eToro Stocks

Written by Nick Zelver

Fact checked by Mike Druttman

Updated Mar, 2024

Setting the Scene

Did you know that eToro's platform offers access to over 3000 stocks? Through its online interface and app, you can trade shares from not only popular companies but also emerging markets. Additionally, the platform enables you to analyze market trends and engage in discussions with fellow stock traders.

If you're new to this or looking to enhance your stock trading knowledge on eToro, this comprehensive guide is for you. I'll share my personal experiences and provide tips on selecting the right stocks, managing your portfolio, and making informed investment decisions.

Stocks Available for Investment

Wondering how many stocks are on eToro? This broker currently boasts a selection of over 3,000 stocks, encompassing both well-known companies and those in emerging markets.

From my experience, the platform offers stocks from approximately 20 different industries, including technology, healthcare, manufacturing, transportation, energy, and many others.

Choosing the Best Stocks to Buy

Deciding on what is the best stock to buy on eToro can be challenging with the plethora of options available. Selecting the right asset to invest in should align with your trading preferences, available capital, and risk tolerance.

Having invested with this broker for a considerable period, I've discovered various methods to obtain stock recommendations using features from the platform:

• Daily Movers
• Trending Stocks
• Market Analysis
• Popular Picks
• Equity Focused
• Stock-based Portfolios

The Opportunity to Buy Real Stocks

So, can you buy stocks with eToro or is it limited to CFDs  only? Fortunately, they offer the option to purchase real shares. In fact, you can even invest in a fraction of a stock, starting as low as $10.

It's important to note that to buy real company shares, the underlying asset must be purchased without leverage. This means keeping the "Leverage" setting at its default value, which is X1.

Essential Insights from My Stock Trading Journey

My experience with stock trading on eToro has offered me a wealth of valuable insights:

• Minimum Investment Size: The platform allows a minimum trade of $10 for stock orders, making it accessible for small-scale investors.
• Leveraged Trading: This broker supports leveraged trading (except for US trades), but it's important to remember that using leverage means you're trading stock CFDs. The level of leverage available varies by region and account type. For European, UK, and Australian clients, leverage can go up to x5 for stock CFDs. Seychelles clients may access up to x10 leverage.
• US Residents and Real Stocks: eToro does not offer stock CFD trading to U.S. residents due to regulatory constraints. Clients in the USA can only purchase real stocks.
• Copy Other Stock Traders: The CopyTrader feature enables you to replicate the strategies of experienced stock traders. This involves reviewing their profiles, assessing their performance, and copying their trades according to your risk tolerance and investment goals.
• No Third-Party Automated Systems: It does not support third-party automated trading systems for stocks or other assets. However, their risk management tools, such as stop-loss and take-profit orders, are highly effective. CopyTrader is a beneficial alternative for those seeking automation.
• Risk Management Tools: Utilizing stop-loss and take-profit orders is crucial for managing risk. Setting these orders is straightforward: initiate a stock trade, choose "Set Order," and define your stop-loss and take-profit levels. These orders will execute automatically when the set price levels are reached.
• Islamic Trading Accounts: eToro provides Islamic trading accounts, which are swap-free and comply with Islamic finance principles. These accounts do not incur or pay interest on overnight positions. If you're Muslim, you should ensure that the stocks you trade are in line with Islamic guidelines.

Navigating Stock Trading Process

Engaging in stock trading on eToro is streamlined and user-friendly. To begin:

1. Use the search bar to find your desired stock, such as Apple or Tesla.
2. Enter your investment amount and set your trade parameters.
3. Click "Open Trade" to execute your transaction.

Before starting, ensure your account is verified and funded. Be aware that your stock position will remain open until you close it manually, it's closed by a stop-loss or take-profit order, or the contract expires.

Leveraging Live Rates & Charts

eToro's trading platform offers real-time data, news updates, and live price charts, essential for traders at every level. These tools are particularly beneficial for analyzing both historical and current stock price trends.

📈 Verifying the Accuracy of Live Charts

My thorough examination of eToro's live stock rates and charts revealed their high accuracy and promptness. To validate their reliability, I compared eToro's data with trusted market sources such as Yahoo Finance and Bloomberg. While minor delays in price updates were occasionally observed, the stock prices on the platform generally aligned well with these external sources.

Practicing with the Demo Account

For newcomers to stock trading, I recommend starting with this broker's demo account. Upon registration, you'll gain access to this account, equipped with virtual funds. It allows you to practice trading a variety of stocks, like Tesla, Apple, and Meta, in a completely risk-free setting.

Concluding Thoughts

And that leads us to this question: Is eToro good for investing in stocks?

Determining whether eToro is a good platform for investing in stocks depends on various factors, including your investment goals, experience level, and specific needs. Here's my unbiased assessment based on the features I have explored:

We've now covered all aspects of stock trading on eToro. Given the potential for substantial returns, informed decision-making and effective use of the discussed tools and strategies are crucial. I hope this guide has enhanced your understanding and that my personal experiences have provided valuable insights for your successful stock trading journey.

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.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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 hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.