Broker to Trading

To the extent that it is possible to answer a question like this, Broker to Trading will try. Firstly what constitutes 'good' in a broker ? eToro is regulated by the CySEC in Cyrpus and has a branch in London, regulated by the FCA and is additionally regulated by the ASIC in Australia and the FSAS in the Seychelles. Thus it is regulated by some of the major bodies in the world. This gives assurances, including about the safety of clients funds.

As a broker it offers a wide range of markets, covering Forex, Indices, Energy, Metals, Soft Commodities, Stocks and Cryptocurrencies. At FCA and CySEC regulated eToro, real Stocks, ETFs and Cryptocurrencies are available to buy, while the rest are CFDs.

Thus at FCA and CySEC regulated eToro, the trader can buy real Stocks, ETFs and Cryptocurrencies to own. At ASIC regulated eToro, all markets are CFDs. The total number of markets is over 2000.

However what some may be wondering in asking this question, is about what eToro is focused on, which is being a 'Social Investment Network'. The idea is to add data about the activities of other traders on their network to the tools used by each client. This can be used to inform the trader's decision making. It is also possible to Copy Trade, that is to choose a trader on the network and to have their trades automatically executed in the trader's account. This is automated trading, but differs from the kind of trading automation available at some other brokers (excluding other brokers offering copy trading).

In other kinds of automated trading, computer programs make trading decisions, according to rules and algorithms applies to markets. Trading can be run on 'auto pilot' with a VPS (Virtual Private Server), for example, which executes trades even when the client is not logged into the broker. So eToro's automated trading is a kind of automation not so much by algorithms but of social trading itself.

Of course those making trading decisions may be using automation or they may not. Many traders even when using discretionary methods (executing their own trades) are still using algorithms, but ones written in the mind or somewhere else, i.e. not computer programs. For example trading using RSI rules. Indeed choosing someone to follow based on performance results, may in itself constitute a rule based trading method.

The problem with all rule based approaches to the market is that they may work for a while then may stop working. The problem with copy trading, and any trading automation is expressed in this phrase: past performance is not indicative of future results. With eToro though one has the possibility of using a kind of toolbox of methods, one's own insights, the insights of others and automation.

For those who want to have the scope to trade as with any other broker and use automation informed by a large network of millions of traders, and do so with a regulated broker, then eToro may be worth trying. It is possible to use a demo account with eToro as well - the virtual trading account can be switched to and back from the real account, to practice (using the virtual account does not result in the loss or gain of money).

eToro's online trading platform is arguably user friendly and incorporates the range of tools offered by eToro, from charting tools to social trading to copy trading. eToro can offer features for a wide range of traders, from beginners to more advanced. The beginner may find the platform and tools such as social and copy trading helpful as they discover the market and trading. The more advanced trader might find useful the range of markets and indeed the tools from charting to copy trading. The idea of using different approaches to tackle complex trading markets is one which any trader may wish to explore. Finally, at FCA and CySEC regulated eToro, the trader has the capacity to own Cryptocurrencies and invest in real Stocks, as well as trade CFDs. This is quite an expansive offering of features contained in a clear trading platform and thus might be a reason for considering this broker.