What type of broker is eToro?

We are the type of broker that has managed to use the best of the technologies available to provide our traders premium trading conditions.

Like most trading firms and many banks, eToro is using a market maker model (Read more on Wikipedia). Using the best aspects of this model, in conjunction with STP (Straight-Through Processing) technologies, and NDD (Non Dealing Desk) practices, eToro is able to provide you trading conditions that include:

1. Immediate execution: No delays and automatic filling of trades. The rate that you see is the rate that you get!
2. No re-quotes: Your rate will not be re-quoted, changed or cancelled, saving you time and money.
3. Direct connectivity to the market: We provide a direct channel to the Market, allowing you to trade with your $25, like you were a hedge fund!
4. Fixed Spreads: Enjoy the simplicity and peace of mind of knowing what you will pay before and after you execute your trade.

How does this system work for YOU?

In simple terms this means that several of the largest financial institutions provide price feeds and liquidity to eToro. As a regulated broker, eToro does not manipulate prices, and simply adds a spread commission; which is how eToro makes money. This is the tradable price, ready for our clients to see on the platform. It is our obligation to our clients to provide the best and most awesome possible buy and sell prices.

We have applied a non-dealing desk practices to allow our traders to have immediate execution on the price they SEE the very moment they want it. eToro works hard to maintain our exceptional trade filling rate solely for our traders!

Did you know that eToro processes nearly 1 million positions in a week?

How does STP and NDD work?

Let’s keep it simple- eToro is able to offer high quality execution, due to our combination of STP and NDD execution. This means the aggregated exposure of some trades is automatically forwarded to first tier liquidity providers in REAL time, which is something usually reserved for banks and corporations. In other cases, eToro may choose to absorb some exposure in a trade. Our traders can be sure that because have applied a NDD model, there is NO manual interference in trader’s positions, or any price manipulation. It is this technology that creates a NO CONFLICT ecosystem where eToro wishes our traders to make as much money as they can.

As a regulated company, we are audited and monitored in all aspects of our business, and maintaining our reputation is our primary focus, which is why more and more traders and investors alike agree that eToro is awesome and are choosing eToro for their investment needs.

The above description does not apply to the execution of certain instruments, such as securities’ CFD (shares, stocks, bonds and the like), which are executed in one or more intervals during each trading day. For more information see Terms & Conditions.

To read more:

• Click to find out how Investopedia defines a “market maker”.
• Read about liquidity here: http://en.wikipedia.org/wiki/Liquidity
• Read about STP here: http://en.wikipedia.org/wiki/Straight-through_processing
• Read about NDD here: http://www.investopedia.com/terms/n/no-dealing-desk.asp#axzz1mMnErcZ2
• Read about the interbank market here: http://en.wikipedia.org/wiki/Interbank_market