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    eToro Review 2020

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    E-TORO

    75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

    In a nutshell

    eToro is an online broker, founded in 2007 in Israel. It is regulated by financial agencies in Cyprus, United Kingdom and Australia.

    In 2019, eToro surpassed 12 million registered users in over 100 countries which makes the company one of the biggest online brokers in the world.

    The platform offers a wide range of CFDs over stocks, currencies, crypto, indices, and commodities. Currently, there are around 1600 financial instruments to choose from.

    eToro fees are a mixed bag. Trading spreads are relatively wide in comparison to other providers. Deposits are free, but a trader has to deposit at least $200 for its first trade (in Australia or USA its $50).

    Each withdrawal costs $5. There are also conversion and inactivity fees.

    The platform is easy-to-use and intuitive. One of the biggest advantages is the option to copy traders and their portfolios which is free of charge.

    eToro also has its drawbacks, mainly its under-average customer support and lack of educational materials. However, the company has made big progress in recent years as our analysis has shown.

    Good:

    • Copy trading
    • Intuitive trading platform
    • Fast account opening
    • Technical tools
    • Regulated company

    Bad:

    • High minimum deposit
    • Withdrawal fees
    • No phone support
    • Poor platform tutorials
    • Limited CFDs catalogue 
    Overall score: 8,5/10

    eToro Insights

    eToro is a reliable online broker and social trading platform with registered offices in Cyprus, Israel, United States, the United Kingdom and Australia. The company has been founded in 2007 by brothers Yoni Assia and Ronen Assia together with David Ring.  

    Overall, eToro is considered a trustworthy platform that is by all account not a scam. The broker is regulated by several financial regulators: Cyprus Securities & Exchange Commission, the British Financial Conduct Authority (the U.K.), and the Australian Securities and Investments Commission.

    eToro trading assets are based around Contracts for Difference (CFD). Simply put, they are financial derivatives that allow investors to bet on the price of an asset without ever owning it. You can speculate whether the price will go down (short) or up (long). If you’re right, you profit, if not, you lose.

    eToro offers CFDs over six assets including currencies, stock and crypto. We’ll look at them more in detail later. 

    Because CFDs are complex instruments that include leverage they come with a higher risk. The leverage that comes with CFDs is the reason why 75% of retail traders lose money when trading. So be careful of the risks and only invest the money you can afford to lose.

    eToro is suitable for all levels of investors:


    Beginners: (7,5/10)
    • easy account opening
    • intuitive platform
    • copy trading option
    • high minimum deposit
    • lack of tutorials
    Mid-level traders:  (8,5/10)
    • technical tools
    • copy trading
    • newsfeed
    • podcasts
    • limited product catalogue
    • overnight fee
    Advanced traders: (8/10)
    • technical analysis tools
    • rich newsfeed
    • platform for opinion leaders
    • earning from being copied
    • no possibility to connect third-party software
    • wide spreads
    • limited product catalogue

    Costs

    You PAY:

    • Trading fees
    • Withdrawals
    • Conversion fees
    • Overnight fees
    • Inactivity fees

    You Don't PAY:

    • Deposits
    • Trading with non-leveraged assets

    1. Fees and Spreads  

    eToro is not the most affordable provider out there. Its spreads are relatively wide (not everywhere though). You also pay for withdrawals and non-activity.

    Good

    Bad

    • No deposit fee
    • Transparent fee structure
    • Relatively wide trading fees
    • High non-trading fees
    • Withdrawal fee
    • Inactivity fee
    • High financing rate

    Compared with similar platforms, eToro fares somewhere slightly under-average. Our analysis has shown that the broker, generally speaking, offers lower fees when trading with some types of stocks and higher for trading with CFDs. The trading fees are also relatively simple to understand. There are some tricks, though, but we’ll explain them further.

    The good news is that eToro doesn’t charge a deposit or clearing fees. They do, however, charge a flat $5 fee on all withdrawals. There is also a minimum withdrawal amount and it’s $30.

