eToro Review 2017 – Trade with confidence?
I guess, during your search for the perfect trading platform that meets your personal needs, you may already have heard the name of eToro.
Did you ever go deeper into details or are you still looking for information that may be telling you if eToro is worth it to have a closer look at the platform?
If you didn't make your final decision yet, this review may be interesting for you as I collected the basic information that may help you to get a first impression of this platform.
When I started comparing eToro with competitors in the market, the first big difference I found was the fact that the headquarters of the company are not located in the U.S.A. but in Cyprus. So, eToro is authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) while eToro (UK) Ltd, a Financial Services Company, is authorized and regulated by the Financial Conduct Authority (FCA).
In general, eToro presents itself as a social trading and investing company that enables the users to watch the trading activities of other users, to copy them and to use them for their own trades.
Also this sounds different from the description of most of the competitors.
And eToro makes big promises. It calls itself the global leader in social trading with more than 6,000,000 registered traders so far.
To make new members feel safe, eToro assures that it is fully regulated working with the leading European regulators, that it is completely secured as the users' funds are kept safe in the biggest European banks and that it respects your privacy as it will never share any of your personal data without your permission.
Now you may tell me that all this should be completely natural and you are right. But anyway, I see it in a positive light when this is mentioned on a trading platform.
eToro has a goal and a vision. The company wants to become the first global market place that gives everybody the chance to invest and to manage the funds in a completely transparent and simple way.
With the help of its large and growing investment network, eToro offers all individual investors a user friendly, innovative trading platform and an active social community of traders to support every user in reaching their personal goals with well-informed trading ideas and concepts.
So, let's try to find out if eToro may keep these promises and if it really makes a difference. Continue reading to learn more about it.
What do you have to know about eToro and how does the platform look like?
When ever I have a very first look at a trading platform, I am interested in basic information that makes it easy to compare the platform with others in the market.
What I found here was one more platform being stuffed with tons of detailed information.
Now you may say that too much is better than nothing at all, but I prefer websites that enable you to get a helpful overview before you will probably decide to go deeper into details.
Once I had understood the structure of the platform, I found what I had been searching for, but it took some time.
Especially since I believe that traders don't have any time left as every single second may decide about success or failure, the navigation on the platform didn't impress me too much.
Before we will go further, I think, it is time to learn a little bit more about eToro itself to see the differences when you compare the service with other trading platforms.
eToro doesn't call itself a trading platform, but the first global market place to trade commodities, currencies, indices and CFD stocks in a transparent and simple way and even with fun.
By now they have users in more than 170 countries all around the world and they are happy about thousands of new accounts that are opened on every day.
They promise every user the perfect tools that fit with everyone's personal investment style and they see the biggest advantage of this platform in the active community that enables the members to learn from each other, to interact and to copy other users in real time.
I like it that eToro also reminds the users of the risks while they offer innovative web-based and mobile trading platforms for traders of all different kinds of levels and while they seem to be very proud of calling themselves your social investment network.
Fine, but what do they offer in detail and what does it all cost? In the next point we will try to figure this out.
eToro – Products, costs and tools
First of all, eToro mentions five points that are highly important to the company:
- Being a global marketplace for people from all over the world to enable them to trade and to invest in currencies, commodities and indices
- Being designed for simplicity to enable beginners to trade side by side with the professionals and to enjoy it
- eToro is proud of the inviting design and focused on going on improving the design and the tools according to the customers' experiences and wishes.
- Being an open investment network for all kinds of investors who like to learn from each other, to share ideas and experiences, to interact and to compete with each other.
- eToro believes in it that a large community of investors will always be better and more successful than every one of them all alone. Based on this belief they want to enable every user to improve his skills and his trading.
- Being a personal financial empowerment to make every user better and stronger.
- It is highly important to eToro to state that every investor is respected and supported in the same way, but according to all of his individual needs.
- Being trusted because of the full transparency between eToro and all customers.
- eToro understands that trust is all about honesty. The company feels responsible for being reliable and regulated to give every user the opportunity to take a responsible approach toward investments and trading that will be rewarding and successful.
All this sounds great and impressing. But how is it reached?
