eToro Review: Is it the Best for Novice Non-US Traders
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eToro is a trading platform that is headquartered in Israel but trades US Stocks and ETFs. It is a platform with an easy user experience as it is created for beginners and passive investors to ensure they easily find their way around the platform. The platform is in two versions: web platform and mobile app. The other mobile app available relating to the trading platform and supporting the main mobile trading app and web platform is the eToro mobile wallet app that can be downloaded in your phone’s store.
The user interface in eToro speaks of simplicity as technical indicators and terms are removed and replaced with easy-to-understand and easy-to-navigate tools. The trading platform understands the need to have a trading platform through which beginners traders and brokers will be able to trade and navigate without any difficulty because this would determine their first experience and belief about trading platforms. So, they created the eToro trading platform to provide all the necessary tools needed for a beginner to excel in trading.
eToro understands the difficulty of starting a journey in stocks, ETFs, CFDs, and crypto-assets trading. So, it made its trading platform different and distinct by including copy trading and social trading platform. The copy trading feature means that beginner investors will have the unique opportunity to see experienced traders’ trading strategies and copy them. This would help them understand the market and the tricks involved in the market.
In this review, we will discuss what is eToro, its features, Commissions, Fees, and its competitors. Let’s begin!
Table of Contents
eToro Review: How does eToro work?
eToro has two platforms: the eToro web-based platform and the eToro mobile app.
eToro web-based platform is the major platform for this trading platform. It is a user-friendly platform that can be translated into 26 different languages. Its interface is so welcoming for the young audience. It has a clean design and great functions. Its buttons and menus are not redundant and are very easy to find. There is a two-step login system that adds more safety to the users’ accounts. It does not, however, support biometric authentication.
The search functions on the web-based platform are predictive and easy to use. This means that before fully typing in the product, symbol, or other offerings, the search engine would have brought some options to select from.
It is easy to place orders on the web platform with price alerts and notifications features available. You get your portfolio and fee reports through the web platform. It is always in a pdf format, detailing your trade, income, profits, and balances. The web platform does not support customization.
Charts are also available on the mobile platform. eToro mobile app is also functional with the dark and light theme available for the users’ preference. However, the tools and indicators available here are limited to the number of indicators available on the web platform.
The web platform has about 60 indicators, while the mobile platform has less than 10 indicators. This makes the use of the charting indicators on the mobile platform limited.
There are easy buy and sell orders on the mobile platform with the icon to buy or sell available around the list of currencies or offerings. You can also manage your watchlist just as much as you can with the web platform. You can add or remove from your existing watchlists or create new ones. Custom price alerts through your email or SMS can also be created.
There is the cryptocurrency wallet which is separate from the mobile app. Users can deposit and withdraw their coins there with eToro acting as the holder of their private keys and Broker.
What are the Features of the eToro trading platform
eToro has over 3,000 symbols up for trade, and it has offerings in stocks, ETFs, forex, CFDs, cryptocurrency, etc. These symbols are not all available in all countries the trading platform is located. For example, only cryptocurrencies symbols are available for trade in the United States.
Forex Trading is one of the major tradings currently traded by beginners and young traders. It involves the prediction of two currencies together using the tools and indicators available to determine the trades’ support and other crucial points. In eToro, there are only 47 Forex pairs available for trading.
Trading CFD assets option is also available. However, it is a risky trade, with over 68% of eToro traders in this platform losing money when trading CFDs. As we know: high risk, high reward. eToro specializes in CFD trades and offers these trades even with other offerings such as cryptocurrency and stock.
Cryptocurrency trading is another available offering in eToro. About 29 available traded coins include AAVE, ALGO, BTC, LINK, DASH, MANA, DOGE, EOS, ETH, LTC, XLM, XRP, XTZ TRX, YFI, Bitcoin Cash, etc. Crypto assets trading can occur on the mobile or web platform and can be purchased using the eToro mobile wallet.
eToro has four types of orders: Market, Limit, Stop-loss, and Trailing stop-loss.
