People, for their nature, are in a constant quest for finding ways for making money or profiting from their capital. Due to the recent events though, this attitude has begun to be predominant for those restricted at home, and that’s how online stock trading began its unstoppable rise.
Between the many broker firms you can find online, there are some which may be considered more trustworthy than others. Traders tend to make a difference between regulated brokers and non-regulated ones, and for a good reason: brokerage services which are not regulated by a regulator lead often to scams and money-losses.
That’s why today our focus will be addressed towards one of the most famous regulated brokers available online: eToro.
In this eToro review we’ll discuss main features related to the eToro trading platform, regulation, fees and everything you need to know before start trading with it.
eToro: Why It’s Safe
Born in 2007 as “Retail FX” in Tel Aviv, this brokering service has now reached and surpassed $800 million in value and it’s used by +10 millions people across the world.
This achievement has been reached for many reasons, and one of these is surely being a very well-regulated broker. In fact, eToro has a presence worldwide with many offices across the world and different entities for different regions, and each one of those are regulated from local and internationally recognized top-tier regulators such as CySEC, ASIC, FCA and FinCEN.
Additionally, this broker offers high protection standards for its client’s funds. We’re speaking in regards to two measures enacted by eToro: negative balance protection and segregated accounts.
While negative balance protection consists in an automatic block of the trader’s balance before it goes in red, segregated accounts are an extra-precautionary measure useful in the unlikely case of the broker’s bankruptcy. With segregated accounts, traders’ money cannot be touched by liquidators or anyone else outside of the one who made the deposit, because they’re the only one allowed to access the bank account.
eToro: Why It’s Famous
eToro has become an international phenomena for plenty of reasons, but one of the strongest has always been related to that revolutionary idea called Social Trading.
This brokerage service has implemented autonomously a proprietary trading platform which has integrated many features inspired by main social media. Once you’ve opened eToro, you’ll find that assets are treated like Facebook’s posts or tweets, with other traders discussing and arguing on the last news regarding it.
Furthermore, what really made eToro’s fortune has been the most iconic feature of all: the Copy Trading.
This innovative feature made it possible, even to the less experienced trader, to copy other traders and their portfolio in an automated way. In fact, once enabled this feature opens any position opened in the selected portfolio, and so it will be for any future position.
Those targeted by this feature are usually a part of what we’d call “Influcencers” if we were on a social platform, but here they are called Top Investors. These kinds of traders are a sort of peculiar asset and you can invest in them depending on their risk level and your profit aims.
If you are a new trader though, we strongly suggest you to pick a Top investor with a low risk ratio.
eToro: Before You Start
If you want to start trading by opening an account with eToro, you can do it by doing a minimum deposit of only $50 if you’re a US resident. If you don’t want to commit and invest money straight away, this is not the only way to start.
As a matter of fact, eToro allows you to open a free demo account. By using this form of trading, you’ll be able to practice how much you want, without fearing making mistakes that will lead you to lose money.
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