Want to start trading but don’t know where to begin? When you’re new to trading, accessing the markets can seem complicated and it can be hard to find a good trading platform. eToro, the online trading platform, offers you several tools and guides and supports you as you learn.
What is eToro?
eToro is an online trading platform founded in 2007 in Israel. It currently operates in over 100 countries. To achieve this, the company has established an easy-to-use trading platform, which still includes professional tools for experienced investors. Individuals can register on this platform and invest in different financial products. The platform, which acts as an intermediary, offers users the opportunity to copy the movements of traders to replicate their strategy.
How does eToro work?
The platform, which is accessible online, also offers a mobile application. In order to start trading, you must first create an account, fill in your login details and assess your trading knowledge. Partner banks temporarily host the invested and earned amounts. The investor must then transfer them to his personal bank account in order to use them. Once the registration is complete, the marketplaces covered by eToro are accessible, and the user can invest as he wishes.
In addition, eToro offers the CopyTrader system: this technology consists of automatically copying the activity of one or more other traders in real time (the Popular Investors). Some Popular Investors like Market-Signals are specialized in ETF trading, others in stocks or Forex.
The investor defines the amount he wants to allocate to copy trading, and this investment will mimic the movements of the trader(s) being followed.
The platform also offers a social trading feature, i.e. the opportunity to chat with other investors.
Is eToro the best broker for beginners?
Powered by its zero commission offer, eToro is definitely the best broker for beginners. In addition to presenting an easy to use and intuitive interface, eToro provides an 18 step FinTech guide to getting started with the platform. Over 10 million people worldwide choose eToro as their favorite trading platform.
What financial products are available on eToro?
On eToro, it is possible to invest in assets such as stocks, crypto, commodities, currencies, indices, and ETFs. The platform also offers a CopyTrading Portfolio, through which investors can access a portfolio of stocks from a predefined sector, and invest in the whole portfolio, without selecting assets one by one, in order to diversify their own portfolio.
eToro: Pros and Cons
- No fees on shares ;
- It’s an easy to understand platform to start with ;
- eToro offers interesting trading methods like copy trading ;
- The platform is suitable for both beginners and experts ;
- Professional customer support ;
- Trading is possible 24 hours a day, 7 days a week.
· Exchange fees are rather high ;
· The platform is not available in all countries ;
· Spreads for the transaction are quite wide.