- 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
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.
Additional Information About eToro
I’ve tried to be as thorough as possible in my eToro review video, but there are some important details that I don’t cover. Here are some other important facts about the platform that you might be interested in.
eToro was established back in 2007 and is therefore one of the oldest and largest social trading platforms in the world. They have won multiple awards and are generally regarded to be reputable and trustworthy. They claim to serve over 5 million customers worldwide, although it’s unclear how many of these customers are actively trading. They have various offices around the world, including UK, Israel, China, Australia, Russia, Cyprus and more
eToro is regulated in 2 countries, and this is definitely a positive aspect of the platform. They are regulated in the UL by the FCA, as well as in Cyprus by the CySec. Regulatory compliance is very important, especially as this platform acts as broker as well as social/copytrading platform.
Under these regulatory bodies, the platform operates in the following countries;
For FCA and UK regulation it covers Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, UK.
The CySec regulation covers Argentina, Australia, Bahrain, Brunei, Canada, Chile, China, Colombia, Egypt, India, Jordan, Kuwait, Mexico, Malaysia, New Zealand, Nigeria, Oman, Paraguay, Peru, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Switzerland, Thailand, Ukraine, United Arab Emirates, Uruguay, Venezuela.
Unfortunately, the USA is not covered under their regulatory compliance, so this platform is not suitable for Americans. Here is a full list of excluded countries;
Iran, North Korea, Myanmar, Syria, Cuba, Sudan and the USA.
Although withdrawing funds from the platform is relatively easy, there are withdrawal fees, and the process from request to payment to your bank account is quite slow. This makes the platform relatively attractive for those that want to make regular withdrawals from the platform.
In my eToro review video I show my live trading account, but it’s important to note that free demo accounts are available. This is a nice feature because practicing and testing on the platform can help to achieve better results when switching to live trading. A lot of demo accounts are very large though, and in many cases, people will demo with a balance of $10,000, when they have no intention of depositing as much in a live account. When running a demo account, it’s therefore important to try and keep the size of the demo account to a similar level than you would invest with real money so that it’s more realistic.
If you need to contact their support then it is not a great experience, especially compared to some other brokers. They have no live support, and rely on support tickets, which can take days to be responded to. I get the impression that the average account size is quite small with eToro, so perhaps they don’t have the budget for world class customer support. With that being said, the platform works very well and is easy to use, and so there might not be any need for you to speak to their support.
Choice Of Markets
eToro offers an extensive range of markets to trade with. These include major forex markets, commodities, indexes, stocks, ETF’s, and even crypto currency. Some of their most popular assets to be traded include bitcoin, ethereum, oil, gold, silver, FTSE, Dow Jones, Dax, US dollar and the Euro. Their range of major stocks is also quite good, although they are not dedicated stocks broker and so if you want to trade stocks extensively you will find this platform to be limiting. To get a full list of their range of markets, it’s probably best to open a demo account a browse through the various asset classes.
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 (etoro). 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 learnt 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 and a copy trading platform. 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, such as Zulutrade. Yet, eToro is probably one of the better known ones.
eToro is on one of the larger copytrading platforms. There are other ways that you can copy trade as well, but eToro is one of the first ones that I have heard of. Also, I know a lot of people are 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 currencies and other commodities.
You can even see some crypto currencies such as Bitcoin as well as individual stocks. You will be able to see a very broad spectrum of assets here. 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 could trade 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 or 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 doing 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 your overall portfolio to that trader. 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 then 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 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 initial 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 trading. This adds to it’s credibility since it gives you and honest informed decision if you decide to do full research. If 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 financial trading markets.
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. I have no issues in submitting or depositing funds to this platform.
What creates high risks on this platform are the traders you would be copying and the inherent risk of trading forex. Some of these markets are really high risk, so although the platform itself is safe, that doesn’t mean that the assets being traded are safe, and losing your capital is still a very real possibility.
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 with 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 and really tried to work the system, however it’s always ended in sizeable losses. 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 members 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 is 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 would need to be spending more time in finding profitable traders for this to work for me. But, 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.
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Plus, learn more about copytrading here.