Being able to tap into different markets worldwide requires you to often use an online broker. Long gone are the days where you needed to call your broker and place a trade over the phone. In today’s fast-moving markets, traders and investors can simply access all of their financials with a few clicks. On the other hand, this entails that you’ll be trusting this broker with your trading activity. From online safety all the way to fast executions, there are many aspects to look for when choosing a broker. In this article, we’re going to look at Etoro, an online broker that managed to establish itself as one prominent broker. In this Etoro review, we’re going to see the good, the bad, and the ugly.
So buckle up, grab a drink, and let’s see if eToro is worth it to trade cryptos and other assets.
eToro is a social trading platform that started operating back in 2007. When we say “social trading”, this means that traders have the ability to look at other users’ trade setups, discuss and ask questions in a forum-like community. The platform offers access to stocks, commodities, indices, and crypto. This is done in a CFD setting.
CFDs or contract for difference is a type of trading that allows traders to profit from the price fluctuation of the underlying asset, without owning it. This allows traders to worry less about keeping the asset, and focus more on their trading strategies. Of course, this entails that security and good management is an important factor when trusting a broker. Many traders lost big amounts of money due to mismanagement from brokers in the past. That’s why regulators tend to enforce strict measures to make sure that those events don’t happen.
It is worth noting that eToro has not only been in the market for more than 14 years but also as valued in their last funding round at around USD 10 Billion. The company is planning to go public, and this alone instigates trust and solid business ethics.
In order to assess whether a broker is good or not, there are a lot of areas to check. Traders always seek a solid platform to trade on, low fees, fast execution, and reliable customer support. With eToro, they seem to nail most aspects. That’s why we’re going to divide the positive and the negative aspects, while specifically go into the details and break down each area.
If you are looking for an easy-to-use platform where you can trade hassle-free, eToro might be a good start for you. Their community is always active and is incentivized to regularly publish good trade ideas. This is thanks to their Copy-trade system that rewards good traders and community influencers with a percentage of the profits from their following, from eToro’s profit share. Additionally, their low barriers to entry make it attractive for first-time traders to tap into the investment world.
If you are looking to start your trading journey with eToro, click here!
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.