eToro has been in the market since 2006 as a forex and CFD broker. Over time, the company has evolved its product offering into a strictly social trading network. eToro forex/CFD operates out of the UK and Cyprus, with its Cypriot base being the headquarters of the company. eToro has a double regulation, being licensed and authorized by both CySEC and the FCA.
eToro also provides a social trading network and a Community Blog.
Two trading platforms are provided to traders on eToro:
The social trading nature of eToro’s forex and CFD trading products have been developed in such a way that all activity is entirely done on the web or via the eToro mobile app. There is no place for a downloadable software.
The web trading application on eToro is the Webtrader, which was created after the company decided to evolve its product offering to 100% social trading-based product. Prior to 2011, social trading was conducted using the CopyTrader software. These platforms have now been merged into the eToro Webtrader.
The JAVA-based trading platform contains a complete collection of trading tools, and also features the elements of the social trading component of eToro’s business. Using the WebTrader, traders can select traders to copy and also apply the necessary risk management settings on their accounts. There is also an account management interface where traders can perform a number of operations on their accounts, outside of the core business of trading.
eToro Mobile Apps
The apps are best downloaded using the links on the eToro website to ensure that only the authentic apps are downloaded.
eToro has expanded its asset base to offer 28 currencies, 12 indices, spot metals stocks CFDs and lately, cryptocurrencies. Details of the asset listings are as follows:
eToro allows the trading of forex and other CFD instruments. These are as follows:
- Currencies: Several major, minor and exotic pairs.
- Stocks: CFDs on stocks from the US, Europe and Asia.
- Spot metals such as copper, gold and silver.
- Energies: crude oil
- Indices: Dow30, Nasdaq, USD Index, FRA40, ESP35, AUS200, China 50, UK100, JPN225, GER30, SPX500, EuroStoxx50.
- ETFs: DIA, FXI, GDX.
- Cryptocurrencies (Ethereum), Bitcoin and Bitcoin Dash.
eToro has also developed CopyFunds, which is a fund management facility that provides exposure to the hottest assets, all in a single basket. Lately, it is being deployed to enable traders get exposure to several cryptocurrencies.
eToro maintains a customer support system which has a more social media-oriented leaning. There are no phone numbers. Most support is provided through social media channels, fax, and using the online contact form.
- Email: [email protected] (media inquiries), [email protected] (business devt)
- Support page: www.etoro.com/support
- Facebook: www.facebook.com/etoro
- Twitter: www.twitter.com/etoro
Security and Fairness
Security of traders’ funds is a primary consideration for all forex traders. No one wants to put money in a brokerage and have it disappear overnight. This is why eToro has extended its reach to the global market using its UK branch, and has obtained the necessary licensing to be able to offer its brokerage products in a safe and regulated environment.
Compliance with the regulatory requirements of the forex market in both countries has warranted a split of the company into two. This was done to be able to take care of the individual differences in regulatory requirements between the UK and Cyprus.
- eToro (Europe) Ltd is the parent company of the eToro brand. It is registered Cyprus as a Cypriot Investment Firm (CIF), and is also authorized and licensed by the Cyprus Securities and Exchange Commission. The CySEC regulatory license number is 109/10.
- The UK branch of the business is eToro (UK) Ltd. This company us registered as a financial services provider and is licensed and regulated by the Financial Conduct Authority (FCA). The company operates with license number FRN 593263.
- Trading on eToro is commission-free.
- eToro has instituted a maximum market exposure for all traders and pegged it at 20% Default leverage has also been set to 1:100. This is in a bid to protect traders from use of excessive leverage and market over-exposure.
- eToro is a fully regulated and licensed company.
- The social trading product comes with a risk score to enable traders choose the risk settings that will be applied to their capital when copying traders.
- Account opening has now been simplified. The user can use Google or Facebook to login to the account management interface.
- New traders tend to select traders with high returns and risky strategies. There is not enough guidance contained within the eToro educational materials on the best methods of trader selection.
- The copy trade platform is a bit confusing to new traders.
- It is not immediately obvious how to terminate open trades with unrealized profits in order to lock in such profits.
- Trades are done under market maker conditions, with the risk of conflict of interest looming large in the background.
eToro has been the pioneer of forex social trading on the retail side of the market. The fact that this company is still waxing strong ever since it opened its doors in 2006 is testament to the work that has been put in by the team to build this brand. Today, eToro is easily one of the best retail forex brokers. Traders who want to use the skills and knowledge of others to get a head start in the market are advised to strongly consider eToro as their broker of choice.
All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice.
Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk.