Introduction: eToro Trading and eToro Reviews
Online trading has revolutionized the trading world.
No longer do people have to seek out expensive brokerage firms or read mountains of books on investment strategies in order to try their luck playing the stock market.
eToro WebTrader was the first website to introduce the concept of an online investment network.
One eToro review calls them “Facebook for trading,” and the social aspect behind eToro trading definitely allows for more people to access the world of stock markets and make some extra money from trading.
Image Source: Etoro
In this eToro review, we will look at how eToro trading has opened the world of investing to people who might not have an investor’s mind. Furthermore, we will explore how eToro forex trading actually works and look at other sites like eToro that provide similar online trading platforms. This review of eToro will let you know whether eToro is a scam or if it is a genuine opportunity to quicken the learning curve in order to make money trading.
What Is eToro WebTrader?
eToro WebTrader introduces a social aspect to the trading world. Whereas trading on the stock market and the foreign exchange market is usually considered to be the epitome of cutthroat competition, eToro forex trading is more collaborative in that it allows investors to learn from each other.
Many people who have offered eToro reviews tell of how they avoided many of the common mistakes associated with entering into the trading world through eToro’s trading platform that allowed them to learn from other, more experienced investors. eToro states that “it’s our fundamental belief that as investors we are better together then we are apart.”
According to eToro’s website, “eToro is the first global market place for people to trade currencies, commodities, indices and CFD stocks online in a simple, transparent and more enjoyable way.”
Their vision is to “maintain the world’s largest and most trusted investment network, designed to financially empower individual investors through a simple, innovative trading platform and an active social trading community.”
Our eToro review found that many people around the world have identified with the concept of the social trading community that eToro trading provides. Over 4.5 million people use eToro forex trading in more than 170 countries.
The foreign exchange market, also known as forex or simply FX, is defined as a market “where banks, businesses, governments, investors and traders come to exchange and speculate on currencies.” Since there is no centralized location where forex trading takes place, it is the perfect trading option for sites like eToro that promote and provide an online trading platform.
Though the eToro WebTrader platform does allow for other type of online trading, eToro forex trading is the most widely used. Traders who use eToro trading speculate on the price of one certain currency against another.
For those without much experience in the world of foreign exchange trading, this eToro review finds that the ability to learn from other traders essentially allows even novices to enter into the forex trading world.
A Thorough eToro Review
Many eToro reviews simply mention the benefits of online trading in general. This eToro review, however, will look at how the concept of a social investing network can help you flatten out the learning curve.
Furthermore, we will look at how eToro trading actually works and how the eToro WebTrader offers different investment options that adapt to different investors’ needs.
- Social Investing Network
The element that makes eToro trading stand apart from other trading options is the social investment platform that it provides. The eToro WebTrader allows you as an individual investor to learn from a diverse trading community.
You can interact with other traders who use the eToro forex platform and even copy the trades that more successful investors have recently made.
Many eToro reviews talk about how rookie traders have been able to follow the investment patterns of experienced and successful investors who use the eToro WebTrader and thus learn through doing, rather than through having to read complex investing handbooks.
Image Source: Etoro
Investors who choose to use the eToro WebTrader platform willingly allow the trades they make to be uploaded to a public network. Other investors using eToro trading can then follow those trades through a number of statistical categories.
For example, if you want to follow the traders who have the highest profit margin, eToro will allow you to do that and even copy the trades recently made by the best traders in the network.
Furthermore, since the eToro WebTrader has such a diverse community of investors, you can benefit from the experience of people from around the world. EToro forex trading allows you to trade in a wide range of globalized currencies as well as in gold, silver, and other precious metals.
If forex trading isn’t for your, eToro trading also allows you to trade in the more traditional indices such as the Dow Jones, NASDAQ, and the FTSE.
- How to Deposit and the eToro Withdrawal Policy
Once you have created your account and started learning from the best investors in the eToro network, you will want to know how to get started yourself on eToro trading and how to get paid.
eToro offers accounts for different levels of trading expertise. You can even start a beginner’s account for as little as $50. This eToro review believes that the flexibility that the eToro WebTrader allows for is a plus for people who are just beginning to learn about forex trading and don’t want to invest large amounts of money from the get-go.
