How to Start Trading with Etoro in Malaysia ( Beginners Guide)
eToro is a popular social trading platform accessible to Malaysians. According to Statista.com, by the close of Quarter One of 2022, eToro had a total of registered users hitting twenty-eight point five million.
To start trading on eToro in Malaysia, you access the platform via mobile phone applications. GooglePlay hosts the download for iOS and Android users.
Other than buying ETFs, Stocks, and Crypto-assets on eToro, investors can explore the opportunities with social trading. There’s more on eToro — investors can benefit from leveraged trading for CFDs exploring indices, commodities, and stocks.
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Etoro Malaysia Highlights / Overview (Short)
For investors in Malaysia, eToro is an attractive service for traders willing to explore
opportunities via mobile phone apps. More precisely, it suits social or copy traders.
eToro services come with some fees, and investors should read the fine details in the policies. More specifically, your location and also the currency you set for withdrawing funds from eToro investments.
Regulations
eToro has regulation under six jurisdictions: Cyprus, UK, USA, Australia, South Africa, and Gibraltar
Platforms :
Accessible on iOS and Android
Minimum Deposit: $50
Maximum leverage
- Major currencies x400
- Gold and commodities and indices x100
- Non-major currency pairs x50
- Non-major indices, CFD stocks and ETFs x10
Instruments Offered
- Forex pairs
- CFD, Indices
- ETFs
- Cryptocurrencies
Trading Fees:
- Account inactivity charges
- $5 per withdrawal
Good For:
- Social Copy Trading
- Novice traders
- Guiding investors as per KYC preferences
- Is Etoro Legal in Malaysia?
Yes, it’s fully legal to invest via the eToro platform if you are in Malays. However, investors should be aware that eToro as a platform has no license under the SC or the Securities Commission Malaysia.
Regarding the above, investors who take up the opportunities with eToro from Malaysian soil may not get full coverage of the protection they deserve from their government.
It means the Government of Malaysia has not set any restrictive laws regarding investors on the eToro platform. Behind the curtains, eToro has formal registration in Israel as a platform that specializes in multi-asset management and social trading.
4. How safe is eToro? / Is Etoro a Trustworthy Broker?
According to independent reviews from Trustpilot, eToro is a safe and trustworthy broker — averaging a total score of 4.3 out of a maximum possible of 5.
As regards the regulations, eToro has made efforts with various legal requirements to conform to regional requirements.
For instance,eToro trades under the following subsidiaries:
Trustworthy brokers come out clean by seeking the relevant registrations and licenses across regions. As much as eToro has no formal registration with Malaysian authorities, the spirit of compliance can be felt from the above four regional registrations.
Agreeably, trading is a complex affair, and not every trader has the ability and skills to make profits from brokers — eToro inclusive. Therefore, it’s important for investors to read the policy guidelines in fine detail.
For example, according to a review by Nerdwallet, investors in Malaysia may not qualify for the 8% bonus for any account deposits higher than $50.
There are three key layers of security implemented by eToro to ensure the safety of investor funds.
Segregated Account
eToro is committed to deploying high-security standards to secure all investors’ funds.
Therefore, to achieve the standards, every investor deposit is held in accounts that are both separate, segregated accounts.
By segregating accounts, eToro client funds are separate from the company money. This is a better arrangement than where a trading platform and trader-capital accounts are a single pool.
Regulatory Obligation / Investor Protection
eToro complies with regional and national legal standards toward protecting investors’ funds. For instance, for investors within regions/nations under the FCA or CySEC, there are clear schemes for refunds.
Specifically, the FSCS and ICF have the mandate to make refunds to inventors in case insolvency hits eToro.
And from another approach, the FSCS (FCA) guarantees a refund coverage of a maximum of 85,000 GBP. On the same note, the ICS (CySEC) guarantees refunds to inventors not exceeding 20,000 Euros.
Private Insurance
eToro, at the corporate level, has arrangements with private insurance to protect investor funds. In this case, eToro has a cover with the Lloyd’s of London. This is to provide investor refunds in case of insolvency.
However, the insurance cover provides a maximum refund of 1 million GBP/Euro/AUD per client.
