eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share my favorite trading app, with you, eToro. Learn here step by step about the app, fees and much more. Of course, with all the criteria of valuation, costs and all trading options, from stocks to ETF, index fund, currency, cryptocurrency and commodities. In addition, the ultimate eToro advantage: You can copy successful traders! Keyword “Social Trading”. In the end, you’ll know the app inside out for your first trades. You want to start right away?
Important / Preface – This is my personal experience as a trader. Always be aware that all forms of trading are associated with risk. Gold, ETFs, index funds for example less than stocks. As you saw in the Wirecard case, individual stocks can also go down. Pandemics, too, cause prices to fall, as is currently the case in tourism. Currencies, cryptocurrencies are absolute speculation for you and carry a high risk for price drops.
No investment advice or purchase recommendation!
All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.
The typical questions from beginners are: Which is the best trading app? What are trading apps good for? Can you make a lot of money with trading?
Here directly all the answers, to the top 3 questions:
Which is the best trading app? Robin Hood, but does not exist in Germany. Therefore eToro.
What are trading apps good for? A lot! Trading has never been so easy for private investors.
Can you make a lot of money with trading? Yes, with the right trading strategy.
Why am I writing this article?
In recent years, I have tested pretty much every trading app, from profit tools like MetaTrader 5 to the many apps you can find in the PlayStore or iStore to “Trading App”, “Stock App” & Co. I myself earn my money as an entrepreneur, with my companies. I often had profits in the bank or invested them in projects that have nothing to do with my core business. After all, money has to work and should not lie in the account at 0 interest. Saving was always something I didn’t understand. Now I do! I put money back and it becomes more.
Get to know the app and its functions here step by step.
Which is the best trading app?
There are many alternatives and worldwide. Which is the best trading app? As I said above, honestly, Robin Hood is the best trading app. Because here you don’t pay any order fee or margin (!) for the broker (learn more about this here: Margin in Trading), this is unique to Robin Hood.
The downside, Robin Hood is unfortunately not available in Germany! As soon as there are plans to make Robin Hood available in Germany, you will be the first to know.
Apart from Robin Hood, I like eToro the best. Find out why here! Fast registration, 0 Euro order fees, 0 Euro account management, and much more.
My Top 3 Trading Apps:
Robin Hood (not available in DE)
EToro
Trading Republic
What must a good trading app be able to do?
Evaluation criteria – Let’s start with the important aspects first, these include 5 parameters in particular. An uncomplicated, fast registration. In addition, the costs, e.g. for account management, as well as order fees. The operation and handling of the platform must be simple. Likewise, the platform, whether online portal or app, should have all relevant trading options.
Important for me:
Quick registration (without mail)
Amount of account fees
Amount of the order fee
Operation of the app / website
Trading possibilities
That’s why eToro: Free account, no extra order fee
The majority, especially German banks, take a monthly or annual fee for the deposit (your account) alone, quasi your account maintenance fees. In addition, there is also on top a trading fee, between 5 to 10 € per purchase. This has always bothered me!
Apart from that, registration is also an important aspect, especially for beginners and newbies. With regular banks, registration can take forever, even with direct banks. All of them even still do the registrations by mail.
Registration? Quickly. Fees? Free of charge
At eToro, it actually only takes you an hour to finish the verification process and you can start trading stocks, cryptocurrency, ETF, index funds, commodities and currencies.
The ultimate advantage of eToro, in my experience, 0 € account fees, 0 € order fees and a fast, uncomplicated registration.
That is why I have been trading with eToro since the fall of 2020. At the latest, if you have read through my article on cryptocurrency trading(Strategy 3: High/Low), you know why it is important to have no order fees. Because the constant buying and selling ensures that your profit is in the high/low fluctuations. The higher the fees per trade, the lower your profit.
This is what the eToro app looks like:
What does eToro earn money with then?
On the one hand, like all brokers: By margin. A small markup, of about 2%, on the purchase price. All of them do that. All brokers charge margin, as I said, Robin Hood is so far the only app where you can trade without margin (at least if you live in USA or UK).
The margin then looks like this:
Sell: $100 (current price)
Buy: $102 (including margin of $2)
As I said, all brokers have this the same.
On the other hand, eToro has other special features for you as an investor that you won’t find on other trading platforms, which generate additional profits for the company. These are, for example, other traders that you can follow (more on this later in “Copy People” and “Copy Portfolios”) but also special, bundled stock products.
