Trading platforms play an essential part in how traders grow their investment portfolios. The more features a platform has, the more opportunities traders have to gain a profit. There are various platforms worldwide, and eToro is a multi-asset investment platform that empowers traders to profit from their investments.

If you’re looking to start buying and selling stocks and shares, eToro offers over 3000 assets for you to choose from. Investors can begin using eToro at any trading level, regardless of their trading history, and can use eToro to excel in their investment portfolio.

In this article, you’ll learn about eToro and how to buy and sell stocks. We dive into the platform’s benefits and drawbacks, explore fees, and share an eToro review.

Table of Contents:

• What Is eToro
• Who Is eToro for
• Benefits and Drawbacks of eToro’s Trading Platform
• How to Buy and Sell Stocks With eToro
• What Are the eToro Trading Fees
• eToro Review: One of Australia’s Largest Trading Platforms
• Final Thoughts
• FAQs

What Is eToro? ➡️

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For example, in the UK, they’re regulated by the Financial Services Compensation Scheme(FSCS), the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) in the US. eToro is trusted across the globe and has regulations where needed to ensure the safety of its users. Crypto assets on the eToro platform are unregulated and have no consumer protection.

In the platform’s early days, it was initially a visual FX trading platform and later expanded the platform into a WebTrader in 2009; as the years progressed, more features were added, the eToro mobile app, stock trading, smart portfolios, crypto trading, an eToro USA LLC crypto platform, the launch of eToro Money, and more.

The platform currently has more than 23 million registered users worldwide. You can trade on the online platform or via the eToro mobile app with user-friendly interfaces to make your investing journey seamless. eToro offers a range of features and tools for investors of all experiences, from beginners to advanced traders.

Platform features include:

• Virtual portfolio management service: When each user opens an eToro account, they receive a free $100,000 demo account. The demo account helps eToro users build a virtual portfolio to practise and experiment with.
• Tipranks research tab: You can gain insights from leading analysts in the research section. There is a knowledge of experts and investors from worldwide leading financial institutions.
• One-click trading: Experienced investors develop trading habits; eToro recognised this and added a one-click feature to the platform. The one-click trading feature allows investors to open new positions using ready-made parameters.
• A multi-asset platform: You can invest and trade stocks, exchange-traded funds (ETFs), and cryptocurrency using eToro’s trading instruments.
• Stop loss: Investors can set predetermined price points for closing an open position. Stop losses closes the position if it reaches the set price to protect investors from losing money rapidly. Stop Loss and Take Profit are not guaranteed.
• Take profit: The take profit feature works similarly to stop loss but in the opposite way. Once the price point reaches a specific profit, the trade closes, and the investor receives the profit. Investors could lose the opportunity for more profit if the value increases above the specified amount.
• Trailing stop loss: An expansion of the stop loss feature that allows investors to keep a position open if the market moves in the direction favouring the trade.
• Procharts: A profession-grade technical analysis tool that allows investors to compare charges from different financial instruments and time frames.
• Offline trading: Trading is often a 24/7 business for investors, and eToro allows specific trading and investing orders to be placed whenever regardless if the platform is down for maintenance.
• Copy Trading feature: Etoro’s Copy Trading service allows users to track other traders’ trades and portfolios.

Who Is eToro for? 🤔️

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Although eToro is accessible to all traders, some may be more drawn to eToro than others. The feature-rich platform mainly attracts beginner and intermediate investors, whereas experienced traders may look elsewhere.

You may be interested in eToro if you’re looking for any of the following:

• Medium and long-term share and ETF investments: You can make medium and long-term investments to create longer investment strategies.
• Diversifying your portfolio: eToro is a multi-asset platform that allows you to create a multi-asset portfolio with Australian stocks, ETFs, crypto assets, and more. With a platform offering multiple assets, you can keep all your trading in one place, making it easier to manage.
• Interested in the stock market: If you want more accessible access to trading on the stock market, eToro saves you time by offering best-in-class copy trading features so you can learn from other traders. Plus, they have a knowledge hub where you can brush up on your trading knowledge.

