How to Start Investing with eToro
Even though the financial markets may seem complicated at first, it’s actually pretty simple when you break it down into its most basic parts. If you’re looking to trade online and make money through investing, keep reading to learn more about trading with eToro, one of the world’s leading social trading platforms, that makes investing as easy as connecting with your friends on Facebook or sharing photos on Instagram!
What is eToro?
eToro is a social investment network that lets users invest in stocks and commodities using virtual money. Today, it has 20 million+ users and markets itself as an ideal tool for people who want to trade or invest but aren’t sure how. A lot of people might use it because they’re already on Facebook and have friends on there who talk about investing all the time. It works pretty similarly to other sites like Robinhood (no commission fees) or Coinbase (1% commission fees). You can buy fractional shares which means you don’t need $2,000 dollars sitting around to buy $100 worth of stock; instead you just pay $10.
Copy Trader: One of the Best Features of eToro
There are a number of useful features that make it easy for users to trade on eToro. One of them is CopyTrader. This feature allows you see other traders and see what they are doing in real time. You can also follow their strategies, patterns, and style of trading which will help you learn new trading tactics. Copy trading is when you mirror another trader’s trades. When you copy a trader, you automatically get their buy and sell orders as they place them—no need to constantly monitor your screen or put in an order at exactly the right time. What’s also interesting to know is that it gives you an edge that’s hard to beat: leveraging expert traders’ research and analysis by copying their exact trading style. It doesn’t matter if you want to buy stocks or cryptocurrencies, it only matters that there are people who trade them.
Another handy feature is Portfolio Manager. With this tool, traders will be able to check all of their investments in one place. They can even use it to allocate funds between multiple accounts if need be. It’s important to note that neither of these tools are automatic; they require you to actively participate while trading and investment opportunities come up.
How Do I Register?
The process of opening an account at eToro is actually quite simple, and all you need is a working email address. Start by clicking Register in your account navigation bar. Once you are logged in, you will be directed to create your new trading account by completing a few basic fields (including your country of residence). If you have trouble creating an account or have any questions about registering, then feel free to contact support via telephone, email or live chat.
How Do I Deposit Funds Into My Account?
Your deposit may come from your credit card, your bank account or any other payment methods they support (there’s actually quite a lot). Once you’ve selected how you want to fund your account, simply follow their simple steps and you’ll have your initial deposit ready to use for investing into one of the many assets that can be found on their platform.
How Do I Know Which Assets are Available on the Platform?
The platform offers a wide range of assets to trade with. Traders can invest in stocks of companies like Facebook, Google, Apple and Microsoft. They can also trade on commodities like gold or oil. You can also invest in currencies like the US dollar or the euro. The trading platform has plenty of assets on their platform so you can diversify your trading portfolio.
You Can Also Trade Cryptocurrencies!
One of biggest reasons people hesitate to invest in cryptocurrencies is that it can seem intimidating—especially if you’re new. But online trading platforms like eToro make it simpler than ever for even beginner investors and traders. The company has been a popular platform for forex and CFD trading since its founding in 2007 but now it has expanded into cryptocurrency investments by allowing users from all over Europe (and parts of North America) to trade Bitcoin, Ether, Ripple, Dash, Litecoin, Shiba Inu and a whole lot more through its platform.
Using the Demo Account for Practicing
If you’re looking to learn about trading without risking any of your own capital, a demo account is your best bet. This is the best way to test out an online platform before using real money. Note that you don’t have to put in any personal information or give up credit card information—simply open an account and start practicing. Take some time going through all of their training material and try out some demo trades using play money. Within days, you can make yourself more comfortable with manual investing, which will pay off when you go live later on down the line.
Users are able to trade using real money or with play money. For people without much experience with trading, but who want exposure to some of these high-flying digital assets, using play money may be an easier starting point before switching over to real cash. Of course it’s also helpful for beginners who don’t have any cash at all because they don’t need to actually buy any assets!
Contracts For Difference: A Different Kind of Trading
With eToro, some of the assets are traded as CFDs. A CFD, or contract for difference, is a derivative financial instrument that is often used as a way to trade commodities and stocks. While not exactly synonymous with commodities trading, it does provide a way for traders to speculate in commodities or individual stocks through an agreement that is handled by a broker. By creating an agreement between two parties (the buyer and seller), you can buy shares of stock or contracts for oil, gold, silver etc. Unlike buying actual physical metals, however, you’re buying shares of derivative contracts based on those assets. This allows you to trade without having to own them outright and also means you don’t have all the hassle of storing tons of metal somewhere.
Are There Risk Management Tools?
There are plenty of features that you can use on the platform to manage the risks. One of them is a trailing stop loss, which is an order that follows and trails a position once it starts moving in your favor. A trailing stop loss will automatically adjust as your position moves higher in value, allowing you to protect more of your profit without having to constantly monitor your portfolio. Just keep in mind that if a trailing stop loss gets too close to your original entry point, it may trigger an exit at a price that’s less than what you wanted. And remember: A stop-loss order is only effective when used in conjunction with risk management principles such as keeping losses small and not taking on too much risk.
Is It Really Safe to Trade with this Broker?
For some, trading is gambling, and for others it’s an art. But when you’re trading online, security should be at the top of your list. Luckily, eToro provides services that make it easy to trade and maintain your money with a high level of security. Another reason why we can say that it’s legit is that it’s licensed. While many brokers aren’t regulated, eToro is. The platform is regulated in Europe, Australia, Cyprus and even the US. It’s important for a broker (or any business) to follow their country’s regulations and guidelines. If they don’t, it can result in lost funds or even jail time! In some countries, brokerage firms are required by law to register with local authorities and meet certain requirements.
Here’s what you need to know: eToro is a global trading network, which means there’s no one single regulatory body that governs their activity. While you can use their platform without ever meeting a regulator, it doesn’t mean that nothing happens if you trade on them or if they go out of business. This brings us to an important concept: regulation is an essential part of any financial services company, and it’s especially important when choosing a broker. Regulation makes sure your information is secure; protects consumers from being scammed by unethical companies; and ensures you have legal recourse if something goes wrong with your account. It also helps keep people honest in their work—even dishonest employees have less ability to steal from customers when there are eyes watching what they do all day long.
The main attraction of using a platform like eToro is that it gives you access to a much broader range of investments than any single investment account can offer. The downside is that many people don’t know how trading works, so they may end up making poor investment decisions. If you want to start trading but aren’t sure how, it’s vital that you understand exactly what you’re getting into before you commit your money and start investing.