eToro Review 
Published: 10 January 2022 by Andrew
Is eToro a scam or does it really work? Is it a great opportunity to make money? Those are the questions that beginners, that approach for the first time the world of trading, ask.
So, is eToro a reliable broker?
We know that scams, in the world of online trading, are spread and unfortunately the preferred victims are those who start operating on the markets.
Well, let’s make one thing clear: eToro is absolutely not a scam, on the contrary, it is one of the most reliable and safe brokers on the market. In addition, eToro represents a great opportunity for those who start from scratch, because it offers the possibility to copy, in a completely automatic way, what great traders do.
The great thing is that eToro is completely free: there are no commissions and no costs are charged.
eToro is one of the most reliable brokers, why?
There are may scams in the world of online trading, but eToro guarantees maximum reliability and security. The most important thing is that eToro is an authorized and regulated online trading platform.
An authorized and regulated broker must request authorization from competent supervisory authorities and then must comply with the very strict European regulations to protect traders’ money.
In recent years, ESMA (European Securities and Market Authority) has made these rules even more favorable to traders. By now all authorized brokers are safe and reliable.
In the case of eToro, however, this is not simply a matter of respecting the legislation that protects investors. eToro has a very long history behind it and has always proven to give maximum guarantees to traders, even when the legislation simply did not exist.
This means that those who use eToro can feel comfortable: their money will always be safe, there are no scams. This is demonstrated by the fact that, in the history of this broker, there have never been any scams, even when the market were less regulated and therefore potentially less safe!
Read more: Online trading and scams
eToro, how it works?
Now that we know that eToro is not a scam, let’s examine how it works. First of all, eToro is a broker platform for trading online for free. The platform itself is really simple and intuitive (much more user friendly than Metatrader) and therefore, offers an ideal place for those who start from scratch.
With eToro it is possible to trade:
- Raw Material
In effect, it is possible to speculate on all major financial markets. For example, it is possible to invest on all the main world stock exchanges and on all currency pairs.
eToro was one of the pioneers of cryptocurrencies and, today, offers the possibility to operate on practically all the main cryptocurrencies and also on emerging ones. In this context, it is also developing very innovative projects.
Copy the best traders with eToro
The success of eToro, among beginner traders, is due to the possibility to copy, in a completely automatic way, what the best traders do.
eToro is probably the only automatic trading system that really works and guarantees positive results.
How is that possible? Thanks to the patented Copytrading system. This innovative system guarantees to identify traders that over time have earned the maximum possible. With a simple click, you can start copying these traders and replicate automatically all their operations.
It is clear that many beginner traders thus obtain two valuable advantages: on the one hand, they can start trading profitably and, on the other, they can learn to trade online by observing what professionals of the market do.
Warning: this is not a way to make easy money, in fact, to get the best results, you must also apply the correct strategies.
Read also: Automated Trading
Social Investment Network
We went straight to the point because the ability to copy the best traders is the feature that beginner traders love most, but it is important to understand all the potential of eToro.
For example, eToro can be defined as the largest “social investment network” in the world. Each registered trader, in fact, can decide to have a personal profile on which he can publish his opinions and market analyses and even upload a profile picture.
In this way, it is possible to dialogue with other investors and evaluate their point of view. The great advantage of eToro is that you can find, in the profile of an user, information on his real capacity such as the net profit over time and the level of risk of his operations.
This informations are valuable for those who wants to copy automatically professional traders, because, in this way, you can decide whether or not it is worth doing, in addition, it is very useful for evaluating the opinions of that trader!
Just to give an example, the prediction of a trader, who has made a lot of money in the past, is uncertain (because nobody has a crystal ball when it comes to financial markets) but it is certainly much more valuable than the prediction of those who have never traded or lost money.
In passing, we remember that the problem of financial forums is this: many failed traders, aspiring traders or simple scammers, sign up on forums and claim to be great traders. Beginners believe in them and, perhaps, follow their advice. The results? They do wrong operations or get scammed.
With eToro, however, it is possible to interact with other traders without this risk because you cannot cheat, since the gains obtained are certified by the algorithm of the platform.
