eToro Social Trading Review

By mosesbet · Filed Under Social Trading Comments Off on eToro Social Trading Review 

Review of eToro – Social Trading Broker 2013/14

Many analysts regard eToro to possibly be the very first broker in the world to specialize in social trading. Even if this claim cannot be fully vindicated, this firm has certainly made an impact into this business sector as demonstrated by the fact that it now has over two million clients. This company originally provided services and tools that enable the general public to trade Forex and Commodities. However, eToro later diversified by entering the new world of social trading.

eToro Social Trading

In fact, eToro claims that it has succeeded in revolutionizing how to trade the financial markets in a similar way to how Twitter and Facebook altered our perceptions about internet communication.

For example, eToro has devised an innovative trading platform that specifically supports social networking with the primary intent of enabling traders to increase their profit potential. This tool has not only attracted a substantial number of clients but has also received numerous awards for its pioneering features. However, how does eToro fare in reality and does it deserve so much hype? The following analysis is intended to throw light on these important questions.

What Is Social Trading?

Social trading (ST) has become the latest fashionable trend in the world of financial investing. Why has this occurred and what is ST all about? Social trading has the ability to enable traders, without any serious trading skills or experience, to create profits by trading the markets. ST permits novices to observe what positions professional traders are initiating in real time and provide them with the opportunity to duplicate all trades of interest. A number of social trading providers even allow their clients to study the trading history of experts in order for them to identify and select their favorites to follow.

The fundamental concept behind Social Trading is basically very easy to understand. Essentially, novices or those, who are still struggling to earn a consistent stream of profits from the financial markets, can look other the shoulders of experts who have proven track records of success. An interesting question to pose is why would professional traders agree to share their hard earned knowledge with strangers? The answer is that social trading providers encourage such skillful operators to do so by offering them substantial incentives. As such, these successful individuals acquire the opportunities to generate a second line of income from their efforts.

What are the Benefits of Social Trading?

Essentially, ST can substantially reduce the steep learning curve required to successfully master trading the financial markets profitably. In doing so, this technique possesses the potential to substantially expand the client base of people willing to trade. Prior to the advent of ST, you would have needed to expend a considerable amount of time and energy learning all the key aspects of trading. This requirement has now been significantly diluted as all you currently need to do is study the past performances of expert traders and then select your favorites to follow. Consequently, ST is currently attracting a new breed of investor who wants to make money from the financial markets but without getting their hands dirty.

Some Basics about eToro Accounts

The minimum deposit required to register with this broker and commence trading is $250.

You will not be charged any fees or commissions for usage of the facilities and services supplied.

Trading spreads are competitive, e.g. the EUR/USD spread is 3 pips.

How Does eToro Function?

This broker was one of the first to exploit the potential of social trading by developing the technology capable of networking traders from across the globe. The prime mission of eToro was to enable investors to combine their individual talents and skills in order to attain new levels of trading experience and success that many had previously thought was impossible.

Many revered authorities on this subject agree that eToro is the front runner in Social Trading as it presently boosts the largest online financial trading community in the world. This broker firmly believes that ST is the future of financial trading. As such, eToro is constantly researching and developing new tools and services that are capable of exploiting this investment mechanism to the full. In particular, innovative features such as GuruFinder and CopyTrader enable inexperience traders to reap rewards by riding on the back of their chosen professionals.

How does eToro Social Trading work?

This broker provides the equipment that enables you to customize your Social Trading experience. For example, if you are new to the financial trading, then you can commence your career by utilizing the following three eToro basic tools.

1.   Watch other Traders

This is the most basic element of ST as eToro supplies you with the live trading feeds of your fellow investors. Essentially, you can exploit this tool to study and identify those professional traders who are most capable of helping you generate a stream of consistent profits. In addition, you can acquire vital insights into strategies, new ideas and market trends.

2.   Detect, Select and Follow

Once you have located one or more experts, you can then use this eToro tool to link yourself to them and follow their trading patterns. Once this task is accomplished, eToro even provides the facilities enabling you to personally contact your selections. If you experience difficulties identifying suitable professionals, then you can consult eToro’s special tool, termed the GuruFinder’ that can assist you substantially in this matter.

3.   Copy Trades

After successfully completing the first two steps, you can then focus on making real money. To do so, you will need to utilize the eToro tool, called Copy. Essentially, this feature allows you to immediately execute any of the positions implemented by your chosen experts. In fact, eToro encourages you to develop a people-based portfolio using its CopyTrader facility which will enable you to recruit a team of professional investors, who can trade your entire account for you.

Be Sociable, Share!