The number of people who make money actively trading indices, commodities, forex, and individual stocks is small. But for those who make it work, the profits are extraordinary. A group of these successful traders are willing to let other people copy their moves. The platform they choose to use is eToro.
Where eToro Falls into the World of Online Trading
eToro is used by 5 million customers. There have been over 170 million trades completed through eToro to date, making it the largest social investing platform on the planet. Using eToro allows you be part of the largest network of traders. That’s pretty cool.
Why use eToro?
eToro allows you to copy the trades of your successful peers. This means you don’t have to be an experienced trader, you don’t have to know exactly what’s going on in the market, you simply need to have a basic understanding of the markets to help you analyse the wisdom of the crowd and copy what great minds are doing. If it feels risky, know that the trader you are copying has their own skin in the game and you can also contact them directly on eToro so you can ask questions about their investment strategy. Someone else is leading the charge. And you can trust them because you can see whether they’ve made a lot of money already. Or you can do things yourself by using the resources and tools provided.
Is eToro easy to use?
Yes. Unlike its competitors, eToro aims to make the trading experience as beautifully interactive and as easy as possible. It offers a patented behind-the-scenes ‘CopyTrader’ technology that allows you to mimic the trades of others.
Is eToro safe?
Yes. eToro is safe. The trades are regulated, your funds are kept at Tier 1 European banks and the website never shares your data without your consent. eToro accepts PayPal as well for an easy and safe intermediary between eToro and your bank. The Financial Times, Bloomberg, The Telegraph and City A.M. have all made statements that stand behind eToro.
What to Know before Opening an Account
The minimum amount required to open an account is US$50. You can deposit your money via PayPal, credit card or wire transfer. There is no annual account fee. Instant 24/7 help is available. You can also learn and practice for free. Each new member gets access to a free, demo account with $100,000 in virtual credit so they can practice. After all, you don’t have to copy someone else’s trades, you can also go it alone and see if you can rise above the rest.
It’s a bummer the site isn’t open to US customers. However, there are enough foreign Blunt Money readers to make this post worthwhile.
eToro feels like a mentor/mentee relationship. One thing I really value is mentor relationships. I think mentors allow you to think the right way, act the right way and mentors keep you from making silly mistakes. For instance, if I decide to open a restaurant, I should find someone I trust. I should run my ideas past them. If you trust them, you will listen to their advice. This speeds up the process for you and ultimately makes you more money.
eToro uses a similar structure with the social trading feature. If you’re new to trading on global financial markets, you can copy someone else’s tactics. This is an even faster way of taking advice from them – and the trader is perfectly happy to see you doing this as they also receive monetary rewards from eToro the more people copy their trades.
If this type of trading is something you’re interested in, try out eToro. It’s the greatest platform of its kind. Visit eToro.com to get started.