In addition, it is impossible for scammers to enter in the platform, because, to register, you are obligated to verify your identity by sending a photo of an ID card or passport (as required by European legislation, if a broker does not verify the identity of the users, it means that it is illegal).
eToro Demo mode
As we saw, eToro is a feature-rich broker and has a platform with many options and buttons. This doesn’t mean that it is difficult to use, but maybe, before starting to trade with real money, it would be useful to try it first.
This is precisely the purpose of the Demo account. By Demo mode we mean a version of the broker’s platform where everything is the same as a normal account but the only difference is the fact that you use fake money instead of a real investment.
What is the purpose of using a demo account? Especially if you are a beginner, having the possibility to use a demo account is essential. Trading for the first time is like discovering another world and with demo account you will be able to explore it without taking financial risks.
eToro chose to offer its own demo account to allow its customers to test and simulate investments without taking any risks.
In the eToro platform there are many tools that help you to operate in the market and to do technical analyzes. In order to learn how all these things work, the demo account is essential.
Even the most experienced users can get the maximum benefit from using the demo mode, why? Very simple: they also need to test and try new assets and strategies from time to time. It is much better doing it with demo instead of having to risk real money in potentially risky choices.
Read more: Online Trading Demo
Demo Copy Trading
Before we talked about Copytrading, the incredible possibility of trading by copying the operations of other financial intermediaries.
Many traders are not sure how Copytrading works and therefore have the curiosity to try it before starting to invest in it. For this reason, the eToro demo account is also useful for testing the copy of other eToro investors.
This is good, because it manages to convince even the most skeptical that Social Trading works. Of course, by testing the demo, you also realize that if you choose the wrong trader you could lose money.
Now, let’s see how to open a demo account, just follow a few simple steps:
- Go to the official eToro website
- Choose your username and enter your personal data
- Once the registration process is complete, you can already access the demo mode platform
In the virtual wallet you can operate without any limitation, all the options, features and assets are the same as the real money version.
If it is clear why beginner traders start with eToro, why so many online trading “gurus” do it too? And why are they so helpful in providing advices and guidance to the less able? Why do they give permission to be copied?
We would like to answer that they do it for the sense of the community that a social network inspires but would be false. They do it for money.
eToro, in fact, pays the professional traders (called Popular Investors) based on the number of followers they get. In effect, the more these Popular Investors are copied, the more they make money. These earnings add to normal online trading profits.
It is no coincidence, therefore, that so many expert traders are starting to use eToro and are also so available to the beginners.
eToro login: the account
When you open an eToro account, the trader is generally recognized ad a standard user (retail customer), which means that he is a “non-professional” user.
This does not involve big limitations, in fact retail customers can still access any broker services, such as:
- All trading assets available on the platform
- Manual Trading
- Copy Trade is available
The limits of a retail customer account, concern access to the financial leverage, as there is a limitation on its use which acts as protection. For example, there is coverage by the Investor Compensation Fund and the Financial Ombudsman Service.
In addition, all retail customers have “negative balance protection”, an excellent tool that allows you to never go beyond the negative capital losses on your trading account.
This category includes users who are able to demonstrate past experience in the field of trading through a specific test, done on the eToro website.
This is a security measure that was imposed by ESMA (regulatory body) to which eToro immediately adapted, because it is a serious and regulated online broker.
Those who can prove to be a professional can trade without financial leverage limitations. In addition, even Pro customers have the right to have the protection from the negative balance, so you can absolutely confident.
The financial leverage for Pro customers however cannot exceed the value of 1:400, a financial leverage much higher than that of retail customers. But, it must be considered that being recognized as a Pro customer is not difficult at all.
The beginner who wants to make money from online trading might think that Copytrading is a kind of way to make easy money, but it is not. Easy money does not exist and usually those who promise that, are scammers.
It is not enough to select just one good trader and wait to make money. It takes commitment, determination, time.
What is the easiest strategy to get results with eToro? Everything is based on diversification.
Even the best trader ever can make mistakes: those who say never make mistakes are, once again, scammers.
For this reason, it is always advisable to follow a good number of traders, for example 6 or 7. In this way, even if one makes a mistake, his error is compensated by the profits generated by the others.
To obtain the best results, it is absolutely essential to check, day after day, the results obtained by each trader, in order to eliminate those who are not doing their best and replace them with new traders.
In short, it is not a static process and it is really important to dedicate time to Copytrading if you really want to be successful.
eToro, online trading platform
The eToro broker platform is called WebTrader, because it is possible to use it directly via web. There are no more download of heavy platform on your computer.
