Top 10 Facts You Need to Know About eToro Trading Platform

Choosing the right trading platform can be a tedious task. You need to research on it and find out whether it provides all the services you need. The first thing that comes to mind is safety, security and simplicity of use.

eToro proves to be an ideal choice for those willing to trade online. Here are 10 facts you should know about this company:

1. Intermediate Trading Platform

eToro acts as an intermediary for traders and performs all tasks involved in online trading on behalf of the user, such as executing trades and providing customer support. It also provides customers with a personalized service such as news updates or personal investment advice based on the information entered by the users themselves. These services are provided to customers at no additional cost. This is not an offer of securities, futures commission merchant, advisory services or investment services; it does not make recommendations, solicit investors for securities offerings or exempt clients from any regulatory regime. Users simply register their own individual trading accounts with eToro where they can deposit funds into their account using various modes of payment including credit card, debit card and wire transfer.

2. Amazing Customer Care Support

eToro is primarily an online trading platform that permits customers to trade in over 50 different markets including stocks, commodities, indices and currency pairs. By registering with eToro users are not buying ownership of any of the assets themselves but are speculating on whether their value will rise or fall through trading these financial products.

3. Low Fee Charges

eToro only charges fees for transactions made within the platform; it does not charge any additional commissions or other fees to its customers for opening and maintaining a trading account with them. While one can make deposits using credit cards, debit cards and wire transfer, withdrawals can only be made via bank transfers. This means that while traders do not have to pay any monthly storage fees like they would elsewhere, they should expect some delays in being able to withdraw their funds.

4. Do Not Offer Physical Asset Investment

eToro does not offer its traders the opportunity to invest in physical assets such as gold or silver, so one should not expect it to provide the same degree of protection against market volatility by insulating them from losses resulting from futures contracts like they could for example with commodity based ETFs (exchange traded funds).

5. Proper Verification Required

To open an account on eToro, customers need to verify their identity before they can begin trading. This verification process requires submission of copies of official identification (such as passport or driver’s license) and proof of address (utility bills, bank statements etc). The time taken for this verification process varies depending on how fast documents are submitted but it generally takes up to three days.

6. Offer Educational Trading

eToro does provide its customers with an educational trading center which offers all kinds of learning tools for novice traders, including webinars on trading basics and advice about various markets available through the platform. The platform also provides information about developing trade strategies based on one’s risk profile. However, these are provided for free by the company, so it would be unfair to compare them with full-fledged tutorials that are usually paid products offered by other online brokers.

7. Offer Two Ways to Earn Money

eToro makes money basically in two ways – via spreads on trades performed within its own proprietary platform or from commissions earned on referrals made to other financial institutions through their partnership network. This means that they make money whether they win or lose money on their customers’ trades.

8. Registered with Cyprus Securities

eToro is registered with the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10, including the MiFID sub-license 226/14 for providing investment services to its clients. This means it must comply with strict rules set out by both CySEC and EU wide regulations which protect traders from unfair business practices such as excessive trading costs, insider trading etc. However, since traders are not acquiring any ownership rights over assets they trade in through eToro, they do not enjoy the same level of protection afforded by other financial instruments like stocks and bonds. The compensation plan offered by eToro is also strictly speaking based on market performance rather than equity performance as is the case with traditional options trading.

9. Operating Since 2006

eToro has been in operation since 2006 and offers its services globally with a regional hub located in Cyprus, Europe. It has a very large number of clients having done over eight million transactions to date. Since it parent company is publicly traded on the London stock exchange, it meets the highest standards of corporate governance and transparency for financial institutions worldwide.

10. 18 Years of Age Required for eToro Registration

In order to open an account with eToro, users need to be at least 18 years old and they will have to submit government issued identification documents before their account can be verified and they can start trading. The most popular currency pairs traded through eToro are EUR/USD , USD/JPY and GBP/USD. Withdrawal requests are usually processed in up to 30 days depending on the payment method selected by the client.

Frequently Asked Questions:

1 – How is the money I invest with eToro protected?

eToro is a regulated broker with an investment license from both Cyprus Securities and Exchange Commission (CySEC) under license number 109/10 , including the MiFID sub-license 226/14 for providing investment services to its clients, as well as from the FCA in the UK as part of its Financial Services Compensation Scheme protection.

2 – How does eToro make money?

eToro makes money both via spreads on trades, as well as through commissions on referred clients of other financial institutions with which they have partnered up. To learn more about the different ways your capital will be managed, visit our transparency page.

3 – Who regulates eToro?

eToro is regulated by several government authorities around the world, including the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10 , including the MiFID sub-license 226/14 for providing investment services to its clients. The FCA has issued eToro a license to operate as a financial services provider in the UK as part of its Financial Services Compensation Scheme protection. eToro’s parent company is publicly traded on the London Stock Exchange under ETORO LTD .

4 – Can I invest with eToro?

eToro only allows professional investors from selected countries to invest. In order to become a trader please visit our registration page and fill out your details and we will be happy to assist you!

5 – Do I need active trading experience with eToro?

You can start by practicing on our demo platform without any investment or obligation, however we encourage all customers before investing real money to use the extensive educational center that offers webinars, videos, daily market reviews and more.

Conclusion:

eToro is by far one of the best social trading platforms out there, offering users a broad range of services and features they can make use of in order to gain valuable insight into how other traders are making money. It’s my favorite social network for trading and also my most frequently used tool when it comes to building up successful trades. This is one site that I will continue using for decades to come.