Etoro is a former and leading online trading platform that has been working for years and has collected a large trader community with its massive marketing. But is it really profitable as it shows up? Let’s find out.
What Is Etoro?
If you have been into things such as making money online and etc then you’ve probably heard about this website. Etoro is a multi-assets trading platform. They give you some tempting offers that might make you think that you can easily make money with low risk. Like showing successful traders and letting you copy professional traders’ trades. The key factors behind Etoro are ease, speed and simplicity.
What Can You Trade On Etoro?
- Stocks: Google, Apple, Microsoft, Facebook, Amazon etc.
- Crypto Currencies: BTC, LTC, ETH, EOS, LTC, XRP etc.
- Commodities: Oil, Gold, Natural Gas, Sliver, Platinum etc.
- Currencies: EUR, USD, GBP, AUD, JPY, CAD
- ETFs: an Instrument comprising several assets grouped together (for example Crypto ETF)
- Indices: Stock market’s index, like GER30
Note: By buying any of the assets, you don’t really own them. This type of trading is called CFD. You can withdraw the assets you own only with cash.
Etoro commission, fees and spread
Trading on exchanges is not free of charge. Although they have no commissions or fees on trades, they charge you with adding 0.09% to spreads. Spread is the difference between the bid and offer. Basically spread = the price you can sell – the price you can buy
This is the main way exchanges and forex platform owners make their profit. Let’s explain this with more details.
Suppose Apple stock price is 145.7$. The purchase price will be 145.75$:
The selling price will be 145.65%
You are paying extra percent and that’s the fee they’re taking. This is not the only fee. You are also charged 25$ for withdrawal and 5$ fee for inactivity each year. If you are looking for a cheap forex broker, Etoro might not be the one for you. Spreads are wider than the spreads you can find on other brokers. This doesn’t look good for frequent traders or traders who hold their postion for short time frame.
What is copy trading?
Another interesting option in Etoro is Copy-Trading. You can copy trades with popular traders to make profits without doing it yourself.
All traders on Etoro risk their own money as well, this is good for a copier, though the actual balance of their account is unfortunately not shared. This means you will not know if they are investing 200$ or 200,000$, They just share percentages with you.
You can also limit your risk by entering stop-loss. Determine the maximum loss before you automatically stop copying the trader. Trades are copied proportionally meaning if the trader risks 1% of his balance, then 1% of the money you allocated for copying him will be used for trading.
Trading history less than 5 years may not be convincing as a basis for investment decisions.
Note: You cannot put more than 24% of your money on a trader.
Etoro negative reviews and real experiences
Despite all the interesting things going with Etoro, let’s review the users experience. With a minimum search on Etoro review you can find their negative reviews and scores on Trustpilot.
At Etoro website’s homepage we can find this statement :
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Etoro on Mobile
They have a mobile application for both IOS and Android which is user-friendly. You can get it on Google play and Apple App store.