Social trading is a truly innovative approach to trade financial markets. Platforms like eToro connect hundreds of thousands of traders on a daily basis. Some conservative investors might approach social trading with a bit of caution. So, is eToro legit? You will find out this and more in our review!
About the Company
eToro is a veteran in the social trading industry and it has successfully been delivering its services since 2007. From the legal standpoint, there nothing to be afraid of. eToro (Europe) is authorized and regulated by CySEC, whilst eToro (UK) is licensed by FCA. Please note that eToro UK is dedicated only to the residents of the United Kingdom. It is also worth mentioning that US clients are no longer welcomed at eToro, as its division in the United States no longer exists. This company used to be regulated by CFTC and NFA, but eToro decided to stop with US clients a few years ago.
Is eToro scam? Certainly not. Furthermore, there are no third-party brokers present on the eToro platform, which is the very case among social trading networks. Instead, eToro offers integrated broker solution. The website is available in 8 languages – English, Russian, Spanish, Italian, French, Chinese, Arabian.
Overall, eToro has a huge customer base – more than 5 millions of registered users.
eToro Reviews: Copy Trading Features
Opening an account is quick and easy at eToro. During the registration stage, the broker allows the user to choose one out of 16 currencies. We should also mention that eToro offers fully functioning demo account.
The cornerstone of social trading is the ability to profit from other traders’ actions. eToro goes even farther, since the platform allows picking traders with the help of a wide array of parameters. For example, the investor can choose the strategy to copy based on the gain percentage, maximum drawdown, country, trading instruments and so on.
To perform personal analysis on the particular trader on the eToro Forex broker website, the investor can receive access to in-depth statistical info. Therefore, everyone can learn about the historical performance of the trader, check profit ratio, the total amount of trades etc. In addition, the investor may view current open trades and see trader’s portfolio distribution.
By the same token, eToro platform supplies so-called Trader Charts. This enables the investor to test the trader by using past performance data simulations, e.g. by specifying past time frame and capital allocation.
Another possibility to profit from trade copying at eToro is to invest in CopyFunds. These Top Trader CopyFunds, the first type of CopyFunds, represent the combination of best traders who performed well over the past quarter. This can save a lot of time searching for good traders on the platform. The second option is to invest in “Market CopyFunds”, which comprise of a certain set of financial instruments. Some people might label the broker “eToro scam” because they were not successful at the platform. Nevertheless, eToro is intuitive and beginner friendly, so users can obtain good tutorials.
”Popular Investor” Features
Likewise, the user can try the role of “popular investor”, i.e. to share his own strategy and trade signals. eToro allows such website users to benefit from being followed. Simply put, depending on a number of subscriptions, the “popular investor” earns a fixed monthly fee. Additionally, eToro rewards the best traders on the platform by letting them receive 2% of the funds under their management in a couple with a spread-free trading on the annual basis.
“Popular Investors” trade on the proprietary eToro platform – WebTrader. Moreover, there are mobile apps available in AppStore and GooglePlay. Different eToro opinions have said that the quality of these applications is quite high.
eToro is a user-friendly platform, which means that everyone can join the platform for free. However, in comparison to other large social trading networks, the spread seems to be not so low. For example, the user has to pay 3 pips for EUR/USD pair. Another type of fee incurred at eToro is overnight rollover fee.
At the moment of writing this eToro review, the broker offers up to 40% deposit bonus. In addition to this, the clients can profit from “Refer a Friend” bonus – everyone can get up to $1000 by inviting 10 friends to the broker.
Users can reach the client support at eToro by using email, phone or online chat. For indirect support, it is recommended to check eToro FAQ.
eToro Reviews: Banking
The minimum deposit at eToro depends on the transfer method chosen, so the requirement may range from $200 to $500. Note that to follow the particular trader, the investor might need more money on the account.
To deposit or withdraw funds, the user may choose credit/debit cards, PayPal, Skrill, Neteller, WebMoney, and Wire Transfers. The withdrawals are processed instantly for payment cards, while for other remittance methods it may take from 1 up to 8 business days for the funds to reach the bank account.