eToro Review

eToro Account Types and Features

👉 eToro offers a single account type suitable for new and experienced traders. Because of the low minimum deposit requirements and trading fees, eToro’s account is better suited to novices than more experienced traders.

👉 Furthermore, eToro’s novel social trading platform is easy to use and provides a wide range of excellent copy trading features, making it interesting to beginning traders.

👉 Other brokers provide accounts for beginners with smaller minimum deposits and, in certain circumstances, the possibility to trade in micro-lots.

👉 eToro offers a single genuine account and a demo account. In addition, the eToro Club offers several reward tiers with rising minimum investments.

eToro Live Trading Account Details

Retail Account

👉 Traders with Retail Account access over 2,000 financial products and the eToro trading platform. In addition, traders who open an account with eToro may trade manually or via copy trading.

👉 Because of the strict limitations of MiFID and other market authorities, the Retail Account only allows for leverage of up to 1:30, shielding traders from certain dangers.

👉 Retail traders should determine if the Investor Compensation Fund insures them and whether their retail account is protected against negative balances. To open a retail account, traders must deposit at least 3,100 Botswanan Pula.

👉 Smart Portfolios, a new and original approach to personal investing, provide eToro customers with a wide selection of investment alternatives.

👉 As part of a comprehensive and popular investing program, investors can select from fully allocated and balanced portfolios focusing on accessible and easily understood market regions.

👉 Because of eToro’s industry-leading CopyTrader technology, anybody can join the financial markets and become a more seasoned trader. In 2021, the most imitated traders will earn an average annual profit of more than 83.7%.

👉 There are no administrative fees and a simple pricing scheme with no hidden costs when traders use eToro’s copy trading products.

👉 Another unique feature provided by eToro is the opportunity to stake crypto tokens, which allows Botswanans to earn interest while providing liquidity to various blockchain projects.

Professional Account

👉 eToro demands that all prospective traders pass a test verifying their long-term viability and account eligibility to be recognized as a professional trader.

👉 Professional traders who join eToro must be aware that the European Securities and Markets Authority (ESMA) has imposed several stringent conditions.

👉 This includes qualifying for the Investor Compensation Fund and recourse via the Financial Ombudsman Service. In addition, Botswanan traders must fulfil at least two of the three qualifications listed below to be deemed professionals:

➡️ Their professional portfolio must be worth more than $500,000, excluding real estate and cash.

➡️ The trader must have a verified trading history demonstrating that they have traded elevated position sizes as defined by eToro.

➡️ The trader must have professional experience in the financial industry, such as speculative trading, derivatives, or trading.

👉 While other online brokers have removed negative balance protection for professional traders, eToro continues to protect professional traders in the event of a negative balance owing to market conditions.

👉 Suppose the account of a competent trader goes negative. In that case, it will be rebalanced, and the loss will be absorbed by eToro.

👉 Professional traders profit from up to 1:400 leverage and cheaper margin rates. Professional traders should utilize appropriate risk management methods, regardless of experience level, to limit the degree of risk associated with a loss.

eToro Club

👉 Even though there is just one account type, traders may join the eToro Club with a higher minimum deposit.

👉 Depending on their membership level, customers may utilize several services and tools to increase their knowledge and comprehension of the capital markets and other investment possibilities, such as stocks, bitcoin, Smart Portfolios, and more.

👉 EToro Club membership is determined by traders’ realized equity (as of midnight GMT each day). You will be immediately accepted if you meet the equity criteria, and your club tier will change the next day.

👉 Botswanans can anticipate the following levels:

➡️ Silver – 78,0000 BWP ($5,000)

➡️ Gold – 156,000 BWP ($10,000)

➡️ Platinum – 390,000 BWP ($25,000)

➡️ Platinum+ – 780,000 BWP ($50,000)

➡️ Diamond – 3,900,000 BWP ($250,000)

👉 In addition, if you meet and maintain the minimum equity criterion, you will be a member of the eToro Club. If your equity falls below the minimum, you will be permitted to preserve your current membership status as a courtesy for three (3) full calendar months.

👉 You may switch between tiers at any time throughout your Club membership, depending on the equity requirements of each.

👉 However, keep in mind that if you downgrade to a tier that is ineligible for that tier, you may lose any memberships, services, or other offers you have. Furthermore, tier eligibility is updated at the beginning of each calendar month.

eToro Base Account Currencies

👉 When traders open a live trading account with eToro, the only basic account currency available is USD.

👉 Furthermore, when accounts are denominated in foreign currencies, a currency translation charge of 50 pips is applied to deposits and 50 pips to withdrawals, which is quite excessive compared to other brokers.

eToro Demo Account

👉 There is an amount of risk involved with trading in financial markets. eToro gives users a risk-free platform to evaluate strategies, practice trading, and learn more about the broker in a safe trading environment with actual market conditions.

👉 eToro provides a $100,000 virtual balance demo account where users may practice trading various assets. Beginner traders may utilize the trial account to learn about the markets, copy top-performing investors’ trading tactics, and more.

👉 Advanced traders may practice trading without risking their own money, making them transition effortlessly to a real trading account.

eToro Islamic Account

👉 The spot market is a 24-hour trading of currencies and commodities at 5 pm New York time, all open positions are rolled over for the next 24 hours, and the daily interest is added to the company’s accounts.

👉 This implies that the broker can pay the interest or charge the fees to the client’s account. Furthermore, with an Islamic account, eToro guarantees that there will be no Riba at any moment throughout the contract’s length.

👉 Suppose you do not close your open trades in the currency market by 5 pm. New York time, they will be automatically rolled over. However, due to the usurious interest charged for the rollover, this poses a problem for those who follow Islamic law.

👉 The solution is to establish an Islamic account with the following features and benefits for Muslim traders:

➡️ No interest is charged on contracts that last more than 24 hours, and there is never any rollover interest.

➡️ eToro does not impose additional rollover fees for contracts longer than 24 hours.

➡️ eToro does not charge any commissions or fees for account maintenance. Therefore, spreads are eToro’s only source of revenue (the difference between the buy and sell prices of an instrument).

➡️ An eToro Islamic account allows for interest-free borrowing.