Information
Sberbank of Russia – Partnering with eToro for Forex Trading
Sberbank of Russia, often referred to as Sberbank, is the largest bank in Russia, holding a general license issued by the Central Bank of Russia. With the Central Bank as its controlling stakeholder, Sberbank has earned a reputation as one of the most reliable banks in the country. This financial institution offers a wide spectrum of services to its customers, including lending, deposit accounts, payment processing for various services, remittance services worldwide, property and life insurance, and even brokerage services, including access to forex trading through the eToro social investment network, which recently established a partnership with Sberbank.
eToro Review: Combining Social Networking and Trading
Founded in 2007, eToro is a unique platform that blends the features of a trading platform with those of a social network. This fusion has resulted in the creation of eToro’s distinctive trading platform, OpenBook. Traders using eToro can leverage this platform to copy and discuss the transactions of other participants, share trading strategies, and gain insights into forex trading by observing the activities of professional traders. Currently, eToro boasts an impressive user base, with more than 5 million traders hailing from 140 countries, and this number continues to grow daily. The services offered by eToro encompass:
-
Wide Range of Trading Instruments: eToro offers an extensive array of trading instruments in the forex market, including currency pairs, metals, CFD contracts on commodities, indices, stocks, and ETF funds.
-
Affordable Minimum Deposit: Traders can start trading independently with a minimum deposit of just $50, or $100 if they wish to participate in the copy trading feature.
-
Leverage: eToro offers leverage of up to 1:50 for traders.
-
Demo Account: For beginners or those looking to practice their trading skills, eToro provides a demo account.
-
User-Friendly Web-Based Platform: The eToro OpenBook platform is convenient and accessible through web browsers.
-
CopyTrader™ Service: This feature allows traders to replicate the trades of successful traders automatically.
-
CopyFunds™ Service: For customers with a deposit of $5000 or more, eToro offers portfolio investment options in the form of expired or CFD contracts on commodities, equities, and ETF funds.
-
People Discovery: A search system that enables traders to filter strategies based on yield, risk, country of origin, and other criteria.
-
Popular Investor Status: Active investors with a deposit of $1000 or more gain access to exclusive benefits, including discounts on spreads, fee waivers for fund withdrawals, and additional income from investments.
-
VIP Program: eToro Premium customers with a deposit of $20,000 receive various perks, such as a 25% bonus on deposits, expedited withdrawal processing, access to an account manager, classified intelligence, and the issuance of a Payoneer credit card.
-
Referral Program: Traders can benefit from an “Invite a Friend and Get $100” program.
-
Educational Resources: eToro offers free educational materials for traders.
-
Affiliate Program: Traders can also participate in an affiliate program for additional benefits.
Regulation and Oversight
eToro operates under the umbrella of eToro (Europe) Ltd., previously known as Retail Forex Ltd. The company is regulated by the Cyprus Securities Commission (CySEC) under license number 109/10 and operates in accordance with the EU Directive – MiFID. Additionally, eToro’s subsidiary, eToro (UK) Ltd., provides online trading services in the UK and is regulated by the Financial Conduct Authority (FCA) under license number FRN 583,263.
Conclusions: A Comprehensive Assessment of eToro
In summary, eToro presents a complex picture. On one hand, it is a regulated broker, subject to oversight by both CySEC and the FCA, and it has solidified its position as the official partner of Sberbank of Russia. On the other hand, it has garnered mixed reviews from its user base, including reports of terminal issues, allegations of unauthorized trading practices against successful clients, non-transparent pricing, discrepancies in stock quotes compared to other brokers, frequent slippage, extended withdrawal processing times (up to 8 days), substantial withdrawal fees (ranging from $5 to $25), and a perceived lack of professional support.
As a responsible trader, it is essential not to rush into opening an account with any broker, even one endorsed by a reputable institution like Sberbank. Prior to making a decision, it is advisable to thoroughly examine eToro’s reviews and gather insights from the trading community. By doing so, you can make an informed choice that aligns with your trading preferences and objectives. Your fellow traders’ experiences and opinions can serve as valuable guides in determining whether eToro is the right fit for your forex trading journey.
