Choosing the right trading platform can be a big decision, especially if you’re still getting to grips with the basics of stock trading. In this beginner’s guide to trading with eToro, you’ll learn about the different tools and features at your disposal, as well as how to place trades, access market data and manage your portfolio. You’ll also discover some of the many benefits of eToro such as fast execution and the social element provided by the eToro community. You’re probably wondering if eToro is safe to trade with. In that case, you better read this comprehensive review of eToro by Wikitoro. This investigates how reliable this broker actually is so it’s really worth reading.
What is eToro?
eToro is a digital investment platform that opened its doors in 2007 and has since grown into one of today’s largest social trading platforms, connecting millions of traders and investors globally. In addition to stocks, indices, ETFs and currencies, you can trade more than 3,000 financial instruments on leverage. It currently has a license from trusted financial regulators including FCA, CySEC and ASIC.
Types of Accounts on eToro
There are two main types of accounts on eToro: standard and Pro. The first is free, and it allows you to trade CFDs on stocks, indices, ETFs, currencies, commodities and cryptocurrencies. While there are no fees for making trades or deposits, withdrawals come at a cost (see below). On top of that you get basic educational tools as well as a news feed for following market updates. The Pro account does everything that a standard account does but at a lower spread.
Opening an Account on eToro
Signing up for an account on eToro is a fairly straightforward process. Just visit their site and click Join now on their homepage. After filling out your personal information and creating your account, you’ll be prompted to fill out some basic personal information about your personal details. And after verifying and authenticating your account, you’ll need to link a payment method that will allow you to deposit funds into your new account at eToro. You can use a credit or debit card, PayPal, Skrill, Neteller and other payment systems that they support.
Use the Demo Account for Practice
Another great tool for newbies is eToro’s demo account. It enables you to practice using your favorite trading tools, test out strategies and take a swing at executing trades without risking any money. It gives you a chance to try out all of your ideas while giving you real-time market information, and it’s a great way to learn how to use these tools before committing any of your own funds.
How Does the CopyTrader Work?
With CopyTrader, you can copy another trader’s portfolio and his or her investment decisions. Anytime your chosen trader makes a trade, you’ll make a trade at the same time, mimicking his or her moves. This is a great way to start trading if you don’t have much experience because it allows you to learn from someone who already has an established track record. You can also use CopyTrader as an educational tool if you’re looking for ideas on how to invest your money. If there are certain strategies that work well for other traders, why not test them out yourself? Just remember that while copying someone else may be easier than coming up with your own strategy, it isn’t necessarily better.
The Available Assets
There are six main categories of assets you can trade on eToro: stocks, currencies, commodities, indices, ETFs and crypto. Each one is further broken down into specific trading pairs—for example, if you choose to trade in Forex, your available choices are major currency pairs like EUR/USD or GBP/USD. Each asset class has its own set of risks and rewards; while some may seem more volatile than others, they also have greater potential for profit.
What are the Spreads?
The spread is an important piece of information, as it refers to how much difference there is between a buyer and seller’s price. The wider or more expensive the spread, the harder it will be for you to make money on that trade. To calculate your returns, you must subtract your entry point from your exit point in order to see what range of profit or loss you are experiencing on any given transaction. eToro’s spreads are variable: They can widen or narrow depending on market conditions at any given time. It’s worth noting that other platforms (like conventional stock exchanges) use fixed spreads; if you want to buy $1 million worth of Apple shares, you will pay $0.01 per share regardless of whether they rise or fall in value.
You Can Contact Customer Support for Assistance
One of the best features of eToro is that it’s a social trading platform. The community aspect means you can easily connect with other traders, ask questions and learn from their experiences. But in addition, you can also contact customer support for assistance. There are several ways to do so: You can send an email, call them or use live chat. Whatever method you choose, you’ll be able to get an answer from one of their agents for any concerns you might have.