Practical Guide to eToro Day Trading

Page Summary

eToro is one of the largest trading platforms in the world with millions of traders from more than 140 countries. This broker allows its clients to trade a wide variety of assets, including cryptocurrencies. 

eToro has a professional trading platform designed to meet the needs of cryptocurrency traders. USA customers can use up to 15 cryptocurrencies, including Bitcoin, Ripple, and Ethereum. Their clients can trade stocks and contracts for difference (CFDs). 

The central advantage of this trading platform is accessibility since eToro customers can benefit from copying the trades of others. This feature, called “copy trading,” was pioneered by eToro and dramatically accelerates the speed to success for beginning traders. Also, it comes with a set of rules meant to diminish risks. 

Both the website and mobile app are similar, well-designed, and simple to navigate. Each trader can observe others on the platform and use key recommendations from experienced traders.  

eToro offers day trading, but it is recommended for professional traders, rather than beginners. A well-thought-out strategy can help you avoid huge losses. Keep in mind that even experienced day traders can face some challenges and losses. You can check out what is the minimum deposit and read the full review of eToro and eToro UAE special features here.

Which are the activities of a day trader? 

Day traders can buy and sell numerous securities at a time, but generally can’t keep the best position overnight. Their goal is to observe short movements in volatile and extremely liquid assets. 

Day traders are similar to swing traders with the main difference being time frame. Swing traders often hold trades for weeks. 

Day trading is all about studying markets, gaining in-depth knowledge, understanding technical analysis, the best trading strategy, and news. Also, traders need to comprehend the probability of loss and profit. This approach can only help winners overcome lost trades. 

Keep in mind that beginner traders can lose money because of their limited experience. It can be challenging to make money without a proven strategy and trading experience. 

The downside is that day trading has some negative feedback because of this artifice even though several day trading strategies can help you gain money. 

You’ll have to keep in mind that to earn money by trading, you’ll need a suitable platform and a useful strategy for day trading. Many day traders generated excellent profit via either trade-from-home or financial institutions. 

The basics of day trading 

Day trading is all about high volume securities, which leads to lots of buying and selling of assets. This volume provides the advantages of quickly entering and exiting the trades. 

Cash flow is key to gathering sellers and buyers for trading, but you’ll have to pay close attention to volatility as a day trader. The goal is to identify assets with significant price fluctuations. 

The largest price movements are in CFDs, commodities, stocks, and currencies in the financial and tech sectors. Such assets come with inherent sensitivity and uncertainty since many financial assets can move 100 points or more in 24 hours. 

Keep in mind that large movements might not generate the expected profit. Day traders require more revenue on small movements of the price. So, they might trade with higher leverage to boost profits, but this can increase the danger of losses, too. 

Pros and cons of day trading 

One of the leading advantages of day trading is profitability. For 1% on short-term trades per day, you could generate a 20% profit. You can boost your revenue to almost 100% by leveraging this profit. The key to success is accepting that losses can happen next to profitable trades.  

As a result, up to 78% of traders end up losing, since only one mistake in entry or exit can eliminate the trade profits for an entire week. It is best to keep your emotions separate from your trading activities because it can increase the chances of losing money. 

If you want to be successful at day trading, you should have a strategy or a system. To avoid losing money with day trading, you’ll have to focus on the following elements: 

  • Training and skills 
  • Equipment 
  • Strategy 
  • Focus on a plan and a market 
  • Patience 
  • Practice 
  • Discipline 
  • Sufficient capital 
  • Risk management 
  • Time 

If you aim to execute day trading correctly, you’ll need a reliable computer. It mustn’t be an expensive one, but it must be fast. Lagging PCs can cost you money since you won’t see all the charts in real-time. Your internet connection should also be suitable for trading while choosing the best trading platform is a must. eToro is one of the leading day trading platforms you can use to increase your profits. 

Our advice is to try distinct platforms before settling for a particular one. Look at the features, support, and the required skills or training to master it. You can use online materials to discover additional insights about day trading. 

If you want to succeed at day trading, you’ll require a strategy based on your personality, training, and synthesis pattern. It is key to understand the advantages and disadvantages of each strategy before implementing it. 

Key aspects for day trading with eToro 

There are diverse vital constituents to keep in mind when choosing an online day trading platform, such as eToro: 

  • the experience a broker has with day trading 
  • the customer support available 
  • the regulations and the best play an arbitration role in case of disputes or loses 
  • the timeframe for deposits and withdrawals 
  • the international presence in several counties 
  • the access to a multi-cultural customer support staff 

Based on these features, we shared a comparison table to help you decide which the best day trading broker. We analyzed eToro compared to the top brokers that offer the best features and platforms for traders. 