It is exactly this COPY function that makes eToro so good!
Here, I don’t have to acquire the expertise myself in order to generate good returns. So even as a private investor, without previous experience, I can look at different investors (stock portfolio, monthly return) and copy their portfolio.
So you can trade the experts yourself.
A return with low risk then looks like this for you (excerpt: Trading Strategies).
Development: Long-term trading (Copy People)
Thus, an investment of $10,000 grows in one year, with a monthly return of 3.41%.
Investment: $10,000
Capital after 1 year: $13,983.81
Increase: + $ 3,983.81
Yield / month: 3.41
Yield / year: 39.84
At the end of the year, you have 39.84% more assets, completely “without work”. After deducting the capital gains tax, which is 25% in Germany, you are left with 29.88% pure profit.
29.88 % pure profit in 1 year
Returns of 50%, 100% can only be achieved by active / risky trading, like here in strategy 3: high/low or also short trading (taking profits of falling prices).
Advantages of eToro: App summarized
Here once again summarizes the advantages of eToro.
eToro advantages at a glance:
Quick registration (no mail)
No account fees (0)
No extra order fee (0)
Simple operation (web and app)
Trading opportunities (all)
Here, as promised, is a step-by-step tutorial and guide, through the app eToro.
Step-by-step: eToro Guide (App)
Get to know the app and its functions here step by step.
Watchlist – Watch prices of shares, coins & co.
In the watchlist you collect the stocks you want to watch. In order to invest in them later, if necessary.
You can easily add new values with one click. You can also create individual lists, so that you can, for example, make a list in which you observe Asian stocks in particular. Another list might be specifically for your favorite cryptocurrencies and yet another list, watches stocks of electric car manufacturers and yet another real estate stocks. If you then want to invest in a single stock, you can do that with two more clicks.
Tip. Before you make your first trade, be sure to read this article, on cryptocurrency trading, here you will learn not only the basics for trading digital currencies, but also from the classic FIAT currencies, the euro and U.S. dollar but also stocks, ETF and index funds, divided into 3 simply explained, basic strategies for “trading on the stock market” or at brokers.
Watchlist at eToro:
Observe individual values
Categorize or create lists
Portfolio – Your investments, all courses at a glance
The portfolio is structured in the same way as your watchlist. Here you will find the values in which you have invested. The individual values can of course be filtered, e.g. in the type of financial product, the profit and loss in euros or dollars or also in a percentage value, and much more. This way you have an overview of all your investments.
I usually have my investments sorted by % gain/loss. Of course with the negative values at the top! I do not want to look at “only” profits, I want to work on building sites that generate losses. Maybe also for you a good spirit in trading.
But here in the portfolio you also have access to the various activities, so you can see, for example, what deposits and withdrawals you have made to your account.
Portfolio at eToro:
Overview of your investments
Current courses
Profit / loss
Capital employed
Current assets per individual asset (capital +/- loss or profit)
News Feed – Trading news from the community
Here you get a rough overview of how your assets are developing, in a curve. Below your asset development you will find news, or contributions from the community, about the values you are watching in the watchlist or in which you have invested, in your portfolio (whether stock, cryptocurrency, ETFs or other), in which you are interested.
Helpful for active trading, because here you get trading news from the community.
News Feed at eToro:
Assets
Investmed News
Below you will find the financial products, from stocks to index funds to cryptocurrency. After that come eToro’s own features around “Copy People” and “Copy Portfolio”.
The markets include all major financial products. Here you can find shares of individual companies. You will find ETF savings plans, with which you can bet directly on an industry. You also have access to index funds, a typical example would be the next corner or the badger. These index funds include several shares from one economic community. Besides stocks and stock products, there are commercials that you can trade, as well as crypto currencies. Finally, the classic, commodities & precious metals.
Shares (Stocks)
Share packages (ETF)
Index funds (Indicies)
Cryptocurrency (Crypto)
Currencies
Raw materials (commodities)
Stocks – shares of the major stock exchanges worldwide
Shares are the best-known financial product. Shares appear in the news, in newspapers, they are talked about.
Companies issue shares when they want to raise capital. Simply put, the company is valued, this valuation is then broken down into individual shares. Investors can then buy these shares on the stock exchanges. So you can participate as an investor, in the success of companies.
With eToro you can trade all stocks that are traded on the major exchanges from New York to London and Hong Kong. This gives you access to stocks from all over the world.
