Justin (00:08): This is my review for eToro, South Africa. If you’re not from South Africa, you can still watch this video, it’s just as relevant, but this video is specifically targeted at my South African audience, who have all been asking about eToro and asking for me to do a review. In this very quick overview video, I’m going to quickly walk you through some of the benefits of eToro, give you a quick look at the backend of eToro. Then if you stick around to the end of this video, I’m going to share with you how you can swipe my exact trades that I’ve been making that are consistently getting me over 20% per year return with little to no risk. So, if you want to figure out the trades that I’m making and you want to find out exactly where I’m putting my money, wait until the end of this video, and I’m going to share all of those things with you.
(00:49): So let's quickly jump in at eToro and just have a look. First of all, you will see when you arrive at the homepage of eToro that on the platform, you can trade stocks, ETFs, cryptocurrencies, and you can do CFD trading, which is Contract For Difference trading. The platform really offers you access to most of the popular exchanges around the world. So, eToro; really great system, a fantastic system. One word of caution that I have to make here is that eToro themselves say that 71% of retail investing accounts lose money when trading CFDs, which is Contract For Difference or other. For that reason, I personally don’t trade CFDs. I personally don’t do a lot of cryptocurrencies. I tend to focus on stocks and ETFs. However, that being said, if you are into cryptocurrency, if you are into CFD trading, I have tested them out, and eToro really makes it simple. It’s one of the best systems out there for really understanding how the platform works.
(01:58): Moving along, I just want to cover the fees on eToro quickly. One of their big selling points is that it is a zero-fee platform—basically, zero commission on stocks. There are no management fees. That having been said, there are some fees if you do withdraw. If you go down to other fees, one of the things that you will see is that to deposit money is absolutely free, and I’ll go into the deposit shortly. Also, if you do want to withdraw, just note that there is a 5 dollar fee and that there is a minimum withdrawal amount of 30 dollars. It used to be 50 dollars. They’ve since brought it down to 30 dollars. If your account is inactive for more than 12 months, meaning that you’ve got no trades, they reserve the right to charge 10 dollars a month. That is having been said. If you do sign up and join eToro, I’m almost certain you will almost instantly be active. It’s an incredible platform, very simple to operate. One of the recent introductions onto eToro, which I personally am pleased about, is investment insurance now of up to one million euros, Great British pounds, Australian dollars, whichever currency you’re in from eToro. If you want to find out more about the insurance, I’ll drop the link in the description below this video. Basically, on eToro.com/investing/insurance, they explain that they’ve got three layers of protection for investors, and they say in the unlikely event of eToro insolvency, eToro clients have three layers of protection. The first layer is the assigned liquidator. The second is regulatory protection. There’s obviously a whole lot of regulatory bodies that they fall under, and then obviously, the third is private insurance. I’m pretty satisfied that it’s a secure place. I’ve been trading on eToro officially since August 2019. You can go and have a look at my personal portfolio. I’ll also drop a link in the description below. It’s very easy, JustinHarrison21, you can search for me on eToro, and you’ll find my portfolio. Basically, I started trading in August 2019 for August, September, October, November, December. I had a 7.98% return, which is not bad considering it was only five months. If I average that out and I traded for the whole year, I would have come in at about 20%. So far in 2020, I’m sitting at a 24% return, which is pretty good. I’ve been on the platform for just over a year and a bit. I have put money in, I've taken money out, I've put money back in, taken money back out, and I can tell you the system works perfectly. There are no issues. I haven’t had any issues in terms of getting my money back out of the platform. I know that’s something that everybody’s very worried about whenever they invest in a new platform. I started with some small initial deposits to figure out how the system works and make sure that the money I was depositing would actually come back to me, and there were no problems there whatsoever. The only thing I will say is when you sign up for eToro for the first time, you will find that it’s a little bit of a process to get your account approved. You need to provide proof of residence. You need to provide an official government-issued form of identification. It usually takes around seven days to get your account open and approved. Once you’ve got your account open and approved, you absolutely won’t regret it. Just a reminder, if you are interested in figuring out how I’m making my returns with little to no risk, stick around to the end of this video. I'm going to share with you how you can go and see the exact trades I'm making and basically swipe my best trades and start making money immediately.
(05:48): That having been said, let’s quickly jump into the backend of eToro. I just want to show you around quickly. I’ve set up a blank dummy account to be able to give you this preview. Obviously, I don’t really want my personal portfolio shown in terms of the amount of money I’ve invested. As I’ve said, if you stick around to the end of this video, I will be showing you my portfolio and my best trades and how you can actually jump on board and start trading those yourself. Once you get into the backend of eToro and you’ve had your account proved, what you’ll find is a straightforward layout. On your left-hand side, you’ve got a very basic menu system. It gives you a watch list, so you can basically set up shares here that you’d like to watch and keep an eye on. You can add those there. There is your actual portfolio, so if you have any stocks, those would be in here. There is a news feed. This news feed is fantastic because a news feed provides you content from eToro themselves and every trader talking about the shares that you are specifically watching or are invested in. This feed here is very relevant to the stuff you are working with, and I find that it’s an incredible way to be connected with what other traders are doing and what is happening in the market overall. If you go to the trade markets, this is exciting. At the top here, you can see it’s broken up into stocks, ETFs, crypto, indices, commodities, currencies, etcetera, right? So if we just take an example and go click on stocks, you will basically see all the stocks broken down by exchange and industry. You can, for example, go and scroll down for the specific industry sector that you’re interested in. Alternatively, you can go and look at the specific exchanges that you’d want to trade. You can see they’ve got everything on here from Amsterdam, Brussels, Copenhagen, all the way down to Zurich exchanges, Stockholm, Saudi Arabia; they’re all on here. It’s a one-stop-shop to trade all the major exchanges and industries worldwide, so I absolutely love that. They’ve made it completely simple and easy to use. Then, as I’ve said, you can even go down and scroll down if you don’t feel like filtering. You can basically see all the different sectors, all the different stocks, etcetera. Then, if you wanted to gravitate out of this and just go back, and you can choose cryptos, for example, and pretty much the same thing; it’ll tell you all the cryptos, crypto pairs that are available for trading, and yeah, you can jump into this at any time and have a look. Now, this is another cool feature. It’s probably the thing that eToro’s most well known for. They have a thing called a social copy trader platform. What this does is allows you to copy successful traders on the eToro platform. If you’re too lazy to go and do the research yourself, if you don’t feel like going and figuring out what stocks and shares to invest into or what cryptos to invest into, there’s basically a trader for every category in here. You can then go and look through these traders, go and look at their profiles, and see if you would like to copy them. It also gives you a breakdown of their risk scores, their trading history and really just allows you to hone in on the kind of traders you would like to follow. Then there’s another thing called copy portfolios. Now, copy portfolios are essentially portfolios that have been put together by eToro. To be honest with you, it’s not one of my favourite things on the platform. I know a lot of people do like them. I was in a few portfolios. It requires quite a significant amount of money. Some of the portfolios require you to have two thousand dollars or more. Some require you to have five thousand dollars or more. What it does is it takes a basket of shares, puts it together based on eToro’s research, and they’re basically trying to mitigate risk and provide the best returns. Again, if you’re a very lazy investor, you’re not prepared to do the research, or you haven’t got the time to do the research, you can still jump in here and start making gains. That’s one positive upside thing about it. They’ve got different copy portfolios. For example, they’ve got a crypto portfolio, they’ve got a driverless portfolio, they’ve got shopping cart portfolios, and it takes all the companies that are playing in that space and puts them into, almost like an index, and allows you to trade that. Then there’s what’s known as the eToro Club. The eToro Club is a tiered platform based on how much money you’ve got invested. You start out basically on bronze, zero too, I think. It’s five thousand dollars. Anything above five thousand dollars, you become silver, and so on. Platinum, diamond and you go up the levels. So that’s pretty cool, and with it, you get a whole bunch of things. If you’re interested in it, you can go to eToro.com/about/clubs, and it basically gives you a breakdown of what each tier will give you in return, so that’s pretty cool. Then you can also invite friends to come and trade with you and follow your trades and see what you’re doing. There’s a help section, and then this is the part that everyone wants to know about, the withdrawing funds.
(11:07): So, withdrawing funds. The minimum withdrawal is 30 dollars, on top of which you are charged a five dollar fee. That having been said, the way the withdrawal works is you basically put money into your eToro account, let’s say you make some trades, you decide to close out your trades, you then have liquidity in your account, that is basically available equity, which you can either reinvest or you can withdraw. Now, the withdrawal system is pretty straightforward. You go, and you put in a withdrawal request. They will basically get in contact with you either telephonically or via email, just to confirm that you actually want to withdraw. Many people get put off with that, and they get a little bit worried about why the companies phoning them. Is it a scam? It’s just for your own security. They do a security validation, and then in my experience, within three to four days, the money arrives into your account. Absolutely no problem, pleased with their withdrawal system. Yeah, that’s pretty much it. To deposit, you click on the big blue deposit button, and you have several options to deposit. You can do it via credit card; you can do via wire transfer, or EFT as it’s known in South Africa, you can also do via PayPal. There are many options to deposit money into your account if you want to, and it really is easy to use.
