow, which provides you a fairly decent amount of options to choose from, however the number is still a lot lower compared to Etoro and Zulutrade.
In terms of fees, Ayondo seems to be one of the cheapest options in the market. Through trading from their inbuilt platform, there are no extra third-party costs added. The minimum deposit is 100$/£/€, the same as most other competitors.
Despite the fact the the number of traders to follow is much lower compared to Ayondo’s bigger competitors, the trading style of the traders seems to differ from Etoro and Zulutrade. Based on my personal experience, the average risk seemed to be lower and and traders are more prone to perform intraday trades, not holding their positions open for long.
As you can tell, there are many alternatives to Etoro, giving you plenty of options to choose from. However the main benefit of Etoro is the number of users, which gives you the biggest amount of options in terms of traders to follow. It would also make sense for good traders to choose Etoro, as there are more traders who can copy you and hence you will make more money.
The reason for choosing other options is if you are interested in reducing your costs, having the option to customize charts more or have the possibility to use alternative brokers to the inbuilt option.