Any legitimate broker in their right mind would not promote copy trading. The persona’s strategy actually making those trades is kept unknown from the ones who are copying it. Also, some of the illegitimate brokers also promote their copy traders. Well and at the same time fail to maintain an actual identity if such people. Brokers like eToro should not be entertained at all. Their doubtful ways and tactics force a trader to lose money without his or her knowledge and will.
Let us read more about the eToro broker in detail.
eToro: Account types
We could not find any related material on the broker’s website about the account types is offered. What was visible more, was a failed attempt of the broker to lure in traders to do copy trading. The broker mentions that it allows trading in CFDs but nowhere mentions how to proceed with the procedure.
The broker also does not mention how risky CFDs are, and novice traders are not advised to use CFDs as their primary trading instrument.
If nothing, an ideal broker should mention the trading accounts it offers but not Etoro. The broker makes it hard for a visitor to find the account types it has to offer. The broker makes sure that a visitor is first converted into a confirmed lead, and only then, it unravels more levels of illigitimate practices.
The rotten Idea:
Even after detailed research, we could not find any concrete evidence that suggested the particular account types for a broker. All we could find was a rotten idea of trading accounts. The broker somewhere mentions that it has a CFD trading account and a professional account. This puts the trader in thinking that why is there only CFD tradable assets listed on the website? What about more profitable options like futures or maybe something else?
eToro: Trading platform
We could find the only trading platform with the suspicious broker was its own trading platform, whose name is not really important. What is important is the absence of reliable and goliath trading platforms like the mighty MetaTrader.
The broker nowhere mentions that these platforms are available for trading on its platform.
Maybe because these platforms are thought of as being too safe and help traders make larger than life profits, no suspicious broker wants a trader to make more money than the money it expects to be made.
To make this possibility a reality, the brokerage firm eToro restricts the user’s access to its own trading platform. No one knows how secure it is. Despite uncountable claims by the brokerage company, nothing is guaranteed because it is not peer-reviewed yet.
Platforms like the MetaTrader5 offer a trader the possibility of making better trades, but the broker does not allow trading via the platform. These platforms are also known to provide useful indicators, in terms of when to be in and out of the trade and hence, traders have a better future with them.
The broker cleverly realises this and forces the trader to trade via its own trading platform.
What in the world leads to the concept of copy trading, is still unclear to us as a team of researchers. People do not realise that it is a clear bad art, and the broker makes more and more money when traders begin copy trading.
The so-called experts that the e-Toro broker mentions are nowhere to be seen in real life or any other social media platform.
The broker says that these people will provide the traders with the best trades possible, ever. Okay, but who guarantees that? Even an expert is bound to succumb to the turbulences the market holds in itself.
Still, the suspicious broker promotes such people and encourages the novice trader to begin their trading career by copying someone else.
The whole idea of a career is to make money that came with hard work, or hard-hitting calculations in the particular case of trading. Illegitimate brokers ask the traders at the beginning of their careers to begin it with someone else’s help and hard work.
And also, the trader does not know what is actually happening behind the curtains. The so-called expert buys, and the trader follows, the so-called expert sells, and the trader trades.
The trader has no right to ask for the trading strategy that was sussed for the trade or even question it if something goes wrong. Although the broker Etoro does not mention it, copy trading asks for more fees in terms of spreads and pips. And sadly, the trader is bound to pay that.
It is also possible that copy trading comes in with more advantages in terms of increased leverage. The more leverage a trader exposes him or herself to, the more are the chances of increased risks.
This is the real truth of copy trading that maybe, no one else will ever tell you.
Commissions and spreads:
The broker asks for commissioned trades that may come as a no-no for swing traders and the people who trade daily. The broker also claims to offer an online wallet for cryptocurrencies. The broker completely forgets the existence of giants like CoinBase. Creating its own E-wallet is a way to establish itself as a third party between the trader and the market. By doing so, the broker can add up more withdrawal and deposit fees on the traders head.
eToro illegitimate or safe?
The broker exudes suspicion as we see it. Providing the traders with dreams of getting rich quickly with the help of copy trading, hiding important and basic information like what kind of accounts it holds are all the practices of a dodgy broker. The brokerage company also makes sure that the trader is in a constant loop of payments in one way or the other. If the copy trading trick does not go as planned, the broker is already in place with increased commissions.
Commissioned trades come in as a flaw for day and wing traders.
The broker is full of suspicion. We advise our traders to move their financials elsewhere as soon as possible. The legitimate broker list is long, but HFTrading and GlobalTrade ATF sit on the top. For a long time, these brokers have been in the market and provide the users with options to trade easily, are transparent enough in whatever they mean and say. The potential trader is looked upon as a likely trader, not a potential lead that needs to be converted immediately.
Frequently asked questions:
Will I lose money if I trade with eToro?
Yes, if it has not happened yet, then it will happen soon, better move your financials to more responsible brokers.
What else should I keep in mind?
Apart from ensuring that the broker is not illicit, make sure that you understand leverage and other trading instruments well enough to put in real money. Always remember that the proper research and the right math bring in actual cash, not any type of intuition.
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