eToro is a reputable online broker regulated by CySec, known for its intuitive platform, commission-free stock trading, fast account opening and an advanced social trading. We recommend eToro to beginner traders looking to invest in crypto assets, stocks and CFD.
|Regulation||FCA, ASIC, CySEC|
|Countries of regulation||UK, Cyprus, Australia|
|Tradable Assets||Stock, ETF, Forex, Fund, Bond, Options, Futures, CFD, Crypto, Warrants, Structured Products|
|Deposits||Stock, Forex, ETF, Crypto, CFD|
eToro is a safe online broker regulated by top-tier financial regulators, known for its multi-asset trading platform, feature-rich trading platform and advanced social trading features. It is regulated by financial authorities in Cyprus, United Kingdom and Australia. In 2020 eToro surpassed 13 million registered users in over 100 countries.
Their online trading platform is interactive, intuitive and yet easy-to-use. eToro’s biggest advantage is a feature called social trading. This feature enables users to copy trades and portfolios from other traders. It is build in a forum-like way which allows engagement between peers through a comment section.
eToro offers a range of CFDs over stocks, currencies, crypto, indices and commodities. They have 1,600 financial instruments from which traders can choose. Trading spreads are wide, deposits are free. Each withdrawal costs $5. There are conversion and inactivity fees.
In this eToro review, we will reveal everything you need to know about this online broker.
1. Fees and Spreads
eToro offers a typical variable spread of 1 pip for the EUR/USD currency pair which is industry average. As a market-maker broker users would choose them rather for their social trading feature than their spreads. eToro offers commission-free stock trading.Traders pay for withdrawals and non-activity. eToro doesn’t charge deposit or clearing fees. They do charge a flat $5 fee for all withdrawals. There is a minimum withdrawal amount of $30.
Spread fees (the difference between ask and bid prices) are wide on eToro. Spreads are displayed in pips for commodities and currencies. This broker is favouring CFDs over stocks. The indices are higher for trading currencies. The S&P 500 CFD trading fee is 0.75. The Europe CFD trading fee is 3. If you trade long and buy stocks that are not leveraged, you don’t have to pay any spreads. Trading forex on the eToro platform is expensive. They charge 3 pips for trading EUR/USD. Other platforms charge from 0.5 to 1 pip per trade.
eToro’s non-trading fees are above average. They start with withdrawal fees, ($30 dollars minimum, which is not friendly to beginning traders). They charge conversion fees, crypto transfer fees and inactivity fees. An inactivity fee occurs when an account has been inactive for 12-months or more. eToro charges a currency conversion fee if you deposit or withdraw in a currency other than USD. eToro doesn’t charge fees for deposits, custody or using the platform. Copy trading is free of charge.
The minimum first time deposit on eToro is $200. Exceptions are Australia and the USA $50. All future deposits beyond this first time deposit must be $50. There is no deposit fee. The only supported currency is USD. That means, that your currency will convert to USD once you transfer your portfolio. Conversion fees are found here.
There are several deposit methods you can use. These include: Credit Cards (Visa, MasterCard, Diners Club and Maestro), PayPal, Neteller, and Skrill. eToro also lets you fund your account via Wire Transfer. The minimum deposit is $500. Unverified accounts have a total deposit amount limit of $2,250. You can upgrade to a verified account in your profile settings.
2. eToro Account Opening
Account opening at eToro is fast and easy. Users can open an account 100% online. Traders can open their account in minutes using email, Facebook or Google.
After you sign up and log in, you can start trading with a $100,000 demo account. You can switch between profiles with the “Virtual portfolio” button. It is next to your profile avatar.
Traders need to complete a two-tiered identification process if they want to trade with real money. With an unverified account the customer profile lets you deposit up to $2,000. This broker uses a digital proofing system. You need to verify your phone number and upload copies of specific documents: upload a copy of your passport or ID to prove your identity and upload a recent utility bill to you prove your residency.
3. eToro Withdrawal
Withdrawing money from eToro is fast and simple. The withdrawal charge is $5. There are several different methods to withdraw money. Retail traders can withdraw money to their bank account, credit/debit card or electronic wallet. The withdrawal process takes 1-8 working days depending on the withdrawal process.
Withdrawals sent in currencies other than USD are subject to conversion fees. You may face charges from the funding provider in the transfer. This could be an intermediary bank, receiving bank or credit card provider.
4. eToro Trading Platform
eToro is a multi asset trading platform combining autonomous and social trading in one place. Huge variety of tradable assets, advanced technical and analytical tools and is ease of use are additional benefits. Their trading platform has a clean design and useful functions. The menus and buttons are logically placed. Everything is clearly marked. They have an easy-to-use search function. During our testing, it proved to be accurate and intuitive.
The main page is not customizable. You can though create your own default page. You can add a news feed, watchlists, portfolio and notification alerts. These notifications appear as icon updates or browser notifications on their web platform. You can set up push notification to smart phones.
eToro is available in 21-languages. These include: English, French, Russian, Spanish, German, Italian and Polish. There are several other European and Asian languages.
This broker offers easy to use portfolio reports. They are easy to digest and very informative. You can decide how you want to see them: a list of your assets or a pie chart showing your current portfolio. These reports are not easy to find. Look for Portfolio / History / Top right circle / Account Statement.
Mobile Trading Platform
The eToro mobile trading platform is both user-friendly and has a nice interface. It is available for iOS and Android. The functionality is almost the same as on the web platform. There are mobile-only functions, which include push notifications and extra touch options.
5. Tradable Assets
eToro offers a total of 2365 tradable assets containing CFDs over stocks, currencies, commodities and crypto assets. This is enough for most traders. Advanced users may want more options. eToro is one of the few brokers offering stock trading without leverage. They are also the best broker in the industry for social trading. Users are able to invest in a portfolio of featured professionals who trade on the platform. Here is a breakdown of all assets in comparison to Plus500 and IQ Option.
