Etoro Review – Is it legit or a scam?

Welcome to my Etoro review. This social trading platform has been called everything from the best idea in trading, to a total scam. So, which is it? In this video I give a very open and honest account of my experience of Etoro from my last 5 years of trading with them.

7 Things You Should Know About Etoro

Here is the transcription from the video. If you’d like to leave a comment then please skip to the bottom and join the conversation!

Is Etoro Good for Beginners?

If Social trading has caught your attention and eToro is something that you find interesting, then you would want a background on what it is and so this article would give that to you.

With this article/video, I will tell you what I like and dislike about this particular platform (etor). I’ve been using it for many years and now I’m going to give you a very open and honest review of it.

This would include sharing with you what I have with my six years of trading history. This will help you understand whether eToro is the right platform for you. I will also be giving you an opinion whether I think that this is a good platform. Hopefully, this can give you an informed decision as to whether eToro is the trading platform for you. Let’s get started with this eToro review!

What Is Etoro?

eToro is described as a “social trading platform”. But what does being a social trading platform mean? It basically means that it’s a mixture between platforms that allows you to socially interact with people. If you’ve ever used mt4 before for trading ForEx then you will be familiar that it allows you to execute trades on the ForEx market.

There is no real social element to it. Whereas something like Twitter is purely social media network that allow you to interact with other people. However it has no way of executing trades. eToro is a broker that will execute trades on your behalf that includes a range of different finance markets that you can trade on.

What Is Copy Trading?

eToro allows you to not just trade but also interact with people, find other successful traders and see their portfolios. More importantly, you can follow these traders and execute the same trades in your own account.

Thus this involves a copy trading element to the platform. That can be very appealing when you think of the potential to find some of the best traders in the world. That is better than sitting and staring at a screen all day desperately trying to make a profit in the ForEx market. You find successful traders and copy their trades.

I don’t want to be sitting around and staring at hundreds of charts every day. I wouldn’t spend hours at a day analyzing data and keeping up with the news and so on. However, I do know that there is money to be made in trading sectors like ForEx and stocks and commodities.

eToro seemed to have come up with a solution to that by being able to copy trades. It certainly is not the only platform out there. There are definitely other platforms available. Yet, eToro is probably one of the better known ones.

eToro is on one of the larger platforms. There are other ways that you can copy trade as well but eToro is one of the first ones that I have heard. Also, I know a lot of people using eToro. So let’s have a detailed look about what it allows you to do.

How Does Etoro Make Money?

Inside the dashboard you will be able to see personal information on the left hand side. In the middle of the screen you will be able to see some of the different markets that you can trade with. With it you will be able to see some currency and other commodities.

You can even see some crypto currencies such as Bitcoin individual stocks. You will be able to see a very broad spectrum. If you’re in the UK like me, it will give you some suggestions of some UK stocks. eToro will be able to give you stock suggestions as to your location.

If you have your own methods of trading your own system that you want to be executing, eToro is quite easy to use with that. Or if you just wanted to open a trade on one particular market, you just have to click “trade” and you will easily enter that trade after quickly inputting bits of information needed.

You would need to deposit some funds but you know you could trade, buy and sell very quickly. When opening up individual markets, you can also see what’s going on with some of the social aspect of this. It is almost like a sort of Twitter of Facebook feed where you can see what other people are saying about this particular feed in real time.

If you go on to something more popular, you will probably see a lot more chatter going on. You can comment back and forth about a particular market. That would be useful if you want to keep an eye on certain markets and see what people are saying about it. However, what I think is the best feature of it is being able to find other traders to copy.

You will also be able to see a catalog of all sorts of live traders. There is a huge amount of data that suggests trending people. Maybe because these people are doing well having returns up to 54%-79%.

As long as you have funds in your account, you could look at a particular trader and have a look at his stats to see if he’s really paying something worthwhile. You can look at his trading history and his platform so that you gain an added understanding as to the type of trading that is doing quite well.

For a trader on Bitcoin for instance, you can find out quite a lot of information about him and with one click you can trade with Bitcoin and assign a certain percentage of you overall portfolio. For instance, if you have $1,000 in your account and you want to copy five different traders, you can put $200 into each trader’s total pot. Whatever trades they would make would execute in my account. If they make money, I make money. Conversely, if they lose money, I lose money.

