EToro South Africa Review: Social Trading and Copy Trading
The broker was launched in 2006 by a team of 3 founders in Israel. Their goal was to make online trading simple and accessible to everyone, out of that aim eToro was born. They have certainly been successful because since then eToro has grown to be one of the main brokers with over 3 million users in multiple countries.
Regulations: CySEC and FCA
Platforms: WebTrader & Mobile Trading App
Minimum Deposit: $200
Can you deposit in ZAR? No, just USD
Support: 24/5 LiveChat service, although Help Center is available 24/7
Instruments Available: Stocks, Forex, Commodities, Cryptocurrencies, Indices, Options
The company headquarters remain in Israel, but now there are subsidiary offices based in London, Australia and Cyprus. In 2018, eToro also started offering their services to residents of the South Africa.
Although they may not have an office in South Africa, eToro is available to clients in the country. They’re also completely regulated and hold many regulation licences. This means that eToro is fully authorised to operate in South Africa as a broker service.
Regulation is vital because it means that the broker is licensed and legal. It also means that the broker must observe important financial laws that are designed to protect traders.
Forex and CFD trading is popular all over the world with millions of traders investing daily. However, one key country with a lot of trading activity is South Africa, with many online brokers in South Africa offering their services.
With so many brokers available in South Africa, it can be hard to decide which one to start with. To help you, we reviewed in detail one of the biggest brokers around- eToro.
eToro which is a leading broker internationally with millions of clients, also offers their services and platform to residents of South Africa. They’re also licenced to operate as a broker and are completely regulated, which means they are secure to trade with and not a fraudulent company.
The main thing that eToro is known for is for being the leading social trading broker and for offering unique social tools like their CopyTrader feature. It’s all designed so that users can learn from other professional traders on the platform.
That’s why in this review we have examined all the features that eToro offers and how their platform works, including the eToro trading App.
We will also look at the eToro minimum deposit and withdrawal process, plus which CFD assets and instruments are offered.
Is eToro South Africa a Scam?
Currently eToro is regulated by both CySEC (licence no.109/10) and the Financial Conduct Authority (no. 5833263). Both the FCA, which is a British institution, and CySEC are highly respected regulation authorities that monitor brokers and ensure that they follow strict legislation.
Besides this eToro also holds a regulation licence from Australia’s ASIC (no. 491139). With so many licences you can be assured that eToro is a fully compliant broker and not a scam. They are secure to open an account and trade with.
It’s important to note that regulation also means that there are certain processes that the broker must follow to keep their licence.
For example, they must verify your account and identity to stop fraudulent activity. So once an account has been opened the customer service team will request 1 proof of address and identity, so they can make sure that your account really belongs to you.
Another financial rule the broker must follow is segregation of funds. This means that eToro must separate and segregate trader’s fund from the eToro company firm accounts. Again another rule designed to protect trader’s and to give peace of mind.
eToro South Africa Platform
EToro the platform is very simple to use and has been designed with novice traders in mind. So if you’re new to trading you can easily navigate around the platform and your account menu.
Also included on the platform are educational materials with a mix of video tutorials and e-courses available. However, the videos provide more of a general overview of the topics instead of very in-depth tutorials.
The platform is very customizable as well, so you can edit and select which CFD instruments you want to view on your personal dashboard, for instance crypto assets or stocks.
However, the most important features on the platform are the social trading ones which no other broker currently offers. This includes the CopyPortfolio and CopyTrader tools. The CopyTrader feature lets client copy the exact trades that other traders are making automatically.
To find a professional trader to copy, the advanced search will let you filter and find an active trader that meets your requirements. Each trader profile will be give a risk level as well, so you know if that trader makes high or low risk trades. To start copying, just click on the ‘CopyTrader’ button, it’s as easy as that!
How to Open an Account
To sign-up and open an account with eToro South Africa is quick to do. Simply provide some details such as email address and username, you’ll also be asked to create a password to secure your account.
After these steps are complete you’ll be able to enter into the eToro platform. It’s also possible to sign up with your Google or Facebook account details.