By now, the complete negotiation tool is available directly online via browser. It is an excellent, very efficient platform, even if it is entirely based on the web. Its features allow you to operate on the market in less than a second and with precision.
Although the functions of WebTrader are multiple and also advanced, the graphical interface is very user friendly and easy to use. The layout has also been carefully studied to give a functional and rewarding trading experience, from all points of view.
Obviously, WebTrader has all the Social Trading features, that we talked about before, integrated in the platform. You can visit the profiles of other users and view their boards, their comments and their investment assets.
With eToro platform you have excellent charts to analyze the different assets available on the market. The graphs are used to graphically display the trend of prices and understand more about what are the trends taking place on the market.
Even eToro charts can be highly customized by the user and it is also possible to do technical analysis by selecting your favorite indicators through a convenient menu that contains many of them.
For each indicator, it is possible to insert further market calculation data in order to adapt the display based on your market strategies.
How to view asset charts? It is very simple:
- Just select a market of interest among the many available on eToro and select one of the assets present: oil, gold, euro/dollar etc…
- Click on the graph tab, a price graph will be displayed and you can enlarge it and bring it to the full screen to facilitate analysis
- You can choose the type of representation whether in bars, Japanese candlestick or linear
For technical analysis, are available tools such as:
- Accumulative Swing Index
- Aroon oscillator
- Average True Range
- Awesome oscillator
- Bollinger bands
- Center of Gravity
- Chaikin volatility
- Change Forecast oscillator
- Chande Momentum oscillator
- Channel Comfort Index
- Coppock Curve
In addition, you can customize the chart time frame from 1 minute to a week. The trader has the maximum freedom in choosing these settings based on his trading strategies.
Many people ask: is it possible to invest in Bitcoin with eToro? The answer is Yes! This broker was one of the first to allow operations with cryptocurrencies, in a professional and regulated way, as in the principles od eToro.
You can see the graphs of the Bitcoin market exactly as we explained before. Indeed, there are numerous cryptocurrencies on eToro, certainly all the main ones.
In addition to Bitcoin we have:
And may others, tarting from the main Altcoin.
All these cryptocurrencies are negotiable both with the classic CFDs and through Copytrading, therefore automatically copying the operations on Bitcoin did by professionals in the sector.
eToro is a completely free broker: there are no trading commissions and it is possible to trade without any type of cost. Social trading and Copytrading are also free of charge to all members.
It is possible to operate both in real and demo mode, that is, with virtual money, always for free. The demo version is unlimited and without restrictions.
So, if everything is free, how does eToro pay the operating costs of the platforms and also guarantee generous rewards to Popular Investors?
The profits of eToro come from the spread, that is a tiny difference between the price at which it is possible to buy an asset and that at which it is possible to sell it.
This small price difference is much more advantageous than a real commission, especially for those who decide to operate with small investment sums. Some traditional brokers, like Fineco, apply commissions of 7 euros fixed per operation, with this kind of commissions, those who start with low investment, for example 250€, the capital would be eliminated in very few operations.
Opinions about eToro are usually very positive, so positive that you have to be very careful. Obviously eToro is one of the most reliable and safe brokers on the market: all the opinions on the internet about eToro agree that it always pays and it is very transparent with its users. We can say that the company’s behavior is truly crystal clear.
Why do you have to be careful about the opinions on eToro then? The fact is that some beginner traders (or aspiring traders) think that eToro is a way to make easy money and maybe they even write it on some forum or Facebook groups.
You have to be very careful: easy money doesn’t exist, usually those who promise easy money are always scammers. To achieve positive results with eToro, however, it takes effort and time. We described before an optimal strategy to follow, other than easy money and doing nothing.
Not only is eToro not a scam but it is also a reliable, safe and very easy to use broker, even for beginners. You have the opportunity to trade automatically by copying the best ones.You can sign up for free on eToro by clicking here.
Yes, it is one of the most professional and reliable online trading platform in the world.
Around 10 million users use the platform every day
Yes, it is a CySec and FCA regulated broker platform and has the Consob and Asia license to operate.
no, all the assets present on the platform are negotiable in CFDs, therefore, without fixed costs and with the possibility to sell short.