User-Friendly Platform Educational Resources Social Trading Features
Wikitoro author Mike Druttman Written by Mike Druttman
Wikitoro fact checker Nick Zelver Fact checked by Nick Zelver
Updated Feb, 2024

To trade CFD Stocks on eToro, open the platform and search for the stock you want to invest in by typing the company name or its symbol. Decide whether to "Buy" or "Sell." Set the leverage higher than X1, adjust your investment settings in line with your trading strategy, and click "Open Trade" to start your trade.

Trade CFD Stocks!

76% 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.

 

A Look Ahead

Trading eToro stocks in the form of CFDs, from my personal experience, is quite user-friendly and only slightly differs from trading actual or real stocks. However, there are important aspects to be aware of.

To aid you in navigating this process, I've put together a clear, step-by-step guide, complete with useful tips. This guide aims to enrich your stock trading journey with this broker, ensuring you're well-informed and prepared for this trading approach.

 

CFD Stock Trading Quick 101

In eToro CFD stock trading, you engage in transactions involving Contracts for Difference (CFDs) rather than buying or selling actual stock shares. This approach allows you to speculate on stock price movements without owning the actual stocks.

What's the difference with real stock trading?

Traditional stock trading involves buying and selling shares of companies, capitalizing on price differences to generate profits. In contrast, a CFD is a derivative that lets you speculate on the price changes of a stock, without the need for physical ownership. When you trade stocks on this platform, you're entering a CFD contract, where your profit or loss is determined by the price difference from when the contract is opened to when it's closed.

CFD trading offers the advantage of gaining from price movements without the complexities of owning or delivering the actual asset. However, it's crucial to be aware of the risks, including the possibility of losing your investment. Employing risk management strategies, like stop-loss orders, is essential to mitigate potential losses.

 

A Short Checklist Before You Begin

Prior to diving into CFD stock trading with this broker, it's important to consider a few essential steps for a smooth experience:

  • Ensure that  your online account has already been fully verified.
  • Verify that your account has sufficient funds. The minimum investment for this asset class is $10.
  • Leverage should higher than X1. If you use X1 leverage, you'll be investing on real stocks and not CFDs.
  • Be aware of the stock market's volatility and understand that your capital is at risk, necessitating cautious and informed trading decisions.

 

How to Trade CFD Stocks on eToro

Initiating CFD stock trades on eToro is a user-friendly process. Follow these steps to get started:

  1. Access the platform and login using your account.
  2. Enter the company's name or its stock symbol the search bar and when you see the right asset, click on the "Trade" button next to it. 
  3. Choose "Buy" or "Short".
  4. Determine your investment amount.
  5. Change the eToro leverage from X1 and set it to your preferred market exposure.
  6. Adjust the settings for the stop-loss and take-profit orders to align with your trading strategy.
  7. Finally, click "Open Trade" to commence your trading position.
☝️ Here's the gist:

Initiating CFD stock trading with this broker is straightforward, whether you're using their app or web platform. Just a few clicks and you're set to start. However, it's crucial to remember the key points from this guide, especially when using leverage. While leverage can amplify your gains, it also significantly increases the risk of losses. Use it wisely and understand the risks involved. I hope this guide helps you become a more informed and astute trader.

 

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. 76% 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. 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.

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

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.

 

Wikitoro author Mike Druttman About Mike Druttman

Mike Druttman, Head of Content at Wikitoro.org, has decades of expertise in marketing communications and business matching. Educated at the CAM Foundation and the Chartered Institute of Marketing, Mike has collaborated with businesses from the UK to Japan. He founded KEYZUNA, bridging Japanese businesses with global innovations. With a diverse background spanning high-tech to hospitality, Mike's articles at Wikitoro reflect his vast knowledge and unique perspective.

Read More
wikitoro author strip image

76% of retail investor accounts lose money