eToro is the world’s largest online investment platform that facilitates buying and selling of Stocks, CFDs, ETFs, Forex, Cryptocurrencies, and more.
eToro was founded in 2006 under the name RetailFX. In the past, people could only invest through the website, now you can also invest through a mobile application on your smartphone.
The company is headquartered in Cyprus and is also officially registered in many developed countries.
In Cyprus, eToro is registered and supervised by the jurisdiction of the Cyprus Securities Exchange Commission (CySEC) operating under CIF License #109/10.
While in the United States, the company is registered with the National Futures Association (NFA).
Beginner investors can register for free and get a demo account worth $100,000.
The purpose of this demo account is to help novice investors to learn the systems, methods, and risks of investing before investing with real money.
If the investor is ready to invest with you genuine, then the investor must deposit funds of at least $200 into a personal account.
Although the eToro platform is available in English and the currency used for investment in US Dollars, this platform also accepts investors from Indonesia.
The eToro social trading platform is like a breath of fresh air because anyone who wants to invest in foreign stocks or trade in the foreign exchange market can do so easily and safely.
On this page, we created a comprehensive review of eToro to be useful for everyone who wants to invest or diversify investments.
What Investment Products in eToro?
how does it work The eToro platform offers a wide selection of investment products, such as Stocks, CFDs, ETFs, Forex, Cryptocurrencies, and various other investment products.
So, every investor can find the right product according to their needs and investment risk.
Each product has its characteristics and opportunities for profit, of course, the level of risk also changes in each case.
Each type of investment has characteristics and opportunities for profit with different levels of risk. All elements must be taken into account before selecting an available investment product.
One of the best things about eToro is that there are no deposit, trading, or transaction fees.
So, when you transfer some funds to your eToro investment account or when buying or selling shares, you will not be charged anything.
However, you will be charged the following:
- The fee for each withdrawal is $5
- The minimum withdrawal amount is $30
- If you have money in your eToro account but haven’t used eToro services for 12 months, then you will have to pay a $10 per month inactivity fee.
So, if for some reason you think you won’t be trading for a long time, it’s a good idea to withdraw all money from your eToro account to avoid paying the $10 inactivity fee.
By far, the stock market is the most flexible and dynamic market on eToro.
You can buy shares of some of the most famous companies in the world. Stock prices are influenced by various global or domestic events.
Therefore, the stock price may increase when a company launches a new product and may decrease during a crisis, such as the China and America trade war or the coronavirus pandemic.
If you buy shares in eToro, you become the owner of those shares. So, any increase or decrease in the value of the company will automatically have an impact on your income.
eToro also offers other investment options. For example, you buy a CFD with leverage, meaning you can achieve much higher market exposure with a small initial amount.
So you can invest $100 in a stock that is worth $500.
Most popular stocks on eToro: Apple, Tesla, Google, Facebook, Amazon
Cryptocurrencies have grown very popular in recent years. Nowadays, more and more people are interested in buying it.
However, this investment should be made with extreme caution, as the value of cryptocurrencies is highly volatile. Not infrequently, we see the value of cryptocurrencies rise and fall by around 10% – 20% in one day.
Of these cryptocurrencies, Bitcoin is the largest and most well-known cryptocurrency, so the price of most cryptocurrencies adjusts to the price of Bitcoin.
On eToro you can trade Bitcoin Cash, Ripple, Ethereum, Cardano, and other cryptocurrencies.
The exchange of goods (barter) has existed for thousands of years. Barter is still practiced today, but replaced in the form of money.
Every traded item has a certain value, be it precious metals or petroleum.
Since such valuables exist, their value may differ depending on several factors.
On eToro, you can buy commodities with CFDs. In this way, you have the option of buying gold for $100 even if the unit price is $1,000.
The most traded commodities on eToro are gold, silver, natural gas, and oil.
The Foreign Exchange Market or better known as Forex is the largest investment market in the world.
Every day about $5 trillion in money is exchanged (converted) into different foreign currencies.
Much like cryptocurrencies, these foreign exchange rates are constantly changing almost every second.
In Forex transactions, we talk about leverage. Like other investment platforms, eToro also uses ratios.
For example, let’s say you invest at a ratio of 1:100. You invest $100 worth of forex and you earn $1 profit from the smallest price difference in exchange rates.
At eToro, you can only invest Forex via CFDs.
The most popular foreign currencies traded are EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD.
An ETF (Exchange Traded Fund) is a diversified collection of assets, which are traded on a stock exchange similar to stocks.
If you are investing in ETF products, then you are investing in several companies or products at the same time.
This ETF is like a mutual fund product, so by buying an ETF unit, you become a shareholder of several companies at once.
At eToro, you can invest in ETFs through CFDs, and make bigger profits with the leverage method.
Popular ETFs: SPY, VXXB, PTO, HMMJ, QQQ.
Every major market in the world has one or more indices. Indices study parts of a particular market and generally include several instruments that offset each other.
Indices have a slightly lower level of risk and are more stable than stock prices.
For example, the NASDAQ index. This index includes most of the US technology companies, such as Apple, Google, Amazon, and others.
Because technology companies compete with each other, when the stock price falls in one company, the shares of other companies can rise. The index value remains in balance.
Like other products, you can only buy indices through CFDs. Because you can’t buy the index itself.
Popular indices on eToro: GER30, NSDQ100, DJ30, SPX500, FRA40.
One of the advantages of eToro is that you can follow the investment portfolios of other investors for free.
So you can see the products that investors buy and where they get their profits from. You can also copy it.
We can see what products investors buy and where they make their profits. We can also copy it.
You are free to search for investors and filter investor profiles with the data provided, such as profit, risk, country, and others.
Although this type of investment looks quite promising at first glance.
However, keep in mind that investors who make big profits in eToro don’t share their secrets with everyone. So you have to be careful in choosing whose investment portfolio you will copy.
eToro Scam or Not?
The best thing about eToro is that the platform is 100% official, legal, supervised, and certified by various financial institutions, such as CySEC, NFA, and ASIC.
Therefore, eToro is one of the best investment platforms for making financial investments.
So, invest according to your ability and financial condition as well as the knowledge you have.
Our advice, it is important to learn how eToro and investment products work before investing your money.
Therefore, novice investors are advised to first experience the features and how eToro works with the bro demo account.