Why eToro Is The Best To Trade Stocks
As a stock trader, you need a brokerage service to trade stocks. And because successful stock trading requires skill and sufficient information, many investors look for highly intuitive platforms.
eToro is one of such brokerages that provide users with an equipped and excellent platform that is intentionally created to enable them to trade. A notable feature available on the platform is the CopyPortfolio that allows you to copy the portfolios of successful traders.
This feature makes it super easy for inexperienced traders to trade stocks profitably. Also, many educational resources can help you learn about stock trading. Let’s see more reasons why eToro is best to trade stocks.
Founded in 2006 by Yoni Assia Ronen Assia and David Ring, eToro is a multi-asset brokerage company – acts as a broker for several assets. These assets include stocks, CFDs, cryptocurrencies, and ETFs. eToro is an established brokerage with millions of users across over 140 countries.
The company has its headquarters in Israel and Tel Aviv-Yafo and has offices in some notable states such as the UK, United States, Cyprus, and Australia. It is an excellent and safe broker company with the back-up of reputable authorities like the FCA, CySec, FinCen, ASIC. Within the space of 2 years (2018-2012), the company experienced a massive growth value, from $800 million to $2.5 billion.
Why eToro is the Best to Trade Stock
#1. Social Copy Trading
This function is the selling point of the eToro trading platform, it allows users to achieve success in investment by copying the trade of investors expert traders. They initiated this idea and although many online brokerages now offer it, they are still leading the team. eToro has provided some innovative tools available to make copy trading easy, they include CopyPortfolio and CopyTrader.
CopyPortfolios is a feature that groups traders into a single fund, usually successful traders so that you can copy their trading strategies. The Copy Trader is another innovative feature that lets you scan for high-performing traders so the mat you can copy their portfolios.
These features make it possible for beginners, inexperienced and passive traders to thrive in trading. They help to bridge the knowledge gap between traders, beginners can learn from experienced traders. Furthermore, if you are a self-directed trader, you can find this feature helpful because they can diversify their trading.
Again, the copy trading function does not allow automation, all traders trade manually. This way you can be sure that you are not copying automated trading, that those traders are making the trades manually.
#2. Ease of Use
eToro is one of the easiest trading platforms, beginners can always find trading easy. There are tools to enable you to perform basic operations and complete tasks quickly. And of course, with social copy trading, you can almost be sure of good trading and outcome.
There are several research tools available to eToro users to facilitate intensive research and insightful trading. The daily market analysis, economic and earnings reports calendar, news headlines, and podcasts are all designed to enable effective and productive trading.
For fundamental analysis, eToro follows leading traders such as Saxo Bank and IG to give their users the best data to work with. Unlike what you have in other stock trading platforms, eToro calculates sentiment data based on the trades of top traders.
When it comes to the newsfeed, they use the Twitter style, a unique style that displays collective commentary for an assigned instrument. This gives eToro users access to a line-up of updates on the posts of other users.
#4. Mobile Trading
eToro has an excellent mobile interface, the look and feel of the platform’s mobile app on Android are the same as the web version. Trading charts in the mobile app are well integrated and almost as clean in operation as the web platform. Although you’ll find fewer indicators and drawing tools on the mobile app.
eToro has a set of robust educational features to enable traders to understand the nitty-gritty of trading. First off, there are tons of insightful materials and content accessible on its blog. On the company’s site also, you can find video tutorials to help you get started stock trading.
eToro has taken a step further to provide detailed information about each symbol on the platform for the sake of the newbies. For example, you will find a bit further than a mere description for EUR/USD, including what to consider before trading.
eToro’s Trading School also offers a few basic videos and some more on the YouTube channel. In addition, they have archived seven webinars to promote education and made platform tutorials available.
How to Trade Stocks on eToro
You can either trade stocks in two different ways on eToro: outright buying and selling (trade actual shares) and trading via CFD.
CFDs allow you to use leverage to increase your exposure.
Buying Stocks Outright
- Create an account with eToro or log in if you have an account already.
- Go to the Markets page and select stocks, you will find a list of stocks, select the stock you want to trade by clicking on Trade
- Select BUY and enter the amount you want to trade with or how many stocks you want to buy. Check the leverage to make sure it’s in X1
- Set your profit parameters and click on Open Trade.
Trading Stocks via a CFD
- Log in or create an account
- Go to market page
- Select stock
- Select either BUY or SELL, depending on what direction you want to trade. Generally, you should buy when you expect a rise in stock price and sell when you expect a fall.
- Enter the amount of money or the number of units of stock you want to trade
- Set your leverage
- Set your profit and loss parameters
- Click on Open Trade
Especially for beginners, eToro is the best to trade stocks. With the robust features it provides, the trading stock is easy for both unskilled and expert traders.
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