Etoro Trading platform
- Beginner Friendly
- Ability to Copy Successful Traders
- Great for Swing Trading
- Extensive Free Education
- Web and Mobile Platforms Available
- Charts not Customizable
- Wide Spreads
- Limited Amount of Insturments
- Scalping not allowed
What’s this Etoro thing?
By their own words:
“eToro is a social trading and Investing company that allows its users to watch the financial trading activity of other users, copy them, and to make their own trades.”
What this means is that you can ethically copy someone else’s trading results – just like back in the good ol’ school days. Except, that getting better grades you can get ideally better trading results.
In order to know who to copy (or cheat off of), you are given a list of traders based on their results.
In addition to how much they have made, you can also see for how long they have been profitable, how much they’ve lost in aday and a lot of other fancy statistics (more on that below).
- Over 5 000 000 real users
- Users from 170 countries
- Over 200 000 000 trades opened
- Founded in 2007
- Minimum deposit from 100$
- Max leverage 1:400
- Platforms: Web, Mobile
- Custom Free Education
- eToro Europe regulated by Cyprus Securities & Exchange Commission (CySEC)
- eToro UK regulated by the Financial Conduct Authority (FCA)
Who is it for?
The site is meant for:
- People that don’t have the time, motivation or skill to day trade by themselves and would rather trust their funds into the hands of traders that know what they’re doing and have a proven track record.
- Or for beginner to medium level traders who prefer to have an easy to use platform to perform their trades.
You are to decide which trader(s) to follow based on their performance, trading style, risk level or whatever you like.
The traders that others are copying are motivated by small fees that people like you are paying for copying them. These fees are rather low and don’t effect your account much, but if the traders are really good, more people will start to follow them and the income can add up.
NB! It is wise to spread your portfolio between traders to manage risk.
Also in addition to copying others, you are able to make trades on your own. The platform is noob friendly, even Homer Simpson could figure it out.
But is it any good?
What’s good about it:
- Super easy to use – the platform has a game-like feeling. You can add fancy indicators if you want to, but there is no real need for it.
- Ability to copy professionals – If you don’t know what you’re doing, you have the ability to copy and follow what successful traders are doing. This way you can learn about their strategies and start making real progress towards becoming a PRO trader yourself.
- Social sentiment – you get to see what the majority of other traders on the platform are thinking about each instrument.
- Solid customer service – I’ve always had all my questions sorted out in no time. They respond quickly and the advice has always been sound.
- Quick withdrawals and deposits – No trouble putting your money in or taking it out based on my experience. There are some small fees for withdrawals though, please make sure to read the Fees section on their homepage.
- Free trading education – They seem to be interested in their clients sticking around and have provided free education on their home page. The lessons are made in video format, so more fun to follow.
What’s not so good:
- Limited customisation – If you are a deep technical trader, you will not be able to put all the indicators or expert advisory services to the platform. MT4/5 is a better choice for you.
- Platform Fees – While looking for the cheapest broker, eToro might not be for you. Considering that you are allowed to start with just 100€/$, you might not have a much better alternative.
- Scalping not allowed – eToro such as many other CFD based brokers do not allow doing small short term trades. Focus on a bit longer time periods instead, such as swing trading.
- Limited amount of instruments – eToro is continuously adding more instruments to their portfolio, although currently their list is in the hundreds, not thousands. If this is an issue for you, you might want to look elsewhere for a broker. For most newer traders, the list is sufficient.
My Personal Experience with Real Money
In my personal experience, I would recommend them to beginner traders to whom this is a perfect platform to learn trading from.
Now remember, this is not meant for scalping, as they do not allow scalp trading. But it is very good to learn how successful traders actually make money and to start trading on your own.
I have been using their platform since 2011, mostly through copying others and making some money that way. I keep my funds separated between 10 traders that I copy and like to keep an eye on what they are doing.
If I have some skin in the game, I’ve found that I tend to learn a lot faster.
What I would say though, is that if you are not interested in copying others and your aim is to trade only by yourself, there are other platforms that are more advanced.
I’m not going to get into those in this article, but you can try FXCM instead (you need to have 5000$, but if you do, it’s better for pure day trading).
However one thing I especially like about the trading platform is the social sentiment – you can check what most of the traders are thinking about a certain currency/stock.
For example, if I see that majority of traders are long a currency, I tend to start looking for a short position. It is a very good tool for a contrarian trader.
What others are saying about it?
My opinion is one thing, but I’m just one guy. This review is written based on my own experience and research from other blogs and forums. In order to get a more objective review, please leave your feedback below.
Do you have personal experience?
Please leave your feedback below.
Big Thanks to all the contributors!
Have no experience with eToro? I recommend to give them a go. It is one of the best platforms for
newer traders to learn from.
Check out eToro for yourself