Discover how to buy stocks with the broker eToro in 5 steps. With an intuitive interface and by copying the strategies of experienced investors.
In this practical guide I’m going to explain how to invest in stocks with the broker eToro.
If you’re looking for an easy-to-use broker with an intuitive interface and the option to copy the strategies of experienced investors, eToro can be an interesting alternative for you.
Let’s talk a little about this broker.
eToro was founded in 2007 and allows you to invest in a wide variety of financial assets at very low prices, including Forex CFDs and stocks. It also features the ability to copy the strategies of other reference investors through its platform Copytrader.
→ More information on this broker: eToro reviews and analysis
If you’re reading this, it’s because you want to learn how to buy stocks with eToro. So let’s get to it.
Step 1: Open an account on eToro
Open the following link to create your account:
*eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Once done, fill in your details and click submit. Opening an account with a broker is a serious matter and is closely regulated, so they will need to verify your identity. Don’t be alarmed if they ask for this information.
We could say it’s similar to opening a bank account at a bank. Once all this is done, we’re inside the broker!
As we have seen, the account opening process is quick and simple and takes just a few minutes.
Step 2: Deposit funds into your account
On eToro there are two options to buy stocks. One is with virtual money to practice and familiarize yourself with the market, and the other is with real money to earn a return.
If you want to make some cash, you’ll need to do it with real money. And to do so, you’ll first need to transfer it to the broker.
So, select “Deposit Funds” and choose your preferred method. Keep in mind that the minimum deposit amount may vary depending on your location.
Step 3: Research and select your stocks
Use eToro’s tools to analyze the stocks of the companies that catch your attention the most. You can view past performance, perform technical and fundamental analysis, and read opinions from other investors. Here are some of the types of analysis you can carry out:
- Fundamental analysis: Examine the company’s financial statements, such as the balance sheet, income statement, and cash flow. Take into account factors such as profitability, solvency, and growth prospects. In Forexdominion we have a fundamental analysis course where we teach you how to do it.
- Technical analysis: Use charts and historical stock price data to identify patterns and trends. Tools such as moving averages, RSI, and MACD are useful for predicting future market movements. If you want to learn how to do technical analysis, here is our course: Technical analysis course.
- Sentiment analysis: The overall market sentiment drives it toward a specific stock. To stay on top of it, read news, analyst opinions, and social media trends.
Step 4: Make your first purchase
Well, if you’ve made it to this point, it means you have a company to invest in.
So, search for it in the broker’s search bar using its name, ISIN code, or its ticker. These two identifiers are unique to each type of asset, so you won’t make a mistake when buying it.
For example, search for Apple or AAPL.
You can click on “Trade” directly and it will display the purchase box. Or if you click where it says Apple, it will take you to the stock page where you can see a lot of information about the stock (summary, charts, analysis, news, and financials).
Once you click the invest button, the buy box will pop up.
Once you have the stock open on the screen, select “Buy.”
Enter the amount you want to invest and choose the order type. Here are the different types of orders you can use:
- Market order: Buys the stock at the current market price. It’s fast, but the price may vary slightly. By selecting this you ensure the purchase goes through.
- Limit order: Sets the maximum price you are willing to pay. The purchase will only be executed if the price drops to that level.
- Stop-loss order: Automatically sells the stock if the price falls to a certain level, limiting your losses.
- Take-profit: If you want the stock to be sold once it has risen to a certain level. Personally, I generally prefer to let profits run and not sell when it reaches a certain point. But that will depend on your investment strategy.
Once you have everything set up, click the “Buy” button at the bottom and voilà! You are now a shareholder!
Step 5: Track your investments
Monitoring your investments is just as important as the decision of which asset to invest in. You need to stay informed about news, events, or results that could cause your asset’s price to fluctuate. The more information you have, the better you’ll be able to manage your assets.
With eToro, you have charts and personalized alerts at your disposal to stay on top of things at any time. You can also adapt your strategy by copying other investors who have achieved good returns on the platform.
Stay on top of market news and use the analysis tools to evaluate the performance of your investments. Here are some investment strategies you can consider:
- Buy and hold: Ideal for long-term investors. You buy stocks and hold them for years, taking advantage of the company’s growth. With this strategy it is important to keep a cool head when things go wrong — remember that your goal is the long term.
- Value investing: Look for stocks that are undervalued in the market and that you believe will increase in value over time.
- Active trading: Buy and sell stocks frequently to take advantage of daily market fluctuations. This strategy requires more time and knowledge. It is only recommended for experienced investors.
Advantages of eToro for stock trading
Some of the advantages of this broker are the following:
- Social trading: You can follow and copy experienced investors.
- User-friendly interface: Its intuitive design is great for beginners.
- Variety of assets: eToro offers a wide range of assets, including cryptocurrencies and ETFs.
- Flexible deposits: Multiple deposit methods such as PayPal, credit card, and bank transfer.
- Multiple asset options: eToro offers more than 10000 assets for investing and trading.
And that’s it for this practical guide on how to buy stocks with eToro.
I hope I’ve been helpful — good luck with your investments!
You can find out more about eToro, their stock trading service, and open a free account at:
Legal disclaimer: This content is for educational purposes only, it does not constitute financial advice or a personalized investment recommendation. Please do your research before making any investment and make sure the products meet your investment objectives.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Past performance is not indicative of future results. The trading history presented covers less than 5 full years and may not be sufficient as a basis for making investment decisions.
Frequently asked questions about buying stocks with eToro
What documents do I need to open an account with eToro?
You will need an official ID and proof of address.
How long does account verification take?
Verification usually takes between one and three business days.
What is the minimum deposit on eToro?
The minimum deposit varies depending on your location, but is generally $50.
Can I use eToro from my phone?
Yes, eToro offers a mobile app available for iOS and Android.
What types of analysis can I do on eToro?
You can perform fundamental, technical, and sentiment analysis.
Does eToro offer demo accounts?
Yes, eToro offers demo accounts to practice without risk.
I am Raúl Canessa, the founder of Forexdominion.com. As an experienced Forex trader, my passion for investing and algorithmic trading has shaped my professional journey. Over the years, I have dedicated myself to refining my skills in the financial markets, allowing me to share my knowledge and insights through my platform. I am committed to helping others understand the world of trading and develop effective strategies for success in this exciting field.
