What is eToro? Ultimate Beginners Guide

eToro leading social trading platform investments

The company was registered in Israel in 2007. The eToro headquarters is currently located in Cyprus. The financial broker eToro specializes in social trading. The company operates one of the largest international social trading and strategic investment networks.

In addition to legal entities registered in the UK, China, US, Australia, and Cyprus eToro is regulated by the CySEC authority in the EU, by the FCA in the UK, by FinCEN in the United States, and by the ASIC in Australia.

eToro has got a client base of over 20 million customers in 140 countries. Among clients, in particular, are Australia, Canada, as well as India, and Indonesia. Moreover, numerous new accounts are registered daily.

eToro has created a single, community-driven network. Every eToro trader in the community can automatically monitor, track and copy current trades of qualified online traders.

Any private trader can have access to world financial markets through the global network formed by the company. The peculiarity of these markets is that they are easily accessible, due to the ease of activating modes of trading operations with indices and products of various commodity groups.

eToro is powered by innovative web trading software. This allows clients of all levels of trading competence to effectively conduct transactions on this network.

Protection of Clients

Private clients have limited leverage and are protected from negative balance imposed by the closing margin limit. Their losses are covered by the eToro Compensation Fund. Also, clients can appeal to the Financial Ombudsman.

eToro defines as Professional Client who was successfully tested for this status. But having received such a status, the professional-client must voluntarily refuse the protection of the Compensation Fund and also a possibility of appealing to the Financial Ombudsman. Professional clients do not have adequate balance sheet protection.

If the market situation has led to a negative account balance, then eToro will compensate for the loss (which happens in the rarest of cases) and balance the account. The leverage of a professional-client for opening a position for some instruments is max. 1: 400, and his current margin rates are reduced.

Free Lloyd’s Investment Insurance

The financial broker eToro offers its clients (without the need to register) an automatically activated free insurance by the London company Lloyd’s up to one 1M in EUR / GBP / AUD currencies. The given insurance applies to cash and securities, which belong to eToro clients, excluding non-CFD investments in crypto assets.

Three protection levels

— A liquidator is appointed to run the assets and distribute eToro money.

— Regulatory protection. eToro clients in case of their insolvency and insufficient funds receive the following compensation: FSCS (FCA) provides GBP 85000 as maximum, and ICS (CySEC) — EUR 20000 as maximum.

— Private insurance rules. The investment insurance compensates losses caused by bad debts to 1M EUR / GBP / AUD for each client, The payment amount is classified depending on the current deductible amount.

eToro Investment Offers

It is not required any specialized knowledge to electronically trade financial products. You just need to search the page, choose the most effective trader, and start copying his current transactions. The software allows you to set individual search parameters for traders.

eToro investors are classified as operators with a stable positive balance — leaders, active traders, or clients investing in stocks. Registered investors invest in specific traders and independently participate in transactions on the platform Web Trader 2.0.

The list of independent operations includes instruments:

  • exchange-traded funds;
  • shares;
  • indices;
  • goods of various commodity groups;
  • cryptocurrency;
  • open currencies.

Accounts

eToro is committed to a significant range of regulatory compliance requirements for the company and its customers. At the clients’ disposal are retail and so-called professional accounts. Private clients have got access to the entire portfolios of eToro trading assets. The standards provide, if necessary, trading operations manually or through automatic, also semi-automatic, and manual Copy Trade

An Easy Start to Trade

The registration process in the system does not present any difficulties. The interface is visual and intuitively understandable for anyone who visits the site for the first time.

1. First, on the home page, you select and fix the desired language format and press the Join button.

2. Then create a personal account by filling out the registration form, or pass authorization through social networks where you have accounts.

You should enter your personal data in the form fields: name, login, email, secret code or password, and your mobile phone number. On confirmation acceptance of the User Agreement terms, press Create an Account.

3. Account replenishment with $50 should be provided to activate your work. Open an account, press the Add Funds button.

4.  When a working window opens, you decide on the preferred payment system and insert a deposit amount.

5.  Specify the replenishment data and then press the Send button.

6.  The platform provides carrying out monetary transactions in payment systems:

  • Master Card / Visa;
  • Debit payment system PayPal;
  • Skrill transfer system;
  • Digital wallet Neteller;
  • International settlement system WebMoney;
  • Electronic wallet Yandex Money;
  • China payment system UnionPay;
  • Bank Transfer;
  • Promo Code.

There in your personal account, you can select financial investment funds or can copy trading operations of effective traders, as well as make a choice of real or virtual portfolios.

Trade: eToro Financial Markets

Trading transactions in financial markets is the area of activity for investors who are clearly guided by the factors and their features that trigger the rise in prices for certain types of shares, funds, all kinds of assets, etc.