Among the most sought-after stocks worldwide are those of Tesla, Amazon and Google. You can also trade them at eToro, as well as German stocks, for example Lufthansa.
Shares at eToro:
Amazon
Google
Tesla
…
ETFs – Bundled share packages (less risk)
So-called ETFs (Exchange Traded Funds) comprise shares, or selected shares from an industry. In this way, one can invest in certain themes, while at the same time minimizing the risk in the event of an individual failure. The trading is done by the fund. ETFs are long-term investments. Perhaps you have also heard of the term “ETF savings plan”.
Individual stocks have a much higher risk than bundled ETFs.
A very practical example would be the Wirecard scandal. Investors who placed their bets on this single security from the financial sector fell flat on their face. The investor bears the risk. If you had invested the same money in a fintech ETF that deals with financial technologies, i.e. a bundled fund instead of individual stocks, you would have spread your capital over 20, 30 or even more companies.
The individual loss of the Wirecard share would therefore not have been of great significance. However, the generally positive development of the financial sector would have been taken into account.
ETFs minimize the risk of individual stocks and spread it across an industry.
ETFs on eToro:
AAXY (iShares MSCI)
BAR (Graniteshares)
DBA (PowerShares)
…
Indices – blocks of shares from economic regions (such as Dow Jones)
Just as ETFs are launched (by companies, brokers, banks), there are also index funds. These cover a certain economic area. Typical examples are e.g. DAX, Dow Jones.
As a rule, such a fund comprises between 30 and 100 individual stocks, which are combined in such an index fund. This allows investors to focus explicitly on national economies.
The risk of index funds and ETFs is significantly lower than that of stocks. You have already learned why above. You have not focused your portfolio on a single stock, but on an industry or economic zone.
Crypto – Cryptocurrency like Bitcoin, Litecoin, Ethereum & Co.
Cryptocurrency, or digital currency, is still a completely new area for many investors. Of course, investment objects such as commodities, precious metals and shares are much more proven. However, anyone who has followed the emergence of digital currency will, the Bitcoin emerged year 2009, which sees the ever-increasing relevance and digital currency. Read more about the development of cryptocurrency here.
In the meantime, not only individual private investors deal with digital currency such as Bitcoins, but also entire countries, software companies, auditors and many other players.
Digital currency gains relevance.
If you haven’t dealt with the field of cryptocurrency before, you’re naturally wondering, what’s the difference between classic currency and digital currency?
Classic currencies, such as the U.S. dollar or the euro, are known as FIAT currencies. They are determined by central banks, which means by individual persons and bodies.
Digital currency, or cryptocurrency, on the other hand, depends exclusively on the market principle of supply and demand. Financial assets such as shares draw on existing values, for example products, brand values, patents and much more. Cryptocurrencies do not. That is, cryptocurrency, has a very high, psychological aspect, when the market decides, not individual politicians.
Cryptocurrency at eToro:
Bitcoin
Bitcoin Cash
Ethereum
Dash
EOS
…
Get to know many of the most important ones here: Cryptocurrencies.
Currencies – currencies like Euro, US Dollar, …
Before we even start with the topic of currency trading, be warned, currency trading is extremely speculative. Accordingly, the profits are high, but so are the losses if the prediction does not come true.
Trading no financial products without experience and expertise
That is why I keep this point very short. EUR / USD and USD / CNH are currency pairs. What that means, and how currency trading works, you will learn here: Currency Trading.
What makes trading currencies on eToro so “risky”?
All currencies are traded with leverage. This is simply put, a short-term loan from the broker. This increases profits and (!) risk. You give $1,000, take a leverage of 10, and you have $10,000 of capital tied up.
X10 = from 1.000 you make 10.000
Examples of levers:
Invested amount
Lever
Trade
5.000 $
1:1 / X1
5.000 $
5.000 $
1:2 / X2
10.000 $
5.000 $
1:5 / X5
25.000 $
5.000 $
1:10 / X10
50.000 $
5.000 $
1:20 / X20
100.000 $
5.000 $
1:30 / X30
150.000 $
Also, some mapped index funds automatically have leverage, such as the China 50.
Commodities – commodities such as gold, silver, oil, …
The stock market started with commodities. People agreed on certain values, e.g. for coal, iron ore or other goods. Even today, commodities are traded with market values. Accordingly, the prices of commodities fall and rise. Commodities can also be bought and sold at eToro.