How to Open an Etoro Account in Malaysia?
It’s easy for Malaysian residents to open an account on the eToro social trading platform.
First, you must have a valid email address and a phone number.
And secondly, account opening requires users to undergo the KYC or Know Your Customer procedures.
The first step is easiest; you must provide a valid email address and a strong password — and you are done.
Account Opening on the eToro Platform
- Go to the eToro platform
- Key in your username, email address, and password
- Tick the two boxes to confirm adherence to eToro Terms and Conditions, plus the privacy policies, respectively
- Log into the email address you provided in step 2 above. Locate an email with the title — eToro email verification.
Click on the green tab, or copy and paste the link provided below it to complete your email verification.
Account Verification on the eToro Platform
However, the second part takes longer — as eToro needs you to provide key details to have your account verified. And all you need are valid documents: a passport, an Id, or a driving license.
Pro-note: Specifically, Malaysians use the MyKad for account verifications on eToro. Also, eToro has a longer or more time-consuming KYC process. Yet, this is meant to help the platform profile investors according to their capabilities: experience and access to capital.
eToro Account Verification Steps:
- After email address verification, log into your eToro account dashboard. And you’ll see a button marked- Verify. Click on it to start your account verification process on the eToro platform.
- You’ll be invited to a page requesting you to provide your personal details for your account profile. The first step requires your names, date of birth and gender.
- Step two requires address: country, postal address with a postal code. The passport number is optional.
- eToro will request your trading experience in years. Plus whetherv you’ve invetsed on leveragfed products in the past. eToro carrys out a comlex user KYC and verification process, so provide replies according to your case.
Note: eToro will give scores of percentage completion for the account verification process. The percentage shows incrementally as you get to the next steps.
Once you hit 100%, your profile will pass the verification stage. You’ll receive a notification after clearing all the steps
With an account — even yet to undergo full verification, eToro allows you to access dummy or demo accounts. It’s funded with virtual capital amounting to $100K to help you learn and test strategies within a 0-risk environment.
With a verified account on eToro, investors can proceed to fund the account and start trading right away.
How to Deposit Funds into Etoro in Malaysia?
First, the eToro social trading platform works with USD as the base currency. Therefore, Malaysians can use the Malaysian Ringgit, which the eToro platform will convert directly to USD. Besides the USD, there are 8 other currencies that they can use to make the deposits.
The process of depositing funds to an eToro account is straightforward. Here are the steps to follow:
- Start by logging into your eToro trading portal account
- Next, Click on the button marked “Deposit Funds.”
- Key in the amount you target to deposit, plus the currency you prefer.
- Next, select the deposit method of your preference, for instance, a bank transfer, or use a debit card.
- Check the details to ensure everything you put in is okay for the transaction.
On average, transfers take different timelines to clear with respect to the different methods of depositing funds:
- Wire transfer takes at least 2 days — utmost 3 days
- Funds deposited via credit or debit cards and online wallets reflect instantly or within a few hours
Upon transaction completion, eToro will drop you an email confirming receipt of the deposit in your accounts.
eToro Account Funding for Malaysians
Funding eToro accounts is easy — they can use any debit or credit card. Also, Malaysians can use electronic bank transfers. Additionally, Malaysians can fund eToro accounts via acceptable e-wallets like Skrill or PayPal.
Pro-Note: Investors sending deposits to eToro trading accounts can take advantage of credit cards instead of bank transfers. With them, they can access better conversion rates due to lower spreads.
Wise Card is among the simplest ways to send funds to eToro accounts in Malaysia. The Wise Card allows seamless transfers where users benefit from auto-conversion features. Simply, Wise Card converts all currencies in it to US Dollars at average market rates.
eToro Minimum Deposit Amounts
Minimum deposit amounts vary with a trader’s residence or PayPoint. Specifically, the following minimums apply for Malaysians depositing to eToro:
- Deposits to eToro via card must not be less than $50
- Deposits to eToro via bank transfers must not be less than $50
7. How Do You Withdraw Funds from Etoro in Malaysia?
eToro allows investors to withdraw funds at any moment. However, all withdrawals must be lower than the amounts available in the accounts, plus $5, which is the withdrawal fee.
eToro Withdrawal Process or Steps:
- From your eToro account dashboard, click on the button marked “Withdraw Funds.”
