In recent decades, the copy trade has been an investment method that has seen a huge rise in popularity through the Internet. In essence, it’s an passive source of income -when you’re a novice it is possible to “subscribe” to the trades of professional traders and then copy their trades using your own money , thus the name.
In light of this it’s imperative to note it is true that eToro Australia has an incredibly robust Copy Trading Platform. It also works with data-tooltip=”How to open the Forex Demo Account no cost?” href=”https://tradersunion.com/how-to-open-a-forex-demo-account/”>demo accounts as well, so you’ll be able to spend a virtual $100,000 you get upon registering before you have to deposit any actual money.
On eToro the features for copy trading are really a tiny social network in itself. It has a simple feed at the middle as well as a dashboard with various sections to the leftincluding options, you’ll be able to select to use the “Copy People” feature to discover new traders.
In addition, there is less opportunity for fraud as compared to other platforms. Every trader has their actual photographs on their profiles and they have the full name of their company. Every trader has market news, personal news and personal posts from time to time. Additionally, there are comments, shares and like options. Additionally, and perhaps most importantlyyou can check the trading performance of each trader’s profile by looking at detailed graphs and statistics.
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We’ve already mentioned that eToro provides trading capabilities for all types of instruments in the financial market. When you click”Trade Markets,” which is located in “Trade Markets” dashboard section over “Copy People”, you’ll be able to use all their various markets.
After selecting “Stocks” as your preferred filter, you’ll be able to see every options to trade well-organized into their respective exchanges or industries according to your preference.
General Conditions
The general terms of trading for trading on eToro (both for the stock market and for other instruments) are quite attractive. If you’re looking to set up an account with real money after you’ve tried the demo account The first time deposit comes with the minimum of $200 USDbut all subsequent deposits are subject to the lower 50 USD threshold. If you’re looking to get involved into copy trading, then you’ll need to have $500 USD in your accountthe leverage requirement is set by European norms (5x risk).
The only issue Australians might be aware of would be the fact that AUD deposits must be converted to US dollars prior to trading can begin This means that while there’s no particular eToro commissions to trade stocks, you’ll be charged the conversion cost.
Leveraged Trading
In terms of leveraged tradingMany people are wondering whether they could leverage their market for stocks using eToro. Yes, it is possible but there’s one caveat. We’ve discussed it before the maximum leverage is 5x the exposure you take on — however, all leveraged stock transactions are classified as CFDs. As an owner of an CFD stock you aren’t able to claim any rights as a shareholder or actually own any part of the shares.
How to Find Stocks
eToro has a broad selection of markets for investment, so there is a good chance you’ll find some that will suit your needs. There are 17 stock markets across the globe which include the most well-known NASDAQ and NYSE
eToro Australia – Forex Trading
Forex is definitely eToro’s specialty since when the company first came online at the beginning of 2006 currencies were the initial (and in the past, the sole) option that traders could access via the platform. It’s still the primary aspect of their service and comes with a wealth of features.
Every forex trader will be pleased to know it doesn’t only provide the 8 most popular currencies. On eToro you can trade with 49 distinct currency pairs at any moment!
eToro Forex Spreads
For forex trading it is it is said that the spread is the difference between the purchase and selling prices of the specific currency pairthe difference is where the broker makes profits. On eToro the spreads on currencies are determined by the particular currency that are being traded. For example EUR/USD’s spread is one a data-tooltip=”Pip What is a Pip and Why Does it matter?” href=”https://tradersunion.com/interesting-articles/what-is-a-pip-and-why-does-it-matter/”>pip — while the spread on more exotic options like USD/ZAR is a huge 50 pips, with everything else falling somewhere in between.
eToro Forex Leverage
In terms of leverage in forex on eToro the broker follows the guidelines set in the Australian Securities and Investments Commission (ASIC) as well as the European Securities and Markets Authority (ESMA). This means that all most popular currency pairs such as EUR/USD, have a maximum leverage of x30, while more exotic currency pairs such as EUR/NZD are able to have 20x leverage on trades.
CFD Trading With eToro
The data-tooltip=”CFD trading: What is It and What is It?” href=”https://tradersunion.com/interesting-articles/trading-definition-use-cases-and-risks/”>CFD traders are those that speculate on the price movements for derivatives and securities — in other words, they make bets on whether the price of a security or an underlying asset will go up and down. The traders who believe that the price will increase buy CFD in the opposite direction, and those who predict a down trend will sell CFD.
Be aware that you’re not buying the actual assets or securities (like shares) directly and you don’t claim any ownership. CFD literally refers to Contract For Difference, so you’re merely making predictions about the price of the asset.
On eToro you can gain access to indices, currencies as well as commodities that are CFDs -and all CFD trades bear a distinct “CFD” marking as a part of their tradeline.
Can I Trade Cryptocurrencies in Australia?
As you’re an Australian citizen, you’re able to effortlessly use eToro to trade cryptocurrency. Keep in mind that, since Australian law considers crypto to be not a currency of the foreign market nor an Australian currency, it’s seen as an asset and propertywhich means that it’s subject to taxation on capital gains.
In terms of trade capabilities on eToro the platform itself works flawlessly in Australia You can make use of the platform to purchase and sell cryptocurrency as real tokens, or to trade CFD derivatives in response to fluctuations in the prices of crypto.
If you’re looking for many different currencies that you can trade in and you’ll be pleased to know that eToro supports over 110 different cryptos. This includes the top hitters including a data-tooltip=”What are Bitcoin (BTC) and should you purchase it?”