eToro Review

eToro Account Types and Features

👉 eToro has a single account type that is appropriate for both novice and experienced traders. Because of the modest minimum deposit requirements and trading charges, eToro’s account is more suited to beginners than more experienced traders.

👉 Furthermore, eToro’s innovative social trading platform is simple to use and offers a variety of good copy trading capabilities, making it appealing to new traders.

👉 Other brokers provide a variety of accounts for novices with lower minimum deposits and, in certain cases, the ability to trade in micro-lots. eToro has a single real account and a demo account, while the eToro Club provides incentive levels with increasing minimum investments.

eToro Live Trading Account Details

Retail Account

👉 Traders with a Retail Account get access to more than 2,000 financial products as well as the eToro trading platform. Traders who register an account with eToro have the choice of trading manually or via copy trading.

👉 Because of the strict limits set by MiFID and other market regulators, the Retail Account only permits up to 1:30 leverage, which protects traders from certain risks.

👉 Retail traders should check to see whether they are covered by the Investor Compensation Fund and if their retail account is protected against negative balances. Traders must deposit a minimum of 3,100 Namibian Dollars to start a retail account.

👉 Smart Portfolios, an innovative and distinctive approach to personal investing, present eToro clients with a comprehensive range of investment options.

👉 As part of a comprehensive and popular investing program, investors can choose from fully allocated and balanced portfolios that focus on accessible and easily understandable market regions.

👉 Anyone can enter the financial markets and become a more seasoned trader thanks to eToro’s industry-leading CopyTrader technology. The most copied traders will make an average yearly profit of more than 83.7% in 2021.

👉 There are no administrative charges and a transparent price structure with no hidden costs when traders use eToro’s copy trading products.

👉 Another unique feature offered by eToro involves the ability to stake crypto tokens, allowing Namibians to earn interest when they provide liquidity to different blockchain projects.

Professional Account

👉 To be recognized as a professional trader, eToro requires all aspiring traders to complete a test that determines their long-term viability and account eligibility.

👉 Professional traders who join eToro must acknowledge that the European Securities and Markets Authority (ESMA) has set a few strict requirements.

👉 This includes eligibility for the Investor Compensation Fund along with recourse that can be obtained from the Financial Ombudsman Service. Namibian traders must meet at least two of the following three requirements to be considered professionals:

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

➡️ The trader must have a verified trading history that shows they have traded substantial position sizes as decided by eToro.

➡️ The trader may have previous professional expertise in the financial industry, such as speculation, derivatives, and/or trading.

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

👉 If a skilled trader’s account goes into negative territory, it will be rebalanced, and eToro will absorb the loss.

👉 Increased leverage up to 1:400 and reduced margin rates help professional traders. Professional traders, regardless of their level of expertise, are advised to utilize effective risk management procedures to decrease the degree of risk associated with a loss.

eToro Club

👉 Traders may join the eToro Club with a larger minimum deposit, even though there is only one account type.

👉 Customers can use a variety of services and tools, depending on their membership level, to improve their knowledge and understanding of the capital markets and different investment options, such as stocks, cryptocurrency, Smart Portfolios, and more.

👉 The realized equity of traders (as of midnight GMT each day) determines eToro Club membership. You will be automatically admitted if you fulfil the equity threshold, and your club tier will change the next day.

👉 The following are the levels that Namibians may expect:

➡️ Silver – 78,0000 NAD ($5,000)

➡️ Gold – 156,000 NAD ($10,000)

➡️ Platinum – 390,000 NAD ($25,000)

➡️ Platinum+ – 780,000 NAD ($50,000)

➡️ Diamond – 3,900,000 NAD ($250,000)

👉 In addition, you will be a member of the eToro Club if you achieve and maintain the minimum equity criteria. If your equity falls below the minimum, you will be able to keep your present membership status for three (3) full calendar months as a courtesy.

👉 Depending on the equity criteria of each tier, you can shift between them throughout your Club membership.

👉 However, you must consider that if you downgrade to a tier that is not qualified for that tier, you will lose any subscriptions, services, or other offers you have. In addition, tier eligibility is revised at the start of each calendar month.

eToro Base Account Currencies

👉 eToro only offers USD as a base account currency when traders register a live trading account. In addition, when accounts are denominated in other currencies, there is a currency conversion fee of 50 pips applied to deposits and 50 pips to withdrawals, which is exceedingly high when compared to other brokers.

eToro Demo Account

👉 A demo account is a practice account that provides traders with a certain quantity of virtual dollars to utilize, enabling them to trade in the real market without risking their own money.

👉 When trading in financial markets, there is a level of risk involved, and eToro provides its customers with a risk-free platform where they can test methods, practice trading, and learn more about the broker in a secure trading environment with genuine market circumstances.

👉 eToro offers a $100,000 virtual balance demo account that allows users to practice trading a range of assets. Beginner traders may use the trial account to learn about the markets, mimic the trading strategies of top-performing investors, and more.

👉 Advanced traders can practice trading without putting their own money at risk, allowing them to smoothly graduate to a real trading account.

eToro Islamic Account

👉 The spot market is where currencies and commodities are exchanged for 24 hours. All open positions are rolled over for the following 24 hours at 5 pm New York time, and the daily interest is added to the company’s accounts every 24 hours.

👉 This means that the broker can either pay the interest or charge the fees to the client’s account. With an Islamic account, eToro ensures that there is no Riba at any time throughout the contract’s term.

👉 All open deals in the currency market will be automatically rolled over if you do not close the trade by 5 pm New York time. However, because of usurious interest being levied for the rollover, this causes an issue for individuals who follow Islamic law.

👉 The answer is to provide an Islamic account with the following characteristics and advantages for Muslim traders:

➡️ There is no interest on contracts that continue longer than 24 hours, and there is always no rollover interest.

➡️ For contracts lasting more than 24 hours, eToro does not charge any extra rollover fees.

➡️ For account administration, eToro does not charge any commissions or fees. Spreads are the only source of income for us (the difference between the buy and sell prices of an instrument).

➡️ Interest-free leveraging is available with an eToro Islamic account.