eToro is a popular trading and investment platform that offers traditional assets as well as cryptocurrency trading. Find out everything you need to know about the platform today in our eToro review.
What Is eToro?
eToro describes itself as a “social trading & investment network.” The fully-regulated platform lets investors access unique new markets and investment vehicles – including bitcoin trading and unique services like social trading.
eToro has registered offices in Cyprus, Israel, and the United Kingdom. The company was founded in 2006. However, the social investing features launched in 2010. In the last few years, eToro has attracted enormous investments from around the world.
Between 2007 and 2013, the company raised $31.5 million in four funding rounds. In December 2014, eToro raised an additional $27 million from Russian and Chinese investors.
Why does eToro call itself a “social investment network”? eToro has a unique feature called copy trading. Through copy trading, you can view, follow, and copy the network’s top traders automatically.
Your money is stored in tier 1 European banks.
eToro works under top European regulators.
Multiple Deposit Methods:
Credit cards, PayPal, and bank transfers are all accepted.
Easy To Use:
eToro takes pride in offering an easy UI, even for newbie traders. You can try the platform for free through the demo version.
You can benefit from the collective wisdom of eToro’s trading community through the social trading feature. Social trading allows users to exchange investment ideas with traders around the world. You can also find expert investors, then copy their trades automatically.
eToro makes it easy to limit investment risk. The company offers responsible trading features like pre-set leverage settings, allowing customers to easily calculate their risk.
Courses & Demos:
You can launch a demo account with $10,000 USD where you can practice trading and track your gains before putting real money in the game. eToro also has full-fledged investment courses that offer a pain-free introduction to the principles of trading.
What Can You Trade?
eToro lets you trade a diverse range of assets – including everything from cryptocurrencies to commodities. Here are some of the assets you can trade with eToro:
- Currencies (including bitcoin and Ethereum)
eToro Popular Investors
One of the unique eToro features is its “Popular Investor” program. This allows financial professionals to build their own online financial business, earn a 2% management fee, and enjoy a 100% spread rebate.
Basically, you sign up for eToro, then get copied by other people. Popular Investors earn fixed payments and up to 2% of their annual assets under management (in addition to any profits made from your own trading).
There are four Popular Investor levels, from Cadet to Elite. The more assets you have under management, the more money you can make.
CopyTrader is another unique eToro feature. It’s one of the things that distinguishes eToro as a “social investment network”.
With CopyTrader, you can copy the best traders on the CopyTrader network quickly and easily. It’s surprisingly simple to copy a trader. You open an account, then use the CopyTrader OpenBook platform to search for the top social investors.
When you find a trader you’d like to copy, allocate a portion of your funds for copying him, then let the Copy Trading begin.
You can sort through investors based on their performance, portfolio, and number of copiers. You retain full control of your account, which means you can cancel trades or stop copying a trader completely at any time.
eToro Social Trading
eToro’s Social Trading, or social investing, describes itself as “the utilization of user-generated content, and crowd-wisdom, for the act of online trading.”
eToro uses the knowledge of millions of users in 170 countries worldwide to fuel its social trading.
The core social trading feature is the CopyTrader platform we mentioned above, where you can copy top investors and make the same trades they make automatically.
Other eToro social trading features, however, include CopyFunds, which groups successful eToro investors together to harness their wisdom, then constantly makes adjustments to maximize gains.
Users can invest in these funds just like they can invest in any other asset on the eToro platform. The funds are managed by a sophisticated optimization algorithm based on the wisdom of the traders.
Basically, a CopyFund lets you invest just like the world’s leading hedge funds.
eToro was founded in 2006 by two brothers, Yoni Assia and Ronen Assia, and co-founder David Ring. The platform was originally known as RetailFX.
In 2010, eToro released its Open Book investing platform and Copy Trading feature, allowing investors to follow top investors in the network.
eToro maintains offices in Cyprus, Tel Aviv, and London. The company is also active throughout Australia due to a partnership with IC Markets.
You can contact the company using the contact information on their website.
You can also enjoy “social trading”, where you can copy top investors (or even top hedge funds) and allow the platform to make the same trades as those investors automatically. If you’re confident in your investing skill, you can become a “Popular Investor” yourself and make money based on the number of people who copy you.
Ultimately, eToro is a unique trading service popular among a wide range of investors. Today, it’s used by 4.5 million people in 170 countries worldwide.