When it comes to the financial instruments available for trading with this broker we have to make a distinction between the classic instruments (financial assets) that we can trade with eToro and other forms of investment through social trading.
In general, the social trading instruments offered by eToro are the ones that users comment on most strongly and positively. This is what tends to attract the most attention, the new way of investing, which as one user put it: „is revolutionising the world of investing“.
First of all, we will define the financial assets we can trade with eToro; because CopyTrading services are based on copying other traders, who in turn invest in these assets:
The positive opinions about eToro
Forex: 47 currency pairs to trade.
Commodities: Oil, Gold, Silver, Copper, Natural Gas and Platinum. The truth is that it does not offer many.
Cryptocurrencies: 9 of the main ones.
Stocks: Those listed on the main stock exchanges, including the Spanish market. A large number of shares to choose from.
Stock market indices: 13 of the main ones. Among them is the Ibex 35.
Exchange Traded Funds (ETFs): these are investment funds whose shares are listed on a regulated market. There are 50 of these assets available for trading on the eToro platform.
CopyTrading is an investment system in which the trader can follow other users on eToro’s social network. The users are ranked according to various parameters filtered by the trader (e.g. most profitable, most copied,…). The trader can visualise the statistics of any of these traders. As well as the investment portfolio they have configured. In case the user determines that he/she is interested in the investment mode, he/she can copy it. The copied trader will receive a commission on the profits made. There is also the possibility that we as users are copied.
The portfolio that we copy can be adjusted to our liking (for example by increasing exposure to some of the assets seen above, reducing exposure to others or even closing the entire position of some assets in which we are not interested). In this way, we can not only invest in a different way, but also learn from the traders we are copying. The didactic value of this way of investing is highly appreciated, as seen in some of the opinions we have found. It is also possible to chat with other users and share opinions, just like any social network.
eToro has significantly evolved its social trading network and platform over the last few years with the clear objective of making it as understandable and convenient as possible for beginners. The result of this is the acceptance that this online broker is having and that has placed it as one of the most popular brokers, not only here in Spain but worldwide. The rise of cryptocurrencies has also benefited it because it is a broker that has made a strong commitment to this type of investment instruments.
The negative opinions about eToro
The negative opinions about eToro in terms of its operations focus on commissions (spreads or bid-ask spreads). We agree that eToro, as well as other brokers suitable for beginners, offer higher spreads than brokers aimed at more experienced traders or those who trade at higher volumes. These beginner brokers tend to offer much simpler platforms but the spreads are also often less competitive. If you are an experienced trader looking for the lowest possible commissions we recommend choosing an ECN broker with variable spreads. If you are just starting out in the world of trading we think eToro can be a good option to learn how to trade and start to familiarise yourself with the necessary concepts and strategies by being able to copy the trades of other traders.