One of the main websites when it comes to forex trading is eToro in the world! This provider, by means of lurid commercials, have caused a stir in financial trading system. As a social trading broker, eToro makes it possible to quickly make money without market knowledge and background analysis. We looked closely at the broker and also took a critical look at the conditions provided by this broker. The results in terms of trustworthiness and usability, we have summarized in this report.
Social Trading, CFD
Underlying 200 currency pairs, stocks, indices, & commodities
Software eToro, OpenBook, Webtrader, & Mobile App
For beginners, eToro is certainly the leading social trading portal in the world. Officially, this broker is online since 2007 in the forex market in Cyprus. As an EU member, the regulation of the provider is therefore carried out locally by the Cypriot CySEC, which must be based on the guidelines from Brussels. On paper, this results in no differences in the regulation to comparable providers, which are registered with other Financial Supervisory Authorities.
Nevertheless, eToro also has a registration with other financial supervisory authorities, including the German BaFin. However, the possibilities of other institutes to influence the daily business of the company are very limited. But why is the head office in Cyprus? For companies and providers who sell financial products, this is a tradition. Forex brokers, binary options traders and CDF trading providers are headquartered there in order to save taxpayers’ fees by European standards.
Address 7 Omirou St.
Registration number: HE200585
Regulation/License CySEC :: 109/10
Particularly important for traders are the hedges from this broker. eToro stands up to this and even mentions of a legal deposit insurance, which reaches up to $20,000 per customer. So if the company has to file for bankruptcy, customers will get back deposits of up to $20,000 guaranteed. These funds are kept separate from the business assets.
What are the customers saying?
In our research, the question of whether eToro is legitimate or fraudulent company, we have received largely positive answers and opinions. You can also see customers’ feedback on other websites on internet where they speak about the fact that they feel well advised and looked after by this service provider. We can generally support this impression.
Unfortunately, we also came across a negative report about this forex broker, which we must mention in our review. It speaks of a customer of social trading; he complains about blocking of his account and thus also losing some $4,000. According to his side of the story, eToro’s lurid advertising does not match reality. The broker says that with it professional trading would be possible without being an expert; making money is very easy?
According to this report, many customers have been attractive by these promises and have registered an account in hope to make money without worrying about losing any. However, the principle behind social trading, in the end, is not a money printing machine & this should actually be clear; nobody gives away money, this is not how the economy works. The criticism is, however, rather against the trading principle of eToro and not directly against the broker. We agree with the very lurid commercials and would like to suggest that they be mitigated. However, we cannot understand the overall criticism of the system. Users should be aware, before signing-up, of the system behind social trading and the risks that are involved.
eToro’s support are available in over 10 different languages. From 10 am to 3 pm, customer support is available by phone, Monday through Friday. This period is comparatively short in our opinion, there is potential for improvement here. Also by e-mail, the friendly customer advisors of eToro are always reachable.
The answers we received were quite friendly and extensive. Except for the short time of telephone contact, we are with the support in our experience completely satisfied. In addition, there is a FAQ section, which leaves no questions unanswered. For each input in the search box, several suggestions are shown. All in all, we are satisfied with eToro’s support offer.
eToro is one of the older forex brokers in the market. Although there are also some critical voices about the method of social trading on the World Wide Web, we cannot make any major negative statements for eToro. The provider is reputable, has a regulation in the European sector and is very customer-friendly with regard to customers via support. This broker is by no means a Scam or fraud!
The trading system of eToro is fundamentally based on so-called social trading. As usual, traders can trade in foreign exchange, equities, and other financial products, as well as simply allow automatic trading signals; these trade signals/commands are given by other members of the community. Through a search and ranking, traders can find other eToro customers, assess their performance, and take a quick look at their trading strategies. With a few clicks, the trading steps that are made by the experts, taken from their own account and installed. If a successful expert is found, it is actually possible to make money without trading yourself.