eToro's CFD Trading Account
Opening a Forex and CFD trading account with eToro is a process that is carried out online, takes a few minutes, and requires a valid ID and proof of address (electricity, water bills, etc.). The documentation has to be uploaded through eToro's platform.
It is important to emphasize that Opening a Demo Account is Free, that is, you can try the Demo, test the platform, and then decide whether you will deposit or not.
Does eToro offer Islamic accounts? Am I allowed to Trade if I am Muslim?
Yes - eToro offers Islamic accounts. And how do they work? An Islamic account is a halal trading account available to clients who respect the Quran and wish to invest while following Islamic finance principles. Islamic trading accounts differ in several ways from regular Forex accounts.
As Sharia law prohibits the accumulation of interest, traders with Islamic accounts do not pay or receive interest rates. Also, transactions in Islamic accounts have to be completed without delays, so currencies must be transferred from one account to another immediately, and transaction costs must also be paid simultaneously. Islamic accounts are also known as swap-free accounts because of this, and they follow four basic principles to be considered Halal:
Prohibition of payment and receipt of any interest rate (Riba)
Immediate exchanges in the context of trading operations
Prohibition of gambling
Distribution of risks and benefits
eToro's Deposits and Withdrawals
The methods of depositing and withdrawing money are:
International Bank Transfer
When depositing with a Credit Card, you will see the funds in your trading account straight away. When choosing other payment methods, it will vary.
eToro's withdrawals depend basically on the method you have chosen; if you go for the regular, old fashioned bank transfer, funds may take between 3 to 5 days to hit your bank account.
What is the minimum deposit required by eToro?
Opening a real trading account from Indonesia with eToro requires USD200 only. If you choose an Islamic account, the minimum initial deposit is USD 1,000.
eToro's Trading Platform
Does eToro open CFD Trading Accounts for Indonesian Traders?
Unfortunately, eToro stopped opening accounts in Indonesia. However, if you still wish to find out what eToro is, keep on reading. If you need an alternative, you may want to check out AvaTrade. However, if you are indonesian, but you are living abroad, you may be able to open an account, depending on your place of residence.
Trading financial instruments with eToro
eToro is a globally recognized CFD Trading platform, known for being the Social Trading leader: It allows investors to research other users' investment strategies. When saying investment strategies, we are not only referring to general parameters but practically all trader's investment history, orders, traded financial assets, and track record (Earnings or historical losses). With all this available info, eToro then allows users to "Copy" other traders' portfolios and, in turn, also allows one to be copied by other investors (only if you keep a public trading profile). Hence, this means that you may attract traders to invest in your trading strategy, which in turn will generate money in your trading account in the form of copying commissions.
Is eToro a trustworthy broker?
eToro is a regulated broker in Australia, the US, Cyprus, and the UK (by the British FCA, Financial Conduct Authority). The UK's FCA is one of the strictest regulators globally, implying that eToro is a very reliable broker since it has to comply with strict rules and directives its operation and customer care.
It is key to remark that eToro is not regulated by the Otoritas Jasa Keuangan (The Indonesian Financial Services Authority).
eToro's CopyTrader Platform
Since eToro's Social Trading platform was launched in 2010, the Broker has incorporated many improvements to its platform, including the possibility of choosing the leverage level of each trade, the possibility that any average Joe may receive commissions when copied by other investors [By becoming a 'Popular Investor']. eToro's Trading platform also allows 'copying' thematic portfolios in the "CopyPortfolios" section. Among some of the thematic portfolios available, some invest in Cryptocurrencies, Medicinal Cannabis, Travel Industry, BioTech, Internet, Drones, among many others.
Bid and Ask order types available on eToro's Platform
When trading any financial instrument, eToro's Trading platform allows the following functionalities:
Take Profit: When using this functionality, you may specify a maximum value when the trade should be closed automatically. In other words, if a financial asset rises, the trader can "protect the profits" by cashing in the profits.
Stop Loss: Alternatively, when using the Stop Loss functionality, a minimum price should be specified at which the position traded on the financial instrument should be closed automatically. In other words, if the financial asset's price falls, the trader can minimise the losses of the trade to the specified price level.
Limit Order: You may use a limit to buy or sell a stock at a specific price or better. A buy limit order is executed at the limit price or lower, and a sell limit order is completed at the limit price or higher.
Leverage Level: eToro's platform allows Traders to choose each trade's leverage level. Depending on the instrument, the level of available leverage will vary. In particular, when you select leverage level 1 for equity markets, you are acquiring an instrument as you would obtain the actual stock.
Forex & CFD instruments offered by eToro
Forex: +47 currency pairs – Majors, minors, and exotics.
Stocks: eToro offers +1,800 CFDs on Stocks from 12 major Stock Exchanges. There are the New York Stock Exchange, Nasdaq, London Stock Exchange, and HKSE, four of the most popular Stock Exchanges among Indonesian investors.
ETFs: CFDs on 145 ETFs.
Commodities: CFDs on 13 commodities, being Gold and Oil the most popular among traders.
Indices: 13 major stock exchange indices.
Cryptocurrencies: Several types of instruments on cryptocurrencies.
Thematic Portfolios: eToro offers CFDs on 19 Trading ideas [Portfolios] like Food And Drink, eSports, 5G, among others.
Social Trading: As mentioned before, Toro offers the possibility of acquiring portfolios developed by other traders using the platform via it's 'CopyPortfolio' feature.
eToro: CFD Social Trading Platform
Trade with confidence on the world's leading social trading platform, Forex, CFD, Shares, Crypto, ETFs & more. Trade with eToro's Demo for Free.