Commodities at eToro:
Gold, Silver, …
Iron, copper, …
Oil, gas, …
Sugar, wool, cocoa, …
…
Copy People – Successful Investors “Copy
This is one of the strongest features that the trading app eToro offers. Summarized in one simple buzzword, “Social Trading”.
Just like on social networks, you can see profiles of traders. So you know what portfolios the traders have, you see the returns of the last months and years, so you can make an estimation about the profits.
Ultimate advantage: Let trade
The biggest advantage, however, is that you don’t have to adjust your daily business according to your investment portfolio. If you trade yourself, you have to keep an eye on the different stock exchange prices, as well as the different opening hours of the stock exchanges worldwide, from New York to Europe Herten to Asia. You have to follow news from economy and politics. A lot of work that you can save with the smart copying of successful traders!
Compare at eToro:
Gains/losses by month
Gains/losses by year
Investment portfolio
News stream
Number of copiers
…
Instead of trading yourself, you can follow successful traders. In a few seconds you can copy their investment profile and automatically make exactly the same purchases and sales as the professionals.
Here you will also find various recommendations and investment concepts.
Most Copied
Trending
Long-Term Stock Investors
Long-Short Investors
Multi-Strategy Investors
Copy Portfolios – “Copy” successful products
What succeeds, what doesn’t? Portfolios summarizes different financial areas. Here you can find, for example, bundled, successful traders. Or, you can follow bundled many papers of an entire industry. Discover the markets best yourself!
Market Portfolios
Top Trader Portfolios
Partner Portfolios
Read more: Trader Copy & Tips
eToro App: Copy Trader – Trading Beginners have a big problem, they are not familiar with trading financial products. No matter if it’s stocks, currencies, cryptocurrencies, index funds, ETF or leverage. The “big advantage” of eToro is in “copying trading profiles”. That is, you can as a beginner and beginner (but also professional), passively actively participate in the stock market! Once copied, all financial products are traded 1:1: Stocks, cryptocurrencies, ETF and index funds. What this means, you will learn in this article!
With my articles and guides, I want to help you save money! In my first trade, I made -5,500 euros in 1 hour. Why? I wanted to practice quickly. Because besides my companies, I only have the morning and the night for trading.
What is the Quint Essence?
“Quantum interest” explained: Take short-term profits
I came up with the term “quantum interest” to clarify the concept. We do not wait for the big end, we also use small jumps (price movements) to take interest (profits).
A quantum leap is often perceived as something big. In fact, however, a quantum leap is the smallest possible unit in physics, simply put. Smaller than any virus, smaller than any atom, smaller than a proton, even smaller than an electron.
As you have already learned in the article on trading strategies, taking profit from small movements, is a good strategy to build your wealth further. Because that’s how you take:
Gains from long-term increase in share prices and
Gains from short-term price fluctuations
Time sale and schedule new purchases
I have built this table myself to calculate when I re-enter after a TP (Take Profit; selling the stock/currency/etc.). For this I subtract the margin x2 (i.e. the trading fee of the trader). At eToro, for example, you pay round about the following fees (margin) per trade:
Cryptocurrency: 3%
Shares: 0.2 %
Download: Sell / Buy table
In my table, the whole thing looks like this. In the line “Sell” you enter the rate at which you have set your TP. Of course, the table is also available for you and the community as a free download:
In addition, I set up a price alert. This is then always slightly below the price, usually 0.5 – 1% before my TP. So I can reorder directly after the sale.
Tip! You can also “buy” automatically! To do this, you do not place your order directly, but buy at a certain price value. You can do this easily when buying the cryptos, stock, etc..
Here are a few more common questions from trading beginners:
FAQ: Questions for beginners
Trading apps with 1, 2 star rating?!
How secure is eToro?
Is eToro free of charge?
What does a trade cost at eToro?
What are the eToro alternatives?
Can you buy stocks on eToro?
Can you buy from gold?
Trading apps with 1, 2 star rating?!
Yes. Robin Hood also currently has only 1-2 stars. Why? Remember the financial news, around GameStop stock? Briefly recounted: Tens of thousands, hundreds of thousands of private investors conspire on a Reddit forum to make coordinated purchases of specific stocks. Old stocks like Blackberry, Nokia and GameStop. They want the price of the shares to rise so that hedge funds that have bet on falling prices can’t sell. The more expensive the securities become, the less profitable it becomes for the hedge funds – David against Goliath.
