I was wondering is eToro a safe and well regulated share trading platform? I heard if it collapses one would lose all funds in Australia. Is this true? What are the chances of this happening?
Also, are the fees higher than on other platforms? Which online brokers are the safest and have the lowest fees for trading US stocks?
This is not a review, this is just an ad which looks like a review.
77% of eToro users cash out with less money than they put in. This statistic used to be on their front page.
Well that's in line with the saying "90% of traders lose 90% of their money within 90 days".
What about the people who use it to buy and hold high quality stocks with proven track records? Vanguard ETFs, etc. Not just for trading.
If you buy and hold high quality stocks with proven track records, then you will most likely be fine regardless of which trading platform you use. The problem with eToro is that it gamifies that trading experience. It allows you to buy and sell with no brokerage (if you're paying $9.95 per trade then you will be more cautious about trading unnecessarily.) The eToro platform also allows you to leverage your trades which means you can win or lose much more easily.
They target inexperienced consumers who fall for the traps and therefore are more likely to be in the 77% of losers.
I read the 77% of losers was because of CFD's.
Interactive Brokers probably one of the safest ones imho. Fairly cheap fees and listed on the US markets - worth about $37 billion USD
https://arielle.com.au/etoro-review-australia/#:~:text=In%20…).