When it comes to a reputable Forex exchange, eToro is one of the most talked about names today. With its large scale and continuous development, eToro increasingly asserts its position and strength in the volatile and risky Forex market. Therefore, if you are in need of entering the Forex market then eToro is an option that you should consider. Let’s find out more about etoro.
Is eToro Safe?
To answer this question, we jointly evaluate some objective and important criteria when evaluating reputable Forex exchanges. With the factors below, it will definitely help you answer this question
eToro Operating License
- In the United Kingdom, eToro (UK) Ltd is regulated directly by the Financial Conduct Authority (FCA) under license Number 583263.
- In the European region, eToro is licensed by the Cyprus Securities & Exchange Commission (CySEC) under license No. 109/10.
- In Australia, eToro is licensed by the Australian Securities and Investments Commission (ASIC) under the Australian 491139 Financial Services Licence.
- In addition, eToro is licensed by U.S. financial regulator FINRA and FinCen, the GFSC, the Financial Services Commission in Gibraltar.
eToro’s Investor Protection Policy
- eToro participates in insurance under the “Financial Provider Compensation Program (FSCS)”. As a result, all investors will receive compensation from eToro of up to €20,000 or £50,000 in the event of bankruptcy.
- In addition, under ESMA regulations, Etoro is required to comply with the rules on negative balance protection, in case the market is highly volatile or the account is removed due to the burning of the account, the trader’s assets must not lose more than 100%.
- Client funds are held in separate accounts at banks, so Etoro does not use client funds for the company’s activities. And with eToro having no hidden fees, all information is made public on the site.
Etoro’s accomplishments
- In 2011 eToro won the Finovate Europe Best of show award.
- In 2013 eToro launched a mobile app on both android and iOS operating systems.
- Between 2007 and 2013, Etoro raised $31.5 million. In 2014, Etoro raised $27 million from Russia and China.
- In 2018 eToro announced the launch of the Good Dollar project, a non-profit project aimed at reducing global wealth inequality.
Thus, in 10 years of continuous operation, eToro has actively improved, developed and launched useful and useful products, promoting the world’s most developed social trading networks.
eToro account types
General information
Currently, eToro offers a common account type for all traders including novices and traders who have been engaged in trading for a long time. This type of account is not divided into as many account types as other exchanges. eToro’s goal is to build a common and unified social trading network for traders around the world to be linked and connected by network.
However, accordingly, eToro also breaks down the membership level so that traders can receive different offers for different trades, ensuring the rights of all clients. That is, the more money a trader pays, the more attractive incentives a trader receives.
Levels categorized by eToro
- Silver Level: The minimum required deposit amount is $5,000. With this level, you have access to the etoro market, access to an exclusive copy catalog based on real data.
- Gold level: With a minimum deposit of $10,000, you’ll get the same advantages as a Silver member.
- Platinum Level: For a fee of $25,000, you have greater benefits than Gold membership, such as: no withdrawal fee, free Wall Street Journal subscription, access to the Delta PRO app with wallet connection, unlimited exchange, etc…
- Platinum + Level: Minimum deposit from $50,000. You will receive the same perirates as previous levels, but have the additional right to participate in concession events at this level.
- Diamond level: With a maximum deposit of $250,000, the minimum member receives all the benefits at the campus level and additional benefits of signing up for the Financial Times and free deals…
Products traded on eToro
Etoro has many differences and stands out from other exchanges, so the execution of transactions with the types of stocks available here is also extremely different. Etoro offers a platform to trade real stocks in custody, while other exchanges will normally use CFDs. In addition, Etoro offers a wide range of ETFs and cryptocurrencies as follows:
- Forex currency: 52 pairs including the main, secondary and rare currency pairs.
- Types of goods: 46 types including metals, energy and commercials.
- Cryptocurrencies: 16 popular codes such as BTC, BCH, DASH, LTC…
- Stocks: consists of 42 codes from industries such as technology, healthcare, finance, services… From world-renowned companies and corporations.
- CFD Index: consists of 15 codes.