To begin your eToro trading experience, you can deposit money into your account via credit card, PayPal, Neteller, Moneybookers, WebMoney and other online payment companies.
Many eToro reviews expressed their appreciation in the variety of options that make up the eToro withdrawal policy. eToro can pay you via the methods listed above as well as through wire transfers to your local bank account for balances over $500.
- Ways to Trade with eToro
This eToro review finds positive the fact that the eToro WebTrader platform allows its users three different ways to trade the markets. eToro trading can be done via the eToro WebTrader, the eToro OpenBook and the eToro Mobile Trader.
The eToro OpenBook is the most popular of the options. The OpenBook allows users to follow the progress of any investor in the network. Many eToro reviews have shown that users especially like the “copy trader” feature in which you can directly copy a trade made by anyone in the network in real time.
The eToro WebTrader is the actual platform that gives investors who do eToro trading a number of important tools to help in the analysis of trade options. This interface helps with statistical analysis of your trades and at the same time can be synchronized with the OpenBook feature so that you can copy a trade that the eToro WebTrader has identified as profitable or promising.
The eToro Mobile Trader allows users participating in eToro trading to access all of their trades via smartphones and mobile devices. Many eToro reviewers like this feature since it allows for users to access their trades wherever they are.
This eToro review appreciates that the eToro WebTrader platform doesn’t charge any commissions. Rather, people who use eToro trading simply pay slightly wider spreads on every trade that they make. Larger spreads are common with less common currencies, whereas you will expect to pay smaller spreads with more common currencies.
For example, trading on the U.S. dollar and Japanese Yen is only at 2 pips, whereas the spread can go up to 14 pips for less common currencies when doing eToro trading.
Many eToro reviews are pleased with the fact that no commissions are charged. Furthermore, the customer service provided by the eToro WebTrader is also an added plus.
One eToro review mentioned that eToro has a “user-friendly environment to learn trades with their excellent service of Forex demo, easy registration procedure and the different PayPal methods to ensure easy transaction.” Other eToro reviews, however, complained about the high spreads.
If you are planning on trading in traditionally well-known currencies such as the U.S. dollar, the euro, or the Japanese Yen, then eToro trading may very well be a good option for you. If, however, you plan to trade in lesser known currencies, you can plan on being charged a much larger spread.
Sites Like eToro
Although eToro was the original online trading network, there are now a number of sites like eToro that you can use for your online trading.
According to socialtradingguru.com, “ZuluTrade is probably the largest global social trading network at the moment in terms of numbers of investors and traders. Hence a major competitor to eToro.”
Like eToro, ZuluTrade allows you to follow and copy other investors and traders. Unlike eToro, however, Zulu allows you to download the history of certain investors in an Excel format to allow for easier statistical comparison. For more serious traders, this eToro WebTrader review thinks that it might be best to consider other sites like eToro that offer advanced analysis options.
Another site like eToro is Avondo, which is a European-based social trading network. This network is similar to eToro, though the number of traders and investors that you can choose to follow is much smaller than with eToro. Nonetheless, the best traders that use this network typically generate large profit margins on their returns, thus making it a worthwhile option.
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Is eToro a Legit Option for Your Online Forex Trading?
Many of you may wonder, “Is eToro legit?” With the amount of online fraud, some traders may initially believe that eToro is a scam. This eToro review and other online eToro reviews, however, have shown that online trading is a legitimate and safe option for today’s traders.
If you are into forex trading, eToro can offer you a diversified, automated trading platform, a training academy, and the ability to follow and learn from some of the best investors out there. In essence, you can begin as an apprentice but still make money off of your initial investments.
eToro trading, however, does charge a high spread on some forex pairs and doesn’t offer trading on more obscure currency pairs. This eToro review, however, finds that for both beginners and experts in the forex trading world, eToro provides an excellent platform and an innovative social network for investors of all types.
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