eToro caters to a worldwide range of clients EXCEPT for traders from the USA, Belgium, Canada (including Quebec & Ontario), the Republic of Turkey, Japan, Brazil, the Islamic Republic of Iran, Democratic People’s Republic of Korea (DPRK), Cuba, Sudan and Syria.
eToro is a trading broker established in 2007. It’s also popularly known as the ‘social trading broker’ due to its unique way of allowing traders to copy others and it’s CopyFunds method which allows thematic investing. It serves UK clients by an FCA regulated entity and others by a Cypriot entity. It is neither listed on a stock exchange nor has a bank parent, but it is a well-known fintech startup.
eToro is a well-known brand name in the world when it comes to trading and currently has over 4.5 million active investors from 170 countries. eToro could be considered a global financial service provider and operates through two separate legal entities, in order to cater to local government rules and regulatory polices. They are namely
- eToro (UK) Limited – which caters to UK based residents and is thus be protected by FCA (Financial Conduct Authority) which is UK’s financial sectors regulatory authority. If insolvent, eToro UK clients can expect to be compensated by the maximum amount of £50,000 guaranteed by the Financial Services Compensation Scheme (the “FSCS”).
- eToro (Europe) Limited – which caters to non-UK, European based clients, and is regulated by the Cypriot watchdog, CySEC (Cyprus Securities and Exchange Commission). As such European clients are covered by up to a maximum of €20,000, which is the threshold that is set by the Cypriot Investors Compensation Fund.
- eToro Australia – caters to Australian based clients and comes under the purview of ASIC (Australian Securities and Investments Commission).
eToro launched its proprietary trading platform, WebTrader, with a range of professional tools for traders of all skill levels in 2009.
In 2011, it stepped up with OpenBook. OpenBook the first social trading platform in the world. This included the popular CopyTrader feature, which lets anyone copy other successful traders on the platform. Subsequently, in 2012, eToro added stocks to its other asset groups, such as currencies and commodities.
The popular eToro mobile app was launched in 2013 for both Android and iOS versions, which made the platform available to traders to trade on the go.
In 2015, eToro updated the platform’s interface for an even more innovative and intuitive experience. Then in 2016, it added CopyFunds, managed portfolios that bundle various assets or top traders within a market strategy.
True to its nature of being at the forefront of technology when it comes to trading, eToro has started to introduce machine-learning engines to maximize returns.
In January 2017, eToro started to expand its reach in the world of cryptocurrency by adding support for trading cryptocurrencies on the platform, albeit on a limited basis compared to some other platforms.
Since the last update to its trading platform, eToro has been making waves with traders due to its intuitive design and ease of use for beginner traders.
eToro’s platform also allows traders to follow and copy other successful traders by the use of a CFD (Contract for Differences) – this is otherwise known as ‘Copy People’. This functionality is also popularly known as ‘social trading
Besides that the platform also offers an option for traders to invest in a CFD portfolio which is compiled and managed by professionals – this is known as ‘CopyFunds’.
On a new registration, eToro users get a free “virtual-money accounts” with $100,000 in deposit. This allows one to test and work on strategies and skills before investing any real money. Another unique feature of eToro’s trading platform is that it provides an economic calendar. In other words, a user could just key in the dates and time zone you want to look at and the assets you trade on. The calendar would then display how these specified events are likely to impact your assets.
Additionally, eToro also provides regular market analysis that includes a great depth of information.
eToro offers the following instruments to trade on their platform:
- Stocks (An international selection of popular stocks)
- Forex (A wide variety of popular & exotic forex pairs)
- Commodities (such as oil, gold and others)
- ETFs (Exchange Traded Funds) (More than 23 of the world’s best performing ETFs)
- Indices (Nasdaq, DAX index etc)
The above wide range of available instruments and the availability of making use of CFDs (Contract for Differences) makes eToro a versatile broker that one could use to take advantage of price swings in various asset classes to book a profit.
DEPOSITS & WITHDRAWALS ON eToro
eToro caters to a wide range of payment options to suit international traders from around the world. These include wire transfer, bank transfer, Visa, MasterCard, NETELLER, PayPal, Yandex, Webmoney UK, Skrill, and others. eToro maintains a policy of a minimum deposit of $200 to start trading on a real account.
To withdraw your funds, you must fill out a form and then typically receive the money via PayPal, a bank transfer, or your credit or debit card. To make a withdrawal, users will need a copy of your signature, colour passport copy, and proof of address for security verification.
In summary, eToro is truly a standout broker. It currently has no competitors in the niche of ‘social trading’. It’s intuitive trading platform aside from letting traders copy from their more experienced peers, also allowed interaction between traders a social trading network.
So whether you are an experienced trader that wish to take advantage of your skills or you’re totally new to online trading and lack any trading experience, eToro is an ideal broker to start trading with. It has a solid reputation and being a regulated broker offers a wide variety of instruments for traders to take advantage of.
Sign up for an eToro account today and start your journey in ‘social trading’ today!