The minimum amount required to invest in the S&P 500 index (SPX500) on eToro is $1,000. It's important to distinguish this from the 'minimum deposit', which refers to the smallest amount you can add to your eToro trading account. This deposit varies from $10 to $200, depending on your country of residence.
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
In my quest to understand the investment thresholds on eToro, particularly for the S&P 500 index (SPX500), I unearthed some key insights that I believe will be particularly enlightening for those new to the platform.
Firstly, it's crucial to distinguish between 'minimum deposit' and 'minimum investment amount'. The minimum deposit is the least amount you can add to your eToro trading account, which varies based on your country of residence. For instance, the minimum deposit starts from $50 (depending on the user’s regions) and $100 for UK and US residents.
Moving beyond the initial deposit, the focus shifts to the minimum investment amount or the minimum trade size for investing in the SPX500 index. Here, the platform sets the bar at $1,000.
This can be a direct $1,000 investment without leverage, or a smaller sum amplified by leverage to reach or exceed the $1,000 mark. In my attempts with smaller amounts like $10, $100, and $500, the platform consistently indicated that the minimum investment threshold wasn't met.
To sum up, understanding these distinctions is pivotal. The minimum deposit caters to your account funding, while the minimum investment amount defines the entry point for specific assets like the SPX500 and in this case, that minimum investment is $1,000.
I hope my experience and the clarity gained from it aid you in your investment journey, particularly if you're considering the eToro S&P 500 index on the platform.
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. 51% 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.
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51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
