ETORO?

[ongkinhong12345]

Who know what is ETORO and compare to loca broker? Like poems and etc..

 

[Shiny Things]

Who know what is ETORO and compare to loca broker? Like poems and etc..

Etoro is not a regular stockbroker - when you do a trade at Etoro, you’re not buying shares or bonds or futures or currency or whatever. You’re buying “contracts for difference”: basically a bet between you and the broker that the price will go up.

The economics of the trade are exactly like borrowing to buy the shares or the currency or whatever. The problem is that most people shouldn’t be borrowing to buy shares! And they shouldn’t be actively trading in the first place, because most people will, on average, lose money.

The problem is that these CFD brokers make a lot of money off people with, frankly, thinly-veiled gambling problems.

Don’t encourage them. Use Stanchart or Interactive Brokers instead.

 

[rstopel]

Etoro is not a regular stockbroker - when you do a trade at Etoro, you*********re not buying shares or bonds or futures or currency or whatever. You*********re buying *********contracts for difference*********: basically a bet between you and the broker that the price will go up.

The economics of the trade are exactly like borrowing to buy the shares or the currency or whatever. The problem is that most people shouldn*********t be borrowing to buy shares! And they shouldn*********t be actively trading in the first place, because most people will, on average, lose money.

The problem is that these CFD brokers make a lot of money off people with, frankly, thinly-veiled gambling problems.

Don*********t encourage them. Use Stanchart or Interactive Brokers instead.

I thought it's a platform where anyone can set up its own low cost fund and get people to invest in your fund.
Was tempted to invest in some but the high TT fees are putting me off.


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[Shiny Things]

I thought it's a platform where anyone can set up its own low cost fund and get people to invest in your fund.
Was tempted to invest in some but the high TT fees are putting me off.

Uh no, it’s not even remotely that. Etoro is a CFD broker. Are you talking about the “copy trade” function?

 

[wira]

I uses eToro mainly for short term trading using my “fun money” basiclally money that I can afford to loose.

It’s useful for trading in Crypto and for shorting of stocks and yes Shiny is right. You are not trading in actual shares but actually CFDs.

But I don encourage you use this for your main investments as it is very risky.

 

[ongkinhong12345]

But I heard there is actual stocks or share. When you press x1 not x5 or x10.
X1 is for actuals share from that particular company.

Am I right?

I uses eToro mainly for short term trading using my “fun money” basiclally money that I can afford to loose.

It’s useful for trading in Crypto and for shorting of stocks and yes Shiny is right. You are not trading in actual shares but actually CFDs.

But I don encourage you use this for your main investments as it is very risky.

 

[ongkinhong12345]

Any trading fee for ETORO?
Only charge if withdraw money?

I uses eToro mainly for short term trading using my “fun money” basiclally money that I can afford to loose.

It’s useful for trading in Crypto and for shorting of stocks and yes Shiny is right. You are not trading in actual shares but actually CFDs.

But I don encourage you use this for your main investments as it is very risky.

 

[rstopel]

Uh no, it*********s not even remotely that. Etoro is a CFD broker. Are you talking about the *********copy trade********* function?

Yeah, copy trade function. Thought it was quite innovative. But the TT fees is a killer. There is a SG bloke who has a fund you can copy but only accept us$

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[wira]

But I heard there is actual stocks or share. When you press x1 not x5 or x10.
X1 is for actuals share from that particular company.

Am I right?

Hi seems you are right. They just implement this year

From Etoro site :
Starting early 2018, every non-leveraged BUY order, will result in the purchase of the underlying asset by eToro and subsequently held under the client’s name. The principal also applies in case you invest in a CopyPortfolio or copy a trader: If the copied trader buys stocks, you will automatically own a portion of his holdings.

 

[Shiny Things]

But I heard there is actual stocks or share. When you press x1 not x5 or x10.
X1 is for actuals share from that particular company.

As of early 2018, yes, this is true. If you make an unleveraged buy trade at eToro, they’ll buy you the actual stock.

That’s not enough, though. Here’s why you should still use Interactive Brokers if you’re an active trader:
1) eToro is still designed as a glorified gambling platform. Their copy trade functionality is just designed to run up trading volumes. They want you to over trade; it encourages bad behavior.
2) Interactive Brokers buys you the stock no matter what leverage you use. This saves you money! Imagine if you take a 2x-leveraged long position in a stock: at eToro, you’ll pay interest on the entire amount of the trade, but at IBKR you’ll only pay interest on the amount that you borrow, so you’ll pay less interest.
3) IBKR’s margin interest rates will be a lot lower than eToro’s, and IBKR lets you trade a lot more things.