Comparison table

Cell eToro IC Markets Pepperstone FxPrimus AxiTrader Swissquote AvaTrade ForexMart Phoenix Markets EZInvest ETX Capital
Regulation FCA, CySEC, ASIC, MiFID ASIC, FSA, CySEC ASIC, DFSA, FCA, SCB CySEC, MiFID FCA, ASIC, DFSA FCA FSA, FSB, BVI, ASIC CySEC CySEC CySEC FCA
Min. Deposit 200 200 200 100 No 1000 250 1 500 500 100
Funding Bank Transfer Credit Card PayPal Bank Transfer  Credit Card PayPal Bank Transfer  Credit Card PayPal Bank Transfer  Credit Card Bank Transfer  Credit Card Bank Transfer  Credit Card Bank Transfer  Credit Card PayPal Bank Transfer  Credit Card Bank Transfer  Credit Card Credit Card Bank Transfer  Credit Card
Used By 12,000,000+ 60,000+ 10,000+ 10,000+ 10,000+ 300,000+ 200,000+ 10,000+ 10,000+ 10,000+ 10,000+
Advantages STP available Low Min. Deposit Negative Balance Protection Scalping & Hedging Available Low Min. Deposit Negative Balance Protection Scalping & Hedging Available  STP Low Min. Deposit Negative Balance Protection Scalping & Hedging Available  STP Low Min. Deposit Scalping & Hedging Available  STP Low Min. Deposit Scalping & Hedging Available Scalping & Hedging Available  Low Min. Deposit Scalping & Hedging Available  STP Low Min. Deposit Negative Balance Protection Scalping Available  STP Scalping Available  STP Hedging Available  Low Min. Deposit Guaranteed Stop Loss
Accounts Demo Account Standard Account Islamic Account Demo Account  Mini Account Standard Account Zero Spread Account Raw Spread Account Islamic Account Demo Account  Mini Account Standard Account ECN Account Islamic Account Demo Account  Micro Account Mini Account Standard Account ECN Account Managed Account Demo Account  Micro Account Mini Account Standard Account ECN Account Islamic Account Demo Account  Mini Account Standard Account Demo Account  Micro Account Mini Account Standard Account Islamic Account Demo Account  Standard Account ECN Account Islamic Account Demo Account  Standard Account ECN Account Islamic Account Demo Account  Standard Account ECN Account Islamic Account Demo Account  Mini Account Micro Account Standard Account
Spreads Var. Spreads Var. Spreads Var. Spreads Var. Spreads Var. Spreads Fixed Spreads Fixed & Var. Spreads Var. Spreads Fixed Spreads Fixed Spreads Fixed & Var. Spreads
Platforms Mobile Apps MT5  MT4 ZuluTrade Web Trader Mirror Trader cTrader MAC MT5  MT4 Web Trader ZuluTrade Mac Mobile Apps MT4  Mac Mirror Trader Web Trader Mobile Apps MT4  MAC ZuluTrade Web Trader Mobile Apps MT5  MT4 Web Trader ZuluTrade MT4  Mirror Trader Mac ZuluTrade Web Trader Mobile Apps Web  Desktop MT4 Mac  Android iPhone iPad MT4 Mac  Android iPhone iPad MT4 MT4  Mirror Trader Max Binary Tablet Mobile Apps
Support Live Chat Email Support Email Support Live Chat  Email Support Phone Support Live Chat  Email Support Phone Support Phone Support  Email Support Live Chat  Email Support Phone Support Live Chat  Email Support Phone Support Live Chat  Email Support Phone Support Live Chat  Email Support Phone Support Live Chat  Email Support Phone Support Phone Support  Email Support
Excluded Countries AN, VG, NI, PR, GT, HN, PY, US, SV, LB, AW, AI, AG, BS, BM, BB, FJ, GD, KZ, MV, MH, BT, MM, HT, TT, LK, UZ, TJ, TM, VI, SG, NP, WS, TW, BN, PK, CI, DJ, GM, LR, SL, TG, NA, SO, TN, RW, BW, ZM, UG, LY, TZ, GH, ET, ZW, SD, CD, GN, RS, MK, MD, AL, BY, IL, TR, SY, JP, CA, BE, KP, IR NA, SN, GN, KG, KR, GH, AG, NG, GM, AO, NE, LR, BO, ML, CG, TZ, LY, CU, ZW, LR, CI, YE, LS, KH, TG, IQ, MM, SY, IR, BW, SL, GN, AF US, JP, SY, IQ, IR, KR, BR EC, JP, DZ, SY, AU, US, PR, SD, KR, MM, LY, IR, IQ, CU, CI, AF JP, US US SG, CA, US, TR, NZ, KP, BR, BE Cell IL, SY, TR, LA, AF, YE, VU, UG, IQ, ET, BA, US, KP, JP, IR, CA, BE IL, SY, TR, LA, AF, YE, VU, UG, IQ, ET, BA, US, KP, JP, IR, CA, BE BE, SG, CA, US

