Many people want to start their online trading business but don’t know much about it. So today, in this article, we will tell you about the eToro broker’s basic concepts which will help you to Learn Forex thoroughly.
If you are a beginner in this field, eToro is the best option because it’s simple to use and easily understandable. However, it is a web platform with amazing features and useful tools that are user-friendly and also a mobile trading app.
While being helpful for beginners doesn’t mean it’s easy to make money. Although, eToro is simpler to use than other of the more complicated trading platforms. Some beginners face difficulty choosing which investor to follow and consider more than just the positive returns a trader has made.
For example, you might think about another investor’s risk score, the average number of transactions per week, and average profit, loss, and holding time before following them.
What type of brokes is eToro? A Short Overview
The eToro serves as an agency broker or market maker who depends on the criteria of an eToro company that controls your account and other conditions. Agency brokers transfer your order to other market-makers in exchange for refunds, profit-sharing, increased spreads, and commissions, whereas market-maker brokers operate as the client to your trade.
For instance, eToro Europe and eToro U.K. both are working as market makers. Still, as part of the company’s information risk management process, they can also ensure their clients’ trades and act as a matched principal (agency broker) if required. What counts is that brokers follow best execution rules, and eToro is required to do so in states where it is legally required.
Is eToro a Trustable Broker or a Scam?
No, eToro is not a scammer; it has 5 million traders who trust on eToro. However, it is an authorised platform that manages its client’s funds and provides brokerage services in many countries.
eToro plans to register on the NASDAQ in Q3 2021, and following a $10.4 billion transaction. You should only use well-known licenced brokers to prevent being a target of a scam. So no worries, eToro is a safe broker where you can trust.
The Best Takeaways of 2021
Here are our top eToro findings:
- eToro was established in 2007 and licensed from two tier-1 as well as one tier-2 jurisdiction, which makes it a low-risk broker for trading FX and CFDs.
- In 2021, we recommend eToro for both social copy and cryptocurrency trading, and it is our top pick in both categories. eToro also has a user-friendly web platform and smartphone app for simple investors, especially beginners.
- However, eToro is a Lil expensive than other competitors platforms for forex trading and CFDs, which lowers spreads and provides zero-dollar charges for US stock trading. In addition, eToro’s proper research resources and techniques are limited in comparison to its competitors.