Day trading altcoins is beyond doubt a very profitable venture. However, it can be very risky and tends to be a disappointment if done wrongly. According to most statistics that follow how many day traders lose money, we know that as much as 96%-day traders are unsuccessful in their day trading venture. However, there is one important step to becoming a successful day trader to which many people don’t pay enough attention to, and that has a lot to do with the selection of the best broker. Brokers vary from each other by their spreads, fees, and much more. Technically, these can either make or break a trader. In a bid to highlight some of the best day trading brokers, this article will compare 2 popular CFD brokers: ETFinance and eToro.
ETFinance and Regulation
ETFinance is a brand name of Magnum FX established in 2016 in Cyprus. The broker is fully regulated by the Cyprus Security and Exchange Commission. ETFinance is mandated to extend cross border services to several countries. However, users in the United States are prohibited from patronizing its broking service. In addition, the broker also offers an incredible protection for its clients by holding clients’ funds in segregated accounts in the EEA credit institution. It is also part of the membership of Investor Compensation Fund to put clients at ease in situations where it cannot not meet its financial obligations.
Fees and Payment Methods
ETFinance is quite a favorable option in terms of fees. According to this ETFinance company review, ETFinance has no charges for deposits and withdrawals. Similarly, it does not charge inactivity fee unlike most of the brokers. ETFinance has a minimum deposit of $250. The company does not charge any commission fee for opening and closing traders. This broker does not have a wide option of payment methods as it only supports Neteller, Bank transfers and Skrill.
ETFinance Spreads and Account types
ETFinance makes profits from spreads just like most of the brokers in the market. Its spread mostly depends on the type of account you have. For example, the Silver Account which is mostly for beginners has a minimum spread of 0.07. The Gold Account which is a good option for traders with good experience and well knowledgeable about the basic skills of trading has a minimum spread of 0.05. Then the Platinum account meant for professional traders has a minimum spread of 0.03. Basically, its minimum variable spread is 0.7 pip and the minimum fixed spread is 3.0 pip. ETFinance has a Demo Account for traders who seek to be familiarized with the platform’s trading features and provides them with $100,000 of virtual currency to practice with in addition to the favorable environment. The broker has some of the favorable spreads compared to other brokers. EUR/USD has a spread of 0.7, USD/JPY has a spread of 0.8, AUD/USD has a spread of 1.1 and GBP/USD has a spread of 1.3.
Trading altcoins with ETFinance
ETfinance provides a wide range of market options such as forex, indices, commodity, stocks and cryptocurrencies. Under the cryptocurrency, the platform provides the services of Cardano, Ethereum Classic, XRP, Dash, Ethereum, Stellar Lumen, NEM, Tether, Swisscoin, Quantreum, NEO, Litecoin, Lisk, Iota, Bitcoin gold and few others. ETFinance has been the favorite of many traders as their payment process has been testified to be smooth with incredible customer support.
eToro and Regulation
eToro service is powered by eToro Europe L.T.D. Similarly to ETFinance, eToro Europe is regulated by the Cyprus Security and Exchange Commission (CySEC). Also, eToro UK is fully regulated and authorized by the Financial Conduct Authority (FCA). eToro Australia operates under the Australia Financial Services License. eToro UK and eToro Europe operate under the regulation of the Market in Financial Instrument Directives (MiFID). eToro is fully regulated and it is well certified to provide whatever services it operates, making it a very reliable and safe broker to conduct trade.
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Fees and Payment Options at eToro
eToro charges no fee on deposits and just as ETFinance, the broker does not charge commission fee. However, they do charge inactivity fee and withdrawal fee. eToro requires a minimum deposit of $200 and a minimum trade of $25. eToro also requires a withdrawal fee of $25 and a minimum withdrawal of $50. Since no commissions are charged for opening trades, they take advantage of spreads to make profit. eToro does not subscribe to fixed spread, but variable only. The broker charges $10 a month as inactivity fee when account remains stagnant for 12 months. This broker has a wide range of options for deposits and withdrawal including credit cards, Bank transfer, Neteller, PayPal and Skrill.
eToro Account Types
eToro has a few available account types for all kinds of traders. They have a Demo Account for traders who seek to practice their skills without any real loss before moving to the real account. The Real Account is available to traders who are ready to trade with real funds. In addition, the platform has Islamic account available for Muslims who intend to trade within the framework of the sharia law.
eToro has a very competitive spread compared to other brokers in the market. Bitcoin Gold has a daily break spread of 0.75%, BTC has a spread of 0.75%, XRP has a spread of 2.45%, Ethereum has a spread of 1.90%, BCH and Litecoin also have a daily break spread of 1.90%. In addition, BNB and XLM have a daily break spread of 2.45%. eToro has a minimum spread of 3.0 pips which is relatively high compared to the daily average spread of 0.7 pips.
Available Altcoins/Assets at eToro
eToro offers a wide variety of trading assets, they include: currencies, Indices, cryptocurrencies, stocks, and commodities. Some of the altcoins offered on the platform are Bitcoin Cash, Cardano, XRP, Binance Coin, Ethereum, Litecoin, XLM and many more.
It is important to understand that no broker is free from shortcomings. However, some offer better and more favorable trading environment than others. That is why selecting the right broker is such a crucial decision.