The market order is executed at the exact price when the user clicks the buy or sell button. Instead of waiting for the price to come up or go down if the user believes the price is right, he can buy or sell at the moment.
A limit order is an order that sets the maximum or minimum price at which the offering should be bought. Where a user has done his research and believes that the market will react when it gets to a price, he can set that price as the limit order. The limit order will be triggered when the offering gets to that price, and the buy or sell order will be activated. To
Stop-loss is an order that activates the trade immediately and continues the trade until the trader stops it by clicking a button or the trade reaches some loss level. The trader makes a stop-loss thinking that the trade will continue his way, but where it does not, he will be stopped and lose only a limited and envisaged money.
Trailing stop-loss is an order that allows the trader to lock in gains to a certain point where the price does stop moving in his favor.
You will need to submit your inquiries using a support ticket through the crypto trading broker’s online platform. Reply from eToro customer service may take as long as 7 days, which is longer than most other brokers.
There is eToro’s live chat feature available to active eToro accounts users. If you have an active eToro account, you can access live chat through your brokerage account anytime during the weekdays.
It does not provide phone support, but you can visit their offices.
eToro CopyTrader is a feature used for its social trading platform that allows you to copy the investment strategies of other people or vice versa. This feature allows you to search for other traders, particularly experienced ones, and see how they are performing and their trading decisions.
The copying is automated by the platform and does not need any extra work from the user.
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How much are eToro Commissions, Account Minimums, and Fees
eToro offers zero-commission real stock trading. When you buy the real stock and not CFD, you will get the commission-free policy to trade stocks as you wish. However, you cannot trade in any currency except USD. This means that trades made with other currencies will be converted to USD before the trade is activated. Also, when you sell, you are selling in USD.
eToro charges a percentage spread that varies by cryptocurrency. Typically, the spread is between 0.75% and 2.5%, depending on the cryptocurrency you choose to invest in.
eToro trading fees are quite unclear as there is difficulty in knowing exactly what percentage the trading platform charge.
eToro fees for inactivity are $10 per month after one year of inactivity, but simply logging into your account counts as an activity.
Who is eToro Best For
New cryptocurrency traders looking for an easy-to-use platform
Newbies who have discovered stocks, CFDs, forex, and cryptocurrency markets and would love to join in the game have a great opportunity of learning easily from the financial platform.
eToro provides them with the tools they need to grasp trading basics, trading topics, trading strategies, and markets. The dual tool of Copy Trader and CopyPortfolio makes trading quite easy for beginner investors as they gain mentorships from advanced traders and understands, in a practical sense, why trades are taken the way they are.
eToro provides beginner investors with a demo account furnished with $100,000 to practice their investment strategies and understand the market perfectly. The demo account has the same functions and tools as the real accounts, as it contains the same indicators and tools used to assess trade and make technical analyses.
This trading platform provides a series of cryptocurrency pairs for those interested in cryptocurrency trading. This trading platform trades over 30 cryptocurrencies. Also, there is the eToro wallet where traders can store their cryptocurrency, while eToro acts as the guide for their private keys and cryptos. The wallet links with your eToro trading portfolio and provides you with seamless connections and transfers.
Some of the cryptocurrency exchanges traded include:
- Aave (AAVE)
- Algorand (ALGO)
- Basic Attention Token (BAT)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Compound (COMP)
- Dash (DASH)
- Decentraland (MANA)
- Dogecoin (DOGE)
- Enjin (ENJ)
- EOS (EOS)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- IOTA (MIOTA)
- Polygon (MATIC)
- MakerDAO (MKR)
- NEO (NEO)
- Ripple (XRP)
- Stellar Lumens (XLM)
- Tezos (XTZ)
- TRON (TRX)
- Uniswap (UNI)
- Yearn.Finance (YFI)
Retail Traders and High experienced active traders
Copy Trading and CopyPortfolio are tools that will continue to give eToro an edge over its peers for a long time. Its ability to find crypto trading ideas and other securities decisions has made the trading platform a favorite for many traders, including retail traders.
