Are you looking for an easy way to start trading stocks and shares? One platform is an excellent way to invest from the comfort of your home, for both beginners and seasoned investors. That platform is eToro, and it has a number of features that you could benefit from.
With low-cost start-ups and easy account opening, the quicker you begin, the quicker you can start making money. Below, we give you our guide on trading on eToro.
What Is eToro?
eToro is a social trading broker established in 2007, by a well known Israeli fintech company. It is regulated by a number of financial entities. As some of these are extremely secure institutions, the platform has a reputation for safety.
These are the Financial Conduct Authority (FCA) in the UK, the Securities and Investment Commission (ASIC) in Australia, and the Cyprus Securities and Exchange Commission for customers based elsewhere.
Because of these securities, they have built up a reputation for cash for difference (CFD) and cryptocurrency trading, though they now offer a lot more services such as investment in commodities.
The company is not listed on a stock exchange. In addition, it does not disclose its annual reports on its website or have a parent bank.
Trading on eToro: Account Opening
eToro account opening is one of the easiest and fastest available. In fact, with just a little identification and information you can be trading in a matter of hours. It is all done digitally, so you do not need to send off postal applications and confirmations.
When you open an account, you will start with a demo account. This allows you to invest ‘pretend’ money in an account that does not give real investments or trades. This is a great way for beginners to get to grips with eToro trading, stocks, and shares.
Once you supply identification, you can upgrade to the live account. This is where real online trading takes place. The minimum first-time deposit when you open this account is $200 with a few exceptions.
When trading, fees that are incurred are divided into two sections. These are trading fees and non-trading fees.
Trading fees are the costs incurred during a trade. They could include conversion fees, financing rates, commissions, and spreads. Non-trading fees are general costs not included in a trade, such as withdrawal fees or inactivity fees.
The fees incurred by eToro are low when compared with other platforms. They offer zero commission for real stock trading, and when doing this you are buying the real stock. This means you do not have the option to use leverage, which is a method of borrowing capital from the trader to increase the amount of return.
The nontrading fees are also extremely fair. If you have a year of inactivity on the platform, they will charge you a fee of $10 per month. Withdrawal fees are also low at $5.
Deposits and Withdrawal
When you make deposits in eToro, no fee is charged. This makes it extremely handy for quick, low amount deposits. However, they only allow accounts in USD and charge a conversion fee for deposits not in this currency. The same fee will also be charged if you withdraw money and the withdrawal is to an account not in USD.
Luckily, eToro takes a number of payment methods. One way to get around this is to pay using your credit card, asking your bank to make the conversion. This is also useful as some credit cards do incur higher conversion rates on the platform.
Payment methods include the aforementioned credit and debit cards, bank transfers, PayPal, China Unionpay, Skrill, and other payment methods. In some countries, first-time deposits have to be made with a credit or debit card for security reasons.
Using the Platform
Web and mobile trading platforms are offered on eToro, and they are extremely user friendly. It will not take you long at all to work out how to navigate, place deposits, and even benefit from the knowledge of other traders. It is available in a number of languages.
The design of both the web platform and the mobile app is clean, easy to navigate, and mirror an easy to use webpage. A menu at the side allows you to switch between your live and demo accounts. The main page is filled with a customizable watchlist, where you can view investments and watch their progress.
The side menu also allows you access to a copy portfolio menu. This is a great feature, that allows you to track and trace the investments of other traders and mirror their trading. Updates are provided on how many months they have been in profit, and it is a great idea to assist those who are new to trading or do not have the time to research the markets.
Some may think that the platform is hard to customize. However, with such ease of use, it is a minor point, as everything can be easily navigated and found with the click of a button.
Making an order on eToro is extremely easy. Once your account is deposited with credit, you can search through the available companies and trades available. When you find one you like, just click the trade button.
This brings up a new screen. You can then choose from market, limit, stop-loss, and trailing stop-loss trades. All you then do is input the specified amount you want to buy, and open the trade.
Once made, the trade will add to your portfolio menu in the sidebar. You can click here to see how much you invested, and how much profit or loss you currently have.
Even with the ease that trading on eToro provides, it can still be daunting to know what and how to invest. You need to find strategies that have proven results, and start to copy them while investing.
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