Info Finance Reviews the Etoro Trading Platform

eToro, often described as a social trading platform, presents itself as a trading platform that incorporates elements of social media. Consequently, many people consider eToro as the "Facebook of trading." So, what is eToro, and is it a platform worth trusting? Let's delve into this article for answers.

1. What is eToro?

eToro is a multi-asset social trading platform primarily focused on financial trading and copy trading services. It was founded in 2007 by Ronen Assia, Yoni Assia, and David Ring. Since then, eToro has served over 17 million clients in more than 100 countries.

eToro stands out in the market as a leading company in the realm of simple copy trading systems. Here, novice investors can replicate the positions of experienced investors across various asset classes such as stocks, forex, CFDs, and popular cryptocurrencies. This unique feature sets eToro apart from many of its competitors.

eToro holds numerous licenses from reputable financial regulatory authorities such as CySEC, FCA, and ASIC. Most of these licenses have been meticulously examined in our previous forex platform reviews, which you can find below:

2. Is eToro Truly Trustworthy for Investment?

In essence, any forex platform holding the aforementioned licenses ensures trader protection through various factors, including:

• Adequate Liquidity: Liquidity is crucial as it ensures the platform has enough funds to settle transactions. Traders prefer platforms with good liquidity, and regulatory agencies verify this aspect. However, traders cannot independently verify the accuracy of the information provided by the platform
• Separate Client Accounts: Regulatory bodies require forex platforms to maintain separate client accounts, ensuring client funds are not commingled with the platform's funds. This safeguard prevents the platform from using client funds for unauthorized purposes or trading against their clients.
• FCA, ASIC, and CySEC are top-tier financial regulatory authorities, and eToro, as well as many other forex platforms, holds one of these licenses. This ensures a high level of trust and confidence in trading.
• Third-Party Dispute Resolution: In cases of disputes between traders and the platform, third-party dispute resolution mechanisms come into play. These mechanisms protect the rights of traders. For example, ASIC often requires forex platforms to be members of the Australian Financial Complaints Authority (AFCA), an independent dispute resolution organization. Traders can directly contact AFCA to resolve disputes and safeguard their rights.
• Investor Protection in Case of Bankruptcy: In the event of a platform's bankruptcy, trader funds are typically protected by law. eToro, under CySEC regulation, must adhere to the principles set forth by the Markets in Financial Instruments Directive (MiFID), as Cyprus became an EU member in 2004. This means that, in the case of a forex platform regulated by CySEC going bankrupt, all traders may be insured up to €20,000 or £50,000 (according to FCA's license).

Additionally, in compliance with regulations from the European Securities and Markets Authority (ESMA), eToro is required to adhere to negative balance protection rules, ensuring traders cannot lose more than 100% of their account value during market volatility or account liquidation.

Considering the factors we have analyzed above, coupled with eToro's multitude of licenses, it is evident that eToro is a trustworthy forex platform. It is regulated by leading financial authorities, providing traders with a level of security and peace of mind that may not be present with unregulated platforms operating in Vietnam.

3. How to Research Information about Trading Platforms on Info Finance

To ensure a deeper understanding of broker information, Info Finance recommends investors to independently assess and research brokers on transparent, reputable platforms like Info Finance. This provides the most objective view of the brokerages they may consider for future investments.

Here is a step-by-step guide on how to research information about brokerages on Info Finance:

Step 1: Visit the Info Finance website - The Best Forex Broker Search Website in Vietnam.

Step 2: Click on the menu and navigate to the "TRADING PLATFORMS" section.

Step 3: Search for the brokerage "Admiral Markets" directly on this page.

Step 4: The search results will appear, along with detailed information about the brokerage.

By following this process, investors can obtain reliable and unbiased information about various brokerages, helping them make informed decisions.