Etoro: Newbie Review / Guide / Referral
I’ve been using Etoro for a few years and it’s my go to place for trading and investing. The website is really easy to use, there is a nice app, so you can check your investments and prices anywhere you can get wi-fi or mobile data. It’s designed to make investing more accessible to people with all levels of knowledge. The minimum first deposit has been reduced to $50 in many countries and is $200 elsewhere, which is very low compared to other platforms that require you to have $1000s just to start investing.
Before you do put any money in you can try out the platform with practice money in a ‘Virtual Portfolio’. I recommend trying this while you learn what everything does before adding real money.
One of the best features of Etoro is the ability to copy successful traders with low risk but much better rewards than any saving account. This way you can choose to copy a good trader with a fixed amount of your money and the system will copy all of their trades automatically for you. I’ve been using it and it’s the future of investing for me.
Etoro is definitely an easy way to invest in USA based stocks and other instruments. I’m not that experienced in trading but the charges seem fair compared to Hargreave Landsown on my small investments and Etoro benefits from easy to use Stop-Loss and Take-Profit, including trailing stop loss which I think is great. Have a look at their fees structure for yourself.
It’s also an easy way to buy and hold bitcoin if that is what you’re into. It’s not great for day trading cryptos though as the spread is high, meaning you lose 2.5% every time you buy bitcoin and sell it.
If you are new to Etoro, these are the minimum buy amounts of each asset, currency or financial instrument, which is a lot lower than it used to be and lower than other platforms I’ve come across:
- Stocks and ETFs $50
- Crypto $25
- Currencies $1,000
- Commodities $1,000
- Indices $1,000
The amount you buy at one time is known as trade or position size. Buying something can be called opening a position. The first thing you’ll notice after opening a trade is you will immediately have a small loss. This is because of the spread, which is the gap between the buying price and the selling price. On other platforms this is determined by various factors such as volatility and liquidity and on Etoro it’s set by the platform. One of the complaints about Etoro is the high spreads particularly on Cryptos. But Etoro has no fees on a straight buy and the spread is one of the ways they get paid as well as covering possible price volatility. Here are some example spreads:
- Stocks& ETFs 0.09 %
- EURUSD 1 Pips
- GBPUSD 2 Pips
- NZD/USD 2.5 Pips
- Bitcoin 0.75 %
- Ethereum 1.90 %
- XRP 2.45 %
- DASH 2.90 %
When you want to take your profit on that buy, you are closing a trade, so don’t click on the big sell button. Click into the asset and the click the red X to close the portion you want to sell. That will sell what you hold, closing down that trade. The ‘sell’ button opens a short position, where you are betting that stock or currency will fall in value and if it rises in value you would lose money, possibly all of that trade. A sell position is a leveraged position and much more risky than just buying the asset. Leverage trading is a topic too big to talk about in this review but it’s definitely not for new investors in my opinion. Don’t open a ‘sell’ position unless you really know what you’re doing and have deep knowledge of that asset.
I would only recommend starting with Etoro with at least £500 and only if you can afford to lose all of it. Investing involves taking a risk with your money. Also there is a $5 withdrawal fee for some people and a $30 minimum withdrawal. You should want to invest long term before doing this. It’s not money for nothing.
With all of that said, I think Etoro is a great platform and I hope you enjoy investing and make a profit while you’re at it. 🙂
I can’t offer a joining bonus at the moment but if you sign up using my link and use your account I will get a reward from Etoro: https://med.etoro.com/B13974_A77970_TClick.aspxhttp://partners.etoro.com/A77970_TClick.aspx
If you want to find me on Etoro after signing up, my name is JakeKuyser
It’s important to know about the risks before going to Etoro. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Note: This is a work in progress and I will be editing it over time.
Note: This is not financial advice. I’m not a financial advisor and I don’t pretend to have any investment training or expertise.
I wrote a lot more about copytrading here on my blog: https://jakekuyser.wordpress.com/2021/07/22/etoro-how-to-find-and-copy-successful-traders/