Let me start with some good news. A free education center is part of eToro's platform.
This offers useful information for beginners and for professionals – in the shape of training tools, like e.g. webinars, videos and guides, in combination with a clear and helpful personal guidance to help the users of all levels to learn more about social trading and about how to take the best possible advantage of the financial markets.
Here, the best points are the free investment education materials and a free virtual trading account to practice without any risk.
I see it as a significant advantage that the platform enables every user to switch between the real and the virtual account at every time.
The trading tools that eToro provides the users with include:
- Live Charts to watch an interactive graph of the currency pair of the user's choice and to illustrate the development of a chosen instrument over a certain period of time
- Setting up a Trade being supported with several important parameters, like e.g. leverage and amount, to make the users see the complete picture before placing a trade
- History to enable the users to see all details of their previous trades to learn even more from this
- WebTrader with a complete guide to the social trading platform to be able to make the most out of using it
- News showing in real-time what is going on in the world of Forex and being permanently updated
I guess, now we reached the point when you would like to get to know what it costs to trade with eToro, but unfortunately, I will have to disappoint you here.
There are no general fees that may be mentioned to make it easier for you to compare the prices with those of the competitors.
On the website you will only find the fees for currencies, indices, stocks, commodities and ETFs and for withdrawal fees, conversion fees and inactivity fees in absolutely detailed lists that make it impossible to give you a short overview in this review.
Maybe this is positive as it may be the proof for the transparent fees that eToro promises.
But you will really have to see these detailed lists yourself to be sure of what you may have to pay.
You surely have a few more questions that I can answer here. The first one might be the important question if eToro's service includes mobile trading.
Yes, it does. Just install the eToro Android App on your mobile phone and use the platform where ever you are and whenever you want.
Of course also the customer service is a significant point as you have to be able to reach them when you need help.
eToro's customer service is always available when the market is open.
Regarding the customer service, I found one more point that I like on this platform.
Here the members of the customer service are introduced in person and even with a picture.
So, you will have a clear imagination of with whom you are talking.
In addition to this, you will find a detailed FAQ section and online guides that are presented as being the suitable tools to answer about 80 % of all possible questions.
In the blog, there are also personal reviews of users sharing their experiences and impressions of the platform.
Just as always, there is no undeniable proof to show that these reviews are real, but this makes no difference when you compare this section with those of similar platforms.
eToro Review – My personal summary
Even though the platform is quite overloaded and not too easy to navigate, you can still find the information you are searching for.
Me personally, I see the main advantages of eToro in the free education center and in the free virtual trading account to practice without any risk that you can still go on using when you will have opened a real account.
Other positive points are the opportunity for mobile trading everywhere and at every time and the personalized customer service that you can reach all through the opening hours of the market.
I really like it that you can see the members of the customer service.
It also makes a positive impression on me that eToro reminds the users of the risks and that they take honesty so seriously.
The tools sound like being useful and they seem to fulfill the most important tasks to improve trading. It is not like using a classic stock screener for day trading but more scanning for other people trading activities.
But I don't see it as a plus that all fees are listed in every little detail not allowing it to get a short overview before you may start using the service.
But maybe every professional trader will like it to see all details of the costs and these lists really prove the transparent prices.
Regarding the main difference between eToro and most of the competitors in the market, I am not sure if I see this big trading community in a positive or in a negative light.
In any case, it sounds good that nobody has to be the very best trader.
But I think, some of you may enjoy it to watch and to copy the trades of other members and to be watched and copied by others – and some of you may not want this at all.
So, it is up to you to give this platform a chance and to have a try with it to gain your own personal experiences with this system.
The advantages I see:
- the free education center for everyone
- the free virtual trading account to practice without any risk
- the mobile trading opportunities
- the personalized customer service
The disadvantages I see:
- the giant amount of detailed information that doesn't make it easy to answer some basic questions
- the complicated system of fees and charges that doesn't allow any short overview
- the not too user friendly navigation on the website
- the lack of information regarding the company's history, background and long-term experience
However, we all see things differently and maybe the disadvantages I see may look like advantages to you. So, if you want to find out if this large trading community may be what you are searching for, you better check this out yourself: https://www.etoro.com