eToro WebTrader platform – Guide
The eToro WebTrader is the trading platform for managing all the orders and transactions of your account.
With the new version of eToro the user can easily manage his orders directly from the central platform, from the Portfolio section. However, the old eToro Web Trader has not been cleared completely, and still remains available.
Through the WebTrader eToro you can:
- trade personally, by entering spot orders to buy or sell in the market or pending ones;
- supervise and manage your personal positions in the market;
- supervise and manage the transactions of other traders, replicated on your account thanks to the Copy Trading function.
Obviously, given the nature of our course, we will mainly focus on the functions related to Social and Copy Trading, since, as we have said many times, doing Retail Trading is very difficult, in fact we suggest you to do it only if you are a real expert.
Since the eToro WebTrader platform is a kind of command and control center for everything related to Copy Trading, it is appropriate to have well understood its potential. For this reason, we will review all the functions to which you have access, so that you can acquire a good knowledge and confidence.
In this lesson we will cover all the points at the top of the platform, from the menu bar to the list of the products in which you can trade and to the Interactive Chart. In the next lesson, instead, we will focus on the bottom, on the real orders management and on the data of your funds.
EToro WebTrader – The menu bar
Let’s start from the top of the platform, that is the menu bar of the eToro WebTrader. Inside it contains several functions to which you can access by a single click.
– eToro Logo
The eToro logo opens the eToro homepage in a new web page. This way you can see the other functions while keeping your trading platform open and running.
– EToro OpenBook
It’s a button that refers to the old eToro OpenBook. Here you will find the social activity of the popular investors who have more than 10 Copiers.
If you’re still not clear what the eToro OpenBook is you can see our review.
By clicking this button you will access the help section of eToro, where you will find a complete list of answers to the most common questions asked by users.
To quickly find the right one you can use the search function, located on the very top of the page.
By selecting Other you will access to a submenu, which contains a number of information relating to trading.
Spreads and Fees: it’s a page with the information about the fees earned by eToro for trading in various financial instruments.
Market Hours: it’s an information page with the details of the trading hours for each instrument that can be used with eToro.
Economic calendar: it’s a calendar, offered by Investing.com, that shows the macro economic news scheduled for the day. EToro sets the calendar by default with the news of the week. You can customize the display period by acting on the calendar at the top right. On the bottom you also find a legend that helps you understand the symbols entered to the left of each news.
The economic calendar is a very useful tool for traders, since it allows them to anticipate when volatility is likely to increase, as well as to provide valuable information about the instruments they trade daily.
Account Statement: a function available only for the Real version of the eToro WebTrader. In your Account Statement you can set a period of historical analysis of the account and see:
- the beginning and ending balance of the account;
- the trading transactions;
- any withdrawals and payments;
- the statistical details about the transactions.
Refer friends, get 100%: a little publicity never hurts, especially when it comes to win-win situations. Clicking this item you will open the page with the Affiliate program.
Market analysis: Contrary to what one might guess from the name of the function, by clicking this item you will end up inside the eToro blog. Not really a section of market analysis, but rather a section of broker upgrades.
Tutorials: the Trading Academy page, where you will find a series of video courses for both traders and investors. These courses are available only to registered users, even only with a practice account.
Join Webinar: this item refers to the webinar section of eToro, where you can choose the virtual classroom that interests you most and sign you up. You will also find some recordings of past Webinars.
Help: an additional link to the support section of eToro, the one I’ve described a few rows above.
Facebook and Twitter buttons: the links to the social networks pages of the company. We suggest you follow them to stay up to date, and to receive useful information about markets.
About WebTrader: by clicking on this function you will open a pop up with the current version of the eToro Web Trader, and the date when it was last updated.
This search tool is very useful to find the instruments you want to trade, from currencies to commodities, indexes and equities. All you have to do is write the name (either the full name or the ticker) of the instrument you are looking for, or just the first few letters, and eToro will offer all the instruments that you can trade that coincide with what you’ve written.
It’s a useful application, because it allows you to find all the financial instruments you can trade with eToro.
The search bar becomes crucial when trading on the stock markets, as the eToro WebTrader does not include equities in the list of CFDs. In case you want to take a position on the shares of a company you have 2 possibilities:
- use the search tool by entering the ticker or the company name in the search bar;
- go to the eToro Markets section, and open the transaction there.
