Etoro is a trading platform you have most likely seen before. Most people are introduced to the platform through their effective Youtube ads. These cover their social trading aspect that allows you to follow well-established traders and, hopefully, make profits on the back of their trading decisions.
But who is behind this trading platform and, most importantly, is Etoro safe? In this article, we’re going to look into five important things you need to know when it comes to Etoro safety.
What is Etoro and How Does it Work?
Etoro is a trading platform that’s been kicking for well over a decade now. It was started in Israel back in 2007 by brothers Yoni Assia and Ronen Assia together with David Ring. Three years later, in 2010, they launched their social investment trading platform that quickly boomed in popularity.
One of the most innovative aspects of the platform was the Copy Trading function that allows investors to follow and copy the investments made by the biggest traders on the platform.
The Copy Trading feature quickly grew in popularity and has since come to be a defining feature of Etoro. As the platform’s popularity grew, it saw an impressive overall investment boost of $162 million by various investment companies.
In 2014, Etoro began to offer the opportunity to invest in various cryptocurrencies when it began to develop Blockchain-based social trading before later unveiling a cryptocurrency wallet available for iPhone and Android users. But just how safe is Etoro and is it legit? Let’s find out!
Is Etoro Legit?
It’s no secret that Etoro looks and works differently than most other trading platforms out there. As a result, many people question the platform and wonder if Etoro is safe and legit. So it’s best to start off this article with an answer to this commonly asked trading question: is eToro safe and legit?
In short, yes Etoro is legit. The main company is registered in Cyprus and is a licensed brokerage registered by the Cypriot Investment Firm (CIF). They’re also regulated in Europe by the Cyprus Securities and Exchange Commission and in the UK by the Financial Conduct Authority. They’ve also been authorized to operate in the various U.S. States. But does this ensure security? Yes, indeed it does!
“eToro is excellent for social copy trading and cryptocurrency trading, and is our top pick for both categories in 2021.”– Forex Brokers
You see, when brokers are well regulated like Etoro is, it’s kind of like a security net that provides a sense of assurance that they’re not going to vanish with your hard-earned funds or scam you in another method. By doing so, they would be guaranteeing the loss of their license and the subsequent end of their business as a trading platform.
Is eToro regulated?
According to Forex Traders, eToro is authorized by two tier-1 regulators (high trust), one tier-2 regulator (average trust), and one tier-3 regulator (low trust). The tier-1 regulators are the Australian Securities & Exchange Commission (ASIC) and the Financial Conduct Authority (FCA).
As a result, eToro is well regulated and has been given an overwhelmingly positive trust rating by Forex Traders, and is commonly recommended for trading forex, cryptocurrencies, and CFDs.
How does eToro work
Although eToro has a range of popular reviews, there are naturally some negative ones from people who have had a negative experience from using the platform. But this is not to say that eToro isn’t safe, it’s rather the poor investment decisions made by users of the trading platform. In fact, eToro warns prospective sign-ups that 71% of users lose money on the platform. But why?
Whether crypto or other assets, all trading involves a level of risk. You should only invest as much as you can afford to lose. Many people use the eToro platform and don’t take advantage of the innovative copy trading function and prefer to invest blindly and without any prior experience. Copy Trading, whilst not foolproof as anything in trading, is a seriously useful gateway for new investors.
When you decide to copy a well-established trader and invest in his choices, you can see every trading move he or she makes and the reason behind each investment decision they’ve made. This way you can learn about the methods of some of the most successful traders and teach yourself some tried and tested tactics before going into trading on your own.
Aside from its Copy Trading aspect, eToro is overall a very fast and efficient route to buy stocks, shares, and Cryptocurrencies as well as gaining a level of experience in the world of trading.
Is eToro safe?
So is eToro safe? To round off with a conclusion to the question, I can safely say from personal experience and looking into how regulated the platform is that yes, it is. So in summary, I don’t believe or see eToro as a scam.
There is no evidence to suggest that Etoro makes attempts to purposely deceive investors by manipulating numbers to show unrealistic profit targets. However, as with any investing platform, there is an element of risk that is based on your personal investment decisions and patterns.
Overall, eToro is a well-established, highly regulated, and secure platform that has the potential to revolutionize your trading journey whether it’s crypto, stocks, shares, or otherwise.
What’s more, is that eToro allows you to access their incredible array of trading tools such as the Stop Loss, Take Profit, and built-in charting software that all let you maximize your potential profits whilst ensuring safe trading practices that protect your hard-earned funds.
Also, eToro offers Leverage Trading on the assets they have available on their platform. This allows you to multiply small amounts to become large powerful positions that drive massive profits.
Overall, the financial situation, risk tolerance, and investment strategy of each person vary. Bitcoin is inherently volatile and the price can rise or drop at a moment’s notice, this brings advantages as it does risks.
Both of which are important to understand and weigh against your own investment goals and needs. Only invest money you can afford to lose and balance out the risky nature of crypto investment by building a diversified portfolio.
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Disclaimer – This content is for informational purposes only and is not investment advice. The trading of cryptocurrencies has potential rewards, and it also has potential risks involved. Trading may not be suitable for all people. Anyone wishing to invest should seek his or her own independent financial or professional advice.