Etoro is a trading platform with a twist, it takes a social networking approach to trading and investing.Through the power of social trading, Etoro links traders from all over the world into one big network and encourages traders to use each other’s skills to trade smarter together and learn how to buy shares and make a maximum profit.
As seen from the a trading platform, Etoro offers the unique benefit for beginner traders to see what other traders are doing, learning from them by reading their analysis or simply ‘copying them.’
As Etoro grows in popularity I have decided to write a review on this growing social trading and investing platform.
Etoro at a glance
Assets classes you can invest in:
- Stocks and shares (Equities)
The fee to trade is based on a spread and overnight fee, akin to many trading platforms. The spread is 4 pips on average and the overnight fee is based on 10,000 units of a product.
See more on fees here: eToro Gebühren.
Their is also a fee to withdraw money from your account. If you withdraw the equivalent of between:
- $20 – $200, the fee is $5
- $200.1 – $500, the fee is $10
- $500.01+ the fee is $25
Advantages of using Etoro as opposed to other trading platforms
- Harnessing the power of the crowd – As you can see other peoples research ad analysis, you can make more informed decisions about the trades you are going to make. You can also bounce ideas off fellow trades to ensure you use each other’s skills to trade smarter together.
- Easy to use platform – the interface is easy to use and easily navigable. Buying and selling assets is very easy and the platform offers good analytical tools to assist you in making trades.
Disadvantages of using Etoro:
- The stocks you can trade are limited. There are currently just under 40 stocks you are able to trade using etoro. (But they have been increasing this amount steadily).
Who is Etoro good for:
- Beginner Traders – as they can quickly learn how to trade stocks. Etoro is a ‘social networking’ trading platform offers the unique benefit of seeing what other traders are doing, learning from them by reading their analysis or simply ‘copying them.’
- If you are lazy – as Etoro allows you to copy or replicate the trades of the most successful investors, even the laziest of people can make money on Etoro
Who is Etoro not good for
- Long term investors – As this is a platform designed for trading as opposed to long term investors, the fees can be excessive if you decide to buy and hold for long periods. This is because the fee structure is made up of a spread and overnight fee; whilst this is good for traders, it is not for long term investors
eToro provide its customer with three platforms to invest in Forex and CFD’s. These are called, etoro OpenBook, eToro WebTrader, and eToro Mobile Trader. These platforms are essentially just extensions of one another. There are also other sites, such as http://etororeview.io/, that can be used to help investors trade.
- eToro OpenBook–This is the main social trading platform at eToro.
It is presented in the familiar social media format and eToro encourages traders to interact therefore it provides discussion walls, personal messages and various feeds. The platform also allows you to follow traders to receive the latest updates on their activity and the CopyTrader tool allows you to then copy successful trades with the click of a button. This transparency on successful traders and their strategies will appeal to traders with little or no experience. It also rewards more experienced traders as having their trades copied elevates traders to “Popular Investor” status and earns them additional cash rewards. It is also a fun alternative to a more traditional isolated trading experience. Compatible with both Mac and PC based devices.
- eToro WebTrader –This is eToro’s all-in-one portfolio management platform. It has a number of options including those that allow you to trade and manage your manual and “CopyTrader” portfolios. CopyTrader is a huge selling point of eToro. It allows eToro’s clients to see the progress of other traders and copy successful trading strategies with the click of a button.
This platform allows traders to easily edit Stop Losses and Take Profit orders, or even to manage their Copy Trading activity. WebTrader is synchronised with your OpenBook activity, making it the ideal place to manage and analyse your trading portfolio. Compatible with both Mac and PC based devices.
- eToro Mobile Trader App – eToro provide free apps compatible with all Android and IOS mobile devices. The app is easy to use and has so far given me no trouble.
So in short, etoro openbook is where you can ‘copy’ other traders and discuss ideas, etoro web trader is where you trade and etoro mobile trader allows you to trade on your mobile phone.
My experience so far:
I have been using eToro for over a year now and love the social aspect of this platform. I like the idea that I am able to bounce ideas of fellow traders from all over he world and see what they think about my trades.
As seen from the above picture (if not clear click to enlarge) Etoro allows people to interact and exchange trading ideas.
I have also ‘copied’ a couple of traders. This has been with mixed success. Three traders I have copied have given me positive reruns whilst another two traders have lost me money (in the case of one of them, all my money is lost). Thus why you decide to copy a trader, always look at their track record and their analysis of why they are trading certain securities.
One of the best features of the platforms its ease of use. I find navigating the website easy and there are good technical tools and charts to help me trade an asset.
If you aren’t interested in interacting with other traders and exchanging trading ideas, then perhaps you would prefer a platform like https://www.duplitrade.com/. Everyone is different and as with anything, people prefer different things. After all, the whole idea behind eToro is its social networking approach. However, having reviewed it, I would recommend eToro to any beginner trader who wants to dip their toe into the world of trading.