Here in the United Kingdom, eToro is authorized and regulated by the Financial Conduct Authority, which guarantees you an element of security. However, since eToro is a multi-asset trading platform that offers CFD trading, eToro can represent a high-risk option for traders who don't have in-depth knowledge of CFDs. This platform has all the licenses and is strictly regulated by various government bodies in several countries. In addition, all your funds are insured in reliable banking institutions.
The CopyTrading feature is great if you want to get consistent returns on your investments as you learn the ins and outs of intelligent trading. However, remember that trading on the stock market is never 100% safe, nor should you treat it like a traditional business. Many people fail, even if they have excellent trading strategies, simply because of the inherent volatility of the market and other factors. XRP is a type of cryptocurrency.
In addition to this, you can also trade BTC or Bitcoin, ETH or Ethereum, and more. For the time being, options trading is only available in the United States and, in addition, it can only be accessed through the eToro Options app. The general rule of eToro is that when you use a virtual currency for the long term, you are the owner of the real currency. Although eToro frequently advertises that it's a free stock trading platform (and, in fact, it has 0% fees), there are a variety of other fees that you should be aware of before using it.
In this way, eToro is a good platform to start developing your knowledge and confidence when it comes to trading stocks or financial assets. However, it's almost always best to convert your currency to USD first and then deposit your money on the eToro platform to avoid additional fees. eToro, like many other brokers, allows traders to use leverage when opening a trade, but they can also choose to reduce the available leverage at any time. Therefore, by using eToro's cryptocurrency trading service, you don't qualify for any investor protection.
With the exception of the cryptocurrency markets, which are open 24 hours a day, eToro has certain market hours depending on the assets you want to trade. Participation is free. eToro compensates popular investors and, once you have created your trading portfolio, you can apply to be a popular investor yourself. eToro provides services to clients in the United Kingdom through a unit regulated by the FCA, to Australians through an entity regulated by the ASIC and to all other clients they are provided by a legal unit under the supervision of CySEC.
If you're not a beginner or aspiring to become a cryptocurrency influencer, but simply want extremely low trading fees or full access to assets other than cryptocurrencies, eToro wouldn't be your first choice. eToro is a well-known multinational social trading platform and financial technology company from Israel, which focuses on copy trading and financial services. Overall, BrokerChooser's view is that while eToro isn't a scam, it's not a fully transparent broker either. For example, it is not possible to initiate a share transfer between eToro and another brokerage agency (and vice versa).
At the time of writing this review, eToro was a private company and, as such, was not required to publish its ownership structure.