Is eToro the Best Trading Platform?

By  //  August 9, 2022

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eToro is a great option for retail traders looking to pool investment ideas through the power of copy trading or for traders with extensive experience who would like to be recognized by sharing their ideas to other investors. People who aren’t experienced and require some level of assistance could find the user-friendly platform an added advantage.

In the realm of trading on social copies and crypto trades, eToro remains our number one option in 2022 and was awarded our prize for the top trading community. Let’s find out whether eToro is a best trading platform or not? 

Is eToro an authentic company?

eToro has been praised by more than 13 million traders worldwide and is licensed to manage clients’ funds and offer brokerage services across various nations. After an $10.4 billion acquisition, eToro was listed on the NASDAQ in the third quarter of 2021. The company was established in 2007. eToro is regulated by two Tier-1 jurisdictions as well as one tier-2 one that makes it a secure broker (low-risk) to trade foreign exchange and CFDs.

The factors that affect trust in financial services include licenses from regulators, a track record of operation and adequate capital resources to ensure stability and a record of outstanding customer service. In all those areas eToro proved itself to be more than able to earn the trust of its customers.

Is eToro truly free?

The cost of the copy-trading service is included in the spreads. While it’s “free” to use eToro for commissions, you’ll still have to pay charges for trading – like the spreads between bid and ask.

Brokers on the internet earn profits through commissions, spreads or a mixture of both (and could also receive rebates or other benefits). There’s nothing extra to pay in addition to spreads, and you don’t incur any additional expenses if you decide to keep positions open for a period of time. Check out the eToro USA review for further details. 

Are you able to earn money using eToro?

You can earn money from eToro but earning it like any other broker — is not 100% guaranteed. The main reason eToro is worth your time is the ability to copy trades on social networks, allowing customers to choose from its extensive list of trading partners and replicate trades in real-time. However, keep in mind that you could also lose money when you deal with investments, such as stocks, forex, or CFDs. This includes eToro.

The secret to earning profits at eToro as trader is to make the best trading decisions and taking the right risk management decisions to keep your losses as low as your average profit throughout the time (whether you trade by hand or using copy trading).

If you are copying trades on eToro it is still necessary to conduct enough research to go through the investors’ database and determine what, if any, to copy. It is also necessary to decide the amount you will allot to each provider of strategies and whether you want to set any draw-down limit limits (that refers to a threshold that will stop copying once a specific threshold of loss is reached) and whether you’ll copy traders currently open or only making trading new trades.

Is eToro an ideal choice for beginners?

It’s true, eToro is a excellent choice for those who are just starting out. The trading platform is simple to understand and isn’t overly complicated. eToro is a great example of balancing helpful tools and features into an online platform and user-friendly mobile trading apps. While it’s great for those who are just starting out doesn’t mean that it’s simple to earn money, it’s more straightforward to utilize eToro than other more advanced trading platforms available.

One of the challenges that beginners might face when using eToro is analyzing enough before deciding which traders to emulate and getting to know more than the pure gains that a particular trader has made.

For instance, you could consider your risk rating, mean amount of trades made every week, and the average amount of profit, loss and holding time for an investor you’re considering copying.

What kind or broker do you have? eToro?

eToro can be a market-maker or agency broker, based on the specifics of the eToro entity holding your account. Market-maker brokers serve as the counterparty for your trade. Agency brokers transfer your order to other market-makers in exchange for profit-sharing, rebates, broadened spreads and commissions.

For instance, eToro U.K. and eToro Europe both act as market makers, but they also have the ability to protect their clients’ trades and serve as a matched principal (agency broker) in the event that it is required to support the firm’s internal risk management procedure. It is crucial that brokers follow the highest execution rules and eToro must comply with these rules when the law requires it.