How much is the minimum deposit amount at eToro?
Minimum Deposit: $200
For a comparison of minimum deposit amounts across similar brokers, check out the table below:
When a broker requires a “minimum deposit,” that means you need to deposit at least that much money into your new brokerage account before you can trade. Different brokers might call this an “initial deposit,” “funding,” or even “account opening deposit.”
eToro is advantageous in that they charge no extra fees when making deposits. That means you don’t need to factor in additional deposit amounts to complete your initial minimum deposit. Also, eToro excepts credit and debit card deposits and can except initial deposits from a variety of base currencies (though they will be converted to USD).
Does eToro require a Minimum Initial Deposit?
Yes. Almost all online brokers require a minimum deposit. However, for each broker, the purpose of the initial deposit can be different. For most brokers, the initial deposit covers the fees that the broker needs to pay to create your new account and give it access to the various trading platforms. It also includes fees for connecting to the bank as well as any third-party fees that might show up depending on what brokerage you use.
With some trading accounts, you may notice extremely high minimum deposits ($100,000 or more). These higher minimum deposits are used to differentiate what kinds of services you’ll be able to access at that brokerage. For example, a $100 deposit may give you access to trade. However, a $100,000 deposit gives you access to a dedicated account manager who can advise you on the best trading strategies each day.
The great thing is that eToro has no deposit fee and a wide variety of methods for making your deposit. You can make your deposit through bank transfer, electronic wallet, credit card, or debit card.
Wire transfers usually take 2 to 3 days to complete. In contrast, credit/debit cards or online wallets complete instantly (or in a few hours).
Does eToro allow multiple base currencies?
No. eToro accounts are only in USD.
A “base currency” is the currency used to hold your money in your account. At other brokers, you could have a base currency of Japanese yen in one account and then have the base currency of a different account be in British pounds.
eToro does not support this. This means if you use any currency other than USD, eToro will convert it for you (and charge you a conversion fee). In addition, every trade you make that involves a currency other than USD will incur a conversion fee.
One way of minimizing currency conversion fees is by using multi-currency digital bank accounts. Multi-currency digital bank accounts can be a little complicated, so let’s use an example.
Let’s say you have an account at eToro that has a base currency of US dollars, but your personal bank account is in euros. You can open a digital bank account with TransferWise in USD. Then, you transfer the euros in your personal bank account to your TransferWise USD account. You will be charged a currency conversion fee, but it will be much smaller than the fee charged by most banks. After that, you put in the bank details of your TransferWise USD bank account into eToro. This way, eToro will deduct funds from your USD account and NOT charge you a conversion fee.
How Can You Start Trading At eToro?
Step 1: Open Your Account
At eToro, you can open your trading account online. To do that, you need to provide your personal details and fill out a questionnaire about your general financial knowledge. The last step is to verify your residency and identity. To do this, provide a copy of a government ID card and another document that validates your residency.
Step 2: Deposit Your Funds
Once your residency and identity are verified, your account is ready for the next step: deposit your funds. This is usually very straightforward, and there is an option inside of the trading interface where you can access and deposit your funds.
At eToro, you can deposit funds in a variety of ways:
Debit/Credit Cards: When using a debit/credit card to fund your initial minimum deposit, the interface is almost identical to any other type of online purchase. However, one of the unique requirements of eToro is that you must use cards that are in your name. This restricts the possibility of money laundering. Beyond that, the only possible restriction is that for some cards, there may be a limit on the size of purchase that you can make. That means a large deposit may require a bank transfer.
Online Wallets (Skrill, Neteller, PayPal): These payment tools work just like any other online purchase. You’ll be given access to the login for your electronic wallet and be allowed to complete the transaction.
Bank Transfer (wire transfer): To use the bank transfer feature, you need to put your bank account number and any applicable routing information into the deposit interface. The bank account must be in your name. At eToro, you also need to initiate the bank transfer from your bank. eToro will not withdraw the money for you. However, eToro provides a reference number to include with your bank transfer. This reference number allows eToro to identify your deposit.
Step 3: Verify Your Transaction Details
The last step is for you to verify that the information is correct and that the deposit amount is accurate. If you’re using a bank transfer, this could take several days. Still, you must review the amounts deposited in your account to be sure that you have received the correct amount for trading. eToro will send you an email to confirm the receipt of your deposit.
To get a full overview of the eToro trading platform and learn how to open an account with them you can also watch the video below: