Every day, many people choose to invest on eToro, the leading international social investment platform. Social investing, literally “collective investing”, is the secret of eToro’s success.
It is based on the sharing of data by investors, as well as the exchange of anecdotes and useful information to better advance in this area. As you might guess, this is a more approach Easy And ensurewhich allows new, inexperienced investors easier entry into the financial markets.
eToro allows you to invest on more than 3,000 financial instruments, including stocks, stock indices, cryptocurrencies and ETFs. A remarkable number which, combined with compliance with ASIC, CySEC and FCA regulations as well as Consob authorization, has convinced thousands of Italians to join the more than 27 million global users who invest in the platform.
What is the difference between investing and trading?
Before explaining in detail how to invest on eToro, we think it is important to make a clarification immediately: investing and trading are two different actions.
For investment means along-term operation, which requires a management of several months (even years) before a future resale. In the meantime, it is possible to take advantage of any profits generated in the short, medium or long term by the asset, including dividends (i.e. the shares of profits that companies transfer to their shareholders).
The trade rather it is based onbuy and sell assets in hours, in order to take advantage of market volatility. It goes without saying that trading, especially if it is linked to the use of CFDs (contracts for difference), exposes the trader to a much greater risk than conventional investing.
In this guide we will deal exclusively with the part relating to investments. If, on the other hand, you want to know how trading works, we invite you to read our in-depth analysis on how to trade online, in which we list the best platforms to start with (including eToro).
What can I invest in on eToro?
We now come to the heart of the guide, with the description of all the financial instruments made available by eToro for investors. For a general first look, the world’s leading social investment platform allows you to invest in Shares, currenciescryptocurrencies, stock indices, EFTs and commodities.
Now let’s see the brief description of each financial instrument:
- Shares: these are the individual shares of the capital of a joint-stock company. With eToro it is possible to invest in shares without limits and without paying commissions. For the full list Click here.
- Currencies: the term currencies refers to currencies such as the euro, the dollar, the yen, the Swiss franc, etc. If you choose to invest in the currency market, all you are doing is investing in the performance of a currency pair. here the complete list.
- Cryptocurrencies: on eToro it is possible to invest in the best cryptocurrencies in circulation, including Bitcoin, Ethereum and Dogecoin. Unlike other assets, cryptocurrencies are not yet regulated in the European Union. Find the complete list of virtual currencies available on the platform at This page.
- Stock indices: a stock market index is a summary of the value of all the stocks it represents. Investing in stock indices means investing in the overall movement of this index and not in a single stock. By clicking here you can see the full list.
- TEF extension: acronym for Exchange Traded Funds, these are investment funds listed on the stock exchange and linked to specific sectors. The list completes a this address.
- Raw material: with eToro you can invest in commodities such as gold, oil, silver, platinum, etc. To find out about all the raw materials in which it is possible to invest, we refer you to Official page.
Read also: The Best Cryptocurrency Exchanges
What are eToro’s fees and commissions?
One of eToro’s strengths is the transparency fees and commissions. Unlike other platforms, there are no hidden fees to be incurred and all charges are clearly indicated at the time of each transaction.
To begin with, theopening an account on eToro it is free. Immediately after registration, you can enjoy a comfortable demo account that lets you learn how the platform works, with virtual $100,000 available to invest (or trade).
When you’re ready to start getting serious, here’s the full list of costs and any commissions you’ll incur:
- Shares: no commission
- AND F: no commission
- Cryptocurrencies: 1% commission on purchase and sale.
- CFDs: overnight spreads and commissions (necessary to keep your position open on the next trading day)
- CopyTrader: overnight spreads and commissions
- Storage area: free
- Withdrawal: $5
- Conversion fees: Withdrawals and deposits are made in dollars. Any other currency needs to be converted, so you have to pay a conversion fee of 0-150 Seed (acronym of percentage point, i.e. the unit of variation of the exchange rate of the parity of a currency)
- Account inactivity: $10 per month (if you do not log into your eToro account once within 12 months)
How to manage the tax return?
Let’s open a small parenthesis concerning the tax question. Being in all respects a foreign accountthe eToro account must be included in the tax declaration. That said, as this is a very complex subject, the advice is to talk about it with your own business consultant or with a consultant from CIF (also with regard to the possible purchase of cryptocurrencies).
Let’s just add that the tax return must be submitted before November 30 and that on eToro you can consult a practical and exhaustive guide on the subject on This page.
Read also: The best applications to follow the evolution of stocks and shares of the Italian Stock Exchange
How to start investing on eToro?
Now let’s answer the most important question, how to start investing on eToro. In reality we will not give a single answer, but as many questions as we will report below in the form of FAQs.
First of all, to invest on the eToro platform, you must first create a new account. L’register is free and asks you to enter a username, email and password. You can also create an account directly by linking your Google or Facebook account. To validate the email address and log in to the platform for the first time, you must press the link provided by eToro to the email address used during registration.
complete your profile
Once logged in, you can begin to familiarize yourself with eToro using the$100,000 free demo account. When you feel ready to start investing for real, you will first need to complete your profile for identity verification.
In the screen “Complete your profile” Click on the button “Keep on going” and enter the requested information, including your first name, last name, date of birth, residential address, social security number, investment experience, financial situation, and phone number.
To complete identity verification, from the home screen, tap “Check”after which he uploads a valid ID and utility bill not older than 3 months.
Important: Depending on your level of knowledge or experience, eToro will automatically determine which financial products you can use initially. As the platform reports, “Leverage trading can have limits for those who are not financially savvy”.
Once the verification is complete, you are ready to perform the first deposit to eTorowith which you will then go to invest in one or more of the more than 3,000 instruments made available by the most famous social investment platform in the world.
To deposit the desired amount, simply press the button “Trust funds” in the menu on the left, enter the amount in figures below “EUR”select the payment method between credit/debit card, PayPal, Rapid, bank transfer and Sofort, enter the information associated with the chosen payment method (for example PayPal email address or credit or debit card number ), then press the button “Storage area”.
Important: the minimum amount required for the first deposit is €49 (which, at the current exchange rate, is equivalent to $51).
Technically, after making your first deposit, you are ready to invest. If you already have in mind the security in which you want to make your first investment, type the name in the search menu at the top center and then press the button “Invest”.
Shortly after, a new window will open, where you have to choose the type of post to open (“To buy” or “To sell”) and the amount to spend for the order (by default the selected amount is $1,000). Once done, press the button “Set Order” to open your position.
If, as we believe, you have little investment experience and knowledge, we recommend you take advantage of Copy tradersthis is the function that allows you to replicate the operations of the best eToro traders in real time.
Using Copy Traders does not require additional management fees there are also no hidden costs to incur. In fact, traders selected by other novice colleagues are paid directly through eToro’s Popular Investor program.
To use the Copy Trader feature, follow these simple steps:
- move the mouse cursor over the category “Invest” and, in the submenu that opens, select “Copy the best investors”;
- in the new page that opens, press the button “Start the copy business”;
- choose one of the popular traders from the list, then press the button “Copy”;
- select the spending budget you want to use to replicate your most popular co-worker’s strategies, then press the button again “Copy” to start copying it.
And with that, our guide on how to invest in eToro ends here. If you need to clear your doubts about the general functioning of the social investment platform, log on to services Centerwhere you will find many guides that answer the most frequently asked questions.
If you cannot find the answer to your question or are still unsure about a particular topic, you can contact the Customer service Of eToro via the 24/7 live chat service or by opening a ticket via This page.
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