Why eToro is Best for Trading Commodities
If you’re looking to trade commodities; gold, silver, oil, gold, wheat, natural gas, you will need a good commodity trading platform. Such a platform should support a variety of commodities, robust trading tools, and indicators and offer relatively low fees and commissions.
All these put together are necessary for you to carry out a smooth trade and optimize your potential for profit. eToro has ranked as one of the best commodity trading platforms. The super-friendly and rich trading platform and online broker seems to be making trading commodities less of a task from their users’ reviews.
And one feature the platform was applauded for is social copy trading, which is like the Facebook of eToro. We will take a detailed look at this as well as other features that make eToro outstanding.
Why is eToro the Best for Trading Commodities?
eToro, known as the “world’s leading social trading network” is an online brokerage that was introduced in 2007. Since 2007, the platform has grown massively and now records over 20 million investors and traders. The growth and popularity of eToro within this not so long a time is attributed to the several unique features it offers.
And, at the front line is its social trading that allows you to share your ideas and knowledge with other users of the platform. This enables you to find solutions to trading challenges as well as discuss with fellow investors. Let’s see, in detail, what makes eToro a fantastic platform for trading commodities
1. Vast Commodity Market
One of the reasons why eToro is the best online commodity trading platform for trading commodities is that it supports more than 45 commodity markets. If you wish to trade hard metals, everything from gold and silver to copper and platinum is available on the platform.
And, for those that prefer the energies department, there are tons of crude oil and natural gas markets. If you would rather trade agricultural products such as wheat, sugar, cotton, cocoa, and more, eToro is also a great choice. More so, it is also good you know that eToro offers several commodity ETFs as well.
2. Social Trading
eToro is known for its social trading platform and the automated trading tools it offers that allow you to trade commodities passively. All you need to do is, use the CopyTrader tool to search and select a seasoned commodity trader on the eToro website.
The next thing to do is to use the CopyPortfolio to mirror and apply their trades. And, the social copy trading platform features are not only available on the eToro web platform, but also the mobile trading app.
The social copy trading platform is an innovative solution to trading because it creates an avenue for millions of eToro users to communicate and learn. They get to discuss the market and all that pertains to successful commodities trading and this way the unskilled traders can learn.
They get to know the tricks in commodity trading, the wisdom behind when to buy and when to sell. This is enough to say that you mustn’t be a commodity trading expert to use the eToro platform and you trade profitably.
3. Trading Using CFDs
eToro makes it possible for you to trade several commodity futures in the form of CFDs. This lets you invest in gold and other major commodities in the long term.
CFDs come with an added advantage; aside from being quite easy to use for trading, you can take both the buy and sell direction.
This gives you a profit potential both in an upward and downward price movement. You can go long when you think there will be an increase in price and go short when you think there will be a fall in price. You can also use leverage to potentially amplify your profit.
Additionally, you will find that spreads are very tight on major commodity markets such as oil and gold. eToro also offers leverage on all of its commodity trading markets. Your limits will depend on your location, but most often you will get as much as 1:20 on gold and 1:10 on other commodities.
4. Pay Less, Trade More
To cap it all, eToro is a 100% commission-free broker, you don’t have to consider any ongoing platform fees to consider and you’re paying just 0.5% for deposits.
To trade commodities on eToro, the minimum deposit is only $200, which is great for people who are new to the platform. Concerning payments, eToro supports bank transfers, debit/credit cards, and e-wallets such as Paypal and Skrill. So, by using CFDs to trade commodities on eToro, you can trade more and pay less.
It’s really necessary for a trader to be concerned about safety, eToro is heavily regulated which can be a great assurance of safety for its users. eToro holds licenses with the top-tier trading regulatory bodies – FCA, ASIC, and CySEC.
Perhaps, this is a contributing factor to the recent increase in eToro’s number of users.
6. Practice Before Trading
One of the major factors that make eToro a fantastic commodity trading platform is that you get to improve your trading skill. eToro gives you $100,000 as a new trader to practice before you start trading. This money goes into a virtual portfolio to allow you to practice risk-free trading.
The aim is that your real-time trading will have minimal risk as well as a result of skill.
Benefits of Trading Commodities with eToro
- Ease of use: best for first-time traders
- Social trading to make knowledgeable investment decisions
- Safe to use: regulated by CySEC, ASI, and FCA
- Opportunity to improve your trading skill
- Entirely commission-free
- Deposit funds with your e-wallet debit/credit card, or bank account
eToro has an overall rating as high as 9.6 in the ratio of 10 for best platforms for trading commodities, in reputable review sites. This largely results from what its users had to say, and can be a clue as you seek its credibility for commodity trading.