For a clear understanding of which objects it is preferable to invest in and expect a significant profit, it is not enough to be guided by the market conjuncture. You should know and be capable to predict price fluctuations for the next day, next month, or for the coming year.

Trade Online in Financial Markets eToro

1. To complete a transaction in a personal account for a preferred asset, you pass to the Financial Markets section. Select the desired asset and start a deal by clicking the Deal button. Trading operations on the platform are carried out exclusively on weekdays.

2. Let’s say you intend to purchase stock in Apple. Then, having already chosen this company, start with the Deal button.

3. Select the Buy button in the mini-window of a screen. Determine a purchase amount at your discretion. Then set the deal operational parameters in windows Take Profit and in another – Stop Loss.

The Profit-Loss values determine when to stop the trade. The next is to fix the leverage value. Then you close the deal with the corresponding button.

4. You can monitor in your personal account (to be more exact, in the Portfolio section) the deal made and inactive instruments, which, say, are in standby mode for the weekends.

Copying trades — Your Earnings on eToro

Copying trade is a duplication of the determined trader activities to get the same profit percentage. The soft permits termination of copying at any time.

To copy trade transactions, you should enter a Traders section and through a filter system select the most successful traders by profitability, drawdown, dynamics, and other parameters and click Copy.

After selecting a trader it is also possible to set parameters such as the amount, positions, and additional conditions to stop copying.

The Copy Funds investment portfolios

If you are a major investor and intend to invest at least USD5, 000 in eToro, use a ready-made Copy Funds investment portfolio. It lists successful traders or financial markets where the company’s specialists intend to trade. Confidence in the profitability of a portfolio is based on the fact that the portfolio is formed from reliable traders and worthy financial assets.

Your task is to investment deals. Further, specialists will be occupied with your profits and diversify risks. After the selection of a portfolio is done, you can view its assets and the statistical data for any period. In case everything suits you, then set the amount and deadlines for investments and decisively press the Invest button.

As you have already understood, there are enough ways to substantially and regularly make money from investments. Moreover, even an inexperienced novice investor can easily find a way for himself to make a profit in proportion to money at his disposal, with minimal knowledge and skills. In the absence of such skills, you can still raise capital by copying transactions of successful traders.

Other Advantages of the Platform

You can open a demo account without depositing real money and use the platform without time limits. Other Forex brokers limit demo accounts to 21-30 days. eToro is constantly expanding its financial instruments. It is already possible to trade oil contracts and contract indices. Unfortunately, the securities are not yet available.

Demo Account Benefits

Traders call a Demo account a virtual money account, which provides for clients to freely analyze broker’s offers and practice trading without fear of possible financial losses. Novice traders are especially in need of Demo accounts to plunge into the real trading atmosphere.

Beginners can acquire trading skills, actively participate in trading and form their own trading strategies. More experienced traders also use Demo accounts to study eToro’s commercial offers.

Demo Account Opening

There on the eToro financial platform website click the button to register and fill out the form with the required personal data. When switching to real transactions, secondary registration is not required. eToro guarantees full protection of personal information. This is confirmed by the Green Lock icon on a display.

You do not need to download and install a trading terminal on your computer. A trading platform is installed directly into your personal account, where you can carry out both real trading and educational transactions after registration a Demo account.

However, you should ensure that the internet speed is reasonably sufficient. Verified Internet providers guarantee sufficient speed at minimal rates.

Trades and Personal Account

In case you doubt your analytical abilities to competently build a tactic and strategy to run trading in financial markets, then eToro comes to the rescue!

You just choose an effective (and real!) trader from the Copy Funds investment portfolio. Set your risk bar to the acceptable level and start making money by copying transactions of your financial partner.

An assigned eToro analyst will help you overcome a psychological barrier of fear of trading. After opening a Demo account, he will call you and explain how to complete your simple steps, while taking on all the operational work and responsibility.

Let’s sum up all the advantages of the eToro online financial broker.

  • Fast digital account registration.
  • Intuitive interface and rich software functionality.
  • Single account for live and demo trading.
  • Copy Trading function, the same for beginners and experienced traders.
  • Access to entire portfolios of eToro trading assets.
  • eToro Compensation Fund protection.
  • Possibility to contact the eToro Financial Ombudsman.
  • Free Lloyd’s Investment Insurance
  • Informatively rich site.

eToro is Your Bright Financial Future!

Join the millions of people who have discovered a smarter way to trade by automatically copying the eToro community’s leading investors.  Invest short and long-term. Connect with other investors, discuss strategies, and take advantage of magnific CopyTraderTM technology. Join a huge cohort of traders and make a profit on international trading on the eToro financial platform!

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  1. Vaibhav kakkar

    Hello, Great article.

    Reply