This brokerage firm seems to be sparking a subtle revolution. Now, with a mere click while browsing on X (formerly Twitter), users can kickstart the share purchasing process on eToro. Alternatively, they can opt to download the eToro app, delve into analyst insights, engage with fellow investors, and even replicate trades. However, the recent partnership with X brings an unprecedented level of accessibility to the realm of social investing, notably diminishing the gap between idea conception and execution.
Yet, eToro’s efforts to democratize trading and investing don’t end here. From its inception, the eToro platform has been at the forefront of innovation in this regard.
How to Buy Stocks on eToro
New platform improvements have revolutionized the way users engage with eToro, enabling them to transition from novices to stockholders in a matter of minutes. With access to the program, individuals gain the power to conduct research independently or tap into a vast network of millions of users, potentially mirroring their investment choices. But can investors genuinely harness the collective wisdom of the crowds?
Before delving into that question, prospective users must first register for an account. Let’s take a glance at the initial steps investors embark on when they join eToro.
Step 1: Open an eToro account. Creating an account is swift and convenient, facilitated by your smartphone and streamlined sign-in options via Apple, Facebook, or Google. Upon completing the two-factor authentication process to verify your identity, you gain access to the platform. Even if you opt for a standard sign-up without acceleration, the process is brief, ensuring you swiftly transition to trading readiness.
Step 2: Log in to your eToro account. eToro streamlines platform access by dividing the login process from account verification. This strategy enables the company to swiftly recognize new users and grant them immediate platform access. While account verification via email or text is still required before funding, new users can log in within seconds of signing up.
Step 3: Verify your account. Whether you initiate your login process through a smartphone or a web browser interface, eToro prioritizes verification through text messages sent to your smartphone, if available. Following this verification step, you proceed to answer questionnaires regarding your trading expertise, objectives, and risk appetite.
Step 4: Fund your account. After your account undergoes verification, you gain the ability to add funds for trading. The initial step involves linking a bank account from which you can transfer funds. Utilizing the Plaid service ensures a swift and secure process of linking bank accounts. In the U.S. or U.K., you have the flexibility to transfer as little as $10, although in some other countries, a minimum deposit of $50 might be necessary. Leveraging Plaid expedites the transfer process, allowing you to be ready to trade within minutes.
Step 5: Research and select a stock to trade. The platform provides a variety of tools for researching stocks, such as price charts, company statistics, analyst ratings, and a social media feed for user insights. Leveraging these resources can assist you in forming a preference for the stocks you intend to trade. Moreover, they enable you to devise strategies for entering and exiting trades effectively. Once you’ve pinpointed a promising stock to incorporate into your portfolio, you’re poised to execute your order.
Step 6: Place an order. After clicking the “Trade” button, a dialogue box pops up, enabling you to define all the necessary details to commence a trade. You have the option to determine your trade size by indicating a dollar amount or by specifying the number of shares. This is the stage where you can also express your interest in acquiring fractional shares if desired.
Consider leveraging available options, determining your stop loss, and take profit prices before initiating a trade. Thoughtfully evaluating each parameter during the dialogue aids in crafting a strategic trading approach. Upon finalizing your selections and clicking the “Open Trade” button, your order promptly enters the market and gets executed at the earliest opportunity. Market orders typically complete within seconds, while limit orders might experience slight delays based on the specified amount.
Another option available to investors is the CopyTrader feature, where the platform permits users to allocate a specific amount of funds to follow another trader and replicate their trades. While this method of trading can be beneficial for some, it may not suit every investor. It’s crucial to conduct thorough research before considering this approach.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.