An ultimate Etoro review guide; is it beneficial to use this platform for trading?
In the contemporary world, people are incredibly interested in exploring ways to make investments. Trading has become a substantial and intriguing part of Finance discussions. Various platforms are used for cryptocurrency trading. EToro was founded in 2007 and had more than 17 million users in approximately 100 Countries. A UK-based firm and in 2018, possesses millions of registered users in 43 U.S. states and W.A. Initially, it was merely a graphics-intensive forex platform. Later on, eToro added more tools to make it a crypto trading platform. Non-U.S users can also trade the Contracts for difference and stocks on a variety of exchanges. Following eToro reviews address the capabilities for U.S. users and Non-U.S users.
Capabilities of eToro for U.S. and non-U.S customers
The rules and accessibility of eToro for different residents in the U.S. are different. The residents who live in Delaware, New Hampshire, New York, Puerto Rico, Minnesota can only sign up for an account, but they can’t trade cryptocurrency. Hawaii, Guam, the U.S. Virgin Islands, and American Samoa can’t become customers. The equity trading on eToro is not valid for U.S. customers for now. In other states, the company is registered to allow residents to open accounts and trade. This platform can be handy for those who have a basic understanding of forex and cryptocurrency trading. The Graphical interference is straightforward to use, but for U.S. customers, eToro has waived withdrawal fees, while in other countries, there is still a $5 withdrawal fee for customers.
Purpose of eToro platform
This graphics-intensive platform allows the U.S. and Non-U.S customers to trade stocks and CDFs (contracts for the difference). The key feature of this platform is that traders can follow and copy the trades of profitable traders. The fairly.S. traders who want to follow risk-control rules and get copied can get featured on it. Then, the retail accounts holder copy the trades and trading strategies automatically and in real-time according to their choice. It is preferable to mimic the most successful traders. But copy trading carries no surety for the losses or gains.
It is pretty convenient and straightforward to open an account with this firm. You can perform this task online. Here are the steps you can follow to open your account on eToro:
- Submit all your information and required documents.
- Wait for verification. This identity verification and account opening process can take several days to get completed.
- The fee for opening an account varies from state to state. In Australia, you can open an account for $50, whereas in Algeria, you need to Deposit $5000. The other countries’ customers required $1000 to open an account.
- One can select the payment method according to your preference. You can connect the bank to your trading account and use PayPal, Neteller, iDEAL, Sofort, Rapid transfer, etc.
How to buy or sell trades on eToro?
You can place an order for trades with just a single click. There is a prominent Buy button showing on your portfolio listing. When you want to sell a particular coin, a Sell option is available in the list. Stab the drop-down indicator and pick the option Sell. You are allowed to sell a specific portion of an individual lot or the entire position. Some non-U.S assets classes will enable you to set a stop-loss when you enter a position. But this capability is not given to U.S customers. If you mimic a trade, you can select the maximum drawdowns.
The mobile trade apps work similarly to the website. The layout and order entry method is nearly the same. Some analytical capabilities on mobile apps are fewer. Otherwise, the experience is wholesome.
This firm can be advantageous in varied manners and also carries some risk factors mentioned here:
Pros:
- Out of 20 popular cryptocurrencies, eToro can trade 15 like Bitcoin, Ethereum, Litecoin, XRP, etc., 24/7 on this platform.
- It is a great community and place with cryptocurrency traders.
- It’s available in the form website, or you can also download the mobile app.
- Traders can get ideas from the recommendations of certain members who want to feature their trades. They can also copy their trades if allowed.
- It is easy to operate this platform. Only you need Access to an account, device, and strong internet connection.
Cons:
- The minimum purchase for buying any Cryptocurrency is relatively high, at $25.
- This specific spread charge varies from coin to coin, and few spread pretty wide.
- It is difficult for small accounts to apply the balance over a small number of coins.
- A high balance is needed to copy most of the famous and leading trades.
The benefits of using eToro for trading
eToro is a regulated platform, and the FCS, CySEC, and ASIC operate it. Regulations are performed to protect the investors while trading. Not all platforms for trading are regulated. You should always choose a regulated and secure platform like eToro. It safeguards the client’s information under SSL encryption. The service and assistance of this platform are available 24 hours a day. It also demands the client’s actual pictures and name to increase transparency. Complex websites are never suitable for trading. EToro has online learning courses, instruments, apps, a daily newsletter, and much more, making it a way to use and less complex platform for trading. The best part of using eToro is it provides the clients with safety tools to reduce risks and encourage responsible trading.
Final verdict:
EToro is a multi-asset platform that allows users to invest in crypto-assets and stocks and trade CDFs. But the last option comes with more significant risks of money loss. You should consider a better way if you’re going to choose it, like how CDFs work and whether it is affordable for you to take the higher risks. Whereas crypto assets are volatile, unregulated, and are not suitable for all investors. There is no indication of future trading results based on past performance. There is no complete assurance of success; you need to be wise, do your research correctly, and then conclude!