– Fund your account
By clicking on this function, if you are in the demo version, you will be returned immediately in the real section. Clicking again the “Fund your account” button you will end up in the “cashier” page and you’ll be able to deposit money into your account, using the many instruments that eToro provides for the payment.
A very useful function, whether you do Trading or Copy Trading. Clicking this button you will open a drop down menu with the history of all the trades done when you were not logged into the eToro WebTrader. This way you’re not in danger of losing anything.
– Status bar
On the far right of the menu bar you have a useful status bar.
It’s reported your username, your image, as well as an indication of the mode on which your eToro WebTrader is on, Practice mode (green), or Real mode (blue), to avoid being confused and doing transactions on the wrong accounts.
The status bar can be expanded by clicking on it. By doing this you will open a drop down menu that will give you access to additional functions.
In addition to your username and the usual profile picture, you will also see the number of Followers and Copiers that you have, values that will be useful once you begin to trade with real money to understand your degree of popularity and so the distance from your goals on the “Popular Investor” program.
View profile: to see your public profile
Realized Equity: the value of your account, given by the balance of the account (the non invested amount of the capital) plus the value of the invested amount (the amount of capital for Trading or Copy Trading or both of them).
This value does not consider the open positions, in the sense that, if the amount used in the investments generates a considerable profit, this would not be valued.
Balance: It considers the value of the capital in your account in cash, consequently not invested in any financial instrument or in any investor with the Copy Trading function. We can define it as an available balance to trade.
Add funds: it’s the equivalent of the function button, “Fund your account.”
Help: by clicking on it you will be sent directly to the support page that I mentioned a few rows above.
Switch to real: to switch to the eToro Web Trader version with real money.
Sign Out: to disconnect from the platform.
A separate description must be done for the Settings section. By clicking on it you will open a pop up that allows you to set your eToro WebTrader.
The settings to which you have access are:
Language: you can set the language with which you are most comfortable, choosing between a dozen.
Trading: here are two very important sections
- Leverage: here you can enable the “trading with high leverage”. By default eToro lets you trade with a maximum leverage of x50, but with this entry you can go up to x400.
Trading in leverage can be a great advantage, because it allows you to increase your profits significantly by reducing the used resources, but it’s also and above all a big risk and a big responsibility, because at the same time it means to increase the potential losses.
Let’s take an example to make you understand how the leverage effect works.
With $ 1,000 invested without the leverage effect, with the oscillation of a pip (minimal movement of the market) you get a deviation of the value of your investment of 10 cents.
With $ 1,000 invested with a x50 leverage effect, the oscillation of a pip determines a pip value of $ 5, because it’s like being in the market with 1,000 x 50 = $ 50,000. Indeed, you’re just using $ 1,000 of the capital to be in the market.
With $ 1,000 invested with a x400 leverage effect, the oscillation of a pip determines a value of $ 40, because it’s like being in the market with 1,000 x 400 = $ 400,000. Indeed, you’re always using only $ 1,000 of the capital to be in the market.
Having said that, consider that in the forex market movements over 20 pips within seconds are commonplace.
So, as you can guess, the leverage effect is a great opportunity, because, for the same fluctuation of a financial instrument, it allows you to get the profits you would get only by having more capital, but it’s also a great responsibility, because if you overdo it and you do not protect yourself you can also burn your account within seconds. Remember, when you invest the first rule is to protect yourself.
- Trade Risk: with the aim of protecting yourself, by default eToro does not allow you to allocate more than 20% of your capital on a single transaction, that’s because the diversification of risk is one of the key principles.
By enabling this function, you can decide how much capital to allocate to each position you’re going to open or to each investor you’re going to copy, going consequently beyond 20% of the capital per asset.
Password: to change the password to access the eToro WebTrader. Do not underestimate the factor of safety and protection of your platform, especially when you will activate your live account by depositing some funds. It is always about money.
WebTrader eToro – List of tradable CFDs
Another key component of the WebTrader eToro is definitely the section with the list of all the negotiable instruments.
It’s positioned at the top of the Web Trader eToro and consists of a window with the list of almost all the CFDs provided by eToro.
I say “almost all” because, as you have learnt from the previous paragraph, you will not find the equities, but for them you have to use the search tool, or go through the Markets section.
