How to Trade on eToro for Beginners?
How to Make Your First Trade on eToro?
eToro is an online trading platform that lets you buy and sell stocks, commodities, currencies, and cryptocurrencies, among other things. If you have never traded on eToro before, here are some steps to get you started:
Sign up for an account by going to the eToro website and clicking on "Sign Up." You will need to give some personal information, like your name and email address, and make a username and password.
Verify your account: You will need to verify your account before you can start trading on eToro. Most of the time, this means you have to upload a copy of your government-issued ID and proof of address.
Fund your account: Once your account has been verified, you will need to add money to it before you can start trading. To do this, go to your account and click on the "Deposit Funds" button. Then, choose the payment method you want to use.
Choose a financial instrument. You can trade stocks, commodities, currencies, and cryptocurrencies on eToro, among other things. Choose the one you're interested in and click "Trade" to open the trading platform.
You can enter the details of your trade on the trading platform, such as the size of your position and your stop loss and take profit orders. When you're ready to make a trade, click the "Buy" or "Sell" button.
Keep an eye on your trade. Once you've made a trade, it's important to keep an eye on it to make sure everything is going as planned. You can do this by keeping an eye on how the price moves and making changes to your take profit and stop loss orders as needed.
Keep in mind when reading this guide on "How to Trade on eToro for Beginners?" that trading comes with risks, and that before you make any trades, you should learn as much as you can about the financial instruments you're trading. It's also a good idea to start with a small position and slowly increase it as you gain more experience and confidence.
Why eToro is Perfect for Beginner Traders
eToro is one of my favorite stock trading platforms to use as it was where I started trading stocks, it's easy to use, looks great, and has the ability to trade wide range of financial instruments, such as stocks, commodities, currencies, and cryptocurrencies and copy trading all on one site. This lets new traders try out different types of trades and diversify their portfolios.
eToro started in 2007 and has 2.14 million active funded accounts in over 100 countries. Its main flex is that you can trade nearly everything on one platform, but they also are the leader in CopyTrader, which lets you invest in popular investors' trades automatically and in real-time, without extra fees, essentially when they buy or sell stocks, you trade exactly the same, you are copying there portfolio.
eToro is relegated by the FCA and offers free insurance of Llyods of London, so if it was ever to go bankrupt your money will be protected. On eToro you trade in US dollars, or there is a small conversion fee for depositing with other currencies. The minimum first-time deposit is $50 in most countries but varies up to $200, and even $1000 in Israel. There is also a withdrawal fee of $5 when you want to cash out, so best to withdraw large amounts.
eToro also has a mobile phone App that is useful when you're on the go and easy to use, but I prefer to trade using the website.
Easy to use: eToro's trading platform has a simple interface and clear instructions, making it easy for anyone to use. This makes it easy for new people to find their way around and make trades.
Social trading: eToro has a unique feature called "Copy Trading" that lets you follow the trades of more experienced traders and automatically copy them. This can be a good way for people who are just starting out to learn from others and maybe improve their own trading skills.
Educational resources: eToro offers a variety of educational resources, such as webinars, trading guides, and market analysis, to help new traders learn about trading and improve their skills.
I also use TD365 for day trading, which has very fast trade execution which is needed for day trading but I spend more time on eToro due to the social asset of the platform. Now, it's possible to day trade on eToro but it's more suited to longer-term traders, as it doesn’t allow multiple short-term trades (holding for like 5mins) in a day which is called scalping.
How to Trade on eToro for Beginners?
You can try the free eToro practice account where you can learn to trade risk-free.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC does not offer CFDs and neither does it represent or assume any responsibility for the accuracy or completeness of the content of this publication, prepared by What is Bitcoin, as a partner, using information available and public and not specific to the eToro entity