You could copy as few or as many as you want. I don’t think there is a limit on how many you could copy. But you probably would want to copy more than one trader so that you are not putting all your funds into one basket.

Is eToro A Scam?

In principle, this works great. You can find a trader that is already up 77% in return. But if you go back to his history you might see that he also had his losses. It’s great that you are able to see the trading history so that you can go back quite a number of years to thoroughly research a trader before deciding to copy them.

It might be quite misleading just seeing the surface trending data. A trader might have 79% returns but digging a bit deeper into his stats and history he might have had significant losses. This platform will let you see beyond the surface so that you could get the clearer picture.

There are other aspects to this such as inviting friends you know and starting conversations helping build up your portfolio. 

You could also track your progress very well since it is a user-friendly platform. It also has an app for both ios and android devices. You will be able to see a very active and supportive community. There are thousands of people here and this implies great activity and trading going on all the time.

I also like the fact that you can get a lot of information about an individual’s data. This adds to its credibility since it gives you and honest informed decision if you decide to do full research. I f you really dig around and take time looking at traders’ data, you will be able to find and copy traders with your sort of risk and model your attitude with the type of markets you want to trade with.

Ultimately, this allows you to be hands-off with trading and just leave your trading to other people. I also like that this is not a scam. Mostly this is one of the biggest questions in the financial trading market.

But Is eToro legit?

I’ve taken money out of eToro without any real issues. In no way do I think that this is a scam. However, this does not mean that there isn’t a large amount of risk with it. It is not the platform itself so I have no issued in submitting or depositing funds.

What entails high risks are the traders you would be copying and the inherent risk of trading ForEx. Some of these markets are really high, so the platform itself is safe. That doesn’t always goes true with your capital risk.

I have withdrawn money from this platform with no issue. However, there are some negatives aspects in this platform that for me, far outweigh the positives.

I’ve been a member for quite a number of years and I had been active in the beginning. However after that I wasn’t really doing much because I was busy with other businesses and matters. Then I got active again in 2017.

But here’s the thing, I have had my winning months but I also had my losing months throughout the 6 year period. I have actually taken good care in finding quality and steady traders that make consistent returns. However, I’ve seen a lot of people blowing their account really quick.

They see someone having a really good month and put all their money in that person only to find out that he went bankrupt a month later. So I’ve been trying to look for traders that have a long profitable track record. Losing months are unavoidable but there are really traders you trade on that consistently make few percent return per month.

Can Etoro Make Me Money?

I’ve followed various people over the years really tried to work the system however ending in sizable losses. They have lost all of the gains they initially made. I wasn’t really happy with the overall returns. Looking back, it really didn’t give back much to me. Plus I have found other trading systems and tools that are making greater profit.

Hence I decided to withdraw from loss making platforms and focus on those making me the most money. As much as I like the idea of eToro, I’ve never really made much money. This is a major concern because the whole point of this platform is to make money. There is no point if I only mostly lose money. I have not found good enough traders that are consistent enough to make profits.

This doesn’t mean all are not making money on this platform. But going back to the homepage you will see that even eToro is warning that 66% or two-thirds of investors have lost money. This goes to show that you have to be very fortunate to find consistent winning traders and be part of the minority who really make money from the platform.

For me though, the profit just isn’t there. The incentive doesn’t just seem right. The quality of traders is just not enough.

Join in the discussion and share your comments. Tell me the sorts you are trading with and let’s have a look at some of the stats and you can prove me wrong.

Six years in enough to make a good judgment on this platform. It’s not the right one for me and I would rather be focusing my funds on great products I am trading.

In conclusion, whilst eToro is not a scam by any means and even though there are things I like about it, I would be scoring it a two out of five. I should be spending more time in finding profitable traders. If you’re spending so much time trying to find good traders all the time it kind of defeats the point you might as well be trading yourself than spending all this time constantly trying to look for traders.

Looking for a profitable way of trading? Check out my Gorilla Trades review.

Decent Platform, Very User Friendly
The Idea Of Social And Copy Trading Is Good In Principal
Easy To Deposit And Withdraw Funds
Quality Of Traders Is Just Not There
Margins Are Quite High

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