Display mode of the CFDs
We can begin by saying that there are two views modality of this section:
- Linear Classic Rate Views: by which you can find the most information;
- Squared Quick Rates Views: by which you have less details, but an increased visibility of prices.
Which one is the best display mode is personal, I prefer the linear one.
– Linear Classic Rate Views
On this display mode you will access most of the many functions on the financial instrument.
Bell: it’s the function that allows you to set an alarm that will sound at the achievement of a particular price level. It may be helpful not to spend hours in front of the PC and be notified only if you experience certain market conditions.
Chart button: by clicking on it you open a chart in a new window, complete of indicators and analysis instruments. We will examine it in more detail shortly.
Picture: an image that identifies the financial instrument. It’s a graphical representation used by eToro to make the eToro WebTrader more exciting.
Name of the financial instrument: it’s the name of the represented financial instrument.
Sell: the first Bid level of the book, basically it’s the price to sell (the best offer for buying).
Buy: the first Ask level of the book, basically the price to buy (the best offer for selling).
Mini chart: it’s a miniature representation of the linear graph of that financial instrument.
Percentage change: It indicates the percentage change of the financial instrument, on the last day, week or month. The reference period, for both the chart and the variation, can be modified, shortly we’ll see how.
Sentiment: it’s an indication of the overall positioning of the eToro investors. It indicates if the majority of eToro investors is positioned Long or Short on that particular instrument, and in what proportion.
– Squared Quick Rates Views
The Into squares view is less rich in operational details. The goal is to provide a greater focus on the price and give the opportunity to follow more instruments simultaneously, being more reactive for quick entries into the market.
Of course the elements are identical to those seen just now about the classic linear view.
– Options and views
There are other functions that can be used to customize the window of tradable instruments, to fit as much as possible to your operational needs.
Change of the window size
You can change the size of the window, acting on the central element on the bottom, that allows you to drag up or down the bottom of the window, by varying the size at the expense of the window below.
Change the period
To have a thumbnail of the graph and a percentage change of the financial instrument that is set to daily, weekly or monthly time frame, you must change the setting of the value next to “Change”, setting it as daily, weekly or monthly. (1D, 1W or 1M)
Include or exclude CFDs
The funnel-shaped button opens a drop-down menu that gives you the option to include or exclude the financial instruments from the list, personalizing it with just the instruments you work with and that you want to follow.
One Click Trading
With this function enabled, when you click the button for the Buy or Sell of an instrument, you will no longer be asked to confirm the stops, the leverage and the capital to invest, but the order will go directly in the market always with the same universal settings you decided.
eToro Web Trader – The Charts
The eToro Web Trader also offers an interactive chart of the CFD prices, accessible, as we saw earlier, through its button placed on every single row or square of the tradable instruments.
But let’s start by saying that a price chart is a tool for Retail Traders, not for Social Traders or investors. Remember that, unless you’re not a real experienced trader, doing retail trading is very difficult and complex. You can observe and see the charts out of curiosity or interest, but you should avoid taking operational decisions like opening up new trades or connecting/disconnecting traders on the basis of your ideas or your opinions about the price trend on the chart. You may not be capable of doing it properly, and thus you could damage yourself badly.
The analysis of price trends, commonly called technical analysis, allows the trader to verify the causes that historically and statistically preceded the price movement in a particular direction.
For this type of analysis, the trader makes use of tools that now are commonly present within the majority of trading platforms.
Basically, the majority are indicators (which calculate in several ways the historical price fluctuations) and manual tools of graphical analysis (such as oblique lines, horizontal lines, etc.) that the trader can trace within the chart to combine elements of his interest.
The eToro chart tool is composed of the main functions, common to all the trading platforms, some more innovative and personal. Among the common we find the possibility of:
- setting all the major time frames;
- customizing and saving graphics settings of background colors, grids and prices;
- choosing the mode of representation of the price trend, if with Japanese candles, bar, lines, etc.
- inserting elements of technical analysis as lines, channels, etc.
- inserting and setting (to both graphical and parameters level) all the main indicators (and a few more).
Among the non-common instead we have the possibility of:
- inserting within the same chart one or more financial instruments, being also able to compare them;
This concludes the first part of the lessons on the eToroWebTrader. In the second we will deal with how the trading operations are displayed and how to manage them and the traders related to our portfolio.