You may not be interested in eToro if you’re looking for the following:

• High-frequency day trading: If you’re an experienced trader looking for high-frequency day trading, you may find other platforms with lower fees.
• Don’t want copy trading: If you’re not interested in replicating other traders’ strategies, the copy trading feature won’t be helpful.
• Looking for unique assets: The assets available on eToro are predominantly adjacent and mainstream, so if you’re looking for more unique assets, you must look for a specialist broker.

If you’re an expert trader, you may wonder what the platform has to offer you, and the answer is eToro’s Popular Investor program. You can earn additional income of up to 1.5 of assets by allowing other users to copy your trades and strategies—the programme is like running a mutual fund under the eToro brand. So, you can trade as you are on the platform and effectively earn money by allowing users to copy your trades.

Benefits and Drawbacks of eToro’s Trading Platform

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Understanding a trading platform before you invest can save you a lot of time, so we’ve compiled a list of all the benefits and drawbacks of using eToro’s trading platform.

Benefits ✅️

• User-friendly: Etoro’s trading platform has a user-friendly interface and offers crypto trading, stock trading and more for traders of all levels. eToro offers intuitive, easy-to-use platforms.
• Multi-asset investment platform: With eToro, you can trade multiple assets from stocks, ETFs, and crypto assets. You can diversify your platform with access to over 3000 assets.
• Social trading: All retail investor accounts come with social trading features.
• Educational features: You can excel in trading knowledge with eToro’s education resources, such as the eToro Academy, News and Analysis updates, Digest & Invest and more.

Drawbacks ❌️

• Withdrawal fees: eToro has a $5 withdrawal fee.
• Currency conversion fees: There are conversion fees from AUD to USD, as you must trade in USD.
• Inactivity fees: If your account is inactive after 12 months, there are inactivity fees.
• Inadequate support: You can only submit a help ticket for assistance. Most tech in 2024 offers phone or live chat support, so eToro’s customer support needs to be improved.

How to Buy and Sell Stocks With eToro 💰️

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eToro is a multi-asset platform with multiple asset classes available to invest in. Still, if your investment strategy is stock-focused, you may be unsure how to start buying and selling them. Before we get into the step-by-step guide, you will need access to the web platform and eToro app (should you choose to want to trade on the go).

You can start buying and selling stocks in seven simple steps:

1. Open an eToro account: To start using the eToro app, you first must visit the eToro web platform to open your account. You will need to submit personal information to open an account in Australia.
2. Log in to your account: When you log in for the first time, you must verify your account with the Know Your Customer (KYC) process.
3. Fund your account: You must link your bank account to transfer funds into your trading account.
4. Download the eToro app: If you wish to trade via your mobile phone, you must download the eToro app.
5. Research stock: Explore eToro’s stocks and research beyond the platform to ensure they fit your investment strategy.
6. Place an order: You can set your buy and sell price for stocks in the Portfolio section on the web platform and mobile app.
7. Sell an order: You can access your portfolio, find the position you want to sell, and click and tap “Sell” at the bottom of the screen.

Below, we’ve dived deeper into each step to help give you a more in-depth exploration of how to start buying and selling with eToro.

1. Open an eToro Account

Opening an account with eToro is free. To start using the eToro app, you must first visit the eToro web platform “www.eToro.com/au”; in the top right corner, you will see the “Sign Up” button. Click it to start your account creation. On the next page, you’ll see a web form that requires you to input your details like email address, username, and password. Alternatively, you can sign up using a Google or Facebook account.

You must read the Terms & Conditions, Risk Disclosure, Privacy Policy, and Cookie Policy at this stage. We recommend only ticking the “I accept” boxes once you fully understand the documents. Once you’ve submitted all the necessary information and read eToro’s policies, you can apply by clicking the “Sign Up” Button at the bottom of the web form.