When you open an account, there is no pressure to deposit money or to start trading. This is why the broker provides a free eToro demo account for new clients to use.
All demo accounts come with $100.000 of virtual funds for users to spend on practice trades. It’s a good way of testing the platform and trading strategies without risking real money.
You can switch at any time between the demo and real trading accounts. In fact a lot of traders will test trading strategies in the demo version first and then place them for real in the live account.
Currently the eToro platform is offered in 2 formats:
as a mobile trading App for both Android/iOS devices
online WebTrader platform
No matter which format you choose both the App and the online version have all the same features as each other, including analysis tools and charts. The App account will also automatically stay in sync with the online version to keep everything updated.
If you’re looking for a downloadable desktop version of the platform though, sadly this is not offered by eToro. Maybe this will change in the future. However, the trading App has been very well-designed and makes up for the lack of a desktop format.
The trading App can be downloaded for free from either the Apple or Google Play stores. The App is great for trading on the go, directly from your smartphone, letting you have an overview of your trades at anytime. Importantly the App also comes with notifications on real time market events, so you can stay on track of market changes.
What to Trade in eToro
eToro South Africa has 6 CFD financial instruments available for trading. This includes: Cryptocurrencies, ETF’s, Forex, Commodities, Stocks and Indices. Under each of these instrument categories are many assets, all available to trade as CFD’s.
The only instrument that eToro currently doesn’t offer are Options. So if this is something that you’re really looking to trade in, then another broker may be more suitable.
However, we took a closer look at the asset selection on offer, and we were very impressed with the stock assets available. eToro has managed to compile a large range of stocks ranging from retail to technology. There are also some major cannabis firms listed including Aurora and CannabisCare, these cannabis stocks have been a hot topic for sometime so it’s good that eToro has included them.
It’s also easy to see all the stock listed by filtering by the assets industry or exchange background.
If you wish to use the CopyTrader tool, it’s worth noting that the minimum amount required to invest in each trader is $200, but the minimum trade size is just $1.
eToro South Africa Deposit
All brokers require a minimum deposit which is a set amount of funds that they require you to deposit your trading account with. The amount varies by broker, and they all accept various payment methods by which you can make the deposit.
For eToro South Africa, the initial minimum deposit for South African residents is $200. It’s worth noting that this amount is just for the first ever deposit, for any future deposits made afterwards the minimum deposit is only $50.
That’s important to point out so you know that you’re not bound to pay $200 each time you wish to add funds to your account.
There are no additional deposit fees charged by eToro when making a deposit, however the platform’s base currency is in USD/$ and not ZAR. So you may have to pay a small conversion fee to convert ZAR to USD.
It’s easy to make the deposit as there is a big selection of payment methods available, including:
- debit/credit card (Maestro, MasterCard, Visa)
- online banking
- electronic wallets (PayPal, Neteller, Skrill, WebMoney)
- bank/wire transfer – please note the minimum deposit for wire transfer is $500
The deposit can easily be made directly from your trading account and is clearly explained in easy to follow steps.
eToro South Africa Withdrawal
If you wish to withdraw money from your eToro South Africa trading account, you should be aware that the broker does charge a $5 fee each time a withdrawal is requested.
There is also a minimum withdrawal amount of $50. That’s why we’d recommend only withdrawing larger amounts not too often, so money can be saved on the fees.
The withdrawal process though is easy to do and can be requested directly on the platform via a trader’s personal account area. Simply enter the amount to be withdrawn and select the payment method that the funds should be sent back to.
Generally, most brokers prefer it if the same payment method that was used to deposit the account is selected for the withdrawal. However, it’s possible to send the funds to another payment type, it may just take the customer service team a little longer to process.
eToro aims to process all withdrawal requests within 1 day and a notification email will be sent from the customer support team once the process has been completed.
*75% 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.
Author of this article and founder of Tradingonlineguide.com
My aim is to help you increase your trading knowledge with helpful content. I come from an economic background and have a strong passion for forex trading. With more than 6 years in the online trading world, I want to share my financial knowledge so that anyone can develop their investment skills.
In my spare time I enjoy cooking and travelling.
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