Forex and CFD Broker Recommendation: eToro | Hacked: Hacking Finance
Hacked: Hacking Finance

Brokers

Forex and CFD Broker Recommendation: eToro

Posted on .

Forex and CFD Broker Recommendation: eToro

Introduction

This article was posted on Tuesday, 22:52, UTC.

Pros

  • Good coverage of currencies, stocks, indices, commodities, and other asset classes with low fees in the retail segment
  • Industry-leading social trading offering, CopyTrading, CopyFunds
  • Easy to use, advanced trading platforms
  • Exposure to Bitcoin, Ethereum, Ripple, Litecoin, Ethereum Classic, and Dash through CFDs
  • Stable, fully regulated company with millions of users and a strong financial position
  • Only $100/$200 minimum deposit
  • Premium account above $20,000

Cons

  • Margin rates high for long-term positions
  • Minimum 2-pip spreads
  • Stock exposure only through CFDs
  • Steep withdrawal fees
  • No US clients accepted

Recommendation:

eToro has come a long way since 2007 to become a leader in the social- and copy-trading segment, while accumulating a user base of 5 million, and establishing the reputation of a stable and trustworthy broker. The company navigated through a challenging decade and kept on innovating and expanding its reach throughout the way, and now it offers one of the strongest selections in the major asset classes among retail brokers while also offering exposure to the major cryptocurrencies.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

We recommend eToro for all beginner traders, especially those looking for the opportunity to learn from established traders and invest together with them while building their own strategies as well. Those looking for the lowest fees, margin rates, and spreads could find slightly better options, like our other pick Interactive Brokers.

Availability

One of the biggest drawbacks of the company is the lack of support for US residents, but to be fair, the whole retail broker industry has issues with the strict regulation of country. Other than that, the company accepts clients from all over the world, through it’s UK and Cyprus regulated branches, and opening and funding an account is easy and swift.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Funding options are plentiful, with support for the major e-wallets, credit and debit cards, as well as wire transfers.

Trading Platforms

The eToro trading platform is easy to use, and social trading is deeply integrated, with support up to 100 traders to copy. Trading is easy in all asset classes, with the help of an advanced search function and with no slippage whatsoever, although spreads are a bit wider than with some other brokers.

A fully functional mobile trading platform is available for iPhone and Android, with good charting capabilities and a reasonably quick operation.

// -- Get exclusive consultation for as low as $249 per month on MoneyMakers.com -- //

CopyFunds Platform

The new CopyFunds option is also available now giving a comfortable and cheap alternative to managed funds. As the company website explains:

You can invest in two types of CopyFunds: Top Trader CopyFunds which comprise the best performing and most sustainable traders on eToro, and Market CopyFunds that bundle together CFD stocks, commodities or ETFs under one chosen market strategy.

CopyFunds™ aim to help investors minimise long-term risk, promote opportunities for growth, by taking copy trading to the next level and creating diversified investments.”

Other Tools

There is a wealth of valuable information the form of webinars, e-courses, and other educational materials readily available besides the millions of active traders. The Popular Investor program is great for experienced traders who can leverage they knowledge and earn a significant amount of extra income with very little effort—other than implementing their regular strategies.

Responsible Trading

Responsible trading settings are very useful, like pre-set leverage settings (with a 1:50 default maximum), and the 20% maximum exposure/trade limit are great to manage risk and let you control your emotions in volatile markets. We strongly urge traders not to use the maximum leverage allowance (not even close) with regular strategies, especially at the first period of one’s trading career. The practice account is also a great way to get ready for ‘real” trading to get to know the order types and the effects of leverage to your portfolio, and also the peculiarities of each asset

Final Words

Some of the general problems with retail brokers aside like dangerously high leverage options, user interfaces geared towards overtrading, and notoriously high fees, eToro is among the best options for beginners to get their feet wet in trading and start. With the responsible trading initiative and the social trading functions, most of the worries can be addressed, while the fees are not sky high, although they are above than in the case some of the discount brokers out there.

Featured image from Shutterstock. This post is not sponsored.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR Prateek

    Posted on 1:41 pm July 5, 2017.

    Hi Mate,

    I couldn’t find invite/referral link on post. Thus registered afresh based on your recommendation.

    Just a suggestion. Share your e-toro referral invite link so all are benefited
    Example – http://etoro.tw/2tLJcmK

    Thanks
    Prateek

  • user

    AUTHOR walien

    Posted on 11:29 am July 6, 2017.

    Hello Mate,
    would you clarify what kind of broker Covestor is and maybe compare to etoro?
    Covestor makes me confused, I could not really understand what their proposal is: I see features that remind me the etoro approach, but it is not really like that so I could not build a clear parallel to any of the few brokers I know.
    Thank you!

  • View Comments (2) ...
    Navigation
    The team:
    Dmitriy Lavrov
    Analyst
    Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
    Jonas Borchgrevink
    Founder
    Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
    P.H. Madore
    ICO Analyst
    P. H. Madore lives in Arkansas with his wife and children. He has covered the cryptocurrency beat over the course of hundreds of articles for Hacked’s sister site, CryptoCoinsNews, as Read More
    Mate Csar
    Analyst
    Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
    Justin O’Connell
    Journalist
    Justin O’Connell is a cryptocurrency journalist who works have appeared in the U.S.’s third largest weekly, the San Diego Reader & VICE. // -- Discuss and ask questions in our community Read More
    Mati Greenspan
    Analyst
    Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
    Rakesh Upadhyay
    Analyst
    Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
    Pamela Meropiali
    Account Manager
    Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
    Joseph Young
    Journalist
    Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
    Three commodity exchange traded funds (ETFs) have a tendency to…