Today we’re going over the online trading platform eToro and what it’s all about. With so many different options available for online traders, it can be difficult to know which trading platform is most suited for them and which one they should choose. eToro is rather different compared to most online brokerages, so it’s important to note the features it has and really what the whole platform is all about. Here’s a quick rundown covering everything you need to know about the platform and more before making any decisions.
Who is eToro?
eToro is a multi-asset online brokerage that pioneered a feature called “social trading.” Founded in Tel Aviv, Israel with other headquarters in London, UK and Limassol, Cyprus, the company first started in 2007 when three entrepreneurs wanted to improve the way everyone thinks about online trading. Brothers Yoni and Ronen Assia teamed up with David Ring to create a system that makes trading easy to understand, easy to participate in, and accessible for anyone, anywhere. Nowadays, the platform has grown substantially beyond the 3 founders and the company is a leading brokerage in the fintech space.
What Do They Offer?
The platform has transformed significantly over the years since its inception and so to have the products and services they offer. Because of the large amounts of international and national regulations that surround the financial services industry, the actual products available to users depend entirely on where they’re located. If you’re in the United States, then the only available product (right now), is cryptocurrency trading.
However, for users around the world, a long list of products and services are available.
As an online brokerage, eToro offers users the ability to trade a wide array of assets and financial instruments including commodities (via CFDs), stocks, many different foreign currencies, ETFs, indices, and cryptocurrencies. In addition, the platform also offers those who have an account a library of educational material covering questions about trading, investing, charting, analysis, and the basics of different assets and financial instruments. But that’s not all, perhaps the single largest feature that’s propelled the platform forward is social trading — it’s what really makes eToro stand out, but what is it?
What Makes eToro Different?
eToro pioneered the concept of social trading along its development of the online trading platform and has created an entire movement around it. What social trading means is a couple different things depending on how you’re looking at it. The first aspect of social trading is the community it creates. While eToro is a brokerage and trading platform, it also feels like a social media platform at the same time, because it basically is. If you can think of LinkedIn as Facebook, but for business, then you can think of eToro like Twitter or another social media platform, but for traders. Users have profiles, post status updates, share ideas, and interact with the online community over a common interest in trading.
The other side of social trading includes the added features that come with it. Traders have the ability to not only interact with others on the platform, but they can actually copy the trading plans of others using the “CopyTrader.” If you’re on eToro and see the trading history of someone and believe they make great calls and will continue to do so, you can actually choose to specifically copy the trades they make on their own, but for your money.
If you’re looking at a more long-term approach for your investments, then there’s a feature called “CopyPortfolio” that allows users to do the exact thing as CopyTrader, but for a portfolio rather than individual trades. The social media style platform allows users to browse through different people and follow top investors to learn from and imitate their trades or portfolio.
Lastly, eToro’s platform is incredibly user-friendly and intuitive. With the site and app design looking more like a social media site than a Bloomberg terminal, it’s incredibly easy for anyone to get started right away.
- Many different assets to choose from
- User friendly and easy to use
- Pioneer in “social trading” and copying trades from others
Depending on where you’re located and what you’re looking for, eToro is a good option for both traders and investors who aren’t exactly sure of their strategy yet. With social trading, investors and traders can use the history of other traders to learn about strategies that work and potentially craft a system of their own (or continue to copy others if they’re getting the results they want). The brokerage has been around long enough to gain trust in the community and is a solid choice for those looking to explore new assets and financial instruments.