eToro has evolved into a very popular and leading social trading broker, especially for beginners over a short time, and not only in Germany. There are many benefits, which can completely convince the buyer.
eToro is counted amongst the best and more successful of social brokers, particularly in German speaking areas. I have also had many positive experiences with the company. In my opinion one of the plusses is the high maximum leverage of 400:1. Additionally, the minimum account deposit is merely 200 Euro and this is also applied to the free and unlimited demo account. As well as currency pairs the trader can also trade in different commodities and, thanks to social trading, it is easy to emulate other successful traders.
Head Office and Regulations: eToro as a fully regulated broker
The company was founded in 2007 and has its head office in Cyprus (EU). Thusly the social trading broker has many years’ experience handling trade in foreign currencies and raw materials. eToro is regulated by the „CySEC“ (Cyprus and Exchange Commission) and as such is overseen by the Financial Supervisory Authority of Cyprus (EU). Furthermore it is registered under various other European supervisors (including the BaFin – the German Federal Financial Supervisory Authority) as a cross service provider (not to be confused with regulation, which only happens in Cyprus). According to eToro all of the deposits of the traders using a trading account are covered by legal deposit insurance up to 20,000 euros per customer. This fact inspires confidence.
These facts all lead to the clear conclusion that this is a genuine offer from eToro. A broker who is regulated would not be able to deceive their one million customers for long.
Trade Offer: No large offer available
eToro primarily offers currency trading but it can also offer CFDs. In the program there are currently over 15 currency pairs at any trading hours and some important raw materials. Some selected equities, as well as some international indices, can be found and are available as basic values for CFDs. All in all, the trade offer by eToro is not very extensive but many a broker will have a lot more to offer.
Trade conditions and initial trading
The minimum deposit has increased from $50 to $200. However, despite the increase, inexperienced investors can begin trading with eToro without the pressure of offering anything larger as the principle of social trading is based on both experienced and inexperienced traders working in a network trade together. This way everyone benefits from the concept of social trading.
In the eToro’s OpenBook platform all of the trading activities of the community members are shown and every eToro user can this data view at any time. Whoever is particularly successful is considered to be something called a ‘signal transmitter’. ‘Signal transmitters’ make their trading strategies available to the community and they can then be emulated by other eToro users, with only a click. Thusly inexperienced traders do not need to worry about their share performance as the investment tactics of the professionals can be transferred to their own trading. ‘Signal transmitters’ in turn profit from each trader who copies them and they receive commissions.
Trading platforms and mobile trading: An app is available
A reliable trading platform is of utmost importance, especially when trading forex. eToro is able to offer such a platform, one that is not visually appealing in design and easy to use, but also offers practical, useful functions. Even traders with no previous experience in foreign currency will quickly find their way.
Beginners especially benefit from the extensive social trading functions. They can follow the more experienced traders, follow their strategies and then develop their own. The app is available in twelve languages, including German, and so is accessible to traders all over the world. The app also offers four different modes that the trader can use, like WebTrader, for optimum ‘settings’ and application usage. The platform is web-based within the browser but without needing to install it on a PC. In addition to a real account one can also use a ‘demo’ account first, which has no time limit on period of use. An app can be found for both the website and the OpenBook platform. The mobile app is free and is available for both iOS and Android devices.
Opening an account and bonuses: Easy registration
Opening an account with eToro is quick and easy. Registering is also free and there are fixed fees during the use of the account with no hidden charges. To create an account only a username and a valid email address is required. Alternatively, a registration through Facebook is offered. Then the account is created and can immediately be capitalised on. Once at least 50 euros has been paid into the account trading can begin.
There are a number of bonus offers, which can be read on the ‘Bonus Offers’ page on the website. One of them is that eToro will credit new accounts with up to ten percent of their initial deposit, depending on the size. Some extras, such as certain professional trading tools, can also be used free of charge.
Demo account: Free and unlimited
Together with the ‘real’ account eToro customers automatically receive a demo account. This is free and offers the full range of benefits of the trading platform. It also has access to realistic trading conditions, including real-time quotes, and the user can take their first steps as a social trader risk free and without complication. The demo account offers a good opportunity to learn about social trading and eToro before starting real money trading.
The demo account is available, as previously stated, for an unlimited time and it provides a valuable opportunity to try new trading strategies without much risk, even after entering into real money trading.
Service and Education: Many offers available
For those who have not yet gained a lot of experience or wish to improve, eToro provides an extensive range of knowledge and further education. On offer is an in-house trading centre, German-speaking webinars, eCourses and training videos. Traders are not only supplied with basic knowledge but they also receive further training and information for advanced trading.
eToro’s customer support is available on both phone and email, Monday to Friday and from 10am until 3pm. Particularly striking is the huge FAQ section, which even has its own search tool.
Desposits and withdrawals: several methods exist
If you wish to make a deposit to your eToro account then seven payment methods are available for use:
Credit card, PayPal, Neteller, Skrill, Webmoney, GiroPay.de, bank transfer
All methods are free and the transfers take, in most cases, only a few minutes to complete. Only the bank transfer can take up to five days to complete, from transfer to actually arriving in the account of the trader. The withdrawals happen, as a rule, the same way as the deposits and there is a withdrawal fee of up to 25 euros, although the fees vary depending on the size of the withdrawal.
Trustworthiness: There is no doubt of the trustworthiness of eToro
Some traders are interested in the idea of trading forex but sometimes shy away from opening an account with an online broker. The reason for this is that there are sometimes rumours that eToro might be scam, like some other online brokers. In my view, these rumours are easily addressed and dismissed. Even without my positive experience with the broker, the fact is that eToro is officially regulated by the EU and the business model is transparent. It is made clear that the broker only generates its revenue through its spread.
Conclusion: There can be no uncertainty about the trustworthiness of eToro because the regulation by the European Union is evidence enough that this is not a scam. Add to that, the trading model of the broker is transparent and millions of customer can not all be so easily fooled.
Our eToro experience: A trustworthy, regulated broker.
After my test of the social trading broker eToro, I have reached a very positive conclusion. It is not without reason that eToro is one of the most popular social trading brokers for beginners, both nationally and internationally. I was particularly impressed with the competent service, the features offered, and the trading platform that is perfectly tailored for beginners. eToro can also underline its good market position in some trading platforms. I eagerly recommend eToro to beginner and lower intermediate traders due to these advantages:
A high quality trading platform that is also available in German
More than 15 currency pairs, as well as raw materials, are traded
Demo account with no time limit and available to use at any time
The initial deposit is low $200, which low comparatively
The maximum leverage of 400:1 is very high