4.8
(4)

eToro is a fun, easy to use social trading platform. Social trading lets you copy other traders and Copy Funds allow thematic investing.

The products eToro is offering are CFDs, although you could buy stocks with x1 leverage, and therefore actually own the underlying asset as if you’d bought the actual stock.

Opening an account on eToro

It’s easy to open an account. You can sign-up with your Facebook or Google account, or you can provide your email address.

You can fund your account by credit card, wire transfer, Paypal, Skrill and many more other options.

When withdrawing your funds, they’ll be sent to the same account where the funds originated from.

 

Trading on eToro

The product selection is rather limited, with popular US stocks and ETFs. You can trade cryptocurrencies, ETFs, stocks, commodities, indices and currencies.

Fees

There’re no trading fees, but the platform uses large enough spreads to cover any need for a fee. In most cases, it’s more expensive to buy a stock on eToro than on any other platform that has a fee.

There’s also a withdrawal fee of 25 USD when withdrawing money from your account. If you withdraw money into a non-USD account, eToro will charge you an additional 2.5% in fees. I made the mistake to transfer funds to eToro from an EUR account, so, eToro, you’re welcome. There went 5% of my investment in deposit and withdrawal fees.

Social Trading

You can either copy other people or invest in Copy Portfolios.

Copy People

You can copy other people trades based on their previous performance. Users are encouraged to attract other traders to copy them. Traders that have their portfolio copied receive a badge named Popular Investor and will be paid monthly by the platform.

You’d want to copy other people if you don’t have time to do your own research and you trust the trader you copy that they’ll take better decisions than you would.

Copy Portfolios

Copy funds are a sort of automatic investment strategy. Some of them focus on different industry sectors: travel, energy, tech stocks, crypto. Others are created based on public SEC filings made by other companies, for example, Berkshire Hathaway or Carl Icahn Enterprises.

They seem like a fun and easy way to lose money though.

Conclusions on eToro

eToro is a platform that makes it easy to trade for people that minimal knowledge of the stock markets. There are no trading fees, but there are hidden gems like deposit/withdrawal fees, currency conversion fees that are higher than on any other platform. The stock prices are also very different than the ones you’d find on any other trading platform.

If you’re looking for an easy way to gain but most likely lose money, eToro is your platform. If you’re looking for a more serious platform with low fees and decent stock prices, you could check out my review on Degiro.

How useful was this post?

Click on a star to rate it!

Average rating 4.8 / 5. Vote count: 4

We are sorry that this post was not useful for you!

Let us improve this post!

Invest in high-yielding projects from Envestio and earn up to 22% return


0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *