eToro is a mostly CFD based broker. eToro also does hold some stocks as securities or guarantees. The benefit of eToro is, you can instantly access many stock markets , ETFs, cryptos , stocks , commodities ,forex pairs around the world. Heck, You can even trade Orange juice with eToro.
Benefit of eToro
Instruments and Asset class
There are over 3,000 financial instruments ,aseets that you can access with eToro. Some example includes
Access to major USA markets ,ETFs ,
Access to major HK/ China markets
Access to Europe markets
Access to crypto markets
Access to major commodities
Users will be able to copy trades that are executed by other top traders. Users will usually need to pay some commission determined.
You will be able to trade crypto such as Bitcoin, Ethereum and many more
Extremely cheap fees compared to Malaysian Exchange. Officially, eToro charges 0 comission. If you have been trading with Bursa or overseas account with Bursa regulations, you will be charged all sort of fees and even Stamp Duty. Day trading is very tough with Bursa with very low liquidity. eToro charges 0 commission and extremely low spread. Be the fair, the whole US market is moving towards very little commission or fare long ago.
Free account Creating and account is free. Very fast activation , easy withdrawal and deposit. Unlike traditional exchange, it could be hassle starting an account , withdrawal or even deposit. eToro eliminates all those.
Very fast execution. Very easy interface . As a CFD provider, the execution of trade is extremely fast, no fill time almost instantaneous. The app or web interface is also very convenient and easy to use.
You can trade both ways. You can Long or Short stocks. Please take note that Shorting stocks is very risky. Also there are selected limited stocks which are not shortable with eToro. With Bursa, the Short is extremely regulated with Regulated Short Selling. The stock selection is very limited to short with a lot of rules.
Cons of eToro
It is not a true stock exchange, thus you can only access major stocks which are tradable
CFD , some people may not like the idea of trading derivatives
Do take not that, it is legal to trade with eToro in Malaysia. However ,eToro do not hove official branch or it is licensed to operate in Malaysia. Many Malaysians are using it due to easy access and availability of trading instruments. EToro has been operating for more than 20 years since 2007. eToro is regulated under UK Financial Conduct Athority (“FCA” ) , Euro under Cyprus Security Exchange (CySec) , De Nederlandsce Bank N.V for Cryptos trading , Malta Financial Services Authority , Sychelles Financial service Athority, Australian Security & Investment Comissions ASIC, USA Money Service business MSB so it is quite well regulated around the world.
How do I deposit money into eToro Malaysia?
Deposit and withdrawal is very convenient for Malaysians. The best way to deposit to eToro is using by PayPal in Malaysia. There is also a minimum of 50$ deposit that applies to Malaysians. There are also other options such as Credit Card, Skrill, Neteller and Normal Bank Transfer. The best option would be PayPal, as most exchange if overseas need you to Deposit and Withdraw to the same method and account. Do take note you maybe subjected to additional charge by Bank if you are using credit card. It is possible for bank to charge your deposit as Cash Advance if they are able to detect you are paying to an exchange. You may be subjected additional charges and daily interest rates. Thus, the best way in our opinion is by using PayPal.
Another method is to use WISE card to deposit into eToro.
You can withdraw using Paypal and other mentioned methods in Malaysia. There is a 5$ dollar charge for withdrawal