It’s no secret that the number of online brokers offering forex, CFDs, and other speculative derivatives is steadily growing.
It’s estimated that as many as 300,000 British citizens are using brokers such as IG Markets to trade forex online on a regular basis. Compare that to the 1.5 million forex traders in all of Europe, and you quickly realize that the UK has one of the most thriving industries in the region.
However, while most of the available brokers offer the same or at least very similar products with minor differences – most even use the same platform (the MT4) – there is one broker that’s decided to do things a little different.
In the following post, we’ll provide a quick introduction of eToro and how they’ve used technology to not only stand out in a competitive industry, but to also change that industry in the core.
For a more detailed rundown of eToro and their services, we suggest you check out this comprehensive eToro review, although we do recommend that you start with the following short introduction.
The Concept of Copy Trading
The number one thing that sets eToro apart from all other brokers is their unique and highly innovative copy trading platform. It’s a simple concept that allow all their customers to copy other traders rather than making their own trades. The best part is that eToro’s interface makes it very easy to look through a long list of the highest performing traders to find one that fits their needs.
As soon as a trader finds another trader that he or she wants to copy, one click is all it takes to start copying their every move. The trader also has the option of adjusting how much money they allocate to each copied trader, meaning there is no reason to not stick with a budget they can afford.
Once the copy trade has been placed, eToro’s platform will automatically mimic every trade that the said trader places.
There are many benefits to this with the main one being that it limits the amount of time and effort needed to analyze markets, finding value, and then overseeing how every position develops. In turn, this means that complete beginners can start trading like a true professional, without actually spending the time needed to master the art of profitable online trading.
Moreover, the trader that’s being copied will make small percentage from every trader that copies them. It’s really a win-win for everyone.
Social Trading Network
In addition to the copy trading platform, eToro has created a social trading network where their customers can interact with each other in similar ways that we use regular social media.
The network is an amazing resource of information where traders share experiences and knowledge with one and other, and it’s proven to be very useful. We can all agree that the best way to learn a new skill is to learn from others with more experience, and the eToro social trading platform is the epitome of that concept for traders.
Whether you’re an experience trader who wants to improve your knowledge or a complete beginner that needs to learn the very basics of trading, this trading network can help you.
As mentioned, this was only a short introduction into how eToro has changed the way we trade online and we do recommend that you read the linked review above before you get started.
And to finish this article off, we want to share some additional information about the broker and its legitimacy.
At the time of writing, eToro offered hundreds of assets in several asset classes such as stocks, forex, indices, commodities, and even cryptocurrencies. eToro is also regulated and licensed by the Financial Conduct Authority (FCA) meaning they are as safe to use as your traditional stockbroker.
However, the best part about eToro is that they are completely commission-free. Instead you pay a small fee called a spread (difference between ask and bid price) for every position you open on the platform.