eToro Review 2018 – Trade with confidence?
Investors interested in trying their hand at trading will probably come across the online broker eToro when looking for a suitable platform. This eToro review aims to evaluate the information about eToro and the services offered to give interested readers a first impression of the platform.
In comparison with other online brokers eToro is not based in the United States. eToro (UK) Ltd, a Financial Services Company, is authorized and regulated by the Financial Conduct Authority (FCA).
The headquarters of the company are located in Cyprus and thus, eToro is authorized and regulated by the Cyprus Securities Exchange Commission (CySEC).
What is behind eToro?
eToro is a social trading and investing company that gives users the opportunity to watch the trading activities of other users, to copy them and to use them for their own trades, benefiting from a large social trading network.
The online broker calls itself the global leader in social trading with more than 6,000,000 registered traders so far.
To assure investors of the safety of their funds, 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 investors’ privacy as it will never share any personal data without explicit permission.
eToro follows the company goal and vision to become the first global market place that gives everybody the chance to invest and to manage their funds in a completely transparent and user-friendly way.
Based on the large and growing investment network, eToro offers all individual investors an innovative trading platform and an active social community of traders to support every user in reaching their personal goals with well-informed trading ideas.
Now we shall take a look at the platform to see if the claims of user-friendliness and innovative social trading fulfill the expectations.
What’s the structure and appearance of the eToro website, and what are the most important features for users?
To start with, here is some basic information about eToro itself to see the differences when comparing 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 being opened 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.
Clear Risk Warning
In favor of the online broker is the fact that eToro reminds its users of the risks while offering 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.
A Wealth of Detail
At a first glance, the crucial thing is the availability of all basic information. This allows a first evaluation, and a comparison of the platform with others in the market. The impression with eToro is that the online broker’s website is stuffed with a vast amount of detailed information. This is not in itself a disadvantage, but a helpful overview would have been preferable before one decides to go into details.
Navigation and Clarity
Thus it takes some time to understand the structure of the platform and to find the relevant information. This goes against the grain somewhat because traders value their time as every single second may decide about success or failure of a trade. In short, the navigation on the platform leaves much to be desired.Now what are the services offered by eToro, and what does it all cost? The next section shall deal with these questions.
eToro – Products, costs and tools
eToro pride themselves on the following five characteristics:
How are these impressive claims founded in reality?
To start with the advantages, part of eToro’s services is a free education center offering useful information for beginners and for professionals – among them training tools like webinars, videos and guides, combined with helpful personal guidance to help 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. It is 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:
At what cost?
At this point it would be the logical next step to list the costs for trading with eToro. But one of the downsides of the platform is that there are no general fees that would make it possible to compare the prices with those of the competitors.
The website lists only the fees for currencies, indices, stocks, commodities and ETFs, as well as withdrawal fees, conversion fees and inactivity fees.
These are available in absolutely detailed lists impossible to include within the limited space of this review. Interested traders are therefore advised to consult these lists to see for themselves what fees they would incur.
Other relevant questions about eToro might include whether the services include mobile trading. Which they do. Installing the eToro Android App on a mobile phone one may use the platform conveniently anywhere, at any time.
Another significant issue is the customer service and their approachability. eToro's customer service is always available when the market is open.
Very pleasant is the personal touch in that the members of the customer service are introduced in person and even with a picture, giving users a clear imagination of whom they are talking to.
Beside the live customer service there is a detailed FAQ section and online guides presented as being the suitable tools to answer about 80 % of all possible questions.
Beyond this, the company blog publishes personal reviews of users sharing their experiences and impressions of the platform. Of course there is no undeniable proof to show that these reviews are real, but this makes no difference when comparing this section with those of similar platforms.
eToro Review – a personal conclusion
The online broker’s platform is rather overloaded with information and not too easy to navigate. Nevertheless all relevant information may be found.
Among the main advantages of eToro are the free education center and the free virtual trading account to practice without any risk – features that remain available after opening a real account.
Other positive features are the opportunity for mobile trading and the personalized customer service that can be contacted during the opening hours of the market.
It makes a positive impression that eToro reminds investors of the risks of volatile financial products, and that they take honesty so seriously. The tools offered seem useful and helpful in improving trading.
A major disadvantage, however, is the absence of an overview of the fees. Of course there are the detailed lists, and these will be of interest for professional traders.
The summary: After reviewing the above mentioned issues it is not easy to come to an overall positive or negative conlusion. In any case, it sounds good that nobody has to be the very best trader and for fledgling traders it may be very helpful to watch and to copy the trades of other members and to be watched and copied by others. In my opinion, a regular stock broker along with an stock screener for day trading is more suitable for speculators.
To sum up the pros and cons of eToro:
Probably users will have their own preferences, expectations and opinions on the above advantages and disadvantages. Whoever wants to make their own experiences with this large social trading may check them out at: https://www.etoro.com