Are you wondering whether eToro is a legit business or just another Ponzi scheme? If yes, this review about the eToro platform is going to help you clear all of your doubts and queries. Moreover, we have covered only the essential aspects. So, let’s not waste any time and review this platform.
What Is eToro?
So, eToro is one of the leading online social trading platforms. Moreover, it has a particular focus on providing services like copy trading, CFD trading, Brexit trading, as well as other financial services. Currently, this multi-asset brokerage company is one of the most preferred platforms, and investors love it. However, some investors wonder if the opportunities this company offers are real or if this is just another Ponzi scheme.
Founded by: Yoni Assia, Ronen Assia, David Ring
Headquarters: London, Limassol, Tel Aviv-Yafo
Founded: 2006, Tel Aviv-Yafo, Israel
Number of employees: 750
Parent organization: eToro Group Limited
Is eToro A Scam?
When it comes to the Forex industry, there is no doubt that there are many scam projects in this industry. However, eToro is not one of those. Moreover, in support of its legitimacy, we have several things to share with you. Below, we have mentioned essential information regarding the transparency and legitimacy of this multi-asset brokerage company.
The company has been on the market since 2006
Since eToro was founded in 2006, the majority of investors would agree that this fact means that the company has been in the forex market for many years. On the other hand, most Ponzi schemes collapse after the second or third year. In other words, eToro has been proving its legitimacy since 2006.
eToro has the needed Regulation and Licenses
The company has many licenses, proving it to be a regulated firm or company. For example, eToro’s brokering services are provided by eToro (Europe) Ltd. Which, on the other hand, is a registered Cypriot Investment Firm (CIF).
- eToro (Europe) Ltd., with registration no. HE20058
The Cyprus Securities & Exchange Commission (CySEC) regulates the company under license number 109/10.
- eToro (UK) Ltd. with registration no. 7973792
The Financial Conduct Authority (FCA) regulates the firm, under firm reference number 583263.
eToro Europe and eToro UK both operate under and comply with the Markets in Financial Instruments Directive (MiFID).
- eToro AUS Capital Pty Ltd., ABN 66 612 791 803 is the holder of an Australian Financial Services Licence (AFSL) 491139 issued by the Australian Securities and Investments Commission (ASIC) and regulated under the Corporations Act (Commonwealth).
The company has offices in almost all parts of the world.
The international company has offices in Limassol, London, Tel Aviv, New Jersey, Sydney, and Shanghai. Moreover, there are hundreds of employees working in this company.
eToro has partnerships with many other players in the market
Not only this, but the company has also been funded with millions of dollars by several investment firms. Moreover, there has been a lot of news about eToro in various tech magazines. Keeping all the points mentioned above in mind, we cannot doubt the legitimacy of eToro.
Is eToro A Regulated Broker?
Yes, there is no doubt that eToro is a regulated broker. As we mentioned earlier, eToro mainly comprises of 3 companies: eToro (Europe) Ltd., eToro (UK) Ltd., eToro AUS Capital Pty Ltd.
The Cyprus Securities & Exchange Commission regulates eToro (Europe) Ltd. Meanwhile, eToro (UK) Ltd is regulated by the Financial Conduct Authority. Last but not least, eToro AUS is regulated by the Australian Securities and Investments Commission.
Is Your Deposited Money Safe At eToro?
Of course, one of the key things investors want to know is if the money that he will deposit to eToro will be safe. Moreover, can the money be used by the broker in any case?
Well, whenever you deposit any money to eToro, it doesn’t remain in the personal account of eToro. Instead, it is deposited in the banks of first-order like Goldman Sachs, etc. That’s because a regulated broker must deposit these funds from the clients in separate accounts. Thus, every bit of funds that you deposit to eToro is safe even if the company goes bankrupt. So, there is no need to worry about the safety of your money.
Important Features Of eToro
- eToro offers retail trading on currencies, cryptocurrencies, indices, stocks, commodities, etc.
- You can copy the trades of experienced traders. Moreover, eToro can make this process automatic.
- Just like Facebook, Twitter, etc., you can follow other traders here. You can manually copy them, and it’s just a matter of a click to perform this task.
- Share dividends can also be earned with CFD.
- You can share the information of all your investments and trades with other members of the eToro community.
How To Open A Demo Account With eToro
If you are willing to open a virtual or a demo account with eToro, you can do it for free. A virtual/demo account offers you virtual USD money. By doing so, you can try any service provided by eToro.
If you want to open a demo account with eToro, then you need to follow the steps given below.
- Go to the registration page
- Fill in all the required information
- Finally, confirm the account.
Trading Platform Of eToro
eToro has completely integrated its trading platform within the social trading platform. Hence using this trading platform is just similar to using any social media platform like Facebook, Twitter, etc. Moreover, both experienced and inexperienced traders find the interface of eToro to be extremely easy-to-use.
Indeed, this platform is straightforward and easy to use. You can access the platform through the “Markets” menu. However, if you have used platforms like MT4, MT5, it will take some time for you to be comfortable with this new platform.
The trading instruments offered by eToro are as follows:
- Forex having 47 currency pairs
- 6 of the main commodities
- 13 leading equity indices of the world
- 10 main cryptocurrencies
- A total of fifty-eight ETF funds
- And, various stocks of the stock exchanges available in London, New York, Milan, Paris, Frankfurt, Zurich & Madrid
How Does eToro Generate Profits?
When it comes to the method eToro uses to make profits, the company works on the same money-making system as most of the other brokers do. In other words, the multi-asset brokerage company earns money by applying charges on the offered spread.
The customer support service offered by eToro is appreciable. The support team is beneficial and always ready to assist. There are many ways to contact them. You can connect via the telephone or an email. You can also use their chat service or the automatic answer service. Also, you can send a support ticket to get assisted whenever needed.
Advantages of the eToro trading platform
- eToro is famous for its zero commission policy
- There is no limit to the number of demo accounts you can open
- The community it has is very active offering smooth interaction
- The platform is straightforward to manage
- You will find a vast educational section
Disadvantages of the eToro trading platform
- There are a lot of unprofessional traders
- Roll-over and spread fees are higher
As we mentioned earlier, eToro is a legitimate company. Not only this, but the multi-asset brokerage company continually tries to improve its services. And, if you are still wondering whether this company is a scam or a trustworthy online platform, then this article must have helped you find the answer to this question. Moreover, all the information shared above should be enough to help you decide whether you should start using eToro or not.