How to Buy Stocks on eToro

This broker may have started a quiet revolution. Now, when you search for a ticker symbol on X (formerly Twitter), with a single click you can begin the process of buying shares on eToro. Of course, you can just as well download the eToro app, research analysts and investors, and even copy traders there. However, the X agreement brings a new level of reach to the concept of social investing and it reduces the time between getting an idea and taking action.

This isn’t the only way eToro is reducing the barriers to entry for new traders and investors. The eToro platform has been innovating in this area since its founding.

How to Buy Stocks on eToro

Recent platform enhancements now allow users to go from zero to stock ownership in mere minutes with eToro. Once you have access to the program, you have the ability to research or connect with millions of users, and even duplicate their investing selections. Can investors truly benefit from the wisdom of crowds?

Before you can find out for yourself, you’ll need to register for an account. Here’s a quick look at the first steps an investor takes with eToro.

Step 1: Open an eToro account. Opening the account happens quickly with the help of your smartphone and sign-in management from Apple, Facebook, or Google. Once you’ve verified your identity with two-factor authentication, you can login to the platform. But even if you choose not to expedite the first-time sign up procedure, it takes very little time to get to the point where you are ready to trade.

Step 2: Log in to your eToro account. eToro manages to speed up access to the platform in part because it separates the login procedure from account verification. That allows the company to identify the new customer and give them access to the platform right away. They will still have to verify the account through email or text before they fund the account, but a new user can log in to their account in seconds. 

Step 3: Verify your account. Whether you first login via smartphone or a web browser interface, eToro will try to verify you via text message to a smartphone if you have one. Once this step is complete, you can complete questionnaires about your trading knowledge, your purpose for trading, and your risk tolerance. 

Step 4: Fund your account. Once your account is verified, you can add money for trading by first linking a bank account to transfer from. The fastest way to do this is to use the Plaid service for securely linking bank accounts. You can transfer as little as $10 in the U.S. or U.K., while other countries may require that you deposit at least $50. Transferring through Plaid can help you be ready to trade in a matter of minutes.  

Step 5: Research and select a stock to trade. The platform features several resources for researching stocks, including price charts, company stats, analyst ratings, and a social media feed for user commentary. Using these resources can help you build a preference for the stock you want to trade. It can also help you strategize about how to enter and exit the trade. Once you’ve identified a suitable stock to add to your portfolio, you are ready to place an order.

Step 6: Place an order. Once you select the “Trade” button, a dialog box appears that allows you to specify everything you need to initiate a trade. You can specify your trade size by identifying a dollar amount, or by specifying the number of shares. It is at this point where you might specify that you want ownership of fractional shares. 

You can also specify whether you want to use available leverage, the price for your stop loss, and the price for your take profit orders. Carefully considering each of the options on the dialog can help you better strategize the trade. Once you have completed the dialog and selected the “Open Trade” button, your order is sent into the market and filled as soon as possible. Market orders are usually filled in a matter of seconds. Limit orders may take a moment longer, depending on the amount specified.

Alternatively you can initiate a CopyTrader trade where the platform allows you to allocate a certain amount of money for use in following another trader and duplicating their trades. This form of trading may not be right for every investor, so be certain to thoroughly research it before you try it.

What You Need to Open an eToro Brokerage Account

The procedure for opening an account with eToro is quite straightforward. However, you can help expedite the effort by having some personal and financial information available before you begin. 

Personal Information

As part of signing up and verifying your account, you will be asked to provide the following. 

• Name
• Address 
• Place of birth 
• Citizenship 

It is also useful to have the number of your government issued ID or passport available. 

Financial Information

As part of the process of opening an account, you will be asked to provide financial details including the following:

• Trading knowledge
• Preferred frequency of trading
• Purpose for trading
• Risk tolerance
• Bank account information

The Benefits of Trading on eToro

One key benefit is eToro’s established, global platform. The company has successfully designed it for ease of use and users have found it to be appealing. This is important because social trading necessarily requires input and participation from a larger number of people.

The input from other traders and investors helps improve the value of your information feed. Perhaps even more important, the input from CopyTraders lets you quickly leverage expertise from other investors. Further, you can evaluate traders based on user feedback and past performance to ensure you’re following a trading strategy that aligns with your goals.

Additionally, eToro’s support for fractional shares is a key benefit. This feature allows any investor to access any security regardless of the price of the security or the available capital of the investor. Fractional share purchases can be made for any amount above the $10 minimum deposit. 

Lastly, eToro’s cash management features can help you keep your money working to grow, or tucked away in safer assets. The platform offers access to stocks, options, CFDs, cryptocurrencies, and more.