    Before we explain the fees in detail, here is a short explanation of how broker’s fees are usually segmented:  

    • Trading fees is what you pay for trading. They can include spreads, commissions, conversion rates.

    • Non-trading fees include various brokerage fees and charges that you pay not related to buying and selling assets. Typical non-trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.

    Trading fees

    Spread fees (the difference between the ask and the bid prices) are relatively wide on eToro. These fees occur whenever a user buys any kind of CFD instruments.

    Spreads are shown either in pips (applies to commodities and currencies) or percentages (stock and crypto). On eToro, they are a bit favourable for CFDs over stocks and indices and higher for trading currencies.

    As you can see from the table below, we’ve compared the trading fees for some of more popular instruments on eToro with aggregated averages of competitive online brokers. This way, you can get a general idea where eToro ranks well and where it ranks under-average.

    Instrument

    vs other platforms

    S&P 500 index CFD

    higher

    Europe 50 CFD

    lower

    German stock (non-leveraged)

    lower ($0)

    EUR/USD

    higher

    Apple CFD

    similar

    Now, this is important. If you trade long (meaning that you buy) stocks that are not leveraged, you don’t get to pay any spreads (example: German stock from the above table). Trading with these instruments will only incur conversion and withdrawal fees.

    In this case, the overall costs are very low. If you, however, trade with leverage higher then 1, you trade with CFDs. Also note, that this particular service is available to European clients.

    Financing rates

    A financing rate is a fee you have to pay if you hold a leveraged position for more than a day. When you leverage, you are basically borrowing money from the broker, that’s why they charge you with that extra fee. eToro has higher financing rates when compared to other brokers.

    Non-trading fees

    The eToro non-trading fees are above average. They include withdrawals (minimum withdrawal is $30 which is not particularly friendly to the complete beginners), conversion fees, crypto transfer fees and inactivity fees.

    The latter is charged when an account has been deemed inactive for 12 months or more. Keep in mind that eToro also charges conversion fees if you deposit or withdraw money in a currency different than USD.

    The good news is that eToro doesn't charge any fees for deposits, custody or using the platform. The copy trading is also free of charge.

    Here are eToro non-trading fees at a glance:

    Non-trading fee

    eToro

    Withdrawal

    $5

    Deposit

    0$

    Conversion

    YES

    Crypto transfer fee

    YES

    Inactivity Fee

    YES ($10/month)

    Crypto transfer fee

    YES

    Deposit

    First time minimum deposit on eToro is $200 for most of the countries. The exceptions are Australia and the USA (minimum first-time deposit is $50), Algeria, the Maldives and Venezuela ($5000) and Israel ($10,000).

    All deposits other than the first time deposit have to be at least $50. There is no deposit fee.

    The only supported currency is USD. That means, that your currency will be converted to USD once you transfer the portfolio. The conversion fees can be found here.

    On the Deposit Funds page, you can also see the amount in USD and conversion rate you will receive prior to submitting the payment.

    There are various deposit methods you can use: Credit Card (Visa, MasterCard, Diners Club, Maestro), PayPal, Neteller, and Skrill.

    eToro also offers the possibility of funding your account via Wire Transfer, with a minimum deposit of $500.

    Unverified accounts are limited to a total deposit amount of $2,250. The upgrade to a verified account is possible in the profile settings.

    2. eToro Account Opening

    eToro does a great job here. Opening an account takes a couple of minutes.

    Good

    Bad

    • It’s fast
    • No minimum account balance
    • User-friendly
    • Demo account with $100,000

    Account opening on eToro is a straightforward process. We were able to open the account in a couple of minutes. You can sign up with your email, Facebook or Google+ account.

    Demo account

    After you are signed up and logged in, you can immediately start trading with a $100,000 demo account. You can switch between profiles with a “Virtual portfolio” button next to your profile avatar.

    etoro virtual account

    eToro virtual account

    Verification process

    If you want to proceed and start trading with real money, you have to go through a two-tiered identification procedure. With only a customer profiling test you can deposit up to $2,000. If you want to deposit more, you have to prove your identity and residency by using a digital proofing system.

