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With new meme stocks popping in your feed any other day, what application should you get to start trading on your smartphone or tablet? The eToro platform is easy-to-use, and provides all kinds of brokerage features including cryptocurrency, individual stock, and ETFs. Let’s check it out and see why so many users are loving this trading app.
What’s eToro?
EToro is a social trading platform with a total capital worth that was valued at $2.5 billion in 2020. The latter operates from several offices located in Mexico, United Kingdom, United States, Cyprus, and Australia.
Is eToro available in the US?
Yes, eToro is available in the United States of America, as well as in 140 countries around the world. Currently, it has over 13 million users and is probably the best day trading platform you can get with a 0% fee commission per trade.
What’s an ETF?
You can indeed trade ETFs, short for Exchange-Traded Fund, which are basically a group of index funds put together. They operate similarly to mutual funds, although the big difference here is that you can go ahead and buy/sell them on the stock exchange, which is impossible with mutual funds.
Just for giving you a couple of examples, the top 2021 ETFs that you could invest in with eTora or other platforms are as follows:
- SPY: SPDR S&P 500 ETF
- QQQ: Invesco QQQ ETF
- VGT: Vanguard Information Technology ETF
What are the advantages of investing into ETFs?
To better understand the advantages that you can have with ETFs, here’s a list of the most important ones:
- Benefits for diversification Investing in ETFs is the best way to diversify your portfolio. With one ETF, you get access to many different individual stocks, sometimes over 100 of them!
- A lot more transparency than with mutual funds With an ETF investment, you know exactly what’s going on and what you are getting into, unlike mutual funds.
- Low Costs In general, ETFs are much cheaper than your standard investment funds, which require the constant attention of one or many investments managers.
- Easy Trading Like we previously mentioned, you can easily buy or sell your ETF shares, as they are appearing on the stock market.
- Many different markets Finally, since your ETF will comprise many different individual stocks, it also means that you will trade in many different markets: real estate, foreign markets, various commodity markets, etc.
As you can see, ETFs are pretty neat, and it’s even better when you can find them and trade them easily on a user-friendly platform such as eToro. Have fun and good luck in your future investments.
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