eToro Markets: essential factors to consider 

eToro can be a volatile market that can pose serious challenges, even for experienced traders. Besides the online educational resources, you can use several other tools to better understand the unique benefits of eToro markets. 

Overall, eToro is considered an industry leader, thanks to its focus on innovation. 

1. Track record 

The first thing you want to study when selecting a day trading broker is its longevity or track record in the market. It is a crucial element in your trading strategy that can help you avoid significant financial loss. eToro is the leading day trading broker with 12 years of experience on the market and headquarters in Cyrpus and the United Kingdom. 

eToro has several regulations, being supervised by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), the Financial Instruments Directive (MiFID), and the Australian Securities and Investments Commission (ASIC). 

The main competitor of eToro is IC Markets. This broker was established in 2007, having a long track record and its main headquarters in Australia. IC Markets is monitored by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). 

Comparison table

Cell eToro IC Markets Pepperstone FxPrimus AxiTrader Swissquote
Regulation FCA, CySEC, ASIC, MiFID ASIC, FSA, CySEC ASIC, DFSA, FCA, SCB CySEC, MiFID FCA, ASIC, DFSA FCA
Used By 12,000,000+ 60,000+ 10,000+ 10,000+ 10,000+ 300,000+
Negative Balance Protection Yes Yes Yes No No No
Guaranteed Stop Los No No No No No No
Headquarters Cyprus  UK Australia Australia Cyprus Australia Switzerland
Year Founded 2006 2007 2010 2009 2007 1999

2. Industry 

Another factor to consider when choosing a day trading broker is whether it is at the forefront of innovation. eToro offers more than 1000 trading instruments, an online and mobile platform, and a user-friendly interface for all their services. 

Beyond that, eToro supports several third-party trading platforms, allowing its clients to use distinct markets worldwide. Thanks to its innovation and ability to seek ways to keep their competitive advantage, it is a world-leader broker. 

IC Markets, the main competitor of eToro, provides up to 232 instruments and segregates clients’ funds according to law. 

Comparison table

Cell eToro IC Markets Pepperstone FxPrimus AxiTrader Swissquote
Instruments 2000 232 100 130 100 100
Platforms  

Mobile Apps

MT4

MT5

ZuluTrade

MirrorTrade

Web Trader

cTrader

Mac

MT4 

MT5

ZuluTrade

WebTrader

cTrader

Mac

Mobile Apps

MT4 

Mac

Mirror Trader

Web Trader

Mobile Apps

MT4 

ZuluTrade

Mac

WebTrader

Mobile Apps

MT4 

MT5

ZuluTrade

WebTrader

cTrader

Mobile Apps

Excluded Countries AN, VG, NI, PR, GT, HN, PY, US, SV, LB, AW, AI, AG, BS, BM, BB, FJ, GD, KZ, MV, MH, BT, MM, HT, TT, LK, UZ, TJ, TM, VI, SG, NP, WS, TW, BN, PK, CI, DJ, GM, LR, SL, TG, NA, SO, TN, RW, BW, ZM, UG, LY, TZ, GH, ET, ZW, SD, CD, GN, RS, MK, MD, AL, BY, IL, TR, SY, JP, CA, BE, KP, IR NA, SN, GN, KG, KR, GH, AG, NG, GM, AO, NE, LR, BO, ML, CG, TZ, LY, CU, ZW, LR, CI, YE, LS, KH, TG, IQ, MM, SY, IR, BW, SL, GN, AF US, JP, SY, IQ, IR, KR, BR EC, JP, DZ, SY, AU, US, PR, SD, KR, MM, LY, IR, IQ, CU, CI, AF JP, US US
Forex Pairs 50 65 70 45 100 150
Major Forex Pairs Yes Yes Yes Yes Yes Yes
Exotic Forex Pairs Yes Yes Yes Yes Yes Yes
Cryptocurrencies Yes Yes Yes No Yes No
Commodities 0 19 16 0 20 7
Metals Yes Yes Yes Yes Yes Yes
Energies Yes Yes Yes Yes Yes Yes
Agricultural Yes Yes No No Yes No
Stocks 957 100 60 60 1000 0
UK Shares Yes No No Yes Yes Yes
US Shares Yes Yes No Yes Yes Yes
German Shares Yes Yes Yes No Yes Yes
Japanese Shares Yes Yes No No Yes Yes

