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Is Etoro a Scam or Legit? My Personal Experience With Etoro
What is etoro?
Etoro is a multi-brokerage Social trading platform where you can trade various kinds of instruments such as currencies, Stock (CFD), crypto-currencies, commodities and indices. Etoro was founded by two brothers Ronen and Yoni Assia in 2006. It has become very popular because of its simplicity. Etoro claims to have more than 5 million users in over 170 countries. The latest platform looks more like a social network, where you can interact with other traders, see their portfolio and copy their trades. Anyone who does not have any prior trading experience can trade in etoro and become profitable. The copy trading features of etoro allows users to copy the trading activity of other successful traders, and make profit. For example, you have copied a successful trader with $1,000 where the equity of the successful trader is $10,000. If the expert trader opens a trade with $100, you will also open a trade with $10 for the same instrument with the same price. If the expert trader makes $50 profit, you will make $5 profit from your $10 investment. Other than copying successful traders you can trade on your own too.
Is etoro Scam?
Etoro is not a scam and would not try to steal your money. In fact it is their interest to make you profitable, so that you keep on trading and they can keep on taking the commission from the trades. You will find lots of bad reviews online against etoro , most of these reviews comes from the users who traded badly and lost their money.
Advantages of trading in etoro
- The platform is very user friendly and it will take you only few hours to get used to it.
- Etoro has a mobile app in both android and IOS, which will allow you to trade from anywhere in the world.
- You will be given a demo account to practice. Practice as much as possible to get used to the platform and build your strategy before you invest real money.
- You can follow other traders and learn from them. You can read their post, look what they are trading and ask them question.
- Etoro provides chart with lots of tool to customize. It also provides research and analysis for stocks.
- Etoro is the best trading platform for a beginner.
- If you don't have prior trading knowledge or don't have the time to analyse, you can simply copy other popular investors to make profit.
- Etoro provides leverage by which you can maximize your profit. Your investment can be multiplied with the leverage to boost your return on investment. However, it can increase the losses as well if you are not careful.
Disadvantage of Etoro
1) Etoro is not the best when it comes to broker fees. It usually charges little bit higher than other brokers.
2) During low liquidity or volatile time, etoro prices might be slightly inaccurate.
3) Etoro customer service might not be the best compare to some other brokers.
My experience with Etoro
I have started trading at etoro from December 2016. I made some bad decision in my first month and lost some money. Since After that, I have been following a good strategy and making profit consistently. I made more than 190% profit and doubled my equity in 2017. Below is a chart showing my monthly performance in etoro.
Below I am sharing my trading history and how much I have made during 2017. In January 1st 2017, I have started trading with $1,289 and deposited additional $1,820. I have withdrawn $730 and total realized profit is $2,539. So, my total equity is showing $5,055. This is very impressive considering the fact that I had no prior trading experience. But I am a finance graduate and this might have helped. My strategy is to make a diversified portfolio with low risk. I have made most of my money by trading Facebook stocks, natural gas and copying a crypto currency trader.
Did you find the article interesting?
This has been a good journey so far and I am expecting to keep on trading at etoro for a long period of time. But we have to remember that, past performance does not indicate the future result and we might lose money if we are not careful. The best strategy is to create a low risk diversified portfolio.