If you wish to trade in international stocks, commodities, indices and currencies, look at what eToro has to offer.
eToro began operations from Tel Aviv, Israel, in 2006, as RetailFX. Initially, the company offered a download-only product. It launched ‘Expert Mode’, a professional trading application, soon after. Next in line was its web based trading platform ‘WebTrader’.
eToro launched the social investment platform, ‘eToro OpenBook’, in 2010. This is also when the now popular copy-trading feature entered the picture. In the same year, eToro launched an Android app, allowing people to trade using their mobile devices.
The company raised $31.5 million in funding from 2007 to 2013. In December 2014, it received $27 million from investors in Russia and China. This social trading multi asset brokerage company has offices in Cyprus, Israel and the UK.
eToro (Europe) Limited, a registered Cypriot Investment Firm (CIF), provides eToro’s brokering services. International Capital Markets Private Limited (IC Markets) provides the eToro online trading platform in Australia. IC Markets is an Australian Securities and Investments Commission (ASIC) regulated entity.
What can I trade with eToro?
The eToro platform lets you trade in stocks, commodities, indices, currencies and ETFs. When you trade a stock through eToro, you do it as a contract for difference (CFD).
Trading in stocks through eToro is possible only in the form of CFDs. A CFD is basically an agreement between you and a broker, where one pays the other the difference between an asset’s price at the time of the contract’s origination and the time when you decide to close the trade. If you place a stock order with eToro by 20:45 GMT on a trading day, it executes it at 21:30 GMT on the same day.
By trading in index CFDs you get exposure to a variety of shares through a single transaction. You can use these to take a position on the general direction the market is headed in, without worrying about focusing on the shares of any one company. You don’t have to pay any transaction fees for opening or closing stock index CFDs. A spread applies.
eToro lets you invest in different CFDs surrounding commodities such as oil, gold and silver. The fees for these contracts come in the form of dealing spreads. Commodity CFDs have set expiry dates.
You can use the eToro platform to trade in foreign currency. If you wish to hold your position overnight, you won’t have to pay any financing or Swap charge. A charge applies if you hold your position over the weekend.Back to top
What features can I look forward to eToro?
As an eToro user you can view trading activity of other users. You can then copy them to make your own trades. The trades of eToro users upload to the eToro network, where you can view them in different statistical ways. If you follow other traders, eToro duplicates every trade made in the accounts you choose to follow.
Market data and research
The eToro OpenBook is a connection point for traders and investors of all types and backgrounds. They use this platform to discuss, share and learn about market ideas, trading strategies and so on. eToro encourages its top traders to become premium investors. The benefits of becoming one include access to eCourses, live webinars and exclusive promotions. You also get access to a social trading blog that offers valuable insight about social trading.
You can login to your eToro trading account using any Internet enabled computer. If you wish to trade using a mobile device, you can turn to the eToro Mobile Trader app. It is available for devices that run on iOS and Android.
IC markets, at its discretion, accepts different order types. It executes these orders during trading hours of the underlying instrument which is the basis of the CFD. The order types you get to choose from include market orders, limit orders, stop-loss orders, stop-entry orders and take-profit orders.</li>
eToro’s initial capability to invest in stocks came with 110 stock products. This was in 2013. In the same year, it received authorisation from the Financial Conduct Authority (FCA) to offer its services in the UK. In April 2014, it added 130 British and German stocks, which came from FTSE 100 Index and the DAX30 indices. Its investment instruments include CFDs for stocks, commodities and indices, spot currency pairs as well as Bitcoin.Back to top
What support and information is available with eToro?
For any kind of information about eToro, you can contact an International Capital Markets representative over the phone or via email. You can also submit an online query through the eToro website. While eToro tries to reply to all submissions as quickly as possible, it can take up to 48 hours in some instances.
The online help centre provides answers to some of the most commonly asked questions. These include how to deposit and withdraw funds, how much you need to allocate in order to copy a trader and countries where you cannot access eToro legally.
The eToro online trading academy gives you access to a variety of guides that you can use to further your knowledge about this realm.Back to top
What fees can I expect when using eToro?
You don’t have to pay any fees to open or maintain your eToro account. When trading, the corresponding fee structure applies:
|Indices||Price per single unit|
|Commodities||Price per 10 units|
|Instrument||Price per lot x (10,000)|
If you choose to trade on a commission free basis, IC Markets applies a dealing spread to the prices it quotes. You don’t have to pay IC Markets any fees to fund your account. To make withdrawals, you have to pay processing fees.Back to top
What are the good and bad points of using eToro?
- Benefit through expertise of others. You can watch, follow and copy the popular investors on eToro network easily. All you have to do is view trading histories and risk profiles of traders you wish to follow and make a decision in accordance. Copying another user’s trades requires no more than the click of a button.
- Easy-to-use platform. The eToro online trading platform is simple to use, even by novice traders. If you wish to trade on the move, you can use the eToro Mobile Trader app.
- Personal service. As a new customer you can enrol in one of eToro’s exclusive trader programs to avail of personalised service. This way, a dedicated account team is available to provide support as and when you need it.
- Learn and practice for free. The online resource material that eToro offers its users can help beginners and experts alike. If you wish to test waters before taking the plunge, you can open a demo account first.
- Limited support via chat. eToro provides its Australian customers support via chat only during market trading hours.
How do I apply for an eToro account?
Creating a trading account with eToro requires that you visit the eToro website. If you want to get started, simply click on the ‘Apply Now’ button. To apply, you have to provide some basic information such as your name, email address, phone number and country of residence.
You can start trading only after you verify your account. This requires that you provide scanned coloured copies of the front and back of a government issued identification document such as your passport or driver’s license. You’ll also have to complete a simple phone number verification process.
Help! I have some more questions
How can I add funds to my eToro trading account?
You can add money to your eToro trading account in these ways:
- Credit card
- Wire Transfer
- Western Union
What currency does eToro hold my money in?
eToro holds funds in your account in US dollars. When you instruct IC Markets to effect a transaction in a currency other than US dollars, it converts your account’s currency accordingly.
Is there a minimum and maximum amount I can use to copy a trader?
The minimum you need is $100. The maximum is $500,000.