- A sub-window will appear — displaying the total amounts in the account and what is withdrawable.
- Type in the figure you target to withdraw
- Fill in the form for the electronic withdrawal with your details.
- Lastly, Click on the “Submit” button.
Once withdrawal requests are clear, investors receive confirmation via email. It also shows the method of preference for effecting the withdrawal. Before clearance, the traders can check on the status of the request via the eToro dashboard.
Preferably, if you are in Malaysia, you can withdraw via USD ($) via the Wise USD bank account details. This process offers nil conversion costs — so you can pocket a little more.
A Wise account in Malaysia helps you beyond investments on eToro. You can freely send, hold or receive money in MYR, USD, or more than 50 currencies at average market rates. And it saves you up to 3X for fees you must incur via banks. Plus, there’s no minimum balance.
Pros and Cons of Etoro for Malaysian Traders
eToro not only offers commission-free trading on stocks but has a fast and straightforward process for account opening. One of the most outstanding features is social trading, which helps new traders benefit from the strategies of other expert traders.
The downside with eToro starts with the high fees charged for non-trading or inactivity as well as upon making withdrawals. Also, withdrawals take relatively long. Plus, you can only hold funds in USD alone. The worst with eToro is the very slow-in-response customer support.
Pros
- Easy account opening process
- Free trading of stocks and ETFs
- Popular with Social trading
- Standby Customer Support team for chat or tickets
- Client fund protection policy
Cons
• High non-trading charges
• Limited to only one account base currency, the $ USD
eToro Account Types for Malaysian Traders
Malaysian traders have several types of accounts on eToro that meet their various special needs. First, there are retail accounts that suit ordinary investors. And secondly are the professional accounts that suit corporate investors.
For each category, after registration, traders will be required to undergo the KYC or Know Your Customer process for the accounts to be fully verified. eToro also offers a demo or dummy account for traders to test investment strategies.
Does Etoro Offer Islamic Accounts in Malaysia?
Yes. eToro offers Islamic accounts in Malaysia, subject to the requirements provided for by Sharia compliance.
Accordingly, Islamic accounts require no interest for all settlements to close within 24 hours. Zero interest roll-overs and nil commissions for trade rollovers exceeding 24 hours.
What Financial Instruments will I find on eToro?
The eToro platform offers both investment and trading opportunities. Specifically, investors target building wealth over the long term.
On the other hand, trading involves taking opportunities with the fluctuations in prices to make profits in the short term.
An account with eToro allows you to access the following opportunities:
Forex
Forex trading involves purchasing and selling currency pairs. On eToro, investors can explore all the major currency pairs with a leverage of up to X30.
With leverage of X30, it refers to the point that for every 1$ in capital, an investor can control positions to as high as $30.
The access to forex opportunities thrives on a 24/5 basis — meaning 24 hours from Monday to Friday, and running from Sydney through Asian, European, and finally, the New York Session.
Stock
For stocks, you own a share of a company and earn dividends from the profits the company makes. Alternatively, if you bought the shares at a low price, you may sell them when the prices increase and pocket the difference.
Stock traders check on releases of quarterly returns and fundamental news that affect stock prices.
Besides gaining from dividends by holding the shares, the stockholders can sell the stocks at higher prices and earn capital gains.
Commodities
On financial markets, commodities trade just like physical goods, albeit lacking the physical touch. As the prices rise and fall, traders speculating correctly have good opportunities.
You’ll typically find four categories: energy, metals, agri-produce, and livestock.
Commodities are a unique way to broaden investor exposure without owning the commodities physically.
ETFs
ETFs are “exchange-traded funds” and are simply funds trading on exchanges. An ETF tracks a specific index. Practically, an ETF bundles several assets together, which you either buy or sell.
ETFs lower the potential risks with markets by helping investors with diversification.
The most common ETFs include the S&P 500, Invesco QQQ, and the SPDR dow jones Industrial average.
