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eToro Guide: Understanding Features, Pros, Cons & eToro Alternatives 

eToro, popularly famous for its copy trading feature, has become one of the most widely used brokers. eToro started its journey as a forex brokerage company in 2007 in Israel. The broker initially focussed on providing a platform to traders for forex trading but slowly expanded its business line and made an impact globally. Now, the broker has clients from across the globe. What particularly attracts beginner traders towards eToro is its social aspect, that’s perfect for new traders who want to copy the trades of more experienced traders or those interested in a more communal experience. Certainly, there are aspects where eToro fails to satisfy traders, this is why in this article, we are going to look into eToro’s features as well as find out the best alternative for eToro, so that you have a few good options in your hand just in case you don’t like eToro. Are you ready? Let’s start!

Features of eToro

  1. Copy Trading: Why not start with the most appreciated feature of eToro: Copy trading? “Imitation is the sincerest form of flattery”, you might have heard it a number of times and at eToro, it’s one hundred percent true! The broker offers a social trading platform called CopyTrader that allows you to emulate successful traders with a good track record. How do you know that a trader is performing well? You can find tens of performance metrics, including ROI, Maximum Drawdown, Average Profit, Holding time, etc., on the trader’s performance page. The copy trading feature also appeals to experienced traders, who get rewards for sharing their strategies and trades with other traders.
  2. Mobile Trading App: eToro also offers a mobile app along with its own proprietary web platform. The app is extremely user-friendly, with an uncluttered and simple design that allows even first-time users to feel comfortable using the app. The app also has social trading features so you can easily interact with other traders and navigate their trading profiles. 
  3. Money Management: Another interesting feature of eToro is Smart Portfolios. Instead of allocating your money on your own, you may choose from a diverse range of automated portfolios. eToro has an investment team dedicated to monitoring the portfolio offering to ensure that the risk parameters align with the personal risk tolerance of each trader. 
  4. Educational Tools: eToro Academy really makes the broker stand out from the rest. It includes trading and investing courses for traders of all levels. You may find guides, podcasts, webinars and video tutorials to kickstart your learning journey. The broker also has a distinct news and analysis tab that offers weekly site journals that will provide important insights into the market.
  5. Trust and Security: eToro is regulated by some prominent bodies, including CySEC, FCA and ASIC, that naturally draws in traders’ trust as the well-regulated broker is least likely to do something that goes against their client’s interests.

Disadvantages of using eToro

  • eToro’s high fees may put traders off the idea of trying it as the broker charges comparatively higher spreads that start from 1.0 pips. Besides, traders may also have to pay a withdrawal fee of $5, which may come as a bit of a surprise because most brokers these days offer free deposits and withdrawals. 
  • eToro has a limited range of product offerings as it only supports 49 currency pairs. However, if you are interested in crypto trading, you may get plenty of options as the broker gives access to over 20 cryptocurrencies.
  • eToro doesn’t support popular MetaTrader platforms. Therefore, traders are only limited to using eToro’s trading platform, which doesn’t support some sophisticated trading orders. The only way to overcome this problem is to look for a reliable substitute for this broker.

Criteria to evaluate the best eToro alternative

Fees: While starting their journey in the forex market, every trader is looking for a broker with reasonable fees. After all, who wants to see a significant chunk of their hard-earned profits eaten up by the unnecessary charges imposed by the broker? Therefore, you should check the broker’s pricing and ensure that the fees are genuine. 

Trading Assets: If you have your mind set on trading specific products, finding a broker that allows you access to those assets is essential. The broker should offer a wide range of assets, including currency pairs, crypto CFDs, commodities and stocks.

Deposit and Withdrawal: The broker you choose should offer plenty of payment methods for traders to deposit and withdraw their funds, such as credit and debit card payments, bank wire transfers, e-wallets or cryptocurrencies. Also, there shouldn’t be any extra fees for deposit or withdrawal methods. It’s a good idea to check the broker’s website and understand the terms and conditions before you make a final decision.

Account Opening: Starting with the broker shouldn’t be difficult. You should be able to set up your trading account and begin trading quickly. Moreover, low deposit requirements can be especially helpful if you are a beginner on a low budget.

Trading Platform: A user-friendly trading platform that offers a wide range of resources can significantly enhance your trading experience. While talking about the trading platforms, how can we miss the most liked trading platforms- MetaTrader4 and MetaTrader 5? These are perfect for traders of all levels. This is why you should only sign up with a broker that supports the MetaTrader platforms of your choice.

eToro Alternatives

IG: IG is one of the biggest CFD brokers globally. Top-tier regulatory bodies like FCA and BaFin regulate it. The fact that there’s no restriction on the minimum deposit amount required by the broker makes it really easy for traders to get started. By offering lower fees, a user-friendly web platform, an extensive range of educational resources and a wide range of trading assets, IG has managed to stay ahead of its competition.

Pepperstone: Pepperstone is widely acknowledged for its top-notch trading services. The broker is subject to regulations by ASIC and FCA, which instils trust and credibility in 

Its clients. It offers tons of in-built tools, including API, Autochartist etc., that help traders make informed trading decisions. 

XM: XM is another multi-asset online broker, the best replacement for eToro. XM offers a wide financial product selection and is equally suitable for novice and experienced trades because of its low fees. The broker also has excellent customer reviews, so you must check it out. 

These are the best three alternatives to eToro that we have picked, but the final decision should always be yours. You can do your own research and decide which broker satisfies your needs better!