    You need to verify your phone number and upload copies of your documents:

    • by uploading a copy of your passport or ID, you prove your identity
    • by uploading a recent utility bill, you prove your residency
    75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

    3. eToro Withdrawal

    Withdrawals are ok, but we don’t like that you have to pay a fee for each withdrawal.

    Good

    Bad

    • Credit/Debit card withdrawals
    • Different methods
    • User-friendly
    • Withdrawal fee ($5)
    • Minimum withdrawal ($30)
    • Only one account base currency

    Withdrawal requests are subject to a $5 fee which is not a big amount, but still a fee that some other brokers don’t charge at all. eToro also has a minimum withdrawal set at $30.

    Any withdrawals sent in currencies other than USD are subject to conversion fees. For example, if you deposit EUR, a 0.025% fee will be applied at funding and the same fee will also be charged when you withdraw EUR.

    You may also be charged by the funding provider involved in the transfer (intermediary bank, receiving bank, or a credit card provider).

    What are the withdrawal options?

    • Bank transfer
    • Credit/Debit card
    • Electronic wallet

    How long does it take to withdraw money from eToro?

    When you withdraw your portfolio, you will receive them on your electronic wallet in 1-2 working days. It takes 3-8 working days to get your portfolio on a credit or a debit card. You are able to withdraw money only on accounts written on your name.

    What else to consider?

    • Account needs to be verified if you wish to make a withdrawal
    • You will be notified via email once your withdrawal request has been processed by eToro.
    • As long as your withdrawal request is “Under Review”, you may cancel it via your Portfolio, by clicking on the blue History icon and then clicking the “Reverse” button on the request you wish to cancel.

    4. eToro Trading Platform Features

    The interface looks and works great. It’s easy to understand for beginners while advanced users can use many of eToro’s technical tools.

    Good

    Bad

    • User-friendly
    • Alerts
    • Useful reports
    • Limited customization

    The eToro trading platform has a clean design and some very useful functions. The menus and buttons are where they should be, everything is marked correctly, and the colour pallet is fitting. They have an easy-to-use search function. During our testing, it proved to be very accurate and intuitive.

    Customization and alerts

    Meanwhile, the page itself is not particularly customizable, but you’re still able to set your own default page (news feed, watchlist, portfolio) and the notification alerts. These notifications are shown as icon updates or browser notifications on the web platform and as a push notification on smart phones.

    Languages

    eToro is currently available in 21 languages including English, French, Russian, Spanish, German, Italian, Polish and several of other European and Asian languages.

     Just as the web platform, the eToro app is also available in 21 languages.

    eToro trading window

    Placing order

    When placing orders, you can set rate and amount as well as the so called “stop-loss”. You can set the leverage size after you open your position.

    You also have an alert function that lets you know when an asset reaches a certain price. You get another notification when your order is fulfilled.

    Reports

    Another very useful and easy-to-use feature is the portfolio report. They are easily digestible and informative. You can filter the investments by various parameters or track your progress. You can also decide how you want to see them: as a list of your assets or a pie chart showing your current portfolio.

    These reports are not that easy to find though. Look for Portfolio / History / Top right circle / Account Statement. There you can download a pdf file that includes all your transactions, including fees.

    Mobile Trading Platform

    The eToro mobile trading platform is user-friendly and has a nice interface. It is available for iOS and Android. We tested it in iOS.

    The functionalities are almost the same as on the eToro web platform. There are some mobile-only functions such as push notifications and additional touch options: you can swipe left and right when in your portfolio to access charts or open a new trade.

    5. eToro Markets and Products

    The product catalogue consists of CFDs over stocks, currencies, commodities and crypto. Enough for most traders, but advanced users might want more.

    Good

    Bad

    • Trading with real stocks
    • No spreads for non-leveraged stocks 
    • Good range of currencies and crypto
    • Poor product catalogue of stocks

    The eToro platform is mainly a CFD and forex broker. You can also trade real stocks and some of the cryptocurrencies – if they are traded without leverage. Buying with leverage, on the other hand, means buying CFDs.

