eToro platform is one of the world’s leading trading online brokers to a great extent because it offers a wide variety of trading instruments, including stocks, commodities, indices, ETFs, several currencies and so on. All of these categories can be traded worldwide using many available strategies both by beginners and relatively advanced traders. In addition, the platform also offers several innovative services like Social Trading and CopyPortfolio.
(NOTE: Before we continue, we have to give a disclaimer that the trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. CFDs are complicated instruments that are never guaranteed to provide you supplemental earnings. In fact, Around 68% of all retail investors experienced a loss while trading CFDs. Make sure to keep this in mind before attempting to use the eToro platform yourself. All the information found on this website is not official trading advice and all practices shown are referenced for the use of the Demo account only.)
Below you can find the overview of some key products offered on eToro, some of which can be traded on a long position (stocks, ETF’s and currencies), and others with the use of CFD’s, allowing for leverage, fractional ownership of an asset and more.
Contract for Differences (CFD) allows to you open short positions on assets, use leverage and trade in fractions of stocks. Please bear in mind that due to the complexity and flexibility of this leveraged tool, CFD’s bear a lot of risk and should be traded with caution and experience.
Stocks (or equity) are some of the oldest, dynamic and widely traded investment assets suitable for different investment horizons. eToro provides access to 17 stock exchanges globally with a great number of some of the most popular stocks. Trading using stocks involves taking a non-leveraged long position in the asset (since you are taking the ownership of the asset), and this feature is actually available only on a limited number of broker platforms, with eToro proudly being one of them. Stocks can also be traded short, with leverage and in fractions using the CFD option.
There are a variety of different strategies you could use to trade stocks, and although these are some of the oldest trading instruments available on the market you should certainly familiarize yourself well with key trading strategies before risking your money. There are a lot of assisting tools and supporting material available on the platform which should facilitate your experience, help monitoring process and decision making.
Currencies market, or better currency pairs, continue to be the largest, most liquid and still growing investment market in the world, offering many opportunities despite its relative volatility. Fluctuations are caused by a myriad of factors, starting from key geopolitical and economic events and onto changes on the trading and financial horizon, and that is why currency pairs is usually more suitable for active investors and relatively fast trades. eToro offers short trading using CFD’s and leveraged positions on currency pairs.
Indices comprise a combination of different types of assets representing some key global stock markets, such as country, commodity or industry indices. Because these products contain various weighted assets inside them, they are considered to be relatively diversified and hence less risky than individual shares, for example. Indices are typically provided by stock markets around the globe, such as the popular Nasdaq or Dow Jones in the US.
Indices on eToro are traded as CFD’s, where a trader can open both short and long positions, as well as use leverage in their trading, as it is not possible to purchase or sell indices.
Exchange traded funds comprise several securities, for example shares, that are listed on stock exchanges and can be traded daily like other stocks as a single tradable fund. Typically exchange traded funds follow an index and are hence considered to be a relatively stable non-risky investments. eToro offers over 150 various ETFs from all over the world to be traded.
eToro offers both long non-leveraged positions on ETF as well as short positions using CFD’s and leverage.
Commodities, basic goods such as oil or metals, are the oldest assets on financial markets, and eToro offers 31 to choose from. These assets are somewhat ‘special’ in the trading industry as commodities represent a physical asset, they are interchangeable and tend to be standardized. Depending on the relative stability of the chosen commodity they can be used for different investment time horizons or added to portfolios for diversification. Commodities are traded on eToro using only CFD’s, meaning no purchase of the underlying asset occurs.
Constantly monitoring, researching and balancing your own portfolio is certainly a time consuming and risky process. eToro’s CopyTrader feature may come in handy by allowing to see and monitor portfolios of other well performing traders in real time. You can observe the past performance of the copied traders, their statistics as well as the publicly available portfolios. This could also certainly be useful for beginner traders or be a way to learn and improve trading from those who are willing to share and connect with others.
Another great aspect of this feature is the absence of any hidden costs or associated management fees, but do bear in mind there are some limitations, as to for example the maximum number of traders to be copied or minimum investment amounts, although these are still very generous and give you plenty of freedom.
Please do bear in mind that copying a trader is not an investment advice but an available platform feature, and hence exposes you to the risks associated with the trades.
CopyPortfolio is another innovative product which allows you to invest in ready-made portfolios of various comprised assets, being either Market or other Trader’s portfolios. This useful tool could once more help you to save time on researching, analyzing and assembling your own portfolio, but also to diversify investments and spread risks.
Hopefully, this introduction was useful in familiarizing yourself with the products and markets offered on eToro. Please consider the risks involved in trading with real money and do not forget to familiarize yourself well with key trading basics and strategies, and practice your knowledge using a demo account. Enjoy trading!
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eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorized and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity-specific information about eToro.
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