ETORO Pros and Cons
There is a lot of curiosity about etoro. We do get a lot of questions asking us about the platform, so We thought We would do a quick video just taking you through the pros and cons the things that We think are good about the platform and the things We think are bad about the platform And then you can make a decision on whether or not you want to give it a go.
Let’s, jump straight in so the first big pro for us is the fact that they have analyst ratings and research. We absolutely love this. It’s got a whole page for each of the stocks, just telling you what analysts are doing and saying about the stock.
So you can see here, for example. What it looks like it gives you the price targets that they think it will reach, what the consensus is in terms of our analysts saying to buy to hold to sell the stock all the ratings where it’s come from so, the hedge fund activities, where the hedge funds are buying or selling and the insider transactions as well. So it just shows you whether insiders have bought the shares um over the last few months or not.
We think this is absolutely great and shown in a really easy format. So, for us this is a huge plus for the platform. A second huge plus for us is the fact that your currency is held in u.s. dollars. So we guess this is subjective, but we think this minimizes, your foreign exchange risk.
So in theory, you could just top up a larger amount when the currency is in your favor and just hold the money waiting to invest it for a lot of the platforms. You have to pay the fx fees every time that you make a transaction, whereas here that doesn’t happen, you just pay the fx fee when you top up and when you withdraw and convert back to your own currency. This obviously works best. If you invest a lot into u.s. stocks.
The third big pro of the platform, in our opinion, is that it gives you access not just to stocks but also to commodities and cryptocurrency. Obviously, this isn’t really something that beginners should dabble in, but it does have that option for those of you who are interested in commodities and cryptocurrency.
The next pro, in our opinion, is the social aspect of the platform, so you can literally go in and talk to people comment on post see what people are posting about.
Each individual stock almost have like conversations about it and you can actually look at people’s portfolios, so you can go into anyone’s, profile click on their portfolio and see what they are investing in, including the popular traders.
You can see the profits they’ve made and everything it is very transparent and we think it’s really good, because you often get like notifications saying like so many people are talking about tesla right now, like see all the posts Here and it’s really cool, just to see what people are thinking.
The next pro of the platform is, in our opinion, the copy portfolios, so they have two options. We have mentioned before you can either copy individual people or you can copy their portfolios and by their portfolios we mean etoro’s portfolios.
So as an example, we have talked about this before, but they have a renewable energy portfolio which just holds loads of renewable energy stocks. It’s kind of like an etf, in our opinion, it’s really cool and i think it’s a huge plus of the platform because they’ve got loads of different themes of these portfolios that you can choose from so that’s, a huge plus for us.
The final pro from our do,we like that, for each stock you can go in and see everything in one place. You know you can click on the chart. You perspective, is it’s got a really nice layout dashboard and the way it’s set up.
So, unlike the other platforms that we use at the moment, they have a really really nice desktop version. It looks really clean easy to use. We didn’t really have any issues with figuring out. What to can click on the research, you can click on the news and it will just tell you all the news about that particular stock.
It’s, really cool and also your portfolio just looks really nice and clean and actually has a lot of data on the main portfolio page, which i really like now for the cons. I think there are three main cons in terms of etoro.
In our opinion, clearly, they’re, not ones that have put us off using the platform. You know we have done portfolio updates. We use them ourself, but ones to be aware of the first one. We think it is a little bit too easy to trade cfds so because the cfd platform and the normal trading platform are integrated into one.
It makes it quite easy for people to trade cfds. Now they do put warnings in place and it’s not like you can just click a button and accidentally open a cfd which is really good and that’s pretty much one of the main reasons that we do use them.
So it’s, not really something to worry about accidentally doing. But we generally think that a lot of the platforms that offer cfds should make it even harder to open cfds for retail investors. We know quite a few people who’ve lost quite a lot of money, not on etoro, actually, but still trading.
Cfds, so i think generally, there should probably be a little bit more. It’s going to say regulation, but just generally a little more like a few more hoops to jump through if you will open a cfd trade.
Secondly, the fees. So this is something that comes up a lot. When we talk about etoro. Are people complaining about the fees now? Yes, whilst you might compare to certain platforms that have lower fees, there are also loads of platforms that have much higher fees, so swings and roundabouts.
Really, it all depends on the big picture. They have a five dollar withdrawal fee. Is that really that much? Maybe if you’re constantly withdrawing like 20 50 100 pounds? Yes, maybe that’s a lot, but if you’re investing long term and you’re only going to be taking out like a thousand pounds at a time, then does it really matter? Probably not so just weigh that up um when you, when you look at it there’s, a few other fees on their fee page, but generally, the actual investing into stocks is commission free.
So once you’ve, topped up, you can do as many transactions as you want in terms of buying underlying assets without paying additional fees. And finally, the last con from me is the portfolio history. So we find it a little bit difficult to figure out sort of what i’ve invested, where we have to go into each individual stock just to see when we have invested into it and how much, rather than seeing that, on my portfolio history, the only thing that i can see on the history is the top-ups and the copy trading. So we would, really like to see all of the investments, if possible, and also we have still not really figured it out.
The dividends and how that shows up so that potentially, is like a bit of a 50 50 for us, not quite sure yet to watch this space. That’s, pretty much it. If you are interested in giving them a go, we do have a referral link down below that you can use and you don’t even have to top up.
You can just use the virtual portfolio initially just to see what you think, learn the platform and then make a decision on whether you want to use it or not. So we would love to know your thoughts. If you do try it out what you think about it and yeah that’s, pretty much it for this review, bye.