    The fact that you buy the real stocks when buying without leverage is something that other brokers don’t usually offer and is a definitive plus for eToro.  You can also copy other traders that trade CFDs (social trading), or invest in a portfolio of featured professionals, trading on the platform – if this is your interest, eToro is one of the best in the industry.

    All in all, there is a decent amount of investment options on this platform. They have somehow fewer stock options than some other brokers (such as Plus500), but they offer a nice mix of various financial assets, especially with cryptocurrencies.

    Here is a breakdown of all eToro assets in comparison to Plus500 and IQ Option.


    eToro

    Plus500

    IQ option

    Stock CFDs

    1300

    1800

    168

    Forex

    47

    50

    49

    Indices CDFs

    13

    30

    -

    CFDs

    145

    80

    24

    Commodities

    14

    25

    4

    Crypto

    16

    12

    12

    Please note, that especially CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Around 75% of retail investor accounts lose money when trading CFDs with eToro.

    6. eToro Special Features

    eToro is big in social trading. Users can copy traders, their portfolios or invest in investment vehicles.

    Good

    Bad

    • Industry standard copy trading
    • No fee for copying
    • Advanced filters
    • Good newsfeed
    • limited customization

    CopyTrader

    CopyTrades is how eToro calls its social trading feature. You can copy trading movements of hundreds of professional or amateur traders – automatically and in real time.

    This is very useful as you can learn a lot from their techniques and the way they approach the market. And it’s not only about copying their portfolios.  eToro has successfully created a collaborative community of traders and investors — a place they can connect, share, and learn. Users can chat with each other and discuss strategies.

    Advanced filters

    eToro offers advanced filters that you can use to find the perfect trader that you want to copy. Some of these features include return, risk score, number of profitable months and even if they have a photo. This kind of performance history is highly useful.

    All the portfolios are subject to public information. eToro also provides different statistics such as trades per week, holding times, charted performances, profile descriptions.

    etoro copy trading

    eToro traders and their stats

    The minimum amount for copy trading

    The minimum amount required for a single trade when using CopyTrade is $200, and the maximum is $500,000. You can copy up to 100 traders at the same time. Trades are typically executed in less than a second from the instant the trader you copy executes their own trades.

    There is no additional charge for copying another trader or traders. You will still be charged spreads on the trading and/or transaction fees where applicable.

    Keep in mind that past performance doesn’t guarantee future results. All the investment decisions you made are your own responsibility, this article is by no means investment advice.

    CopyPortfolio

    CopyPortfolio is investment vehicle that bundle together a collection of financial assets. The assets are picked and re-picked, given a predetermined strategy. This service is seen as a low-risk investment channel.

    CopyPortfolio has to options:

    • Top Trader is based on a trader-only portfolio, where each of the traders that are being copied as part of the portfolio, are selected based on the CopyPortfolio’s strategy. For example, a CopyPortfolio that aims to take only top-performing, long term stock investors, will pick those investors based on performance, with significant stock allocation as part of their portfolio.
    • Market CopyPortfolio is comprised of financial assets only, and not traders, so its portfolio may consist of stocks, indices, commodities, or currencies.

    The minimum investment amount is $5,000. You can, however, stop your investment anytime, at current market rates. There are also no management fees associated with investing in CopyPortfolios, only the regular eToro spreads.

    Again, keep in mind that past performance doesn’t guarantee future results. All the investment decisions you made are your own responsibility, this article is by no means investment advice.

    7. eToro Research

    Comprehensive list of technical tools, charts and newsfeed.

    Good

    Bad

    • User-friendly
    • Clear design
    • nothing special

    eToro offers some good technical analysis tools. You can research the markets by analyst recommendations or market sentiment indicators.

    This includes analyst consensus, price targets, hedge fund sentiments, and insider trading sentiments. Those are some very useful research tools that are unfortunately available only for a few of the most known stocks.