(12:31): So, now, the thing that I promised that I would give you at the end of this video before we run out of time, and that is to tell you how you can go and copy my best trades and basically benefit from my 12-13 years of investment experience in the market. If you go to the search bar at the top here on eToro, once you’ve signed up, search for JustinHarrison21, JustinHarrison21. I will also drop a link in the description. Basically, it’ll give you a very quick overview of me. You can go and click on the stats bar to actually have a look at my statistics. As I said, I joined in August 2019, and I have been averaging on the platform already about 20% per year. If you take into account that I only traded for five months in 2019, I was positive 7.98. If you average that out for the year, it would be about 20%. Currently, this year, sitting at 20%. Now, here’s the thing you need to look at, and this is my big tip for anybody that you’re looking to copy trade on eToro. You want to go and look at these risk scores. These risk scores are scaled from zero to 10, 10 being the highest risk, zero being the lowest risk. Basically, I’m sitting on a risk score of four. The reason for this is I have a very long term view of investing. I invest in very traditional stocks. I do speculate on some tech stocks even though I’m in the tech industry. I do speculate on certain cryptocurrencies from time to time, but I am a very traditional investor for the most part. I believe in compounding investments over time. To make 20% per year consistently over 10-15 years will be far greater than swinging my returns from anything from 5% and below up to 60% and never really finding consistency. For me, it’s about consistency, it’s about generating wealth long term, and it’s about making sure I always have positive returns at the end of the year in my portfolio. There may be down months, but generally speaking, I will always have a positive return in my portfolio each year because I take the long term view. More importantly, if you go and look at some of the shares that I’m invested in, you can click on my portfolio just to have a look. These are very, very traditional shares, except for some tech stocks. For example, I do have some Apple, I do have some Amazon, but I’ve got companies like Johnson and Johnson, Coca Cola, I’m in Caterpillar, Microsoft, Colgate, Palmolive, and I can go on and on, right? There are some speculation shares in my portfolio, but for the most part, I’m looking for the absolute minimum amount of risk with really solid long term returns. I’m not looking to make 100% returns. I don’t believe those are sustainable in the long term, and what I’m really after is dividend-bearing shares. Even when the shares don’t do too well in terms of price-performance per share, we always have the dividend payouts, which is really the core basis of my strategy. So if you would like to swipe my best trades, all you have to do, go to my portfolio, JustinHarrison21, and then click on the big copy button. When you copy my trades, you will be asked to invest a certain amount of money. You can start with anything from 200 dollars and up. Basically, what you can then do is open your trades, and it will follow my portfolio to a tee. Just one word of caution, if you are going to follow me and you are going to copy my trades, please understand that I don’t make leverage trades. I specifically make long term trades, and on average, I’m holding my shares for four and a half months to a year. So keep that in mind if you are going to follow me if you are going to invest in me, then what you want to do is make sure that you have a long term strategy and a long term mindset.
(16:27): I really do hope you enjoyed this quick review of eToro. If you are investing from South Africa, there has never been a better time. Obviously, in South Africa, we have many risks in terms of our local economy, the Rand. So it’s a really good time to take some money, put it into US dollars, and then leverage that out into good stocks and shares on the international exchanges, thereby mitigating your risk at home. If you’re a South African and you’re watching this, absolutely open an eToro account, absolutely start taking some of your hard-earned Rands, stick it into US dollars. It’s really, really easy, and for the most part, you can do it via credit card or via PayPal, so you don’t have to worry too much about very complex payments overseas and collecting payments from overseas. It is a fantastic system, and it’s made international investing available to everyone. So my fellow South Africans, jump in, enjoy it, and let me know in the comments section below if you already have an eToro account. What have your returns been like if you are going to be opening up an eToro account? Let me know specifically if you intend on copying me. I always engage with everybody who comments on my content personally. Please leave me a comment, leave me a like if you enjoyed this video. When you click on like, it helps promote these videos and helps it get out to more people, so I really would appreciate that. Oh, and one more thing, guys. Please don’t forget to subscribe, hit that subscribe button and click the bell notification to turn on notifications for this channel so you can get notifications whenever I publish a new video. Do it now.