- ETF: 225 codes
Leverage and trading fees on eToro
Leverage of eToro
Leverage at eToro depends on regulation directly from regulators. In Vietnam, the leverage provided by eToro under the management of ASIC financial institutions is calculated specifically as follows:
- Currency pair: 1:400
- Commodities and indicators: 1:100
- SHARES CFDs and ETFs: 1:20, some codes will apply leverage charges of 1:10
- Cryptocurrency CFD: 1:2
eToro commission fee
Etoro stipulates that the regulation will be free of charge for all commissions with all transactions on the exchange. This is a special advantage of this exchange compared to other exchanges operating in the forex market.
eToro spread
The exchange fee at eToro is quite high compared to other exchanges. The fee depends on the payment method that the customer chooses.
- If the investor chooses to transfer bank transfers, iDEAL and Sofort will charge 50 pips.
- Other payment methods charge conversion fees for depositing and withdrawing money, especially the conversion fee in Vietnam is quite high, up to 25,000 pips.
eToro Trading Platform
Unlike other exchanges that use the MT4/MT5 platform, eToro uses its own platform and has its own regulations on the platform.
CopyTrades
This is the same trading platform as other forex brokers. The platform is designed by Etoro, an easy-to-see interface, suitable for novices and inexperienced traders. Some of the outstanding features of this platform that you need to know:
- After opening an account at eToro, each user will receive a free $100,000 demo account to practice trading.
- Update social trading features to take advantage of community sourcing insights.
- Allow real-time copying of the actions of other traders.
- Etoro provides a full range of data, reviews and statistics on profits, annual and monthly trading so that traders can accurately analyze the market.
- The amount to participate in CopyTrades in eToro is $200, up to a maximum of $500,000.
- You can copy 100 different service providers at the same time.
Copy Portfolio
As the name implies, this is a platform built on the eToro algorithm. Here the transactions will be gathered into a group for traders to copy. This copy category will provide an additional 93 cryptocurrency pairs with manual trading functions and copy execution order execution. In addition, the platform also offers eToro e-wallets, which use multi-signature diagrams to act as a supervisor.
Transactions on the platform are done manually and automated transactions are not allowed. Therefore, when eToro summarizes the performance of trades or strategies, it will only include manual trades.
The trading fees of the copy portfolio depend on the currency to be copied, the minimum amount is $25 for the commodity, $50 for the stock and $200 for ETFs and other trading products. The margin level of the exchange is also quite highly regulated, up to $ 5,000, and to participate in the exchange Etoro must test the knowledge of traders when they participate in the platform.
Deposits and withdrawals on eToro
To facilitate clients when conducting transactions, eToro offers a variety of payment methods, the following of which are some of the most used available methods:
- Visa /MasterCard Credit and Debit Card Money Transfer
- Payment via Neteller e-Wallet, Skrill, PayPal
The deposits will be processed immediately and the withdrawal request will take 1-2 business days (depending on the payment method). eToro is special in that there is no deposit fee, but each withdrawal will charge $5, so you should keep this in mind to avoid misunderstandings later on.
Note: All eToro accounts use U.S. dollars. Therefore, when depositing money into the exchange in another currency, the margin amount will be converted at the current market exchange rate. After the first deposit, the minimum deposit amount is $50 and the minimum withdrawal amount is $30 No transaction after 12 months, $10 per month.
Customer service of eToro Vietnam
Compared to other exchanges, eToro’s customer service is neither popular nor appreciated. eToro does not have a support switchboard, when cac Traders need support, traders can only contact eToro via live chat system or open support slips. However, these two methods have many disadvantages such as:
- The live chat function is only for members of the eToro Club.
- For job order creation, customers have to wait 14 days to receive a response.
- Due to the lack of customer service, Vietnamese investors are always afraid of insecurity when trading. This is also a weakness that the floor needs to overcome.
General review of eToro
Advantage
- The exchange is licensed from many well-known financial regulators.
- EToro is a pioneer in copy trading.
- Trading stocks and ETFs for free.
- Practical trading support.
- There are no commissions when trading.
- Offering a wide range of business products.
- Supports multiple deposit and withdrawal methods.
Disadvantage
- High withdrawal fees are regulated, with a one-time withdrawal of $5.
- Do not support MT4/MT5 trading platform.
- Low cryptocurrency leverage ratio.
- Spread fees are higher than many other brokers.
- There is only one type of trading account.
Conclusion
With the above information, Traderforex believes that it can help you to see and evaluate the most objectively about the eToro exchange. From there, you can make the right and most reasonable choice for yourself. I wish you success with the upcoming deals.