eToro lets you trade in international stocks, indices, commodities and foreign currencies using an advanced online platform.
eToro was established in 2006, when it began operations as RetailFX from Tel Aviv, Israel. Now, it has more than 4.5 million registered users in over 170 countries. The original eToro offering was a download-only product. A professional trading application, ‘Expert Mode’, entered the picture next. ‘Web Trader’, its online trading platform, followed.
In 2010, eToro launched ‘eToro OpenBook’, its social investment platform. This is when it released the copy-trading feature that is now popular with many of its users. eToro went on to release its first mobile app for Android devices in the same year.
International Capital Markets Private Limited (IC Markets) provides the eToro online trading platform in Australia. When you open an account with eToro, you get to trade in stocks, currencies, indices and commodities.
What can I trade with eToro?
When you trade through eToro, you have to do it in the form of a contract for difference. This is the same for stocks, indices, commodities and foreign exchange.
Trading in stocks using CFDs is not difficult. The CFD essentially works as an agreement between the broker and you. The CFD accounts for the difference between the price of an asset when you initiate the contract and the time when you close the trade. On trading days, eToro executes all stock orders placed before 20:45 GMT at 21:30 GMT on the same day.
If you trade in indices, a single transaction can give your investment portfolio exposure to different types of shares. This gives you the ability to bet on the asset classes in general, as opposed to pinning your hopes on individual companies. eToro does not charge any transaction fees when you open or close index CFDs. However, you would incur a spread.
If you’re looking at diversifying your portfolio by investing in commodities, the options eToro has on offer include silver, gold, copper, palladium, platinum, natural gas and oil. If you wish to trade in these commodities, bear in mind that dealing spreads are part of the game. In addition, these CFDs come with set expiry dates.
Trading in foreign currency is possible through your eToro account. No financing or swap charges apply for holding positions overnight. This changes if you hold your position over the weekend.Back to top
What are the best things about eToro share trading?
- Social trading. eToro lets its users view the trading activity of other users that are part of the system. eToro users’ trades upload to the eToro network automatically. You can then analyse them in different ways. By following one or more traders, you can copy their trades without doing anything on your own.
- Market data and research. The eToro OpenBook platform functions as a breeding ground for investors and traders from diverse backgrounds. Here, you can learn, share and have discussions about trading strategies and market ideas.
- Access. One way to access the eToro trading platform is to connect using an Internet enabled PC or laptop. Alternatively, you can download the eToro Mobile Trader for IOs or Android and use it with your mobile device.
- Order types. The orders types you can initiate through eToro include market orders, limit orders, stop-entry orders, stop-loss orders and take-profit orders.
- Available markets. eToro lets you invest in stocks from indices such as DJ30, S&P500, NSDQ100, FTSE100, DAX30, and CAC40. It lets you trade in Bitcoin as well.
Service levels of eToro
All eToro users get access to a range of online educational material. If you become one of the network’s top traders, eToro invites you to become a premium investor. You can become a premium member in two ways. One is to have a total net deposit of $20,000 or more in the past 11 months. The other is to have $20,000 or more in total equity at the end of the day, 23:59 GMT.
As a premium user you get a personal account manager, direct access to the eToro trading room, a special deposit bonus, a personal Payoneer credit card, membership to the Neteller VIP program, free access to Trading Central Platform, weekly market analysis videos and various promotional offers.
What support and information is available with eToro?
You can get in touch with an IC Markets representative over the phone or via email. Submitting an online query is also an option. If you submit an enquiry through the eToro website, you should get a reply within 48 hours.
If you’re looking for answers to commonly asked questions, you can turn to the eToro online help centre. If you’re new to the world of trading, you can build your knowledge base for free by visiting the eToro online trading academy. As a premium member, you get access to live webinars and online courses.Back to top
What are the fees associated when using eToro?
Opening or maintaining your basic eToro account does not cost any fees. You’ll have to pay fees when you use its services to trade. The fee structure looks like this:
|Price per single unit|
|Price per 10 units|
|Price per lot x (10,000)|
eToro gives you the option of trading on a commission free basis. In this case, an IC Markets dealing spread would apply to the quoted prices. Funding your account does not cost any fees. Making withdrawals attracts processing fees in accordance to the withdrawal amount.Back to top
What are the points in favour and against using eToro for my next trade?
- You can copy successful traders. You can find out who the successful traders on the platform are easily. Picking ones in accordance to your desired risk score is also simple. Once you find investors you wish to copy, you simply have to follow them. The eToro system does the rest.
- You can learn for free. eToro gives you access to a variety of online resource material that can help you move up the trading ladder. If you’re not sure whether you want to spend your hard earned money on trading, you can begin by using the demo platform first.
- You can upgrade to personalised service available. If you’re looking for personalised service, you can consider enrolling in an eToro exclusive trader program.
- Chat support is only during trading hours. If you’re hoping to chat with an eToro representative, you can do so only during trading hours.
What you need to know about the application process for eToro
You’ll have to visit the eToro website to open a new trading account. To begin the registration process, simply click on the ‘Apply Now’ button. Completing the online application requires that you provide some basic information. This includes your name, phone number, email address and country of residence.
To start trading, you have to verify your account. This requires that you follow two simple steps. One is to complete a phone verification process. The other is to provide scanned coloured copies of the front and back of an acceptable form of ID such as your driver’s license or passport.