eToro has managed to become one of the biggest names in the forex trading world. Etoro is a very interesting forex broker. It is one of the most popular copy trading platforms in the industry. Etoro has also managed to offer copy trading services in one of the most unique and exciting ways. We are going to explore the various aspects of trading on eToro and find out it has to offer to individual traders.
Is etoro scam or legit? The etoro copy trading review below will reveal etoro legit operations. We also get questions such as what is the minimum amount to invest in forex? What is the etoro minimum deposit? We’ll try and find the answers to these and more questions.
In order to better understand the operations of eToro and why it is such an impressive forex broker, let’s first try to understand what is copy trading.
What is Copy Trading?
Copy trading is situation where forex brokers allow forex traders to copy trades from each other. The forex traders who are on the platform are allowed to observe trades from their fellow, traders and trade like them if they wish to. Copy trading makes room for people who cannot analyze forex market to get into the trade.
Copy trading has its pros and cons, but that a story for another day. Today, we want to find out how impressive of a copy trading platform eToro is.
Let’s get to the nitty gritty of trading on eToro.
To begin with, eToro started its brokerage operations in 2007. For the over one decade it has been in operation, it has managed to become a top player in the forex trading industry. eToro has over 10 million active trading accounts today. Note that eToro is not the only forex broker that offers copy trading, but no other broker is as effective at it as eToro is.
Also, being a copy trading platform does not imply that you cannot trade normally as you would trade on other platforms. In fact, you can get onto eToro armed with your trading strategies and be able to trade successfully, there are a lot of exciting prospects on eToro.
Here are the aspects that make a great copy trading platform.
Regulation and Trust
While seeking an appropriate forex broker to work with, you must always take time to find out whether they are worth your trust. Trust and reputation is what makes eToro one of the top forex brokers of the industry. eToro is a forex broker from Cyprus. It operates all around Europe, and in the US as well. eToro’s regulation enables it to operate all in many other countries across continents.
Among the most notable eToro regulators are;
- Cyprus Securities and Exchange Commission (CySec) – Cyprus
- European Securities and Markets Authority (ESMA) – Europe
- Financial Conduct Authority (FCA)- UK
- Commodities Futures and Trading Commission (CFTC) – USA
We’ve mentioned the respective jurisdiction of each of the authorities above beside them. These authorities outlined above are some of the most respected. They give legitimacy to eToro, and they count for a lot for how the broker is perceived.
Regulations are just formalities though, there reputation of a forex broker is built by offering stellar brokerage services. Etoro does not fall short in any front.
Let’s see what it offers in terms of trading accounts and platforms.
Etoro Trading Accounts and Platforms
EToro knowns that copy trading is made possible and effective through offering great trading platforms. One interesting thing about eToro, is that it does not have many trading accounts. While that might seem not too exciting for many forex traders, it does not take away anything from eToro. As mentioned above, eToro is one of the best social trading platforms. Therefore, it most useful resource is its social trading platform.
Etoro has one live trading account, whose minimum deposit depends on where you are trading from. The lowest amount is charged in USA, and Australia, and it is $50. It is the etoro standard account minimum deposit. We also cannot forget to mention that eToro has a demo account. If you have never had a chance to trade on eToro before, you should use the demo account to familiarize yourself with the various aspects of trading on eToro. The eToro demo account usually has a virtual balance of $100,000.
EToro’s trading platforms do not lack anything either. The feature impressive technology, and they are very user-intuitive. There are web, desktop, and mobile trading platforms that you can use. The best option is the web or desktop platforms, as they make it quite easy to navigate its platform. The app platforms are great if you want to be trading while you are on the move.
Now let’s talk about eToro forex broker social trading platform.
EToro’s Social Trading
We’ve already mentioned that eToro is a popular forex broker thanks to its social trading platform. The eToro social trading platform allows traders to interact like they are on social media. The trading platforms are quite ordinary, but there is a link to the social trading platform. On the social platform, each trader has a profile that details their trading details. The profile features a summary of how the trader has been trading and how successful they have been.
That means that copy traders can easily observe who has the most trading success and follow them. Obviously, everyone will want to follow a trader who is winning a majority of their trades. So, what happens if everyone is copying each other on the platform?
Now, we mentioned earlier that eToro is not all about copy trading. There are traders who sit, read, interpret, and analyze the forex markets. They then trade and make a profit off of their trades on eToro. Such traders are not dependent on other traders aren’t they can trade sustainably. Note that copy trading does not guarantee that you will win your positions.
Individual traders who are successful on eToro enjoy some of the most impressive trading terms in the industry. They are most of the time the one’s holding majority of the copy traders on the platform. As such, it is important for eToro to keep them around. EToro keeps them around by reducing their commissions, and ensuring they do not incur exorbitant charges. The other copy traders have to grapple with some of the most expensive trading terms, since they are just copying trades and not putting in too much work.
One more thing.
EToro does not allow automatic or robot trading. Every single trade that is done on eToro is executed manually. That means that you have to be sitting at your computer, and logged on to your trading account, so as to place a trade. That ensures that copy traders are copying trades that are being placed in real time.
Copy trading can be a great thing for beginner traders if approached in the right way. If you take time to try and learn whey the trader you are copying is taking the positions they are taking, and why the outcomes were the way they were, you’ll learn quite a great deal.
Before we close the discussion about trading on eToro, let’s mention something about eToro’s trading support.
EToro Customer Support and Service
You can rest assured that eToro has all the trading tools that you need to be able to trade profitably. In as much as their charges are high for copy traders, you can still make a profit on the eToro platform. eToro’s customer service has a reputation of not being very responsive, but the good thing is that their trading platforms never experience feature the best technology, and never experience down times.
Etoro also makes it easy for you to transact with them by ensuring they have enough money transfer methods on their platforms. There are over 12 money transfer channels on eToro. Keep in mind that it’s not every method that is going to be available in all countries. You have to make do with the methods that are available in the country you are trading from.
So, is etoro legit or a scam? It definitely is legit. Is it the best forex broker for beginners? It could be the best forex broker for beginner 2019 in one way or the other. Is it the best forex broker with low minimum deposit 2019? Probably not, especially if you are not in either US or Australia. It could also be the best forex broker with demo account 2019.
We’ll wrap up the discussion with a summary of the pros and cons of eToro. They should give you a good overview of what eToro is all about.
- It is a very effective copy trading platform. Its copy trading features are quite interesting.
- It is a regulated and trust worthy forex broker. We did not come across any complaints about the legitimacy of eToro, or its operations.
- Etoro processes withdrawals very quickly. Your withdrawals are going to be processed within 24 hours.
- Etoro trading platforms are designed for the user, and they have the best security protocols. They feature the 2FA and SSL encryption, which are some of the most robust security features in the industry.
- The customer service agents rarely respond in time.
- Etoro is not an economical forex broker for low level traders.