eToro is great for retail traders who want to crowdsource investment ideas and decisions using the power of copy trading. It is also great for highly experienced active traders who want to be rewarded for sharing their ideas with other traders, as this is another way to make money, particularly when you have a strategy that works and has been proven to work.
eToro Pros and Cons
- A simple platform that is easy to master
- Social Trading features that allow new traders to copy the same strategies used by professionals
- Demo account that gives you $100,000 to practice trades
- Trade 30 different cryptocurrencies
- Unclear trading fees
- USA residents cannot access stock trading or CFDs
- Unresponsive Customer Service
eToro User Experience
One-Step Transaction Process:
There is only one page where the user buys or sells securities. While this helps the navigation and ease of using the web platform or mobile trading app, it may cause disinterest and dislike. An excellent personal finance app should have more than a page for transactions. This ensures that the users are sure and crosschecked the information, including the number of securities and the order type they have chosen.
To improve this, the first page could be the form page where the users select the buy/sell function, the order type, and the amount they prefer. The next page could bring all the information with two buttons stating: ‘confirm’ and ‘cancel.’ This would help the users make the correct transactions and limit mistakes.
Changing the order:
If you decide to alter the details of your order somehow, for example, if the market is moving in a favorable direction and you wish to increase order size, you need to open additional/ new orders and close the old ones if necessary. There is no option to amend your initial order that was not yet executed, and this could be a great potential addition to the platform.
eToro has a user-friendly interface that you can navigate easily. It is created mainly for beginner investors and made simple for them. The Broker made two mobile platforms available, one as the trading platform and the other as the Broker’s cryptocurrency wallet. The beginner investors’ will find it easy to navigate without burdensome and complex instruments.
Indicator Tools on Mobile App:
The tools and indicators available here are limited to the number of indicators available on the web platform. The web platform has about 60 indicators, while the mobile platform has less than 10 indicators. This makes the use of the charting indicators on the mobile platform limited.
eToro vs Competitors
#1. eToro vs Interactive Brokers
Interactive Broker offers its brokerage services on its desktop, mobile, and web platforms. It has the Trader Workstation (TWS), which is the main platform for this Broker.
Its traders have access to more than 120 technical indicators and a suite of easy-to-use drawing tools.
It has several educational resources such as Trader Academy, which is an online, on-demand resource that features a structured, rigorous curriculum intended for financial professionals, investors, educators, and students who want to learn about asset classes, markets, currencies, tools, and functionality available on Interactive Brokers’ trading platforms.
While Interactive Broker has more offerings from a larger market base and offers more comprehensive educational resources, eToro also has a lower and simple commission fee per trade. Interactive Brokers have complex instruments meant for experienced professionals, while eToro targets beginner investors, among others.
The financial platform provides a mobile wallet to save their cryptocurrencies in a secured and encrypted location. eToro also provides social trading such as CopyTrade, social media gathering, and CopyPortfolio for its users, missing in Interactive Brokers.
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AvaTrade is a multi-asset platform that offers its proprietary platforms AvaTrade WebTrader, AvaOptions and MetaTrader, and ZuluTrade and DupliTrade for social media copy trading.
This trading platform offers copy trading to its users. Its platform is on the web, desktop, and mobile platforms. It also has the demo account, proprietary platform (Webtrader), multi-asset platform hinged on (Metatrader, ZuluTrade, etc.), it has 51 charting indicators and 31 charting tools.
While Avatrade has more offerings from a larger market base and offers more comprehensive educational resources, eToro has a lower minimum account entry of $50. Avatrade offers only Cryptocurrency CFD, while eToro offers both Cryptocurrency CFD and real Cryptocurrency trading.
eToro platform provides a mobile wallet that allows users to save their cryptocurrencies in a secured and encrypted location. eToro also provides social trading such as social media gathering and CopyPortfolio for its users, missing in Avatrade.