How to invest in the stock market using eToro

eToro are the world's largest social investing platform with over 22 million users. They launched in 2006 and since then have undergone numerous revisions, including the addition of the feature which has set them apart from all other online trading platforms - CopyTrader.

CopyTrader is the feature which makes eToro unique, as it allows users to replicate the positions of other top investors on the platform. To use this feature, you simply search through the profiles of profitable traders and if you find someone that matches the criteria of what you are looking for, you can then allocate funds to automatically copy single every trade that they do.

These traders who have the most copiers are rewarded by the platform with commissions and other benefits, and so therefore incentivises them to not only be profitable but to also practice responsible trading methods

Although their CopyTrader feature does make it a very appealing platform to new users who are  interested in learning more about trading and investing, there are risks attached and therefore no guarantees that you will make money.

Getting setup on eToro is extremely straight-forward and only takes a matter of minutes, and don't worry you don't have to make a deposit or spend any money to create an account.

You can sign up for an account here for free. No lengthy paperwork is required, you simply have to create a username and verify your account as normal (like any of our other offers) and you'll be good to go!

If you don't wish to make a deposit yet, you wont be stopped from giving trading a try, as eToro also provide you with a free demo account where you can trade with $100,000 virtual dollars to allow you to get to grips with how the platform works.

67% of retail investor accounts lose money when trading 'CFDs' with this provider. You should consider whether you can afford to take the high risk of losing your money.

Positives:

One of the major draws to eToro is that they offer 0% commission on real stock trades. This means that every time you sell a stock you'll not pay a single penny in commission, making eToro up to 20x cheaper than traditional stockbrokers.

They are also regulated by the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) and Australian Securities and Investments Commission (ASIC) - meaning you can rest assured that your investments are in safe hands.

However, as mentioned above the feature which sets them apart from the rest is without doubt their CopyTrader. This introduces the concept of 'social trading', which is essentially a combination of  your Facebook news feed and a trading platform, all together on steroids. It allows you to chat with other traders and discuss ideas on particular stocks and strategies, whilst also offering the opportunity to set your money aside to automatically copy the best performing traders on the platform. You simply choose an investor you want to copy, and with a click of a button you can begin mirroring their positions for every single trade that they do.

Negatives:

One of the main drawbacks users have found from eToro is they have a relatively high withdrawal fee ($5), however this is counter-balanced by their commission-free stock trading as some platforms have been found to charge up to £11.95 per trade. So although this fee can be annoying, we feel like this is a fair price to pay for all the other additional perks that eToro offer.

Another drawback for eToro is that they also have quite a high minimum first time deposit amount ($200) for users in the UK. This can be off-putting for users if they aren't comfortable with this size of investment to start, but this isn't the case for every following deposit, as after you have begun trading with eToro the minimum deposit amount will drop down to $50 each time.