Those that know we will know that I’ve already had an interest in trading stocks. My personal portfolio is nothing to shout about but it has provided me with a significant amount of income over the years. I’ve also had a dabble into the currency markets from time to time and to this day I still trade Forex on a daily basis.
Today, I’m here to talk to you about eToro. Now I know what you’re thinking, another post about another trading platform but I can assure you this one is different. What sets eToro out from the competition is the fact that it’s a social trading platform. I’ll explain below what this is specifically but in a nutshell it means that you can literally copy the trades of successful traders. You can specifically see what stock they’ve bought or the currency they’ve traded and at what price. You can then monitor their activity or simply copy what they are doing either manually or automatically. So even if you’re somewhat of an amateur or have never done a trade in your life, you can begin trading, successfully – almost immediately.
Of course being able to initiate a trade is easy enough, but you need to know about what you’re trading in (in terms of currency or commodities) and which markets are available to you. Below we’ll run through some of the more common commodities and currencies which you’re likely to find a market for on eToro.
If you don’t want to trade in real world corporate shares, then Forex or “Foreign Exchange” trading could be right up your street. In simple terms, you trade by taking advantage of the fluctuations between the price of currency in one territory or another. Like when you purchase Euros for your trip to Spain. In the post office you might get €1.15 euros to your £1 where as only you might get €1.20 euros and so on. Sure, it’s only 5 cents difference but if you were talking of figures with several zeros, the difference would be significant. Now imagine if you could pay £1 for €1.15 and then sell it 5 minutes later for €1.20 euros? This is what currency trading is. You don’t need to hold currency yourself either. You can simply “bet” which way you think the price is going to go based on world events.
When we’re talking cryptocurrency, we immediately think of Bitcoin. It’s the most well known and currently most valuable cryptocurrency of them all (and there are hundreds). A single bitcoin (or BTC) at the time of writing is worth just over $1,000. It’s a virtual currency and transfers are not conducted by wire or by exchanging physical currency. It’s all done online via blockchains. Bitcoins can be used to buy things, both online and offline as you would with traditional currency and of course at any time you can sell your bitcoin for cold, hard cash. Etoro is one of the best platforms out there for trading in Bitcoins and you can follow successful traders with ease.
Ethereum is another cryptocurrency that isn’t quite as big/popular as Bitcoin but is rapidly increasing in value. A single coin is currently worth around $40 but as little as 6 months ago you could pick them up for around a third of that. Some lucky users on eToro were fortune enough to foresee this and have made a lot of money by doing so. The question is, is Ethereum the next BTC and in a couple of years time are we going to be talking about them being worth $1,000+? Time well tell. But if do want to try your luck then platforms such as eToro are the best place to get started.
As mentioned above, you don’t particularly need to know what you’re doing in order to make money trading. You simply need to know who to follow. That is the beauty of social trading. Here is an example profile of the user jaynemesis on eToro. He is one of the first people I started following when I got started and you can see for yourself the level of success he enjoys.
An example of his success can be found in Bitcoin. I’m sure you’ve all read the stories about how this cryptocurrency has enjoyed rapid growth over the years, well the user above got in early and purchased coins for as little as $12. A single coin is now worth over $1,000 (at the time of writing) and has been as high as $1,300 a couple of years back. I don’t need to get the calculator out to tell you what % ROI that is do I?
As touched on previously, social trading is a somewhat new enterprise designed to get more and more (inexperienced) people into trading or playing the market in general. Sure it’s not solely aimed at first time traders and there are lots of experienced traders on eToro who simply follow multiple people and use their movements and actions in order to formulate their own plan of what to trade and when. There is really no method that suits all, you just need to use all of the tools available in order to make an educated and informed decision.
The tools available on eToro with regards to social sharing are second to none. Following existing traders can be done at the click of a button – Just like you’d follow someone on Twitter or like a page on Facebook. You can then see detailed information about the trader including their recent trades and all the figures that matter – including profit and loss. You can follow multiple people, try and learn what’s going on and undertake some trades yourself or you can adopt the hands off approach and simply mirror what someone else is doing to a tee. The choice is yours.
Hopefully this post gets some of my readers excited and if you were attempting a foray into the world of trading be it stocks, playing the forex market or even trading in cryptocurrency then eToro is definitely the platform to do it on. Even if you don’t take advantage of the social trading features, that application as a whole is good enough to rival any other brokerage or trading platform.