eToro.com is without a doubt the top destination for the copy-trading of binary options. As such, I felt I had to let you know the opportunities it holds for rank-and-file traders as well as professionals. eToro is called an “investment network” for a good reason: its main goal is to connect traders, to allow them to communicate and eventually to simply copy the trades of those who really know what they’re doing. eToro currently connects 4.5 million traders from 170 countries, and apparently, thousands of new accounts are created every day. There’s certainly opportunity here, and to take advantage of it, you’ll need to learn the ins and outs of this operation.
eToro is more than a simple copy-trader though: it allows its members to learn from their more experienced peers, and to build up expertise, so one day they can become traders copied by the masses too. What are eToro’s biggest draws though?
First of all, I’d never even consider an unlicensed broker or social investment network myself, so I would obviously never recommend one to you either. eToro is operated by eToro Europe Ltd, which is a registered Cypriot Investment Firm. Licensed and regulated by CySEC, eToro offers its traders multi-layered protection against a host of eventualities. In the UK, eToro is run by eToro UK Ltd, and it is regulated by the FCA. The operation is fully MiFID compliant.
Considering the daunting nature of combining flexible trading platforms with the world’s largest social investment network, eToro have come up with surprisingly and pleasantly simple solutions. Learning to trade through their systems is a cinch even for those who don’t have any experience.
The social trading aspect is obviously where the bulk of the value of the eToro proposal resides. Besides finding profitable traders and copying their moves, eToro enable traders to interact with experts and each-other through live chat and through a number of discussion boards, which are superb vehicles for the propagation of investment ideas.
Responsible trading is one of the priorities of the operator. eToro use preset leverage levels and a number of other responsible trading-promoting features to make sure novice traders do not blow through their balances quickly and with nothing to show for it.
The site is focused on personal service. Every eToro client can enroll in one of the Trader Programs run by the operator. The in-house market analysis team delivers up to the minute reports, and a constant stream of news is served up from some of the top financial sources. Traders can set up free practice accounts, with balances of $10,000 in virtual funds. The operator also offers a wealth of courses, covering everything from the basics to advanced trading concepts.
If you decide to follow a trader and to copy his/her moves, you’ll be able to see a risk profile on the said trader, complete with trading history. Special deals and promotions are also featured from time to time, giving traders the opportunity to add to their balances in various alternative ways.
Withdrawals can be requested at any time from eToro, and provided all the conditions are met, they are processed within a day. Money can be withdrawn through the same method the trader used for his/her deposit. The order of priority in this regard is Credit Cards, PayPal and Bank Wire. The time to receive the withdrawn money depends on the method used. It can be as little as 1 day, but it will not exceed 8 days, according to eToro. Withdrawals can be cancelled at any time, obviously before the actual payment goes through.
To make a withdrawal, traders obviously have to have an available balance, and they have to withdraw at least $20. The account has to be verified, meaning that there has to be a green tick next to it. To have the account verified, traders will have to provide a selection of documents proving their identity and residence.
Every withdrawal carries fees too. From $20 to $200, we’re looking at $5. From $200-$500, the fee is $10. From $500 upward, the fee is $25. On top of these, conversion fees may be added too, in case the withdrawal is in a currency other than the USD.
According to eToro.com, their CopyTrader is based on the wisdom of the masses. In this respect, they do indeed have some 5 million users to count on. To use the CopyTrader, traders have to register a real money account and then to open the OpenBook platform to locate the top social investors. Choosing one of these traders to copy should be based on thorough analysis of the said trader’s risk profile and trading history. With that out of the way, the follower has to allocate a certain amount of money to copy the social trader, and the copying can begin. The minimum amount one can allocate in this respect is $100. One cannot invest more than $500,000 in a social trader.
The CopyFunds feature is rather interesting as well. It lets traders invest into two types of funds: Top Trader CopyFunds and Market CopyFunds. The first of those is obviously focused on the best performing traders, while the second is based on a strategy centered on a balanced selection of ETFs, CFD stocks and commodities.
The Popular Investor program is the rank-and-file trader’s most straightforward path to joining the pros. Popular Investors are traders whose moves are copied by others. Popular Investors earn a 2% commission on their Assets Under Management, on an annual basis. In addition to that, Popular Investors get to trade spread-free and they get to keep all their profits from their regular trading.
Minimum Deposit and Incentives
According to the eToro site, the minimum on first deposits ranges from $50 to $1,000. For instance, Israeli clients are required to deposit at least $1,000. Traders from other locations may be required to deposit less. On bank wire deposits, for non-Israeli customers, the minimum is $500. You will want to deposit at least $100 at any rate, because that’s the minimum you will need to take advantage of the copy-trading services of the operator.
As far as incentives go, eToro don’t seem to be particularly keen on bonuses, though they do give their traders the chance to earn as much as $1,000 by referring 10 friends. In this case, the referred friends will be rewarded too, with $200 in eToro credits. In order for the scheme to work, the referred friends need to deposit at least $500.
eToro feature an extensive customer service wall and help section, where most of the frequent questions are answered. In addition to that, traders can also use an email form to contact the support staff. Replies to these messages may take as much as 48 hours.
eToro Review Conclusion
eToro.com is beyond doubt the top destination for social trading. Regulated and featuring superb trading platforms and services, it represents the easiest path to profitability for unskilled traders.
Please share your feedback, experiences and opinions below and thank you for reading my eToro Review. If you have any questions concerning any services or binary options brokers, feel free to leave a comment below. Cheers to success! Michael Freeman