3. Fees and Commissions 

Day trading fees and commissions must be transparent. The top-rated day trading broker is eToro due to the competitive offers for commodities, stocks, CFDs, forex, indices, social trading, and cryptocurrency. This broker has a minimum deposit of $200. 

Another leading day trading broker is IC Markets because it offers CFDs, spread betting, forex, share dealing, and cryptocurrencies. IC Markets has a minimum deposit of $200. 

Comparison table

Cell eToro IC Markets Pepperstone FxPrimus AxiTrader Swissquote
Min. Deposit 200 200 200 100 0 1000
Withdrawal Fee Yes No No Varies Varies No
Inactivity Fee Yes No Yes No No No
Deposit Fee No Varies No Varies Varies No
CFD Commission Yes Yes Yes No Yes No

4. Withdrawal and funding 

Convenient withdrawal and funding methods are fundamental for the best trading experience. 

Comparison table

Cell eToro IC Markets Pepperstone FxPrimus AxiTrader Swissquote
Bank Transfer Yes Yes Yes Yes Yes Yes
Credit Cards Yes Yes Yes Yes Yes Yes
PayPal Yes Yes Yes No No No
Skrill Yes Yes Yes No No No
Payoneer No No Yes Yes Yes Yes
Neteller Yes Yes Yes Yes Yes No

5. Customer support 

Customer support is essential when it comes to day trading. Dealing with brokers and investing can often require several interactions with customer service. These interactions may take the form of training, installation, upgrading, troubleshooting, or even cancelation of service. 

eToro offers reliable customer assistance by email, and live chat. This service is also available in several languages like English, Spanish, German, Italian, and French. 

IC Markets is well recommended for its reliable customer support, available in English, Chinese, Japanese, Afrikans, Polish, Dutch, Danish, German, and several other languages. You reach support by phone, email, or chat. 

Comparison table

Cell eToro IC Markets Pepperstone FxPrimus AxiTrader Swissquote
Support Live Chat  Email Support Email Support Live Chat  Email Support Phone Support Live Chat  Email Support Phone Support Email Support  Phone Support Live Chat  Email Support Phone Support
Languages English German Spanish French Italian English Japanese Chinese Polish Danish Dutch Afrikans German etc. English  Spanish Chinese Polish Japanese Vietnamese Korean Arabic English  Spanish Indonesian Vietnamese Thai Chinese Malaysian Hungarian English  Spanish German Chinese Japanese Russian Romanian Arabic English  Italian German French Spanish Russian Arabic Chinese

6. Resources 

Educational resources can help you gain in-depth knowledge about day trading. Both eToro and IC Markets do their best to provide top insights and news to their clients. 

So, before choosing a day trading broker, you should check to see whether it offers access to comprehensive trading resources. These might include education, analysis, and risk-management tools. 

7. Regulations 

A broker regulated by leading authorities comes with a lower risk. These regulations will protect clients and ensure the broker offers qualitative services. Also, the broker regulation will minimize fraud and financial harm. 

eToro

Broker eToro
Funding Methods Bank Transfer 

Credit Card

PayPal

Customer Support Live Chat 

Email Support

Platforms Mobile Apps
Accounts Standard Account 

Islamic Account

VIP Account

Regulations Financial Conduct Authority (FCA) 

Cyprus Securities and Exchange Commission (CySEC)

Markets In Financial Instruments Directive (MiFID)

Australian Securities and Investments Commission (ASIC)

eToro compared to other brokers:
eToro review

Disclaimer

eToro is a multi-asset investment platform. The value of your investments may go up or down. Leveraged and speculative product. Not suitable for all investors. You should consider whether you can afford to take the high risk of losing your money. Capital is at risk. Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Crypto assets are unregulated& highly speculative. No consumer protection. Capital at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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