Forex trading has changed due to social forex trading. Now we won’t have to go to an actual trading floor in order to trade or go through a broker. All we need is a computer or a cellphone and we could already trade with very low capital. Let’s take a look at eToro which was the first social trading platform developed.
eToro was founded in 2006 in Tel Aviv, Israel. It was founded by two brothers, Ronen and Yoni Assia along with their partner David Ring. Their main goal was to have open financial trading in which everyone can participate. Today, eToro is one of the best social trading platforms available in the market.
I know most of you are very hesitant when it comes to investing your money online because of a lot of scammers that are online and are waiting for some victims to get money from. Don’t worry though. eToro is regulated by several financial institutions namely: eToro (Europe) Ltd., which is based in Cyprus with registration number HE200585; eToro (UK) is authorized by FCA or Financial Conduct Authority with license number 583263. eToro is registered under the company name CySEC or Cyprus Securities and Exchange Commission with license number 109/10.
Today eToro is available in more than 170 countries and has more than 5 million users. One of the reasons why eToro social trading is very popular is because it can be traded in currencies, CFD’s, and commodities just like in the trading forex floor.
According to a social trading review, the social trading platform of eToro was first known as the “open book” platform in 2010. The “copy people” which was one of the features of eToro was introduced back then became an instant hit. This feature provided newbie traders guide on how to trade successfully without getting any training or going through trial and error when it comes to investing their money.
The feature allowed newbie traders access information about professional investors and how they trade. Professional investors also had the option to share their personal information and their trading history to newbie traders. The professional traders are also classified by risk levels, the number of followers and their return percentage.
The android application of eToro was also introduced in 2010 which allow people to trade on the go using their android phone. A lot of features has been added since then which included the automatic copy feature which will automatically copy the professionals’ traders you choose to copy.
Joining eToro is easy and free. Unlike other platforms, you do not need to do several verifications in order to start trading. All you need is a capital of at least $200 and you have to be at least 18 years old.
Just go to the website of eToro and sign up. You can even sign up using Google or Facebook. Then complete your profile which is located on the upper left-hand side of your account dashboard. It will then prompt you to verify your account. Be ready with your personal identification like a government-issued ID, proof of address, and a phone number for verification. This is very important because it will lift your deposit limitation as a newbie. Be sure to give out accurate information so that you will not encounter any problems using the platform. Newbie copy traders of the eToro social trading platforms may receive a prompt or warnings whenever you copy a trader that is high risk. A demo account is offered for those who would want to check the features of eToro before signing up.
A fixed spread of 3 pips is charged on EUR or USD currency compared to other fixed spread brokers who apply 2 pips only. eToro forex trading does not charge any commission fees. If you are into cryptocurrency the trading fees are higher as well compared to other trading platforms. The charge for most trading platforms is 0.2 -25% while eToro charge 0.7%. The purchase fee when using cryptocurrency may also go up to 5%, but the features that are offered on eToro is worth the high fees if you look on the bright side. If you are looking into trading, I would recommend you to use eToro. Yes. The fees may be high, but the copy trading feature is worth the investment.
Deposits and Withdrawals
Although eToro is based in Europe, the trade is done in USD so any deposit in other currencies are automatically converted to USD. Deposits can be done using debit or credit card, wire transfer, PayPal, or electronic wallets. Electronic wallets accepted are Skrill, Neteller, Webmoney, Wirecard, and Yandex. Withdrawals can be done using the same method as well. The minimum withdrawal amount is $50 with a flat withdrawal fee of $25. The amount will reflect on your account within 8 business days.
Like I mentioned above, you do not have to worry with being scammed if you use eToro social forex trading. It has over 10 years of experience in social trading. If you are hesitant because you don’t know how trading works, a trading academy is available and a trading eCourse for you. Live webinars are also done regularly to educate amateur traders. Blogs are also available on the eToro site to help you jump start your trading career.
As mentioned, eToro can be traded using several commodities. You can trade real stocks, ETFs, and cryptocurrencies. All the other trades are done in CFDs. This is where copy trading comes in. There is also a limited amount if you want to trade in stocks. Not all stocks are available and the exchanges available to trade are NYSE, Nasdaq, London, Frankfurt, Zurich, Paris, Milan, and Madrid.
You can also trade using commodities like gold, oil, silver, copper, platinum, and natural gas.
eToro has great customer service and this is very important for every business. People will never be contented and may ask for more or have a lot of questions. You can always contact customer service through opening a ticket and can be quick to respond.
Third-party research is available for traders to access. Data that are needed for trading are always made available by eToro even if it’s from a third party because they are important in the monitoring of the stock market like P/E ratio, EPS, dividend, and company profile.
In conclusion, eToro is interesting and unique and I would recommend this to anyone I know that wants to trade. Copy trading will give you a lot of ideas on how to trade. Beginners will not have a hard time using this platform for the first time because this social forex trading app is very easy to use and provide all the information that you need to start trading. eToro is a combination of innovation and great technology that’s why it’s great. If you are hesitant to give your initial capital because you might make a mistake, don’t worry they will let you have the demo account so you can have the feel of how to trade in eToro. Don’t be afraid to invest and fail because the social community of eToro are always ready to help newbies.