How Do I Compare Etoro Stop Loss Orders to Stop Loss Orders Offered by Other Brokers?

Written by Mike Druttman

Reviewed by Wikitoro Team

1. Introduction

Over the past five years, I've actively used trading platforms, including eToro, TD Ameritrade, and Interactive Brokers. A trader's success often depends on tools like stop loss orders. From my experiences, I've deduced the essential features of these tools across platforms.

2. My Journey with eToro Stop Loss Orders

Trading on eToro was my introduction to the world of stop losses. The platform's unique social trading feature allowed me to learn from top investors. I've personally set stop loss orders, and while I've had some trades close earlier than anticipated, it saved me from significant losses during market downturns.

3. Comparison Criteria from a Trader's Eye

Over time, I've identified five key factors to assess the efficiency of stop loss orders:

• Execution speed: How rapidly can my trade close?
• Slippage: My personal experiences with price deviations.
• Stop loss distance: Real-life issues with setting stop losses too close/far.
• Flexibility: My preference for platforms that let me adjust on the go.
• Cost: Those pesky hidden charges I've encountered.

4. Diving Into Other Leading Brokers

I transitioned from eToro to TD Ameritrade and then to Interactive Brokers:

• With TD Ameritrade, I appreciated the swift executions but did notice occasional slippages during high volatility.
• Interactive Brokers was a game-changer with its advanced order types, but it did have a steeper learning curve.

5. eToro's Stop Loss: My Two Cents

Pros:

• Social trading provided insights that were golden for a newbie like me.
• Simplistic UI made it beginner-friendly.

Cons:

• During peak trading hours, the execution sometimes lagged, leading to unexpected losses.

6. My Take on Other Brokers' Stop Loss Orders

Pros:

• Platforms like Interactive Brokers provided unmatched flexibility.
• TD Ameritrade’s robust infrastructure led to fewer downtimes.

Cons:

• As a professional, I felt Robinhood was too simplistic and lacked advanced features.

7. eToro vs. Other Brokers: A Trader’s Perspective

In my years of trading:

• eToro excelled in community learning and was ideal for newbies.
• Interactive Brokers was the go-to for advanced strategies.
• TD Ameritrade found middle ground, catering to both novices and experts.

8. Real-world Scenarios

There was this one week where the market swung wildly. On eToro, my stop loss triggered earlier than I'd have liked. In contrast, my Interactive Brokers account, with its trailing stop loss, gave me a buffer, leading to less loss.

9. What I've Learned Choosing Brokers Based on Stop Loss Features

• Your trading strategy and platform should be in sync.
• A zero-fee platform isn’t always the best. Sometimes, hidden charges creep in via wider spreads.

10. Conclusion

My journey across these platforms has been enlightening. eToro served me well as a beginner, but as I advanced, platforms like Interactive Brokers suited my evolving needs. In trading, as in life, one size doesn't fit all. Your choice should resonate with your expertise and goals.