Expert traders on ETFs guide that analysts follow the performance of key variables while monitoring performance. These include trading volumes, lower expense ratios, performance, holdings and commissions.
CFDs
Contracts for differences, or the CFDs in short, are binding contracts between an investor and a broker or a financial institution.
With CFDs, a trader or investor speculates on the future value of the assets, and either party must settle the difference in price upon expiry. So, CFDs are cash-settled financial instruments.
CFD traders are required to approach the markets with a keen focus on volatility and risk appetites. And the above should ride on a tried, tested and winning strategy. Only with positive ROI can a CDF trader grow their accounts by the net positive difference.
Cryptos
Crypto is rising in popularity, presenting broader ways to invest and earn.
Cryptocurrencies are highly risky but have great opportunities if you have the experience to take on them. Of course, the higher the risk, the higher the chances that the returns will be equally or exceedingly high.
Cryptocurrencies are a highly risky lot of investments — their regulatory frameworks are still very low across the globe. Yet, for the smart investor, it’s an opportunity to jump in at the right moments and emerge with some profits.
What Trading Platforms will I find?
Investors and traders will access find mobile and web platforms. eToro is a brokerage platform that caters for cryptocurrency traders and stock investors with broad arrays of opportunities.
eToro trading platform can be accessed via:
Mobile Apps:
- Android app accessible via mobile phones or tablets
- iOS app accessible via iPhones or iPads
Web access, where you can access via a web browser.
For web traders, it’s wise to install two-factor authentication or 2FA. This just adds a layer of access security.
It’s simple — traders can activate it from the dashboard and receive a 5-digit code via a registered mobile phone. Alternatively, it can also be accessed as a form of a voice call.
eToro Wallet or eToro Money Logins
eToro wallet access is accessible on mobile apps installed on mobile phones. Users can choose iOS or Android accordingly.
Investor login credentials to access wallets are those on your eToro account. Use your username or email with a corresponding password. Alternatively, users can work with signing-in features if they have either Apple, Facebook or Google account login credentials
One unique aspect of eToro is leveraging the power of the crowds — it is popular with social trading. And social or copy trading is very helpful for newbie traders to earn as they learn in-depth strategies to invest profitably.
13. Etoro’s Fees and Commissions in Malaysia
eToro specifically charges the following category of costs for account holders:
First are the Indirect trading fees for withdrawals($5), currency conversion, and also inactivity fees.
Secondly are the direct trading costs for spreads, commissions, and swaps.
14. Etoro Customer Support for Malaysian Traders
eToro has a customer support department reachable via the client dashboard. General queries can be settled by reading through self-help here.
Plus, you can chat with live support teams. Another way would be opening a ticket requesting assistance — where the support team may reach out to you. If you have urgent requests, use the live chat option.
Most Asked Questions about Etoro in Malaysia
What is eToro?
eToro is a popular social trading and brokerage firm. With social trading, an investor has the chance to connect with pro-traders or follow their trading signals by connecting or following them.
Does Etoro Work in Malaysia?
Yes, Malaysians can work with eToro. However, they have to be aware that SC in Malaysia does not provide regulations protecting them.
What is Etoro Copy Trading? And it is really easy
eToro Copy reading allows subscribers to connect their accounts to selected traders and follow the trades they open and close.
Copy trading is easy once you select good traders to follow. The hard part is by following loser traders, you lose capital.
Is eToro Good for beginners in Malaysia?
Yes, eToro is helpful for beginners. It allows them a chance to earn as they improve their expertise in the financial markets.
Does Etoro offer any Bonus in Malaysia?
No, Malaysia is not among the regions where eToro offers bonuses.
Final Verdict:
eToro is a credible trading and investment platform accessible to Malaysians. One unique trajectory is you’ll not access eToro via the common MT4 or MT5 platforms. It’s only limited to Mobile phone apps.
As regards fee charges, eToro charges account holders for withdrawals — a rare arrangement you do not commonly come across from many brokers.
On a very strong note, eToro has a very credible arrangement of social or copy trading. New investors can follow successful traders on the platform and earn as they gather knowledge and expertise to trade and invest on their own.
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