Thanks to Reddit and GME, day trading in both stocks and cryptocurrencies is once again the talk of the town. It marks the latest step in a shift towards the democratization of investing that has been gaining momentum since the proliferation of simple-to-use, fee-free trading apps.
Founded in 2007, eToro is among the most well-known and well-regarded of these apps. From its almost instantaneous setup to its intuitive UI, eToro’s iOS and Android apps are incredibly user-friendly. The apps offer professionally managed “CopyPortfolios”, facilitate “virtual” practice trading, and are regulated by top-tier financial authorities.
eToro does not charge a commission, nor does it implement administration, management, or ticketing fees. While there are small withdrawal fees, they are largely insignificant compared to those of other platforms.
eToro’s apps have all the features that both aspiring and seasoned traders would expect, including watchlists, portfolio analytics, a customizable historical trade review page, analyst ratings and recommendations. There are several features, however, that are more unique to eToro that really set it apart from its competitors.
Firstly, the ability to copy the investments of trading “influencers”. Historically, less experienced traders would pay a fee to entrust their money to fund managers. Instead of fund managers, whose reputations have declined in recent years, eToro offers traders the ability to follow and replicate the trades of those who are more personally invested, literally. Themed portfolios and trending investors’ trades can be replicated with just the click of a button.
Secondly, as well as stocks and commodities, eToro has well-designed cryptocurrency trading functionality that its competitors lack. Cryptocurrency is a famously high-risk, high-reward investment. However, until recently it has been largely the remit of tech-savvy advocates who could navigate the dedicated exchanges, “cold” and “hot” wallets, and other complex technical requirements. eToro makes cryptocurrency and commodity trading more accessible than ever.
Finally, it is worth noting eToro’s focus on transparency and social trading. App-users can share their investments with friends and colleagues, join the premium eToro Club, or take part in the extensive helpful discussions eToro hosts with its 15 million registered traders. It is the largest social trading platform in existence.
By putting so much functionality and data into the hands of an individual, apps like eToro may reshape the trading landscape forever.
Note: Some research suggests that trading on an app encourages riskier decision-making. Stocks, shares, and cryptocurrencies can all be very volatile. Any trader should be prepared to lose their entire investment and if in doubt should seek formal financial guidance. This article is not intended as legal advice or official recommendation.