6. Special Features
eToro is one of the best online brokers for social trading. It allows users to copy trades and portfolios from professional traders.
CopyTrade is eToro’s social trading feature. It enables traders to copy the trading movements of hundreds of professional traders. The system does it in real time. CopyTrade enables users to learn from professional traders how to approach the market. This is more than copying their portfolios. eToro has created a collaborative community for traders and investors. It is build as a social media like platform where they can connect, share and learn from each other. Users can use advanced filters to find their desired trader. Some of these filters include return, risk score and number of profitable months. All portfolios are subject to public information. This broker provides weekly number of trades, holding times, charted performance and profile descriptions.
The minimum amount for a single CopyTrade trade is $200. The maximum is $500,000. You can copy up to 100 traders at any one time. Trades execute less than one second after the trader you copy executes theirs.
There is no added charge for copying another trader or traders. Traders pay spread charges on the trade and/or transaction fees where applicable.
CopyPortfolio is a collection of financial assets.These assets are selected and re-selected, following a predetermined strategy. This service is considered a low-risk investment channel.
CopyPortfolio has two options:
- Top Trader is based on a trader-only portfolio. Each of the traders you copy as part of the portfolio are selected based on CopyPortfolio’s strategy. A top-performing, long term stock investors focus, picks them based on performance. Significant stock allocation is part of their portfolio.
- Market CopyPortfolio is made up of financial assets only, not traders. Its portfolio may consist of stocks, indices, commodities or currencies.
Keep in mind that past performance doesn’t guarantee future results. All investment decisions you make are your responsibility. This article by no means offers investment advice.
7. eToro Research
eToro provides a comprehensive list of technical tools, charts and newsfeeds. Most of the tools lack in fundamental data. Traders can research markets by analysing recommendations or market sentiment indicators. These include analyst consensus, price targets, hedge fund sentiments and insider trading sentiments. These are very useful research tools. They are only available for a few of the best known stocks.
Tools and charts
eToro has a good set of charting tools and indicators. Charts save automatically. You don’t have to set up your indicators each time you visit the platform.
There are around 70 indicators you can choose from, including:
- Bollinger Bands
- Stoch RSI
The news feed is not an official feed. It is more like a post-board. Users and analysts post market messages. It includes hashtags for certain themes and $ signs for assets. We recommend to use it with caution. In many cases users are not professional traders. The posts are their opinions.
8. eToro Customer Service
eToro customer support is available through email and live chat. It is one of their weaker parts of their service. Customer service operates in many languages. These include: English, Spanish, Italian, German, Russian, French, Polish, Chinese and Arabic. Opening up live chat through the trading interface creates a support ticket. The response time for these tickets in under 24hours. There is no customer support via email or phone. The responses are professional. Sometimes they don’t cover the whole question or parts are not completely relevant.
Education is another area eToro performs below-average compared to its competitors. It’s limited, but – to be fair – eToro is stepping up its game. eToro offers guides, videos, webinars, blogs and a podcast. They vary in both quality and quantity. Their blog site is up-to-date and relevant. They’ve created a complete guide to fintech. Refreshing is their recently launched podcast on investment and other financial topics. Their profile has a “Help” option which takes you on a quick, 2-minute tutorial of how to use the platform. It could be more comprehensive.
10. eToro UAE
eToro is available to UAE citizens although it is not regulated by the local authorities DFSA and ADGM. eToro does not have a local office in the United Arab Emirates or Dubai. This broker is regulated by top tier financial regulators also covering the United Arab Emirates and is considered safe for Gulf citizens. The minimum deposit for eToro UAE users who are using an Islamic account is USD 1,000.
eToro offers islamic accounts for people who want to follow the Quran and Islamic finance restrictions while investing.
11. Is eToro Safe?
eToro is considered safe, backed by different venture investors and regulated by 3 top tier financial regulators including Australian Securities & Exchange Commission (ASIC) and the Financial Conduct Authority (FCA).
The company has three legal entities. Each is regulated by a different authority, depending on the countries it serves. This means the level of investment protection depends on your country of residence.
- UK citizens can open their account on eToro (UK) Limited. This gives them FCA protection. If the company is unable to return their money, users can expect compensation of up to £85,000. This would come from the UK FSCS (Financial Services Compensation Scheme).
- Australian citizens are able to open their accounts on the Australia franchise. It is regulated by the Australian SIC.
- Other investors can establish their account with eToro UAE Limited. That entity is regulated by the Cypriot CySEC. In this European entity, the portfolio is protected up to €20,000 through CySEC.
eToro is an excellent online broker for those who want to trade stocks, cryptoassets and CFDs on a user friendly trading platform. Advanced copy trading features, simple account opening, a feature-rich trading platform, fast trade execution and zero commission stock trades are the main benefits for users.
eToro customer support is lacking in options and response times. Educational materials and tools are basic. The trading of US-listed ETFs and stocks is free of charge.
To sum it up, eToro is the best social trading broker with a solid trading platform and fast trade execution. We recommend this online broker to beginner and medium experienced traders.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity-specific information about eToro.
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All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
- 1 1. Fees and Spreads
- 2 2. eToro Account Opening
- 3 3. eToro Withdrawal
- 4 4. eToro Trading Platform
- 5 Mobile Trading Platform
- 6 5. Tradable Assets
- 7 6. Special Features
- 8 7. eToro Research
- 9 8. eToro Customer Service
- 10 9. Education
- 11 10. eToro UAE
- 12 11. Is eToro Safe?
- 13 Conclusion