Founded in 2007 in Tel Aviv, Israel, eToro is one of the biggest social investing platforms. It has over 6 million users and allows you to trade equities, copy other investors’ portfolios, or invest in cryptocurrencies. It is also a popular place to trade CFDs, or contract for differences, which are risky derivatives that allow you to speculate on price movements of underlying stocks or assets without owning them. Is eToro safe for investors?
A popular investment strategy on eToro is “euro-cost averaging,” which involves investing regularly rather than in large lump sums at once. This lets you build your wealth over time. You can also use eToro’s charting tools to analyse prices and technical levels, or get sentiment information on an individual stock, which compiles the opinions of many professional analysts into a single score that tells you whether it is a buy, sell, or hold.
Is eToro Safe for Investors? Security, Regulations, and Trustworthiness
The platform also has a newsfeed where you can see what other investors are doing and share your own ideas. There are also lessons on investment terms and interpreting markets, as well as regular blogs and personalised alerts. You can also practice trading with a virtual account before depositing real money.
eToro is regulated by the Financial Conduct Authority (FCA) in the UK and CySEC in Cyprus, as well as FINRA in the US, and has security measures in place to prevent hacking. It also uses SSL encryption to protect your personal information. However, it is important to note that investments in eToro products are not protected by the Financial Services Compensation Scheme (FSCS).…