For a last couple months, I’ve been busy with trading stocks online. It is interesting, that started trading because of my new girlfriend – she has been doing it for about a year. I was a bit surprised about the money she had made trading stocks and I taught – if a girl can make thousands by trading stocks, then I definitely can do it too. And it is a fact, that it is not difficult to persuade me to new opportunities to make money online. At the moment, I can already say that trading with stocks online is very interesting.
I have tried my hand at binary options trading before, which was more like a bookmaker, and this industry is now gone. I have also spent a lot of time trading sports bets. However, it is difficult for me to focus on short-term investments, for example, in sports trading, it is one football or tennis game in which you have to buy and sell bets.
I started trading stocks in my Revolut account. Revolut has been offering stock trading relatively recently, but it has gained considerable popularity among Revolut wallet users. By filling in some questionnaires, you can start investing money in stocks and cryptocurrencies very quickly and easily. You can make three free transactions per month, but you will have to pay a commission fee of 1.00 euros for each subsequent transaction.
But this article is about my experience with the eToro platform! Why did I move from Revolut to eToro? I was not feeling serious about trading stocks on online wallet Revolut! By comparison, the range of eToro trading platform features is about five times wider.
To compare the features of the eToro and Revolut trading platforms, I will summarize all the pros and cons in a table (just because those are only two places I have traded).
Revolut and eToro trading platform comparison
|Trading on eToro||Trading on Revolut|
|Assets available||Stocks, Cryptoassets, Commodities, Currencies, ETFs, Indices||Stocks, Cryptoassets|
|Fees||100% free when trading only stocks. Trading fees are charged as spreads, when trading Cryptoassets and CFDs. 5$ withrawal fee and 10$/m account inactivity fee||Three free transactions per month on stocks, after that 1$ commission for each transaction. Cryptoassets has spreads.|
|Trading platform features||
|Information about assets||
As you can see in the table, eToro is the absolute winner in this comparison, as it offers many more features. After all, eToro is a trading platform, but Revolut is an online wallet with trading platform.
My Experience With eToro Social Trading Platform
Wanted to see big profits? Later, Aligator!
I have currently invested $520 and as you can see, I’m currently $15 red. But I’m not worried about that, because my goal is long-term profits and the stock nature is jumping up and down.
Here you can see my current investment portfolio.
I currently have shares in five companies in my portfolio – Plug Power Inc. Amazon, Alibaba, Nio Inc. and TreeHouse Foods Inc. as well I am copying one Persons investment portfolio.
I bought both shares, which are more than 10% minus, at a very wrong time. Alibaba’s shares lost 15% of their value at one point when the Chinese government launched a no-confidence lawsuit against the tehc giant. The PLUG share had risen to unprecedented heights and is currently experiencing a decline, which I am not very worried about, as the company is operating in a fast-growing niche and I will hold this share for at least half a year.
I have also invested $ 200 in one of eToro’s most popular products – Copy Trading. This is a unique feature offered only by eToro that allows anyone to copy other people. I have invested $ 200 in Hugo Angelo Lucien Manenti’s portfolio, which has grown by an impressive 85.76% over the last year.
This investor has invested money in 36 shares. This means that his investment portfolio is very diversified and even large downswing in one particular stock do not affect the return of the entire portfolio so much. This investment principle seems quite safe to me, as no extreme portfolio drawdowns are not expected due to diversified investments.
Investing in several such portfolios could result in a very highly diversified investment portfolio, which could bring stable returns in the long run. That is my hypothesis at the moment, and I will test it at my own expense in the coming year of 2021.
What I like about the eToro trading platform
There are quite a few things I like about this trading platform. I really have nothing much, except Revolut, to compare with, but I think everything is available on this platform to make smart, long-term investment decisions.
In my opinion, eToro offers a very comprehensive Research section. In this section you can find information about the following things:
Analyst rating section: This section summarizes the opinions of financial analysts on whether the value of a particular stock will increase or decrease. As we can see, the analysts of PLUG unanimously expect that its value will increase.
Analyst Target Price: This section summarizes stock price forecasts and displays the worst rating, average rating, and highest rating.
Analyst Ratings: Extended financial analyst ratings are also available on the same page. The name of the analyst, the company he represents are given, and a link to the full article is available.
Hedge fund activities: In this section you can see how much is invested in these shares through hedge funds. Information is also available on the three largest transactions in the hedge fund and their authors.
Company insider’s transactions: You can see what insider’s have done with their company shares. This information is useful because insiders’s usually know more than the average investor and you can get some insights on the future of a company’s stock.
Copy People or copying other user portfolios
Copy people feature is responsible for eToro calling itself a social trading platform.
And this is a great opportunity for everyone to earn extra money! Think about it, would any investor want to lose money? Of course not, that’s why eToro selects the most successful investors and offers to copy their portfolios by investing the same percentage in the same assets.
Now you probably have a question – how does eToro benefit if all users make money? eToro earns money on commissions charged to users trading CFD products, Cryptocurrencies, currency pairs, and more.
eToro offers to trade shares without any commissions! If the person you choose to copy invests only in shares, then you will not have to pay a commission either. The eToro platform is used by millions of investors, and many of them trade in the above-mentioned spread products, so they are happy to offer something for free, in this case stock trading.
The ability to copy other users’ portfolios is also great because only investors who have proven their knowledge and steady returns on their portfolios for at least a year can be copied. These people have spent a lot of time choosing the best assets to invest in and earn an income for themselves. Isn’t it great that you have the opportunity to invest your money in portfolios of industry specialists without any effort? This is a great chance to make money!
And yet – by copying several, not just one successful investor, you can diversify your investment portfolio so that it becomes very safe. On average, each investor’s copyable investment portfolio consists of 20-25 assets. If you invest in several portfolios, then your money will be invested in a large number of stocks and if any of them experience a sharp decline, then the total value of the portfolio will be slightly affected. If you invested in only one asset and it experienced, for example, a 20% drop, you would also lose that 20% of your money. Think about it and you will understand, how great it is!
Market Movers section
Market movers section or section that shows the stocks that have moved the most on a given day. This section is probably the most profitable section of the entire eToro trading platform. An example is the stock BioNano Genomics (BNGO), which quadrupled its price in four days, from $0.7 to $3.08.
This stock appeared in the Market Movers section on the day it started to grow and I also managed to earn $10 or 20% of my investment on this stock.
I bought this stock when it’s price was $ 1.16, but the next day price was allready $ 3.08. That means if I had held that stock for a day longer, I would have made almost $100 or 200% return on my $50 investment!
I am a bit frustrated that I sold it so early, but I have learned a lot from this mistake. I am just starting my investing journey, so I will accept this as a good lesson, to be more patient. The good thing is that I made 20% profit from this trade!
Special offer if you also want to open an eToro account
If my experience story has inspired you to start thinking about investing money, then I can offer you a 50 euro bonus if you register on the eToro platform through my partner link.
I will receive a partner commission for your registration, which I will share with you. eToro does not offer any new customer bonuses, so this is a very good deal for both – you and me!
Summary of the eToro social trading platform review
I really like the eToro trading platform and all the features it offers. I can’t point out any disadvantages to this platform. In addition to all of the above, I can also mention that the platform is also available as a mobile app and deposits can be made in various alternative ways, such as with Skrill, Revolut and Neteller.
As I mentioned at the beginning of the article, I am not looking for a quick returns, but for a long-term profitable investment portfolio. Each month, I will top up my trading account with 10% of my previous month’s earnings. I hope that investing in eToro will help me reach my financial goals faster.