eToro is a popular Israeli finance technology startup mainly seen as a social trading Forex and CFDs broker. It was first established in 2007.
eToro currently provides service to UK clients and is regulated by the Financial Conduct Authority (FCA). The broker also caters Australians under the regulations of the Australian Securities and Investment Commission (CySec). For other customers around the world, they may be pleased to hear that eToro is regulated by the Cyprus Securities and Exchange Commission (CySec).
Here, we will look into the broker in this eToro review and see if it matches up with the eToro customer reviews to see if it holds up.
Of course, we shall start in this forex review with what the eToro broker offers.
Looking at the eToro official site, we can see that eToro provides customers to trade in forex and CFDs. While CFDs can be an extremely profitable venture, its complex nature as an instrument can lead many retail investors to lose a lot of their capital – especially when trading with eToro. Though, keep in mind that this is in no way an eToro cheat as CFDs need a lot of patience and technical know-how in order to make money off of it. If you are sure that you know how to handle trades involving CFDs, it is still advisable to try the eToro demo account, which can be found at the eToro login page to get a feel of how the platform handles.
eToro: Pros and Cons
After browsing through the eToro site, one of the first cons we can see is that it has very high fees for forex trading. Though, if you live in the UK or other countries with the Euro-currency, a great pro is that it offers traders stock and ETFs services commission-free. For those trading outside the EU, however, a small fee or commission is required in order to trade the above mentioned. Withdrawing of funds from your eToro account is also has a bit of a downside as there is a $5 minimal fee charged for every withdrawal. Of course, while that is the case, eToro is best known for its innovative social features for social trading where you can meet and talk to many other eToro traders to discuss news and trading strategies.
Is eToro a scam?
An “eToro scam,” “eToro lie,” or “eToro fraud” is highly unlikely as eToro is regulated by popular and, more importantly, highly credible financial entities. While there are a lot of customer reviews that say otherwise, not many fully know what counts as shady behavior or why Forex is a scam. As mentioned before, it is very easy to lose money when participating in an online trading environment, and it is best first to look up how the financial instrument works and how to profit out of it.
In conclusion, the eToro broker is an exceptionally well social trading platform that boasts new and clever ways to enhance the social aspect of the trading experience. While there are a few downsides to signing up for eToro such as a high commission for Forex trading, trading in stocks and ETF charge nothing and can be a profitable venture for those who have done their research.