Social Trading – Background To A Revolution
Three businessmen had the vision to make trading more accessible to ordinary users. Two brothers, Yoni and Ronen Assia and David Ring started their revolution in the trading world in January 2007 when they launched eToro. This new Israeli company wanted to make the market more available and easier to use.
They wanted to introduce people to more innovative and modern approaches to trading and to place all traders financial requirements under the one umbrella. To this end, they introduced social trading, an investment strategy for online traders to employ user-generated content and crowd wisdom to make trading decisions. eToro is currently the world’s most extensive social trading network, with 7 million users worldwide.
The main priority for eToro has been its customers, and this has been clear from its inception. They have made a substantial investment in providing up to date technology to create a safe and secure environment in which to trade. Up to press, the company has launched seven trading platforms and received recognition for their innovative approach, including recognition as one of the best start-ups and receiving quality awards.
What Makes eToro So Attractive?
Innovative tools allow traders to connect through their trading platform where they can trade in foreign currencies, cryptocurrencies, international stocks, indices and commodities.
The patented and innovative technology has changed what was previously fairly complicated trading transactions, to transactions that are fast, efficient and problem free. Especially popular is the copy-trading feature, introduced on its social investment platform in 2010. The services eToro offers are based on a simple principle; the customers come first. It prides itself on listening to what is wanted and finding a way to provide it, with research and development at the top of their agenda.
To make sure customers are well looked after, employees at the company are trained in the skills and knowledge required to assist traders. The upper echelon and the Board of Directors keep a hands-on approach, supported by analysts and administrators who help turn theories into reality.
Financial Instruments To Facilitate Your Trading
Trading opportunities await both new and experienced traders, with a variety of categories available on the website including:-
The Dynamic Stock Market – This is where you can trade on some of the most popular ones, like Apple or Google. You can opt to buy ( go long), a non-leveraged position, where the stock is acquired and kept in your name. You can also, by using CFD’s, sell (go short) by using leverage and buy fractional shares. This allows you to invest a lower amount than the value of the shares.
The Established Commodities Market – Here is where the trades in physical entities take place, like in gold and oil. Using only CFD trading, where you don’t purchase the asset itself, you can trade for a little as $50 for gold that may be worth something in the region of $1,000.
The Largest Market In The World: Forex – Currency trading attracts a lot of attention and can be very volatile. At eToro currencies are traded with CFDs, allowing the trader to use short positions and leveraged trade. There are options for major currencies such as EUR/USD or the minor currencies, with low price spreads starting from 0.8 points and with a leverage of up to 1: 400.
Exchange Traded Fund Or EFT – One tradeable asset comprised of several assets grouped together make this financial instrument. Assets like Proshares Ultra S&P 500 (SSO) or SPDR Gold (GLD). These tend to be low-risk investments and considered for long-term investing. At eToro, the trading in Australia on EFTs is executed by CFDs.
Indices – all major stock markets around the world have their index or indices. Take NASDAQ on the Wall Street Stock Exchange, which aggregate tech companies like Apple or Google.
At eToro, these cannot be directly invested in but, you can use CFDs.
The Growing Market Of CrytoCurrencies – The growth of cryptocurrencies like Bitcoin, Ethereurm and Litecoin has been rapid, and they are popular on the trading platforms. You can invest directly into the cryptocurrency or use CFDs at eToro, with trading available 24/7 every day.
A Very Social Trading Platform
eToro offers a social trading program that enables leaders and followers; it’s an excellent trading experience, for both single or corporate traders. Millions of traders from 140 countries have contributed, allowing eToro to refine their trading tools. The unique CopyTrader™ technology enables a client to replicate another traders activity automatically. By ‘copying’ a successful traders strategy, new traders can learn and trade at the same time.
You can also experience trading with CopyPortfolios™, this is where groups of successful investors follow a predetermined strategy, routinely making minor adjustments to optimize the CopyPorfolio investment. Professional traders can also get onboard the Popular Investor Program. Here top traders share their knowledge and are rewarded for doing so, earning real money for being successful and letting others know how.
