Disclaimer: Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk
When I was looking to trade, there weren’t as many platforms and opportunities to trade. Today, there are at least a few hundred platforms you can trade from your smartphone. However, the rules of the game don’t change based on the accessibility.
Making a profit with trading is a skill. Both traditional stocks and especially new cryptocurrencies have their risks and their periods of variation. The problem with traditional style trading is that those like me, people with reduced experience in the field had a high entry barrier with little contact if any with other traders.
On eToro, some of my fears are addresses directly. The barrier to entry is virtually non-existent. You can also share your trading tips and experience with other traders. The markets you can enter a diverse and ever-growing number of cryptocurrencies is there to trade.
The company is regulated by the Financial Conduct Authority in the UK. It works under the permission of the Securities and Investment Commission in Australia. Those from other countries abide by Cyprus’ Securities and Exchange Commission.
eToro Features
Social Trading
Social trading or copy trading is the main reason to choose eToro. It shows you what other traders are doing. In turn, this allows you to copy their actions and start making a profit.
Sure, in theory, this sounds good. But you still need to put in the research. For example, if all traders were copying one successful trader than all the stocks would start to fall. As for me, I have my favorites which I follow and then compare to my analytics.
On each type of trade, you can filter out certain individuals. A good place to start is by filtering traders by the initial trade. You then compare it to the trading value they’re got today. This simple tool is the type of background security check I perform with copy trading.
There are a few reasons while this style of trading might be successful and why it may only be the sole trading method you apply on the website. First, there are the statistics. The average profit per year is 29.1% when applying this social trading method.
Another good reason involves rookies like me. You don’t need a trading consultant or the help of a trader. This method saves you money. I know I’ve tried to hire a trader in the past. But so did a few hundred other people. We were all paying the same guy to make money for us.
On the website, some of these risks and fees are mitigated with a different perspective. For example, every trader on the platform you want to copy has a risk score. You’ll see this risk score next to the trader. Alongside this score, you’ll also see the gain percentage over the last 12 months.
The entire copy trading process is even simpler than you can imagine. You first need to choose your trader. A few filters make locating your trader a lot easier. You then set the amount you want to trade and click the copy button.
Currency Trading
Currency trading is a bit more predictable to me as I watch the news and I’m able to tell how events impact currencies. The current Brexit plan plummeted the British pound. But Euro to USD trading has been on the increase in the past few weeks. As expected, USD to CHF continues to fall and there isn’t a return point insight.
However, I wouldn’t put money in local currencies from emerging economies. Even with strong growth, I wouldn’t risk my money on currencies that are highly dependent on leading currencies. Better margins might be found in cryptocurrency trading.
Pros
Cons
Final Verdict
If you’re new to the trading world, no platform is going to guarantee your success. But this can be said about any type of trading regardless of your situation history. If you want to start trading like a top trader, then the platform might be right for you.
You can sign up today and make a small deposit. With it, you can slowly start to mimic what other traders are doing until you start to see certain patterns yourself. This takes time. For me, it takes at least a few hours per day before even pressing the Copy button.
But if you want to learn more about this type of trading, you can also benefit from the built-in feed of the websites. It’s here that you see the latest news and recommendations from others, just like on a social network.
Note: eToro is regulated in US -eToro USA is operated by eToro USA LLC, which is registered with FinCEN as a Money Services Business
Disclaimer: Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk
