eToro review – social trading pioneer or scam?

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eToro review

eToro is the largest online trading community in the world and was established in 2006 in Cyprus and is regulated by CySEC and FCA, which ensure safety (segregated accounts, fair trading, fair advertising). eToro is also pioneer of social trading. The company’s goal is to open the market and allow people to invest intelligently and make trading decisions using the wisdom of the crowd.

It’s easier to start trading and investing when you have access to the power and insight of experienced traders. You can take advantage of these traders’ knowledge by copying their trading actions.

Does this sound like something you want to do? Well, read further and learn how to use eToro’s social investment network to your advantage.

The biggest advantage of eToro is that it is free to join and you don’t need to be an experienced trader in order to use eToro’s platforms. If you don’t know how to trade or invest, you can learn to do so by following eToro’s best performing traders and copying their actions. Although having some financial knowledge will help you better monitor your investment and make trading decisions. eToro also provides you with free educational materials to help you invest in a more informed manner.

etoro 1

 

eToro social trading

etoro new designNow it’s time to get down to specifics. How can a beginner make smart trading decisions and invest in various financial markets without any experience in market analysis and trading? The truth is, you can let others do all this time-consuming labour by using eToro’s social trading community.

It’s all about networking. eToro opens a world of opportunity to aspiring traders like you by connecting you with countless savvy investors. All you have to do is look at what the best performing eToro traders do and make the same investments they make by copying them.

The beauty of eToro’s network is that you are able to see what every trader is doing in real time, open trades, risk level, news feed and stats. You can also directly communicate with them. You can choose which traders you want to copy, and let them trade for you with a click of a button. Though you don’t need to trade by yourself, you should review the performance made by the traders you copy on a regular basis to make sure they’re still doing a great job and decide if you want to keep copying them or replace them with someone who’s even better. As popular investor you can can earn up to 2% AUM as a second income. There are more than 5 million users from more than 140 countries in eToro’s investment network, so you’ve always got plenty of options.
eToro platform
eToro’s trading platform is sophisticated and very simple to use and offer one-click trading from every screen. eToro has a passion for new technologies and ideas and always investing in R&D, upgrading and improving their platform and website. eToro is always the first to implement new technologies.

 

Ready to start?

First step:

Sign up for an account with eToro
This step is probably the easiest one and only takes a couple of minutes. To set up an account, click here and choose the sign-up method that works best for you – you can sign up via your Facebook account, or using your email address.

Second step:

Choose to make a deposit or practice with virtual money
Once you’ve created an account and logged in, now it’s time to decide which direction you want to go in. Are you ready to deposit and start copying the other etoro 2traders with your real funds, or would you rather get started using virtual money to practice your trading strategy first? The minimum deposit to start is $200. You can also deposit more depending on how much you wish to invest. The more you deposit, the more capital you’ll have to work with, and this will allow you to split up your investments, practice sound money management and copy several different traders. Copying more traders is a smart thing to do, because it helps build a more diversified portfolio and safe your investment. You could always start with a small amount and then reinvest your capital as the amount grows, which will give you more funds to work with too. It’s completely up to you.

Third step:

Select traders to copy
This step will take a bit more time, but you will see all the different traders you want to copy and have their performance reflected in your own trading account. Here’s what you do:

• Make sure you’re logged in, and then click on the “People” tab at the sidebar.
• Set the time period at the top right to “12 Months”( or any other time period) to get the most complete idea of who the top performers are.
• It is recommended that you set the risk level to “Low” at first to make sure you copy traders who prefer to make trades with less risk, but this is up to you (advanced search).
• Select a few traders who have shown a good performance during this time period. You can do so by looking at the small graph on the far right and choosing top traders who have a steady upward trend.
• Check out each of these traders’ other statistics by clicking on their names and browsing through their profiles. Check out what kind of trades they make and how active they are within the eToro community.
• Once you’ve found a few traders you feel comfortable with, click on the blue copy button ion the left and choose what percentage of your capital you want to use to copy each investor’s trades.

Disclaimer: This post is not investment advice. CFD trading bears risk to your capital. Past performance is not an indication of future results.

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Mobile App iOs, Android
Min. Deposit $200 / 200€ / £200
1:400
Trading platforms
  • eToro Platform
  • eToro Mobile Trader
Payment methods
  • Credit Card
  • Bank Wire
  • Skrill
  • Neteller
Max. Spread 3 pips (fixed)
Languages 8
Regulation
Company name eToro Europe ltd