The eToro platform has changed since we drafted this eToro Webtrader Review. Nevertheless, the eToro Webtrader is still functioning. You can read in this post our impressions and opinions. Furthermore:
1. If you are more interested in how the eToro Webtrader works, you can consult this lesson;
2. If you want to discover how to invest with eToro like a pro, follow the instructions to access the eToro Advanced Course;
3. In both cases, you can open a Free Demo Account in 10 seconds to test it first-hand.
EToro today is famous for its innovative Social Trading, but especially for the Copy Trading function that allows investors to copy trades from other professional investors automatically.
Few know, however, that eToro was born as a normal Forex broker, which offered a normal brokerage service for retail trading in this market. (Read our New eToro Review to learn about its story until now)
The term “normal” however is not the most appropriate, because from the very beginning eToro has had an approach and a goal highly focused to the ease of use, in order to attract mostly those investors and traders who preferred an alternative platform, easy to understand and to use.
The early attempts of eToro made in this direction remained popular, they were the Forex Marathon or the Globe Trader, which at the time looked more like video games than professional trading platforms.
Only later eToro added its Social Trading functions first, and Copy Trading then, until becoming what it is today, a complete social investment network.
Despite this evolution, eToro remains a broker in effect, a broker with which a trader can either decide to do Copy Trading, or to open and manage CFD trades in total autonomy.
In both cases, the instrument to do all this is the eToro WebTrader.
Today the eToro WebTrader comes as a tool accessible only from the web, directly from eToro, not downloadable in a desktop version, with modern graphics and features, although it has not lost its alternative and simple approach to trading.
At the top of the eToro WebTrader there is the section dedicated to the list of instruments on which it’s possible to trade with eToro.
There are, and you can filter them to display only some, currency pairs, indices, commodities, only the CFD on shares of listed companies are missing. This lack is a little “uncomfortable”, because if we wanted to buy or sell the CFD of a company we should necessarily go under the Markets section of the OpenBook, and get direct access to the company’s CFD page (Or find them through the search function placed in the menu bar at the top, but this assumes that you already know the instrument you want to negotiate).
In any case, for each instrument that can be used there are some useful tools such as a Price Chart and the alarm to signal you the achievement of a certain price.
In short, this section would be similar to many other of several other brokers, except that in eToro we can also find a retail investor sentiment for that particular currency pair, index or commodity. In practice, eToro shows the percentage of people who are buying on that particular instrument.
Whether you want to go with the crowd, or be a contrarian and take action against the mass (both may be right actions, it depends on many other variables) having this information directly under the nose is very useful.
As soon as you click on the Sell or Buy button for each instrument, a pop-up screen for entering the order appears. A normal MT4 user, or of other brokers that can be called “classic”, at this point would be confused.
Yes becauses with eToro you do not think in terms of lots, with a leverage already set, from which is calculated the margin required, as it is for the vast majority of brokers. In eToro you invest, i.e. you decide the amount you want to devote to the trade and the financial leverage you want to be used, that is the multiplier, starting from a minimum of x1 (only for shares, the rest minimum x2) up to a maximum of x400 (accessible only by unlocking it in the settings).
A classic professional trader would recognize immediately that the eToro reasoning is reverse to normal. Normally you choose the lot size, with a certain type of lever set upstream, and this determines the margin. With eToro you decide to invest what indeed is the margin, and then you decide how to use the leverage.
If we’ve created a bit of confusion, do not worry. We explain everything in detail in our base course for eToro.
Anyway, here the same already repeated several times applies. A trader or investor, accustomed to normal trading platforms, at first glance might turn up their noses and be a little confused, having to think a bit to understand what they are actually doing, but this may be just a matter of habit, easily solvable with a little practice.
For those who are at their first experience, this system can be even more easy to understand, although it is our idea that having a button with which you can “play” with levers in each operation can be a danger, or at least an additional risk, if you don’t know precisely what you are doing.
Financial leverage can be an ally if you know precisely what you’re doing, you’re disciplined and know when to stop. In that case it’s a great way to get more with less resources, i.e. with less margin. If you do not know exactly what you’re doing, you’re not disciplined, you do not have a clear strategy and do not know when to stop (or even worse you are “unable” to do so), then leverage is your enemy, and you may lose everything without even noticing.
EToro Web Trader
Open Trades, Orders, History, News
At the bottom, in the Open Trades, there are listed all positions opened in the market right now.
Those coming, i.e. copied, from a trader are grouped under the trader itself, and you can just click the triangle next to the name to open the list and see the details.
Then, looking at the details of the individual positions we can notice the particular way of handling trading typical of eToro. There is no reference to the lot size, but there are Amount and Units.
What is definitely lacking though, and that would be very helpful to always have an eye on, is the data on the multiplier used for each operation. Needless to repeat that leverage is a useful thing, but also dangerous, and that in case you were wrong you should notice it immediately. Without a clear indication investors should divide every time the Units for the Amount to obtain then the leverage used. Certainly, not a comfortable operation.
In the Orders section you can see the pending orders not yet entered the market, both those of the copied Traders and any of yours personal.
In the History section you can instead go back to the trade executed on your account, where, in case of Practice account, not all the trades are available, but only the last 100.
With the Real Account instead, clicking at the top on “More”, you can also access an account statement, where you can find all the data and all the operations. You can even download the data with all the details in a convenient Excel spreadsheet (what ould be great to have also in the OpenBook stats of the eToro Popular Investors).
If for a Real Account this is a necessity, it would be very useful to be able to have the same tool on Practice Account, in order to test a demo portfolio for long period, without losing the data on the executed trades once they exceed 100 in number. The only apparent solution for now, if you want to do so in any case, it seems to do it by hand. Definitely not convenient.
Lastly, being trading very close to economic and geopolitical news, eToro has reserved the last tab precisely to a bulletin board with the most interesting news feed.
Web Trader eToro
Account Balance, Invested Amount, Net Profit, Equity
The last part at the bottom offers a summary of the current state of the exposure of investments and assets.
As before, this view is something new for traders or investors accustomed to the traditional trading platforms.
The margin is treated as an Invested Amount, that, when subtracted from Equity, returns the Account Balance, which is the capital still available for further transactions or investments (obviously excluding any gains or losses highlighted in Net Profit).
As mentioned before, this particular way of viewing data can be confusing, or, on the other side, more easily understood. In any case, our eToro course is the right place to clear up any doubt and better interpret and understand, without errors, this eToro WebTrader.