What is eToro?
Are you too starting as an investor? Are you worried about scammers or dealing with hefty stockbrokers? Well, then an easy fix to all these problems is the use of eToro. EToro is an investment and trading website that allows you to trade almost anything. Be it your stocks, assets, foreign currency, or even cryptocurrency. Now onto the fun part. What sets eToro apart is its user-friendly design. The website is also accessible through a mobile app. And believe it or not, trading on eToro is the same as surfing through your Facebook!
EToro is the first online trading website that has added a touch of a social element to your regular stock market trading. Much like your Facebook, eToro, too, has an online trading circle. You can visit the profiles of other investors, and check what trading they are up to. Trading on eToro is very easy. All you have to do is select some good investors, click copy, and Voila! You, my friend, are now a stock market investor.
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EToro Vs. Traditional Stockbrokers
Is your knowledge about stock trading based on Wolf of Wall Street? Well, the reality of the stock market was not so different until a few years ago.
- Commission Fee: The financial markets have always been great at keeping their middle-men, the stockbrokers, well in the play. These stockbrokers charge huge amounts of fee in return for lousy investment opportunities and sometimes even fraud. But this all changed with the introduction of the online trading website eToro. How is eToro different from our traditional stockbrokers? Well, for once, eToro does not charge any commission fee for trading in real stocks. This means 100% of your money goes to the stock you are interested in.
- Additional Savings: For the first time, ever eToro has successfully eliminated the role of stockbrokers. Using eToro, you no longer have to worry about stockbrokers taking a huge chunk of your money at every transaction. And from my trading, what I have noticed is that eToro saves up to 20 times more than when you trade through stockbrokers! Apart from 0% commission, you also do not have to pay any management, rollover, or ticket fees. And what is surprising is that eToro itself pays your stamp duty or transaction fee if you are investing from abroad. And you end up saving following amounts of fee:
- Your Profit is yours only: Stockbrokers eat up a chunk of your profit even before you have earned any. And the worst part is, sometimes, investment through the broker does not turn out to be profitable. Which means all that money went for nothing! But now, with eToro, your profit is yours only. The commission that you would have given to a broker now remains in your pocket.
Why is eToro different from other Trading Apps?
1. Easy Interface: eToro refined the way trading on stock market works. EToro has also launched a mobile app so that trading is just a click away! The interface of the app is the same as Facebook. A tutorial video was each feature of the app is available on the homepage. The app also helps you keep track of the stock market. If you get confused, looking at the stock numbers and can’t keep up with them. Then eToro has a graphical overview and summary for each stock for your ease.
2. Practice Account: If the above point did not catch your eye, this surely will. EToro provides its new users with a practice amount having $100,000 virtual money! The users are free to use this virtual money. The purpose of this practice account is for you to test out all the trading functions before you put real money. Although you won’t be able to cash the profit out, this is a great way to learn about stock trading.
3. Trading Tools: eToro has a unique CopyTrader tool. Using this tool, you can come up with a no loss stock portfolio by just copying the best traders. These top traders will do half of the work for you. Now the question is, how do you find the best traders? EToro has got that covered for you with the help of the Popular Investor Program. With the use of this tool, your app will direct you to the most profitable traders online.
How to Invest in Stock Market using eToro?
Investing in eToro has been made super easy by the app through tutorial videos. As a newbie, all you have to do is follow the following steps:
1) Setup an Account:
For most of you reading this article, you may already have an eToro account. But for my newbie investor friends, all you have to do is click on this link: eToro. The link will direct you to the eToro homepage, where you can create an account by simply clicking on the sign up option. EToro has the easiest setup procedure, and your phone number backs your account for security purposes.
Here’s a tip: For new investors, it is better to start with the eToro practice account. This account has specially been set up by eToro to help new investors familiarize themselves with the trading world. You can use the $100,000 virtual money for learning the dos and don’ts before you decide to put up your cash. This way, even if you make a mistake, it will be the virtual money that you lose, not your cash.
2) Make your First Deposit:
Before you start as an investor in your new account, you need to put in some seed money. Just like any bank account, you can use the money you put in to make purchases of stocks. You can even withdraw your money from your eToro account if you are unsure about trading.
Here’s a tip:Since withdrawing the money from the eToro account comes with a fee, you must start small. If you are unsure about the whole online trading process, start by only putting in $200. This way, even if you decide to quit, you won’t have a huge withdrawal loss.
3) Choose a Stock:
Before choosing stock of your liking, it is essential to familiarize yourself with all eToro functions. Next, all you do is to click on ‘Trade Markets,’ next on ‘Stock’ and finally on ‘Industry.’ After this, all you have to do is figure out which industry you are interested in. EToro also provides you with complete detail on the industry’s stocks, price changes, and growth. Once you have selected an industry, a list of potential companies’ stocks of that industry will be on your screen.
Here’s a tip:If you can’t decide which company to choose or if you don’t know how to check the company’s progress, eToro has got you covered. When you select a company, two options appear on the top. The first option is ‘Feed,’ which has all the recent news related to the stocks of that company. The second option is ‘Chart,’ which shows the stock prices of that company’s stock over the past year. You can also narrow down your chart to display prices of the past week or month. These two options help you better analyze the potential of any company.
4) Click on Trade:
After choosing your company, all you have to do now is click on ‘Trade’ shown on the top right corner of your screen. Once you have done this, you now need to set limits to your profit and losses. One of the rookie mistakes that most of the investors make is that they set their profit targets very high. What most investors don’t know is that the higher the return on stocks, the higher the risk of loss is. It is essential to know how much loss can you bear and keep the profit margin to a minimum.
Call for Action:
Trading today has nothing to do with the pink sheets or white sheets. EToro has refined the way investors can now trade their stocks. As a newbie to the world of finance, you make a lot of rookie mistakes. But in the world of trading, making mistakes means losing your money. It is essential to start with a reliable and credible website. EToro has been operating since 2007 and has 9+ million users. When you start as an investor, eToro may seem scary to you. But the app is specially designed to be user-friendly and easy to use for newbies.