With over 2 million social users and started by a Cyprus based forex and commodities trading company, eToro has made a splash in the world of social trading. The company claims to have revolutionized online trading much like Facebook and LinkedIn has done with social media. Not only has eToro’s platform received acclaim for its social networking and trader communication features, it has also been able to attract a considerable number of active users to its innovative trading platform. Is the account worth the hype?
NerdWallet digs into the details below, laying out the main factors to consider if you’re interested in learning more or signing up.
Basic Account Info:
- Account minimum to open a new account: $250
- No annual account fee
- eToroUSA Trading Spreads starting at 3 pips for EUR/USD
Here are the 5 main reasons NerdWallet thinks eToro is the best online social trading broker out there right now:
1. Uncomplicated: Allows Ease of Use for Beginners and Experts Alike
The features used by the forum are straightforward and easy to understand as well as to use. The tools of the software are easy to use and with the launch of the OpenBook Social Investment Network in 2010, eToro has increased its utility level. In 2011, it became much more hi-tech by introducing its highly convenient mobile app. So now you can trade on the move with just a few touches. They have taken an advanced step by introducing images and videos too.
2. Practice Makes Perfect: Sharpens your skills with free practice accounts before you commit funds
As a new entrant there are a range of services to make you a skilled trader. You can make use of all the functionalities, and no fees will be charged for it. Even if you want to follow the moves of trader/traders using the ‘Copy Trader’ enhancement, it is available free of charge. Actually, the best part of eToro is the educational value that it provides its traders who speculate on currencies, equities and commodities.
As with other forex trading platforms, eToro offers traders a chance to practice with its demo account that is funded with $10,000 in virtual money and this aids in the learning process.
3. Copycat Investing: Lets users trail, track and copy whomever you like
Learning and maintaining a record of the moves of the top traders in the industry has been made easier than ever. In just a few clicks, all the data is yours to use and it gets updated in real time. Not only does the eToro platform rank extremely high in how user-friendly it is, but it also claims that the “win ratios” on average for investors that choose to copy traders is as high as 80 percent. If you were to sign up for eToro, watch for traders that have profitable trades close to a 100 percent. There are actually quite a few that do.
4. Instant 24/7 Help from Gurus: Boasts a highly interactive and customer-oriented atmosphere
The ‘Gurus’ are there to be of aid whenever you require them. They have the chat facility for instant assistance. And you get all the aid and guidance at any stage of your trading needs. If you’re a pro, eToro is a great way to generate a secondary source of income and there is an incentive program that rewards eToro Gurus up to $10,000 for a month.
5. Follows the Money: eToro is well funded
One of the biggest things that traders are concerned about is the liquidity of their assets and this has a lot to do with the financial backing of a trading platform. eToro’s Cyprus headquarters makes this all the more important especially with all the news we have been hearing about the island as of late. The good thing is that there is nothing for investors to worry about when it comes to depositing their money with the social trading platform because the company actually handles tens of billions of dollars every year and its customer growth rate is impressive at 20%.
What is more, eToro has managed to raise even more financing by picking up another $15 million from the Boston based venture capital firm Spark Capital that is also vested in Twitter, Tumblr and Foursquare.
Downside: eToro’s Sign Up Promo isn’t available in the U.S. Yet
Although eToro is not as sophisticated as some of its social competitors, it has been able to draw a lot of traders because of its ease of usage, cost-effectiveness and great customer service. In addition, eToro offers an incentive program that rewards traders that refer people to the online platform by rewarding them with a $100 and also $50 for the new user if he or she deposits $100. The drawback is that this deal is not available for traders residing in the U.S., as well as certain Asian countries like India, Sri Lanka and Bangladesh.
Beginning forex traders who want to learn from more advanced investing experts – or anyone who genuinely enjoys the ins-and-outs of both social networking and the investing process – can benefit a lot from both by going with eToro.