Did you search eToro review to figure out eToro’s real value? Would you like to fully understand if eToro is reliable or if it’s a scam?
Do you want to find out everything you can do with eToro (we have a guide for that) expert opinions, and user reviews?
In this eToro review, you’ll find everything you need to dispel any doubt, including our feedback on eToro, both practical and technical, after years of experience on the platform.
The best thing you could is to open a free demo account to try out first-hand the eToro platform, to be able to fully follow this review.
What is eToro? And How does etoro works?
eToro is a global social investment market place for people to trade currencies, commodities, CFD stocks and indices online. Their aim is to give new and experienced investors the opportunity to benefit from the collective potential of their diverse trading community in a simple and intuitive manner.
eToro founded and still run by Yoni Assia, is a truly global investor community, where users have the opportunity to interact with each other as they would with a social network like Facebook. Thanks to news feeds, users can monitor and manually copy their favourite traders.
They do this through their innovative social investment platform. This doesn’t just allows eToro customers to execute trades themselves (just like with any other broker), but it also allows them to interact, learn and automatically copy the trades from other successful traders (CopyTrading).
These trades are copied in your account in real-time, as such allowing you to create a “people-based” portfolio.
Is eToro a scam? Is eToro reliable?
Let’s start from the top. To anyone looking for “eToro reliable” or “eToro scam”, to understand if eToro is indeed a real company, and not just one of the many scams we hear about today, we can say: eToro is not a scam.
There are many scams in the forex field, carried out by phony investment broker agencies. eToro is not one of those companies.
eToro is a regulated firm with several licenses, founded in 2008, therefore it’s been on the market for many years, with hundreds of employs in their offices all over the world, and with many partnerships with other important players of the financial markets.
Furthermore, over the years eToro has received financings for millions of dollars, from many important investment funds. You can find several news about this on Tech magazines.
Is eToro regulated? eToro Regulations – eToro license opinions
Yes, eToro is regulated, and has more than one license. eToro is made up of two main companies:
- eToro (Europe) Ltd, a Cyprus based investment company, with registration number HE20058. eToro Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC), license number 109/10.
- eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA), company reference number 583263.
Basically, following all the inspections on security and reliability (which are extremely strict in Europe), eToro has been declared fit to operate.
What type of broker is eToro? eToro technical opinions
eToro is an STP (Straight Through Processing) and NDD (Non-Dealing Desk) broker, which in certain conditions can also act as Market Maker. eToro uses the STP technology to forward its customers’ orders directly to the large liquidity providers of the market.
In some cases, to manage the huge offer of securities on their platform, eToro operates as Market Maker, acting as counterpart to the operation. However, thanks to the NDD methodology, eToro does not interfere in any way on the orders’ prices.
How does eToro profit?
Like most brokers, eToro earns adding a slight charge on the spread.
Social trading and Copy Trading: how does eToro work?
Without a doubt, eToro is the best Social Trading platform.
With eToro you can:
- Autonomously operate on the markets (Retail Trading) on Crypto currencies, currencies, stocks, indices, ETF, commodities.
- Follow other traders, as you would on Facebook or Twitter, observing their trades and manually copying them with just one click.
- Let eToro automatically and proportionally replicate on your account the trades of traders you choose (Copy Trading).
- Do all of these things, participating and sharing information on trades and investments with the whole community, to make the best choices (Social Trading);
- Investing in Copy Funds, is a sort of common investment fund based on the copy trading technology.
- Earn share dividends even with CFD operations.
Try Out eToro Social Trading With Unlimited Demo Account
To get started, eToro offers an unlimited free practice account with access to all the same features as their “real-money” accounts (including the functionality to copy other traders)
Click here to sign-up for eToro demo.
Real-money accounts can be funded with eToro through a number of ways (bank wire, credit card, PayPal, MoneyBookers, Western Union, …) and are managed in $ USD.
Since February 2016, the minimum deposit is $200 for all customers and all countries.