Copy trading has long since grown up in the early days of Web 2.0 and is therefore a serious form of investment. It is therefore not surprising that there are numerous providers in the market for social investments that favor private investors advertise. At first glance, most investors cannot tell which of the potential candidates is the best and how eToro Copy Trading is doing in this comparison. In order to shed some light on the dark, the market leader eToro is put through its paces as part of this test report.
eToro is by far the largest Provider of Copy Trading
The Social Trading provider eToro is currently the largest provider on the market with over 4.5 million active members. The company founded by Yoni Assia in 2006 not only enjoys great international popularity, but also has a following of more than 100,000 members in South Africa who are active in Social Trading either actively as signalers or passively as followers. The provider, which is based in Limassol, Cyprus, within the EU and is regulated by the financial regulator CySEC, sees itself as the Facebook of social investment and offers its members excellent networking via its in-house platform, including all relevant social media functions.
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Comment and feed functions in particular ensure transparent and uncomplicated communication between signaling device and follower. The strategy to inspire digital natives, who are at home in social networks, to invest is a success.
The Registration Process Is Easy
Before you can start with eToro Copy Trading, however, you have to register, which can be done either traditionally by e-mail or alternatively via Facebook. In practice, this registration process only takes around two minutes to enter the required master data and is of course free of charge. After registration, the functionality of the platform can be tested with an unlimited demo account. On the other hand, if you want to start immediately, you have to open a real money account with eToro. With a gratifyingly low minimum deposit of only 250 US Dollars, the provider stands out from many competitors and is therefore also suitable for small investors and people who initially want to invest little capital. Thanks to the large number of deposit options such as credit card, instant transfer, PayPal, Skrill, Giropay and WebMoney, this process is also easy to handle.
Flat Learning Curve And Diverse Range Of Investments
In contrast to its early days, eToro currently has a wide portfolio of tradable goods such as commodities, stocks and currency pairs, which makes the platform very interesting for both financial market novices and experienced investors, as almost all strategies can be implemented. This is not only good for the signal generators, who thus generate greater follower potential and thus also higher bonuses, but also for the followers, who have a significantly wider range of investment options at their disposal. Compared to providers who only rely on individual asset classes such as stocks, ETFs or exclusively on Forex trading, eToro has a clear advantage. Despite its diversity, the web-based user interface from eToro is always clear and transparent, which also makes it easier for beginners to find their way in the world of social trading. The numerous integrated help and information available on strategies and basic functionalities also make the learning curve very pleasant and the users are not overwhelmed by an excessive load of numbers and statistics.
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Low Minimum Deposit And Generous Leverage
The platform, which can also be used unrestrictedly on mobile devices, scores not only in terms of the conditions called for with the low minimum deposit, but also with a considerable leverage of up to 400: 1. Compared to other Copy Trading platforms, which often only offer a maximum leverage of 50: 1 or 100: 1, eToro is clearly ahead. With the resulting margin of 0.25 percent and a spread of 3 pips, the provider positions itself in the upper middle field of social trading platforms – however, the advantage of the much larger lever cannot outweigh this small disadvantage.
Users Benefit From Deposit Insurance And Risk Classification
When it comes to monetary transactions in the digital space, the security of a platform is understandably in focus, which is why it is important to underline that eToro is a thoroughly reputable provider, with which even a statutory deposit guarantee of up to 20,000 euros per customer applies. In addition, the provider also offers its users numerous internal options with which they can reduce their personal investment risk. Even if the final decision about making an investment remains in the hands of the investor, eToro provides its users with extensive information including: on the use of stop losses and the principle of diversification at hand. In addition, the provider classifies the portfolios of signalers who only trade in real money into transparent risk classes. Inexperienced investors are protected in particular by the fact that investment in portfolios that are too risky is simply not possible.
User Friendliness is Very Important
In addition to detailed FAQs, eToro primarily relies on personal customer service via telephone and email. The test showed that both the telephone support, which is available Monday to Friday from 10 a.m. to 3 p.m., deals with questions and problems just as competently as the e-mail support. Of particular note, however, is the provider-specific trading center, which offers interested users numerous information and training opportunities, including in South Africa. However, since the offer includes not only basic basic knowledge, but also special tips on strategies, experienced investors also benefit from this.
Conclusion – eToro is the Best Provider for Copy Trading
The bottom line is that eToro is consistently positive, as the provider distinguishes itself from most of its competitors, particularly due to the wide range of investments, the exemplary service in South Africa and, last but not least, the generous leverage. The aspect that signalers only trade with real money accounts should also be emphasized, which further significantly reduces the risk for investors. As a result, the payment duration, which is somewhat too long with a processing time of five days, cannot spoil the overall impression. In the end, eToro not only emerges as the market leader, but also as the best copy trading provider.