eToro Review and Bonus
eToro markets it’s self as the “#1 Social trading app for Cryptocurrencies” but how does it compare to its numerous competitors? And what is eToro doing to stand out from the crowd?
History Of eToro
eToro was founded in 2007 with the goal of making trading accessable to anybody by simplifying the process of buying and selling financial assets. They started out offering a smaller selection of financial assets and Forex but added the ability to buy and sell stocks and Bitcoin CFD’s in 2013. eToro’s cryptocurrency offerings were later expanded in 2017 to add support for buying and selling of several other digital assets. It is this mixture of traditional and crypto assets that really gives eToro an edge over their competitors. Although other applications offer both stock and crypto investment options their selection is vastly more limited than what is offered by eToro. It is for this reason that eToro has been able to expand their customer base to over 12 Million users across multiple countries effectively making it one of the largest fintech companies in the world.
is etoro trustworthy?
eToro get’s our seal of approval for security of financial assets. Because of their size and reach eToro has to comply with 3 different regulatory bodies. In Europe they are regulated by CySec (Cyprus Securities & Exchange Commission). In the U.K., eToro is regulated by the FCA (Financial Conduct Authority). Finally in Australia eToro is regulated by the ASIC (Australian Securities & Investment Commission). This allows eToro to operate as a market leader and ensures the safety of investmets made through their platform.
Because of it’s emphasis in simplifying the trading experience eToro’s platform is very easy to use and navigate. As soon as you log into your account you are greeted with your dashboard which allows you to buy and sell assets within seconds.
From your dashboard you can just tap to buy an asset, select your desired amount of the asset you want to purchase, and tap Open Trade. As you can see buying cryptocurrency on eToro is about as easy as it can get.
What about selling?
As previously mentioned buying assets on eToro is incredibly easy. Selling, on the other hand, is an entirely different story. Because eToro operates as a CFD trading network buying assets on eToro does not actually purchase the underlying asset. Instead users are agreeing to “exchange the difference in price of an asset from the point at which the contract is opened to when it is closed” This means users are forced to liquidate their entire positions when they go to sell if they made one large buy order like most newer investors do. You can get around this by placing several smaller purchases spread out over time, but it is something that has to be considered before placing your buy order.
eToro also sets it’s self apart because of it’s copy trader system. This allows less experienced users to copy the trades made by more experienced users. eToro also shows you the trader’s past APY so you can filter your selection by the best preforming traders. In theory this sounds amazing and we were very eager to give this feature a try. In practice however, this system is frustratingly flawed. This is because unlike regular trading, copy trading on eToro is anything but straightforward.
Here is an overview of the copy trading platform on eToro. As you can see when the page is loaded you are greeted with 2 different filtering options. You can sort the view by either top preforming or most copied traders. Once you have filtered your selection you would think a user could just tap on a trader and copy their trades. This, However, is not the case. eToro has a few hidden restrictions on the traders a user is allowed to copy. For example, if you are a US resident you are only able to copy traders from the US. Despite this eToro will show you traders from other countries who are not able to be copied. Once you do find a trader that is in the US you often times still can not copy the trader because they either “do not meet the requirements to be copied” or “have reached the maximum AUM (assets under management) allowed”. As of writing this I still do not have a concrete answer for what the maximum AUM for any one trader is because it is not a figure that is publicly available on their site.
All of these complaints could easily be addressed by eToro if they just hid traders that were not eligible to be copied because they are outside the country, did not meet requirements, or have reached their max AUM. Some people might see this as nit-picking but to me eToros refusal to simplify their “revolutionary” copy trading system stands in direct contrast with the company’s core mission to provide a simplified solution to investing.
It’s not all bad news though. To eToro’s credit once you find a trader that you are comfortable trusting your money with and meets all the requirements you can sit back and allow your money to work for you without having to worry about keeping up with the market. I truely believe that newer investors would be able to use this system to see great returns, but I still wish eToro would put a bit more effort into making the process a bit more streamlined.
eToro is really a feature rich platform that has made a serious effort to simplify and streamline the trading experience. Sure they don’t always execute this vision perfectly, but they have a huge user base for a reason. They offer tremendous diversification of assets that is unmatched by most trading platforms and they are very highly trusted. Wether you ware a new trader just looking to get started with cryptocurrency trading or a more seasoned trader you will enjoy the eToro trading platform.
eToro signup bonus
eToro is currently offering new users $50 free when they sign up and make their first deposit. To take advantage of this offer and try eToro out for yourself simply click the image below.