2. Log in to Your Account

When you log into your trading account for the first time, you’ll have to verify your account with the Know Your Customer (KYC) process. You will also need to submit the following information:

• Proof of identity: You will need to show an official document that has your name, date of birth, clear photograph, issue date, and expiration date if it has one. A passport is ideal as it’s the document the eToro team will be able to process the quickest. You can also use a driving licence or any other government-issued ID.
• Proof of address: You must also provide a document with your full name, address, and issue date. The document you use must be recent and, at most, three months before filling out the application. You can use a bank statement, credit card statement, council tax bill, or phone bill.

Once both documents are ready, you may ask to photograph or photocopy them, and they must be unedited, uncropped and clear. If your proof of address is digital, the eToro team does accept screenshots. The verification process can take a few days, and you’ll be notified when your account is verified. On the eToro platform, you can follow your verification status.

All verified accounts have a green tick next to the username on the user’s profile.

3. Fund Your Account

Once your account is verified, you must add money to your trading account. Before you add any funds, the first time you log in, you will be asked various questions about your trading knowledge, trading purpose and risk tolerance. Every time you log in, the app will ask to verify who you are for security purposes so only you can access your funds.

Once logged in, you can move on to the next step, which is linking your bank account to the trading platform. The minimum deposit you can put into your account is $50. There is a minimum withdrawal amount of $30.

4. Download the eToro App

If you want to trade on the go, the mobile app allows you to trade and invest, just like the web platform. With the app, you can trade from your smartphone on the go from anywhere you want. The app allows you to use the same features as the web platform.

You can download the eToro app from the App Store (iOS system) and the Google Play Store (Android system). The app is free to download and can be used on a smartphone or tablet. 

5. Research Stock

Explore eToro’s stocks and assets. Research beyond the platform to ensure the chosen assets fit your investment strategy. There are over 3,000 assets for you to choose from, and this is the perfect opportunity to explore all the features we previously mentioned.

Take advantage of the free demo account you get when you open your account. With the account, you’ll receive a free $100,000 to help build a virtual portfolio to practise and experiment with. If you’re new to trading and investing, this is the perfect opportunity to learn the ropes.

6. Place an Order

Once you start trading, you can invest in your demo or trading accounts. With your designated asset in mind, you can begin trading. On the eToro app, select the Portfolio option at the bottom of the screen to see all the investment instruments available.

For your first trade on the eToro app, search for a company or ETF on the Trade Markets page and tap the “Trade” button. You can choose the security and order type. Once you’ve entered the trade details, you must swipe up to confirm the trade, and the order will go to the market.

7. Sell an Order

You can access your portfolio, find the position you want to sell, swipe left on the screen that pops up, and click “Sell” at the bottom of the screen. Alternatively, to close your position, click on the one you want and tap “Close Trade”.

What Are the eToro Trading Fees? ➡️

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Before you start trading, it’s always essential to understand a trading platform’s fee structure. You want to avoid being surprised by hidden fees when you make your first trade. So, we’ve compiled a list of all the costs you can expect when using eToro’s platform:

• Opening account fees: None
• Minimum deposit: $50
• Currency conversion fees: 1.5% of the trade value
• Deposit fees: Conversion fee may be applied
• Management fees: Conversion fee may be applied
• Withdrawal fees: $5 fee for each withdrawal you make
• Brokerage services: No additional broker fees
• Inactivity fee: $10 fee after 12 months with no login activity
• Crypto trading charges: When buying or selling crypto assets on eToro, there is a transparent fee of 1% of the transaction value
• Crypto-to-crypto conversion fees: 0.1% fee of the transaction value. There is a minimum limit of $20, and the maximum limit is $10,000

eToro Review: One of Australia’s Largest Trading Platforms 📑️

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The feature that interested us the most was copy trading, which allowed us to track the trades and portfolios of other traders. Copy trading is ideal for investors looking for new ways to expand their portfolios or simply learn how to trade. The copy trading feature, plus the intuitive platform, makes trading easier.

eToro offers low fees and a variety of features. The platform is accessible to all traders and has a user-friendly interface on both online and app platforms. There is a $5 withdrawal fee.

