eToro Trading Platform – What is It and How Does It Function?eToro is an Israeli Social Trading platform that offers great options in investments, cryptocurrency and other assets. Brothers Yoni Assia and Ronen Assia founded a company, RetailFX, in 2007, which is now well known as eToro. With registered offices in Cyprus, Mexico, the UK, the USA, and Australia, the company is now helping millions of investors safely to put their money to work.
What Is eToro?eToro is a unique trading platform that offers social trading and multi-asset brokerage services. Social trading is a very interesting system and enables the clients to follow the trading patterns of other clients. The CopyTrader system works automatically, but the eToro trading platform also has a manual trading option. There is a selection of stocks, currencies, ETFs, commodities, along with cryptocurrencies, available on this innovative trading platform. In addition, there are many professional tools on this platform that help the clients invest and track their investments.
Digital Currencies At Your FingertipsBy joining eToro, a user can trade in the popular cryptocurrencies with professionally managed portfolios and at the same time connect with over 20 million other traders. There are 18 cryptocurrencies available for trading and investing currently, and new ones are being added regularly. It is easy to have a diversified portfolio with so many cryptocurrencies to choose from. Moreover, this site is perfectly safe, and all your information will be protected in the best way. Unlike many other trading platforms, eToro has no hidden fees. All the charges are clearly mentioned, and everything is done transparently. A new client also gets $100000 worth of virtual demo portfolio to practice and finetune their strategy.
What Is eToro’s Social Trading?This is one of the unique features eToro offers its traders that enables its clients to follow the trading activity of other users. The CopyTrader system is an amazing innovation that allows even new and amateur traders to trade profitably. This process is a transparent one and displays each client’s relevant data. For example, it shows the gain percentage, risk rating, and the composition of the portfolio.
- If you are copying a trader, then you trade when they trade. It is great for beginners as well as for people who don’t have much time to watch and track the markets.
- In this system, you get top traders to work for you without having to pay any management fees to them. There are no hidden fees. The traders you copy get paid directly by eToro as part of the Popular Investor Program.
- While using CopyTrader, you remain in full control as far as your portfolio is concerned. You can either choose one trader or up to 100 at the same time. You can stop the copying at any time and add or withdraw your funds at any time.
Steps In Copying Traders On eToroUsing CopyTrader on eToro is very easy and involves three steps:
- Choose an experienced trader after doing your research. Select one whose trading practices match your goals.
- Now, select an amount which you want to invest in copying. All the proportions will be automatically calculated.
- All you have to do now is to click on the ‘copy’ button. You will start copying the positions of your chosen traders automatically.
Copy PortfoliosThis is another innovative feature of the eToro trading platform. CopyPortfolios are ready-made portfolios either of top traders or pre-made portfolios following a certain market strategy. As a client, all you need to do is decide which portfolio to follow and choose it. It helps if you are clear about your investment goals. This is perfect for new to trading or experienced traders who don’t have time to make their own portfolios. It is a great way to learn about trading without taking too many risks.
Why Investors Prefer eToro to Other Trading Platforms?What are the reasons for millions of people using eToro and why do they prefer it to other platforms? Well, the main reasons are:
- Trus. Any financial transaction requires a good measure of trust between the parties. eToro has been a trusted partner and leader in the industry for many years, and clients have a lot of trust in the company.
- Security. Another important factor that people consider while choosing any trading platform is security and safety. eToro follows very high standards of security protocols and ensures the safety of your investments.
- Privacy. Personal data is a sensitive topic these days. Due to bad security, it often falls into the wrong hands. eToro never shares your personal information with anyone without your permission.
- Protection. Another great feature of eToro is the protection you get. All the funds held here are FDIC insured. This means that your money is safe, and you can relax.