eToro, known as eToro UK Ltd in the UK, are a rapidly growing social investment broker. They are not strictly a binary options broker, however they are trying to simplifiy investing to allow more people into the world of investing, which is similar to binaries. eToro were the pioneers of ‘Social Trading’, which is the practise of trading socially, sharing knowledge of trading and giving users the opportunity to follow other traders as well as profiting from their trades. This company currently has over 4.5 million traders, and are regulated by the FCA (Financial Conduct Authority).
The eToro trading window has been designed for ease of use and simplicity, to allow inexperienced traders to be able to learn the system quickly. Their virtual portfolios (Demo accounts) that they offer can be opened immediately, which give traders quick access to be able to get used to the platform before going ahead with ‘real money’ trades.
For a user to open a trade, they can go to their portfolio or their watch lists to access the assets which they have chosen. Alternatively, they can go to the ‘Markets’ menu. This opens a full list of assets to choose from and the markets can be filtered by category – Stocks, Commodities, Currencies and indices. Once they have selected the required asset, they can then click the ‘Trade’ button which opens the trading window.
This window provides a lot of information for the trader but the simplistic system displays it clearly and in a manner which allows even the most inexperienced traders to understand. The Sell or Buy button is at the very top of the pages, followed by the asset and its current value. The price movement of that asset for the current day is also shown on this page. To the right of the screen I a drop-down menu which allows users to place an ‘order’ if they want to wait for a specific price or if the local market for the asset is closed. The default method for trading however is to click the ‘Trade’ button to open a trade immediately. Underneath the asset information is the amount box, which can be changed using the +/- buttons or by being overtyped. Beneath all of this are 3 boxes, where the values change depending on what amendments are made to the amount. The first box is the Stop loss, which determines at which point the trade will be closed if the price moves against the trader. The centre field controls Leverage, traders should understand the risk this adds to the trade before trading with leverage. The final field is the ‘Take Profit’ field, which Is a point where the trade will close if a certain amount of profit has been made. Clicking the Trade button t the bottom will then confirm the trade immediately.