Social trading eToro has been a new trend in trading. Copy trading which is the best feature of eToro is the reason why this has been popular among millions of people. Gone are the days when you need to study training to start trading. With eToro, you can observe other the experts in trading and copy their moves.
Do social trading, copy the expert traders, or be an expert and be copied as well
Social trading works like social media. The idea of the owners of eToro is for other people to share their knowledge in trading with other people so that other people with less experience can trade as well. Newbie traders can start trading by getting information from other traders by just observing the experts and start copying their moves. The system works automatically and copies the trade of the experts automatically. Experts are always happy to share their knowledge with other traders in exchange for a small percentage of the earnings of the newbie traders.
There are 3 main user groups in eToro forex trading
a. You want to do social trading which means you have traded in the past, but you want to know more about trading. So you use eToro social trading to check out what the expert traders are sharing to add to your knowledge in trading. You also get advice from the expert traders from time to time.
b. You don’t trade because you don’t have enough knowledge in trading or you do not have the time, but you found some expert traders that you want to copy so you can earn money in the long run. You don’t actually do the trading, but you are using the copy trading feature of eToro so it will automatically copy the moves of the expert trader that you chose in your account.
c. You are an expert trader and you want to gain more money by letting others copy you. This works by sharing your trading signals in eToro social trading platform. When the trader who copied you gain some money, you get a portion of their earnings as well.
These groups are not exclusive. In fact, you can be a member of one or more of these groups. If you are here because you want to start trading in eToro because you saw good eToro reviews, then you need to know the reason why you want to trade. Ask yourself which group you belong to. It will have an impact on the success of your trade.
Do I need a lot of capital to start trading?
If you think your starting capital in eToro should be big, then do not worry. eToro forex trading only asks for a minimum of $200 as a starting capital. Take note, however, that doing social trading is not a magic potion because there is always a risk in trading. Even if you copy other the expert traders that have a good track record, there is no guarantee that you will succeed in gaining interest in your investment.
What do I need to be successful?
Like any other business, social trading is not a way for you to get rich quickly. Remember that even if you are only copying other traders you will need to review the results of your trade regularly to make sure that protect your investment. Everyone makes a mistake from time to time because we are not perfect so there is a possibility that you will lose some money. Even if you do not have enough knowledge in trading you need to make sure that you understand how trading works and the risks involved so your loses will be minimized if it happens.
Make sure you spend some time learning how to trade because your success may depend on it. If you are new in eToro forex trading, you can check your dashboard for the latest updates in trading and some training materials that contain valuable information about trading and how to trade. You don’t need to do extensive research to start trading because everything is there. There are also a lot of social trading tips on the platform itself because the expert traders share a lot of tips from time to time just like what you do in social networks.
eToro is the best platform for beginners according to eToro reviews online. In fact, if you do a search you will not see a bad review of this platform. Aside from the copy trading feature, they have a demo feature as well. You can try doing a demo so you can get a feel on trading. You have a starting capital of $100,000 if you want to try the demo feature and see if you can earn with your demo investment. As soon as you get the feel of trading, then you can start investing your own money and start the actual trading. You need to have a lot of patience if you will start trading because it takes time to earn in trading.
Why Is eToro the best platform for trading?
There are a lot of social trading platforms nowadays, but eToro has remained widely used. Here are the things that you need to consider if you are not sure yet which platform to use.
a. Do you want to be able to get a feel of trading?
b. How much is your initial investment?
c. Do you want to be able to trade while on the go?
d. Do you want to earn more by letting other people copy you?
e. What currency will you use if you will start trading?
f. What tools do you need when you trade?
g. How much risk are you willing to have?
Let’s take a look at why people prefer eToro than the other social trading platforms
eToro Quick Review
eToro was founded by Ronen Assia, Yoni Assia, and David Ring. Their main vision was to have a popular financial trading and investment platform that is accessible to everyone. Since it has been founded, the eToro forex trading platform has grown and become known worldwide. It is ranked number one among the social trading platforms. Because of eToro, everyone can now trade currencies. You don’t need to go to the actual trading floor or go through a trading agent to trade currencies.
If you are worried about your investment you don’t have to worry. eToro is regulated and is based in Limassol, Cyprus. It is registered in Cypriot Investment Firm or CIF. It has been registered under HE200585. It is regulated by the Cyprus Securities and Exchange Commission or CySEC under license number 109/10.
They also have headquarters in London and it is registered in the UK firm under registration number 7973792. It is authorized and regulated by the Financial Conduct Authority or FCA under reference number 5883263. eToro (UK) Ltd. And eToro (Europe) Ltd. Comply and operate under the Financial Instruments Directive or MiFID.
Today, eToro has millions of users in over 170 countries. The clients of eToro Social Trading has access to trade in currencies, indices, CFDs and commodities. It has thousands of new users every day because of their easy-to-use features and training materials that newbies can access.
In 2010, it has launched the investment platform “openbook” with their copy trading feature. It also launched its first Android App so that people on-the-go can trade. You can watch, follow, and copy anytime, anywhere. The features that you love on the web platform are also available on the Andriod App.
Take note though that the United States residents are not accepted to trade because it is not licensed in the US.
Comparing eToro and LiteForex
In every business there is always a competition, right? If you have been searching for a trading platform online then chances are you have seen LiteForex being advertised. So if you are a good businessman you always have to check the competition. Now let’s compare the features of eToro and LiteForex.
We know of course that eToro is the first and the largest social trading platform because it has already established its name in the industry. Right now there are millions of eToro users worldwide. I was voted the best social trading network the World Finance awards back in 2011 and 2012. LiteForex, on the other hand, is a newer social trading platform compared to eToro. It has been voted the Best Broker in Africa, Asia, Latin America, and the fastest growing broker in Western Europe and Asia.
Every social trader expects a reward when trading. If you are an expert trader and you allowed people to copy your moves, you will be getting 100% rebates on all your trades and 2% on your follower’s assets under management. This is on top of your trading profits and is credited monthly in your account. LiteForex, on the other hand, will only let you copy new trades. They are more flexible when it comes to order sizes, though. You are allowed to choose to replicate the position of the traders on a one-on-one basis.
If you have bonus funds and you are choosing LiteForex, you are not allowed to do social trading using it. eToro allows the use of bonus funds on all accounts. Of course, I would want to use the bonus funds that is why I love eToro.
When compared with other social trading platforms, there is no doubt that social trading eToro has the best features so you can trade. The user profile is easier to use as well. There are a lot of features in eToro that are very useful but were not discussed in this article. If you want to know more about eToro and its features, you can visit their website. Don’t take our word or reviews about it. Try making a profile in eToro and check out the demo feature so you can get a feel of trading. You can also explore the other features of the platform while you are doing it. After using the demo feature and checking out the website, I’m sure you will invest in social trading eToro.