eToro provides a single type of trading account with leverage up to 1:400 on forex, fixed spreads and low minimum initial deposit through its innovative platformя with build-in copy trading capabilities.
Swap-free accounts are available to investors of Islamic belief, and besides there are also Premium account options. eToro’s clients who have a total net deposit of $20,000 over the past 11 months or $20,000 in total equity at the end of the day, are entitled to some Premium services, such as free access to Trading Central, personal account manager, unique promotional offers, etc.
The Company. Security of Funds
eToro is an innovative forex brokerage that allows its users to watch the financial trading activity of other traders, copy them, and to make their own trades in wide range of financial assets – stocks, currencies, commodities, stock indices and real-time Bitcoin trading through its own electronic trading platforms. In fact, it provides access to one of the world’s largest investment networks that allows you to benefit from the collective wisdom of the trading community.
The company operates through its subsidiaries, regulated by one of the most reputable authorities in the industry – UK’s FCA and CySEC. It has registered offices in Cyprus, Israel and the United Kingdom.
The company also had a US unit, eToroUSA (operated by Tradonomi LLC, regulated by NFA), which currently is not active and therefore eToro does not accept clients from the USA.
Both FCA and CySEC apply strict rules and requirements to regulated firms, thus ensuring a good level of credibility. Cypriot and UK brokers must hold at least €730 000 in net tangible assets, and are required to keep customer funds in segregated accounts, separated from the company’s operating funds. Besides, they must report to the authority overseeing them on a regular basis.
As a further guarantee to clients’ funds, all companies regulated in UK and Cyprus are covered by compensation schemes as additional guarantee to clients’ funds. All deposits with a UK regulated forex broker up to £50,000 per client are guaranteed by the Financial Services Compensation Scheme (FSCS) – UK’s statutory compensation scheme for clients of authorized financial services companies. Similarly, Cypriot Investment Firms are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company is in default.
In addition, brokerages regulated in Cyprus and UK are authorized to provide financial services throughout the EU under the MiFID Passporting Regime.
Minimum Initial Deposit
In order to open an account with eToro, traders have to invest at least $50, which is a comparatively low minimum initial amount.
Spreads & Commissions
eToro offers fixed spread of 3 pips on EUR/USD and charges no commission fees. Such spreads are a bit too high, as most fixed-spread brokers apply a 2pips spread, and some, even tighter. RoboForex, for example, offers a 1.6 pips fixed spread. For further information and comparison, you may look up real-time spreads of 15 leading brokers here.
The good news is that eToro’s clients don’t pay extra charges to copy other traders.
The maximum leverage provided by eToro is 1:400, which is considered high, yet many other brokers offer similar or even higher levels. Here you maty take a look at a list of brokers offering leverage up to 1:500 or higher.
Leverage is a powerful tool that allows traders to operate with large amounts of money by making relatively small investments. Unfortunately, the higher leverage, the higher the risk of losses, which may even exceed initial investments.
eToro runs operations through its proprietary OpenBook and WebTrader platforms. Mobile applications are also available.
The WebTrader is intuitive and easy to use. It comes with a variety of features, such as ‘One-Click Trading’, automated strategies and some analysis indicators. Trailing Stop Loss is also available for risk better management. We wouldn’t go as far as eToro’s platform unique as it doesn’t offer any features you won’t find on other trading terminals; however, it is pretty light and comes with a built-in trade copy functionality. One thing eToro could improve is technical analysis tools and indicators.
The WebTrader platform is fully synchronized with the eToro OpenBook, making it the perfect place to monitor, manage and analyze your trading portfolio.
The eToro OpenBook is a separate platform designed especially for automated trading (e.g. copying signals). On it, each trader has a detailed profile allowing the rest of the flock to analyze his/her performance and figure out whether that person is worth following.
Unfortunately, eToro does not allow scalping.
eToro offers a Refer e a friend bonus of $100, as well as on-deposit bonus from 10% for clients who invest at least $2500.
Methods of Payment
eToro’s clients can make deposits to and withdrawals from their accounts via debit/credit cards (Visa, MasterCard), bank wire transfer, and e-wallets Skrill, Neteller, PayPal, Giropay, Yandex, and WebMoney.
Withdrawals via debit/credit cards & bank wire transfer may take up to 8 business days.
eToro is one of the pioneers of social trading – a broker with strong regulation and 10 years of experience. Yet, its spreads are high, there is no ECN environment available and scalping os not permitted.
eToro Reviews Conclusion
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