Choosing the right platform to trade in 2022 can be hard especially when there are so many options to choose across. In this article, we are taking a look at eToro. It is an easy-to-use exchange that allows users to invest across multiple investment options. They have their own offices in the UK, US, and Australia.
What is eToro?
eToro is an investment platform that started back in 2007 allowing people to easily invest in different assets from a single platform. Fast forward to today, eToro is one of the largest trading platforms providing various options to trade like ETFs (Exchange-traded funds), Stocks, Indices, Currencies, Cryptocurrencies, and more. There are over 3,000 financial instruments in the leverage that can be traded.
According to their tagline “Crypto, Stocks & Beyond! The power of Social Investing” is truly a reality here as there are different options to invest/trade. Etoro also has licenses issued by top trusted financial regulators like ASIC, FCA, and CySEC.
If you are a beginner in the world of investing, eToro can be the warmest welcome you can get as it has a super simple user interface that allows easy navigation through their web app or the mobile app.
eToro is also one of the cost-effective options out there as there are no fees (commission or management) on the stocks or ETFs you buy and sell. They have a different way of making income where eToro charges flat withdrawal fees (£3.83 or $5), inactive fees, currency conversion fees, and other fees in the Crypto trading market.
eToro also has a unique feature that lets you connect with other investors on the platform and discuss their thoughts. This helps newbies with some advanced concepts from the pros but don’t worry, eToro has its own knowledge hub that can help you understand the basics easily.
How to sign up on eToro?
Just like any other trading platform, eToro also has a super simple and straightforward signup process.
- Head over to eToro and click on Start Investing button or Click here
- Fill up the necessary information
- Verify and authenticate your account
- Link a payment method
- You’re done!
Type of accounts that eToro offers
In eToro, there are two types of accounts – Standard and pro. The standard type of account is free and allows you to trade in many options like CFDs on stocks, ETFs, Indices, Currencies, Commodities, and Cryptocurrencies. There are no fees for making any deposits or trade, but as mentioned earlier, there are other places where there are fees involved. The Pro account on the other hand has the same features but at a wider spread and advantages.
eToro’s Demo account
Are you worried to invest your own money as a beginner? Don’t worry. eToro’s demo account enables you to practice trade with real-time data using your favorite tools, and strategies and swing the trades without the risk of losing your money.
eToro features & Offerings
eToro’s Cryptocurrency offerings
eToro has a wide range of investment options, right from stocks to cryptocurrencies, you can invest in anything from a single platform.
eToro offers users to buy, trade, and sell over 40+ Cryptocurrencies including –
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Bitcoin (BTC)
- Bitcoin cash (BCH)
- Dash (DASH)
- Cardano (ADA)
- IOTA (MIOTA)
- Zcash (ZEC)
- Tron (TRX)
- Tezos (XTZ)
- Binance coin (BNB)
- Compound (COMP)
- Chainlink (LINK)
- Uniswap (UNI)
- Yearn.Finance (YFI)
- Dogecoin (DOGE)
- Aave (AAVE)
- Algorand (ALGO)
- Decentraland (MANA)
- Basic Attention Token (BAT)
- Polygon (MATRIC)
- Spark (FLR)
- Maker (MKR)
- Enjin (ENJ)
- Shiba (SHIBxM)
- Litecoin (LTC)
- Stellar Lumens (XLM)
And lot’s more that can be checked here eToro Cryptocurrency Offerings.
eToro has its own Crypto wallet that allows users to store their cryptocurrency assets. Additionally, the eToro Money Crypto Wallet allows users to send/receive crypto from other wallets and can also be used to send within the eToro platform.
eToro’s Stock Trading
eToro has everything you need, users can invest in around 1600 + Stocks & EFTs. They can simply select their own collection of assets & invest or simply invest in a readymade Smart Portfolio and get started for as little as £7.67 or $10.
As eToro is based out of the UK, they have options to trade contracts for differences (CFDs) which is one of the most complex & risky types of trade. This can end up in worse situations like the user losing both the initial investment plus owing money as CFDs are involve borrowing capital.
eToro’s Smart Portfolios
Smart Portfolios are portfolios with a predefined collection of assets. Users can simply select one and invest directly. Every smart portfolio has its own theme and purpose, it can be anything focusing on technology or cryptocurrencies.
It lets the users select and invest wisely. They also let users replicate successful investor portfolios easily. If the portfolios are replicated often, the popular investors can earn an additional income over their profits.
The Smart Portfolio option is available for those who are ready to invest at least £382 ($500). To cash out a smart portfolio, the user has to cash out the complete portfolio and cannot be done partially.
eToro has a private club for users who have made at least £3,833 ($5,000) profit from their trading journey. This grants users access to a private eToro club that includes personalized investment guidance, free webinars, a subscription to The Wall Street Journal and more.
eToro Mobile App
eToro has its own mobile app for iOS and Android from which you can trade. The user-friendly app gives you access to the complete trading features of the cryptocurrency market, the community, and updates 24/7.
As mentioned earlier, eToro has no trading fees rather it has fees involved in other areas. But overall, the fee is low compared to its market competitors.
The most basic fee is the withdrawal fee where a flat £4.01 ($5) for a minimum withdrawal amount of £24.07 ($30).
Up next is the inactivity fee where a user will be charged a fee after 12 months if there’s no activity. If there’s no activity from the user regarding the late fee, the inactive fee will be charged on the remaining balance.
You can check out more about the fee structure: eToro fee structure
eToro Safety & Protection
eToro is completely regulated by the UK’s Financial Conduct Authority (FCA), the Australian Securities, and The Cyprus securities and exchange commission (CySEC). As eToro has three different offices, it operates under three legal entities and the customers are served depending upon the location of residence.
- The citizens of the UK are protected under the FCA. In the case of eToro’s Insolvency, the UK users & clients can expect to receive compensation up to an amount of £85,000 guaranteed under the FSCS (Financial Services compensation scheme).
- The Australian users & citizens are protected under the eToro AUS Captial Pty Ltd, ABN 66 612 791 803 AFSL 491139, an ASIC regulated financial authority. However, they don’t provide assurance of the insurance amount.
- Other users around the would-be obligated under eToro’s Europe terms. This is regulated by the CySEC (Cypriot Watchog). The investors get protection up to €20,000.
Apart from the above insurance, all the users onboarded are entitled to eToro’s private insurance. This covers up to £/$/€ 1,000,000 for cash, CFDs, and securities. The protection & insurance is provided by Lloyd’s and is applicable at the time of eToro’s insolvency.
- Is eToro Safe?
The eToro platform is safe and it is regulated by top-tier authorities in the world.
- Is eToro good for beginners?
Yes, eToro is a great choice for beginners as it allows users to explore their interests in the right asset to invest in and choose the right path with the help of thousands of pro traders in the eToro community.
- Is eToro available in the UK?
Yes, eToro is available in the UK but all the transactions are done in the USD. So a currency conversion fee will incur every time you deposit.