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Practical Guide to eToro Day Trading

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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 40% 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 is in 2020. We analyzed eToro compared to the top brokers in 2020 that offer the best features and platforms for traders. 

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

Web Trader

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

Risk

Up to 75% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits

Up to 79.3% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits

Losses can be higher than deposits

Losses can be higher than deposits

Up to 79% of retail investor accounts lose money when trading CFDs

Your capital is at risk

Your capital is at risk

Your capital is at risk

Losses can be higher than deposits

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). 

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+

Risk

Up to 75% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits

Up to 79.3% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits

Losses can be higher than deposits

Losses can be higher than deposits

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. 

Cell

eToro

IC Markets

Pepperstone

FxPrimus

AxiTrader

Swissquote

Instruments

2000

232

100

130

100

100

Platforms

Web Trader

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. 

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

No

Yes

Yes

No

Yes

No

#4 Withdrawal and funding 

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

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 via phone, 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. 

Both day trading brokers let you reach support by phone, email, or chat. 

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

Risk

Up to 75% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits

Up to 79.3% of retail investor accounts lose money when trading CFDs

Losses can be higher than deposits

Losses can be higher than deposits

Losses can be higher than deposits

#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. 

Broker

eToro

Funding Methods

Bank Transfer

Credit Card

PayPal

Customer Support

Live Chat

Email Support

Platforms

Web Trader

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 is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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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