Due to the extreme and unusual rise of GameStop & Co. shares, some brokers have stopped trading (or buying) the shares. This has led to a huge shitstorm and millions of 1-star reviews. This is the story behind the bad and negative reviews of all (!) trading apps that have suspended trading.
Can eToro be trusted? In my experience, eToro is very secure. You can even increase the security of the app by selecting a 2-way login. This way you always have to verify yourself with your smartphone before logging in.
There are also no known cases of security vulnerabilities.
Is eToro free of charge?
Yes, you do not pay for the account, nor do you pay an extra Or fee. Only the usual margin (2%), as with all brokers and apps. Tip. Create a virtual account first, here you can practice trading stocks, ETF, cryptocurrency and Co. easily and for free, with virtual money.
Only for payouts, a small amount is charged for processing. I believe this is currently 5 euros.
What does a trade cost at eToro?
As described above, you do not pay a separate order fee on the trade, only the standard trading margin of ~2%, as with all brokers.
What are the eToro alternatives?
Besides eToro, there are many trading apps. Many of them are from German banks like ING Diba, but OnVista is also a popular provider in Germany. Then in the app stores there are good apps like Trade Republic and Coinbase. The last two also have virtually no cost.
Can you buy stocks on eToro?
Yes, you can buy stocks in the eToro app. To do so, go to the menu of the app or in the web browser:
Open menu
Click on “Trade Markets
Click on “Stocks” or “Shares” in the filter.
If you already have this stock, you can also buy it directly in your “portfolio”.
Can you buy from gold?
Of course, you can also trade commodities. Besides gold, this includes silver, for example, but also commodities such as wool, oil and gas. To buy gold, go to the menu of the app or in the web browser:
Open menu
Click on “Trade Markets
Click on “Commodities” or “Raw Materials
If you already have this stock, you can also buy it directly in your “portfolio”.
What is margin in trading?
As described above, the margin is the broker’s profit margin. Between selling price (rate) and purchase price is therefore a small margin. In my table from the guide Trading Strategies, the whole thing looks like this. In the line “Sell” you enter the price at which you have set your TP. Of course, the table is also available for you and the community as a free download:
Whether it’s cryptocurrency, currency trading, stocks, commodities or precious metals, these 3 strategies will help you understand the basic stock market game. I developed these 3 strategies to help beginners and novices understand the mechanics in a nutshell. Since I grew up with Bitcoin rather than stocks, here in particular a strong reference to digital currencies. However, the mechanisms or strategies are the same for these 5 investment types: cryptocurrency, currency trading, stocks, commodities or precious metals. I would exclude ETF and index funds here, as the risks and price fluctuations are significantly lower here.
BitCoin, BitCoin Cash, Ethereum, Litecoin, Dash, Ripple, Zcash or Binarcy Coin: They are considered the answer to traditional means of payment. Through the digitalization and decentralization of money, banks become superfluous. Only buyers and sellers are responsible for the control and security of their digital money. You want to invest in Bitcoin & Co. too? We have an overview of the most popular cryptocurrencies here.
The world is increasingly sent into lockdown by the new Covid-19 virus. March 2020 was the month in which stock market prices also plummeted. Papers like those of Lufthansa fell to ~ 1/5 of their pre-value. Minus 80% losses in a few weeks. This happened to almost all sectors, except e-commerce and online trading. In contrast, the price of Bitcoin and other cryptocurrencies is holding up. What makes cryptocurrency stand out? Why im wanting to buy more cryptocurrency? Since March, BitCoin (BTC) has reached 453.9%. Ethereum (ETH) 376.2% and Binary Coin (BNB) at 428.5%. Currency trading is attracting more and more investors, including individuals. The phenomenon is strong in forex, but more investors are also getting involved in the stock market, as seen recently at GameStop. A look at the development, 12 months after the start of the pandemic, in mid-February; with the consequences of the lock down in March.
Stocks, ETF, Forex, Cryptocurrency, Social Trading – Here’s a little list of a few learnings that cost me money but are so simple you should know them! You want to buy stocks, index funds, cryptocurrency like Bitcoin or Ethereum, foreign exchange (currencies)? You’re thinking whether house bank, direct bank, online broker or app? Trading all on your own at risk or new options like social trading via app? My experiences and mistakes!
