How to use eToro for day trading?

Day trading on eToro can be a great way to take advantage of short-term price movements across stocks, forex, crypto, commodities, and indices. Whether you’re brand new to trading or already have some experience, understanding how to set up your account, place quick trades, and manage risk is essential to getting the most out of eToro’s user-friendly platform.

This mini-guide will walk you through how to use eToro for day trading, step by step, with practical tips along the way.

Step 1: Set up your eToro account for day trading

Before you can start day trading, you need to:

• Open a verified eToro account. This involves providing basic information and uploading documents for identity verification.
• Deposit funds into your account. eToro supports bank transfers, credit/debit cards, PayPal, Skrill, Neteller, and more, though availability depends on your location.

It’s important to choose your account currency carefully, especially if you’ll be trading international assets, to minimize conversion fees.

Step 2: Understand the assets you can trade

eToro offers a wide range of assets suitable for day trading:

• Stocks (including fractional shares)
• Forex pairs
• Cryptocurrencies
• Commodities like gold and oil
• Indices like the S&P 500 and FTSE 100

Each asset class behaves a little differently. For example, forex pairs tend to be more volatile, while stocks and commodities may follow slower trends tied to news or earnings reports.

Step 3: Learn how to place day trades on eToro

The process for placing trades on both the web platform and mobile app is straightforward:

On the web platform:

• Search for the asset you want to trade using the search bar.
• Click the asset to open its page, where you’ll see a price chart and key data.
• Click Trade, which opens the order window.
• Choose Buy if you expect the price to rise, or Sell if you expect the price to fall.
• Set the amount you want to trade, and decide whether to apply leverage.
• Set your stop-loss and take-profit levels if you want to automate risk management.
• Click Open Trade.

On the mobile app:

• Tap the search icon and find your asset.
• Tap on the asset to open its page.
• Tap Trade, then follow the same steps as above.

Pro Tip: Day traders often use lower leverage or no leverage at all until they fully understand how price swings can amplify both profits and losses.

Step 4: Use eToro’s charting tools for day trading strategies

Successful day trading often depends on reading charts quickly and spotting short-term patterns. eToro’s charts offer:

• Multiple timeframes, including 1-minute, 5-minute, and 15-minute charts.
• Technical indicators, like moving averages and RSI (relative strength index).
• Drawing tools, to mark support, resistance, and trendlines.

Beginners often start with basic strategies, like trading breakouts or using simple moving averages to track short-term trends. Intermediate traders might add tools like Bollinger Bands or MACD for deeper analysis.

Step 5: Set up price alerts to stay on top of market moves

Day trading requires quick decisions, so it helps to set price alerts for the assets you’re watching. On both the web and mobile platforms, you can:

• Search for the asset you want to monitor.
• Open the asset page.
• Click or tap the bell icon.
• Set a price level you want to be alerted about.

These alerts help you react quickly to key price changes, even if you step away from the screen.

Step 6: Manage risk with stop-loss orders and position sizing

Risk management is crucial for day trading, especially with fast-moving assets like crypto and forex. eToro makes it easy to:

• Set stop-loss orders, which automatically close your position if the price moves against you.
• Use take-profit orders, which lock in profits at a pre-set level.
• Keep track of your available balance and margin level, particularly if you’re using leverage.

A common beginner mistake is risking too much capital on a single trade, especially when using leverage. Many experienced traders recommend risking no more than 1-2% of your account balance per trade.

Leverage and how it works on eToro

Leverage allows you to control a larger position with a smaller amount of capital, but it also increases risk. On eToro, leverage rates vary by asset:

• Major forex pairs – Up to 1:30 for retail clients (lower in some regions).
• Stocks – Up to 1:5.
• Crypto – Up to 1:2.
• Commodities and indices – Between 1:10 and 1:20.

Regulatory Note: In the EU and UK, leverage is restricted for retail clients under ESMA rules, so you may see lower limits than traders outside these regions.

Common mistakes to avoid

• Trading too many assets at once. Focus on 1-3 instruments at a time to develop a feel for their patterns.
• Ignoring spreads and overnight fees. eToro charges a spread on each trade, and if you hold positions overnight, you may also pay overnight fees.
• Overusing leverage. High leverage can wipe out your account quickly if trades go against you.
• Chasing trades based on news alone. News can drive big moves, but successful day traders combine news with chart analysis to time their entries.

Insights from real traders

On forums like Reddit’s r/eToro and ForexFactory, traders often discuss how eToro compares to other platforms for day trading. Common feedback includes:

• Beginners like the simplicity of eToro’s interface but feel the spreads are higher than on some specialized forex brokers.
• Intermediate traders appreciate the social features, like copying experienced traders, but some feel eToro lacks advanced charting tools compared to platforms like MetaTrader.
• Many traders emphasize that day trading on eToro works best for stocks and crypto, while forex spreads are less competitive for ultra-short-term trades.

Final thoughts

Day trading on eToro can be both exciting and challenging. The platform’s user-friendly design, wide asset selection, and built-in risk management tools make it a solid choice for beginners. Just remember — success comes from learning the platform, practicing strategies, and managing risk carefully, especially if you use leverage. Whether you trade on the web or mobile app, eToro offers the flexibility to trade anytime, anywhere.

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FAQs

1. Can you day trade on eToro?
Yes, eToro supports day trading across stocks, forex, crypto, commodities, and indices.

2. Does eToro charge extra fees for day trading?
There’s no specific day trading fee, but you pay the spread on each trade and, if you hold positions overnight, you may pay overnight fees.

3. Is eToro good for beginners who want to day trade?
Yes, eToro’s simple interface is beginner-friendly, but beginners should start with smaller trades and practice on a demo account first.

4. Can you use leverage for day trading on eToro?
Yes, but leverage limits depend on your region and the asset you trade. Forex pairs have the highest leverage (up to 1:30 for retail clients in the EU and UK).

5. What’s the best asset for day trading on eToro?
This depends on your trading style, but stocks, crypto, and forex pairs are the most popular among day traders on eToro.

6. Can I use eToro’s CopyTrader for day trading?
You can, but CopyTrader works better for longer-term strategies, since the traders you copy may not be focused on short-term day trades.