On this page, I’m going to give a basic overview of eToro – what it is, how to use it and some things to keep an eye on
One of my friends introduced eToro to me in 2016 (thanks Jim). I remember it as it was just before the US Presidential election and I thought there’s going to be some volatile markets, I could get some cash out of this. I was right, the markets were very volatile at that stage but I overestimated my ability to pick the winning side and lost most of my money but not sticking to the Rules of Trading.
1. What is eToro?
eToro is the first global market place for people to trade currencies, commodities, indices and CFD stocks online in a simple, transparent and more enjoyable way.
It focuses on the social aspect of trading – here you’re able to see other people’s trades, talk on the forums and let people know your thoughts. The only way you can’t see someone’s trades is if they have a private profile. Those with a private profile can’t be part of the Copy Trading program, so it’s a catch 22. Sometimes it’s good and then there are other times where people spew their thoughts without much thought as to what they’re actually saying.
Lots of users
So think of it as a social platform that you can trade on. There are approximately 9 million + users of the platform. With the recent rollout to the USA (cryptos only), this number is expected to grow over the years. So having 9 million opinions can be a good thing if you have the time.
A lot of traders use leverages for their trading but I would advise against this whilst you’re learning how to trade. Also, depending on where you are located, you might be restricted to CFD (Contract for Difference) trading (more information on CFDs here).
2. Why should I use it?
Since 2007, eToro has consistently taken measures so that its platform makes online trading easier and investing becomes accessible to anyone. By keeping a balance between giving easy access to beginners and improving upon important elements for more experienced traders, eToro has solidified itself as the world’s leading social trading platform.
eToro offers both short-term options for day traders and long-term options for investors, such as their innovative CopyPortfolios™. Which is a fully managed thematic portfolio. eToro also acknowledges that different traders have different risk-appetites, and offer instruments to help with this.
eToro takes great pride in their social trading features, enabling its clients to benefit from the collective wisdom of its vast network of traders. Their social newsfeed, CopyTrader™ system, and Popular Investor program utilise the full potential of our next-generation social trading platform. With numerous successful traders using our platform to share their strategies, eToro clients have everything they need to pursue their financial goals.
Accessible from a Traders point of view. eToro has over dozens of exchanges, forex, cryptocurrencies, indices etc all available to anyone who is able to trade online. This means that someone in Australia can trade US Stocks, Swedish stocks, and other exchanges without having to pay exorbitant brokerage fees to place the trade each time they want to trade.
3. How to get started on eToro?
There are a couple of things to kick off your eToro trading experience
You’ll need to sign up
You can sign up to eToro here – which is my personal referral link! When you sign up, you’ll need a username. There isn’t an option to change your username, so choose carefully!
You’ll need to verify your account
Verification is a mandatory part of the process of registering for the eToro platform. Regulatory requirements dictate that we verify each new eToro account. This keeps our platform secure and prevents untoward activity.
Once you’re verified, you can enjoy the full benefits of the eToro platform. To verify your account, you will need to upload both proof of identity (POI) and proof of address (POA) documents. Only after you provide us with both documents will your verification process begin. You can use the eToro app to scan your documents directly to the platform.
Visit here for more information https://www.etoro.com/customer-service/account-verification/
Play around the with Virtual Account
- Go to your main profile
- Under ‘Real’, you can select your Virtual profile
- Now you’re ready to make a deposit
Funding your account
Funding your account is quick and simple. There are various payment methods at your disposal. Simply choose
whichever method you prefer and follow the steps below to make a successful deposit:
- Log in to your account
- Click on “Deposit Funds”
- Enter the amount and select the currency
- Select your preferred deposit method
Ok – so now what?
My recommendation is to use your virtual account to see how things work and to get an understanding of the platform operates.
Once you’re happy to start trading real money – look at Copying someone or gets some inspiration from my current portfolio.
4. How can I Copy you or someone else?
Fortunately, it’s really easy to copy someone using the CopyTrader system. Unfortunately, it’s harder to find the right person to copy.
If you’re already on eToro, you can find and copy my profile here
I have written a post about Copy Traders and what to look out for. Use this as a guide to finding the right person to Copy.
5. Other things to consider
I can’t stress this enough – Please use the virtual account! It’s free, zip, nada, gratis!
I’ve seen too many people on eToro asking why they are losing money on a trade. The stock is going up but their profits are going down.
Turns out they were selling the stock, rather than buying the stock.
PLEASE READ – DISCLAIMER:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.