eToro Review: One of the best online brokers.
eToro is a broker that has been in the market for more than ten years, having been founded in 2007, with registration in Cyprus, and with the stated goal of leading the financial revolution of online operations worldwide, allowing to carry out short and long-term trading operations in an apparently reliable manner
This broker claims that it prioritizes safe operations for its traders, providing fresh offerings to provide them with a more diverse, complete, and accessible experience from the location and device of their choice. However, it is unavoidable to wonder if what it says is accurate.
As it is emphasized, Forex Operations is responsible for conducting full and honest reviews based on an exhaustive examination of the many most prominent brokers in the market, including their benefits and advantages, as well as their disadvantages and areas for improvement. This article is about the broker eToro, which, although being popular and broad, is frequently questioned by many traders about what it truly offers its clients.
What are the key characteristics of this broker?
To begin, we shall emphasise the intermediary’s key points:
- It has a platform with a variety of assets.
- Commissions at 0%.
- Tools for analysis
- A user base of over ten million people.
- Low commissions and fees.
What features of this broker needs to be improved?
Now, because it is our obligation to inform traders about the benefits and drawbacks of each broker in order to help them decide which broker to choose, we must emphasise the following information about eToro:
It is important to note that, while this broker allows you to trade CFDs, there is also the option of directly acquiring some of the underlying assets, i.e. investing in real assets, which increases investment risk and entails a more complex process. As a result, it is recommended that you analyse the conditions and possibilities before carrying out any operation.
What types of accounts does this broker provide?
Remember that this broker offers two types of accounts to its clients: retail and professional.
The first, is for traders who are just getting started in the realm of online trading, that is, who are not yet advanced, with coverage from the Investor Compensation Fund and the Protection Service at their disposal. However, this category has several drawbacks, such as limited leverage.
The second category is for professionals; nevertheless, you should be aware that in order to transition from being a retailer to a professional, you must pass a test to demonstrate your suitability, without entirely guaranteeing your change of category, which can be frustrating and confusing for users.
Similarly, people categorised as professionals are free from ESMA protections such as the Investor Compensation Fund and the Service for the Protection and Defense of Financial Sector Users, forcing them to make and bear their own risk judgments.
Similarly, on eToro, there is a Club where five different sorts of accounts may be found, which are as follows:
Silver: Access to the broker’s market webcasts, a specialized agent, and CopyPortfolios (designed to limit long-term risk and increase development potential) are among its primary characteristics, and the trader may also choose to obtain the intermediate debit card.
Gold: This account has features identical to Silver, as well as access to live Webinars, market analysis reports, a line of credit from this broker, and a specialist account manager.
Platinum: This eToro account includes benefits such as no withdrawal costs, a free subscription to the Wall Street Journal, access to the Delta Pro app, unlimited connections to wallets and exchanges, device synchronisation, and, of course, an eToro platform.
Platinum +: This account contains all of the previous accounts’ perks, as well as individual meetings via videoconference with the account manager and access to events.
Diamond: This category includes all of the perks of the preceding categories, as well as a subscription to the Financial Times, an exemption from platform costs, individual meetings via conference call with the account manager, and invites to the broker’s events.
What is the market performance of this broker?
On the one hand, eToro has the following underlying assets in which, as previously stated, the broker offers trading through CFDs on their value. However, there is also the option of directly purchasing the asset, which entails greater risk. The assets are as follows:
Cryptocurrencies: Through an investment method called CryptoPortfolio, you can trade the market’s most common cryptocurrencies, such as Bitcoin, Ethereum, Dash, Cardano, and XRP. You can also invest in the short and long term.
Stocks: With this broker, you can trade the stocks of the most well-known firms in the market, including Amazon, Apple, Facebook, Google, and Tesla, among others. By creating a non-leveraged buy position, the trader is investing in the asset, purchasing the shares itself, and retaining their identity.
Similarly, the trader can use CFDs on said shares to open sales positions, acquire fractional shares, and use leverage.
Commodities: eToro allows you to trade the most popular financial commodities, such as gold, silver, platinum, oil, and natural gas. The broker allows the trader to operate this asset solely through CFDs, allowing for leveraged operations as well as fractional ownership.
Currencies: The trader can trade the most popular currency pairings with this broker, including EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD. It is also worth noting that this asset is exclusively traded through CFDs.
Indexes: With this broker, you may trade popular indices such as the GER30, NSDQ100, DJ30, SPX500, FRA40, and others.
In the case of investment funds, however, the following options are available:
ETFs are short for exchange-traded funds. The trader can use this middleman to trade CFDs or invest directly in the asset. Among the most well-known products offered by this firm are the SPY, VXXB, TLT, HMMJ, and QQQ.
Is this a regulated broker?
This broker is regulated by the Cyprus Securities and Exchange Commission, or CySEC, which is a level 1 regulatory authority in charge of financial firms that offer investment services. Furthermore, the UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission keep an eye on eToro (ASIC).