 

[Maeda_Toshiie]

Running up trade volume aside, I have this feeling that this "copy trade" idea is just waiting to blow up with someone getting hurt in the progress.

Copy trade "works" (as in a "sort of" manner) if the trades involve liquid stocks under relatively benign market conditions, and you copy some guy who knows what he/she is doing. If the market comes crashing down and your portfolio is copy trading someone who is cutting losses on some illiquid stocks, at best you are going to selling at much lower prices, if at all.

 

[ongkinhong12345]

Hi,
If trading small amount like $500 per month,
Do you still suggest interactive Brokers?
Ot got any others that suitable?

As of early 2018, yes, this is true. If you make an unleveraged buy trade at eToro, they’ll buy you the actual stock.

That’s not enough, though. Here’s why you should still use Interactive Brokers if you’re an active trader:
1) eToro is still designed as a glorified gambling platform. Their copy trade functionality is just designed to run up trading volumes. They want you to over trade; it encourages bad behavior.
2) Interactive Brokers buys you the stock no matter what leverage you use. This saves you money! Imagine if you take a 2x-leveraged long position in a stock: at eToro, you’ll pay interest on the entire amount of the trade, but at IBKR you’ll only pay interest on the amount that you borrow, so you’ll pay less interest.
3) IBKR’s margin interest rates will be a lot lower than eToro’s, and IBKR lets you trade a lot more things.

 

[ongkinhong12345]

I don like the copy function...

Hi seems you are right. They just implement this year

From Etoro site :
Starting early 2018, every non-leveraged BUY order, will result in the purchase of the underlying asset by eToro and subsequently held under the client’s name. The principal also applies in case you invest in a CopyPortfolio or copy a trader: If the copied trader buys stocks, you will automatically own a portion of his holdings.

 

[Shiny Things]

Hi,
If trading small amount like $500 per month,
Do you still suggest interactive Brokers?
Ot got any others that suitable?

If you've only got like $500 a month to invest, you shouldn't be actively trading in the first place. Start by opening up a Stanchart account.

Copy trade "works" (as in a "sort of" manner) if the trades involve liquid stocks under relatively benign market conditions, and you copy some guy who knows what he/she is doing. If the market comes crashing down and your portfolio is copy trading someone who is cutting losses on some illiquid stocks, at best you are going to selling at much lower prices, if at all.

I think it's a pretty doomed enterprise in either direction. If you're copying someone who's trading liquid stocks, or something super-liquid like G10 FX, those markets are so liquid that some rando on Etoro isn't going to have any edge beyond luck. If you're copying someone who's trading very illiquid stocks, then the weight of money copying those trades is going to create its own momentum - and the people doing the copying will always lose out because they'll be the last to hop on board the trade.

It's a stupid idea and Etoro's product team should take a long hard look at themselves.

 

[ongkinhong12345]

StanChart vs poems 2.0.
Which is more good?

If you've only got like $500 a month to invest, you shouldn't be actively trading in the first place. Start by opening up a Stanchart account.



I think it's a pretty doomed enterprise in either direction. If you're copying someone who's trading liquid stocks, or something super-liquid like G10 FX, those markets are so liquid that some rando on Etoro isn't going to have any edge beyond luck. If you're copying someone who's trading very illiquid stocks, then the weight of money copying those trades is going to create its own momentum - and the people doing the copying will always lose out because they'll be the last to hop on board the trade.

It's a stupid idea and Etoro's product team should take a long hard look at themselves.

 

[Shiny Things]

StanChart vs poems 2.0.
Which is more good?

Stanchart.

 

[happychai]

anyone is using?
might to share some information?

 

[PostCountWarrior[+1]]

i am using, but just to copy traders. if you just want to buy stocks, you are better off using some other platform.
the copy traders is like diversifying into hedge funds. but dont put too much into it. if etoro go bankrupt, the money is lost. but so far so good. invest and withdraw no problems.

 

[rstopel]

;119650832]i am using, but just to copy traders. if you just want to buy stocks, you are better off using some other platform.
the copy traders is like diversifying into hedge funds. but dont put too much into it. if etoro go bankrupt, the money is lost. but so far so good. invest and withdraw no problems.

Ok. How you transfer the money in and out? Got FX and charges? Only US$ right?

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[PostCountWarrior[+1]]

Ok. How you transfer the money in and out? Got FX and charges? Only US$ right?

Posted from PCWX using Redmi 5

via credit card, the small charges i dont really take note. its peanuts compared to your pnl swings.