The variety of assets available is excellent, with over 3000 assets available, over 70 crypto coins and you can trade in over 17 share market exchanges. You can trade in overseas markets, giving you access to assets that perhaps previously couldn’t get access to so quickly.

As Australian traders, it’s not ideal that the platform’s base currency is USD, as there are currency conversion fees with every trade. The actual trading is simple enough, the opening account process is smooth, and the handy demo account is ideal for testing new investment strategies. The demo account is perfect when you first use the platform, as you can learn how each feature works and build trading confidence.

The Smart Portfolios are a unique product offered by eToro, and they include ready-made investment strategies that provide thematic investments such as medical cannabis, driverless cars, and people-based portfolios.

So, to conclude our short eToro review, the features are plentiful, but the platform is geared more towards beginner and intermediate traders. However, some features would be helpful to all traders. Signing up, buying, and selling is straightforward; we think it’s a great platform to navigate with a clean, modern design and UX.

Final Thoughts 💡️

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Before investing in any new assets or starting new journeys, we recommend seeking investment advice from a professional financial advisor to ensure you’re in the best position to start trading.

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Social trading. eToro does not approve or endorse any of the trading accounts customers may choose to copy or follow. Assets held in your name. Capital at risk. See PDS and TMD.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk. May not suffice as basis for investment decision.

Frequently Asked Questions 📢️

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Is eToro Good for Beginners?

eToro has many features that are ideal for traders of all levels, especially beginners. Features like Copy Trading suit investors looking for new ways to expand their portfolios or learn how to trade. The copy trading feature, plus the intuitive platform, makes trading easier.

What Is the Downside to eToro?

The main downsides of eToro include:

• eToro has a $5 withdrawal fee.
• There are conversion fees from AUD to USD, as you must trade in USD.
• If your account is inactive after 12 months, there are inactivity fees.
• You can only submit a help ticket to get assistance on any issues. Most tech in 2024 offer phone or live chat support, so eToro’s customer support needs to be improved.

How Much Do You Need to Start Investing With eToro?

The minimum deposit you can put into your account is $50. In some countries, they may require you to deposit a different amount. However, you may be charged other fees when making a trade. There are no account management or opening fees, but there is an inactivity fee if you don’t log in within 12 months.

What Are the Benefits of Using eToro?

The benefits of using the eToro trading platform are as follows:

• Etoro’s trading platform has a user-friendly interface and offers crypto trading, stock trading and more for traders of all levels. eToro offers intuitive, easy-to-use platforms.
• With eToro, you can trade multiple assets from stocks, exchange-traded funds (ETFs), and crypto assets.
• All retail investor accounts come with social trading features.
• Educational features: You can excel in trading knowledge with eToro’s education resources, such as the eToro Academy, News and Analysis updates, Digest & Invest and more.
• eToro allows you to buy whole and fractional shares to build your portfolio without paying a commission fee.

Is eToro Trustworthy?

eToro is safe and trusted worldwide. The eToro AUS Capital Limited is regulated in Australia by the Australian Securities and Investments Commission (ASIC) and other countries. eToro is trusted across the globe and has regulations where needed to ensure the safety of its 23 million registered users.

How Do I Buy and Sell Assets on eToro?

You can start buying and selling stocks in seven simple steps:

1. To begin using the eToro app, you first must visit the eToro web platform to open your account. You will need to submit personal information to open an account in Australia.
2. When you log in for the first time, you must verify your account with the Know Your Customer (KYC) process.
3. You must link your bank account to transfer funds into your trading account.
4. If you wish to trade via your mobile phone, you must download the eToro app.
5. Explore eToro’s stocks and research beyond the platform to ensure they fit your investment strategy.
6. You can set your buy and sell price for stocks in the Portfolio section on the web platform and mobile app.
7. You can access your portfolio, find the position you want to sell, and click and tap “Sell” at the bottom of the screen.

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