Choosing the right trading platform can be a big decision, especially if you have mastered the basics of stock trading yet. In this beginner’s guide to trading with eToro, you’ll learn about the different tools and features at your disposal, as well as how to place trades, access market data, and manage your portfolio. You will also learn about some of the many benefits of eToro such as fast execution and the social element provided by the eToro community. You are probably wondering if it is safe to trade with eToro. In that case, you better read this full review of eToro by Wikitoro. This studies the real reliability of this broker, so it is definitely worth reading.
What is eToro?
eToro is a digital investment platform that opened in 2007 and has since grown into one of the largest social trading platforms today, connecting millions of traders and investors worldwide. In addition to stocks, indices, ETFs and currencies, you can trade over 3,000 leveraged financial instruments. It is currently licensed by trusted financial regulators including FCA, CySEC, and ASIC.
Types of accounts on eToro
There are two main types of accounts on eToro: Standard and Pro. The first is free and allows you to trade CFDs on stocks, indices, ETFs, currencies, commodities and cryptocurrencies. Although there are no fees for making transactions or deposits, withdrawals do have a cost (see below). On top of that, you get basic educational tools as well as a newsfeed to keep up with market updates. The Pro account does everything a standard account does but with a lower spread.
Open an account on eToro
Opening an account on eToro is a fairly straightforward process. Simply visit their site and click Join Now on their homepage. After filling in your personal information and creating your account, you will be asked to fill in some basic personal information about your personal data. And after verifying and authenticating your account, you will need to link a payment method that will allow you to deposit funds into your new account at eToro. You can use credit or debit card, PayPal, Skrill, Neteller and other payment systems they support.
Use the demo account to practice
Another great tool for beginners is eToro’s demo account. It lets you practice using your favorite trading tools, test strategies, and get started executing trades without risking any money. It gives you a chance to try out all your ideas while giving you real-time market insights, and it’s a great way to learn how to use these tools before committing your own funds.
How does Copy Trader work?
With CopyTrader, you can copy another trader’s portfolio and investment decisions. Each time the trader you have chosen makes a trade, you make a trade at the same time, mimicking his movements. It’s a great way to start trading if you don’t have a lot of experience, as it allows you to learn from someone who already has established experience. You can also use CopyTrader as an educational tool if you are looking for ideas on how to invest your money. If there are certain strategies that work well for other traders, why not try them out yourself? Remember that while it’s easier to copy someone else than to come up with your own strategy, it’s not necessarily better.
There are six main asset classes you can trade on eToro: stocks, currencies, commodities, indices, ETFs and crypto. Each is then broken down into specific trading pairs. For example, if you choose to trade Forex, your available choices are major currency pairs like EUR/USD or GBP/USD. Each asset class has its own set of risks and rewards; while some may seem more volatile than others, they also have greater profit potential.
What are the spreads?
The spread is important information because it refers to the difference between a buyer’s price and a seller’s price. The wider or more expensive the spread, the more difficult it will be for you to make money on this trade. To calculate your returns, you need to subtract your entry point from your exit point to see what profit or loss range you encounter on a given trade. eToro spreads are variable: they can widen or narrow depending on market conditions at any given time. It should be noted that other platforms (like conventional exchanges) use fixed spreads; if you want to buy $1 million worth of Apple stock, you will pay $0.01 per share whether it goes up or down in value.
You can contact customer service for help
One of the best features of eToro is that it is a social trading platform. The community aspect means you can easily connect with other traders, ask questions and learn from their experiences. But in addition, you can also contact customer support for assistance. There are several ways to do this: you can send an email, call them or use live chat. Whichever method you choose, you will be able to get a response from one of their agents for any concerns you may have.