The eToro practice account is also an excellent way to learn your way around the platform and the various trading opportunities.
What Does eToro Social Trading Offer:
- Simplicity – using an intuitive program, accessible to new and experienced traders
- Diversity – lowered risk by investing when following the trade of experts
- Profitability – from 2010 – 2017 data showed that 78% copied trades closed in profit
- Reliability – 6 million users can’t be wrong and there are strict regulations governing the site
- Transparency – eToro exposes each trader’s portfolio, risk score and track record to aid informed decision making
Is eToro Regulated?
From its first base in Tel Aviv, eToro has expanded its operations globally. The provision of a safe and legal trading environment is covered by their registration with the Financial Conduct Authority (FCA), license FRN 583263. Also,they are licensed with The Cyprus Securities Exchange Commission (CySEC), license #109/10. The company fulfils all legal requirements to operate as an authorised and licensed broker. eToro Australia is governed by Australian Securities and Investments Commission (ASIC).
Protecting Your Money
Reliability And Safety
To provide the utmost protection to client’s funds, eToro is committed to security and high standards. Any monies in your account with eToro is kept entirely separate from company funds, in world famous banks such as Barclays Bank. Internal and external monitoring is conducted on all customer accounts.
Another aspect of concern to customers is the protection of their data. eToro uses top-level encryption technology to ensure all data is protected. The company also provide the greatest discretion in processing personal or financial data, with no third-party access to customer data, without their permission.
Secure, No Hassle Deposits And Withdrawal
All financial processes are secured by 128 SSL encryption for all authentication processes, ensuring your data is well protected against any cyber theft. Withdrawals and deposits methods vary by country, but these include:
- Credit cards
- Bank transfers
- eWallets including PayPal & Skrill
In Australia, the deposit and withdrawal methods are credit/debit cards, bank wire transfers or Paypal. Any withdrawals, to ensure safety and security of your funds, must be made to the same account that was used to deposit.
Deposits to verified accounts are mostly instant, except for bank wire transfers that can take 2 to 3 days. The minimum amount that can be deposited initially varies by country from $50 to $10,000. Corporate accounts have $10,000 as the minimum first-time deposit. All business on eToro is conducted in USD, and other currencies will be converted to USD at the current market rate. Unverified accounts have a total deposit limit of $2,250.
Customer Support That Is There For You
However “au fait” you are with trading, the markets are always changing and adapting, developing and growing, as are trading platforms like eToro. A sign of any company’s commitment to its customers is the level of customer support they offer.
The eToro site offers comprehensive FAQ pages for traders, with the help centre answering most queries. Support is available in 18 languages, 24/7, five days a week. You can live chat with experienced personnel, or contact them by email if you prefer.
There is also a site blog, which provides daily updates from market professionals on what is happening currently in the markets and with eToro. The eToro site is modern and easily navigable with a clear, understandable and unfussy format.
Mobile Trading – For The Convenience Of Busy People
On the go traders need to be able to connect with their trades and using a mobile app gives them that functionality. Trade in all the categories is available and investing is secure with an eToro app, which is available for both iOS and Android.
Never lose a trade, with instant notifications of critical issues that affect your trading. Decisions can be made instantaneously on your mobile app, and you can manage your account and use the social platform to keep in touch with all you need to know.
Unique in an every growing arena, eToro is definitely worth a visit. This social platform has a lot to offer, both for beginner traders and professional ones; linking them in a way not thought of before. It also encourages a learning process through actively doing, with its CopyTrader™ and CopyPorfolios™.
Its offers easy and open access through social media like Facebook and interesting challenges, like the Myth Busting Challenge where you can trade virtual money to win real money. You have nothing to lose and a lot to gain by paying a visit to the eToro website and seeing for yourself what is on offer.Your capital is at risk