    Fundamental Data

    You can use some of the most common fundamental data on the eToro. With stocks, this is the company profile, and ratios of P/E, EPS, and dividend yields. This information is limited to stocks, however.

    etoro data

    Tools and charts

    eToro has a good set of charting tools and different indicators. We really liked that charts are saved automatically. This means 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
    • EMA
    • Fibonacci
    • MACD
    • RSI
    • Stoch RSI

    Newsfeed

    The news feed on eToro is not an official news feed, but more like a post-board where eToro users and analysts post their messages on the markets. It includes hashtags for certain themes and $ signs for assets. Use it with caution, in most cases users are not professional traders and the posts are just their opinions.

    8. eToro Customer Service

    Customer service is still one of the weaker points. It’s available via email and live chat.

    Good

    Bad

    • Live chat
    • Different languages
    • Slow at times
    • Occasional irrelevant answers
    • No telephone help

    The customer service is one of the weaker points of eToro. But, considering the online reviews, analysed in 2020, the customer service has become much more efficient as it has been.  Live support, that eToro established in the recent years, is a step in the right direction.  

    The most common support is still through email ticketing system. It can often take a couple of hours or even days for an answer which is hardly acceptable for an internet company.  

    The responses are professional, but sometimes they don’t cover the whole question or are not completely relevant.

     Their customer service is in English, Spanish, Italian, German, Russian, French, Polish, Chinese and Arabic.

    9. eToro Education

    eToro offers guides, videos, webinars, blogs and also a podcast. They vary in quality and quantity.

    Good

    Bad

    • Relevant blog
    • Detailed guide to fintech
    • Podcast on investment
    • Limited guide for beginners
    • A poor video library

    Education is another area where eToro performance is under-average in comparison to its competitors. It’s still pretty limited, but – to be fair – eToro is stepping up its game.

    Their blog site is up-to-date and relevant. They’ve also created a complete guide to fintech. Especially refreshing is their recently launched podcast which tackles investment and other financial topics.

    In the meantime, their profile has a “Help” option which takes you on a quick, 2-minute tutorial on how to use the platform. It could be more comprehensive.

    There are also a couple of basic educational videos and webinars about investing and the market.

    10. eToro Safety

    eToro is safe to use; it is regulated in three countries. It has 12 million users and it’s backed by different venture investors.

    Good

    Bad

    • Regulated by top tier financial authorities
    • Negative balance protection
    • Well-known
    • Investor protection
    • Not listed on any stock exchanges
    • Limited disclosed financial information

    eToro was founded in 2007, in the midst of the financial crisis. The fact that they were able to survive is a good testament to the resilience of the company.  

    They are privately owned and have, until 2020, received $222 million in investments – another sign that the venture capital has seen a big potential in the company.

    Note that eToro is currently not listed on any stock exchange, and it doesn’t release any financial public statements.

    The company also has three legal entities and each of them is regulated by a different regulator, depending on the countries. This also means that the level of protection depends on your country of residence.  

    • UK citizens can open their account on eToro (UK) Limited. Therefore they are protected by the FCA. If eToro becomes unable to return their money, every user can expect the compensation of up to £85,000 by the FSCS (Financial Services Compensation Scheme).

    • Australian citizens are able to open their accounts by eToro Australia, regulated by AISC (Australian regulator)

    • Other investors can establish their account with eToro UAE Limited. That entity is regulated by the Cypriots CySEC. At the European eToro entity, the portfolio is protected by up to €20,000, as determined by CySEC.

    Legal entity

    Regulator

    Protection

    Country

    eToro (UK) Limited

    FCA

    £85,000

    United Kingdom

    eToro AUS Capital Pty Ltd

    AISC

    None

    Australia

    eToro (Europe)

    CySEC

    €20,000

    Other customers

    eToro Final Verdict

    Our comprehensive review has shown that eToro is a suitable online broker for beginner and medium traders who are looking to trade CFD’s.

    eToro is standing out in two ways. First, it offers trading with non-leveraged stocks without any trading fees (only for European traders though). And secondly, its social trading option is one of the best in the industry. 

    Copying traders and their portfolios is nicely executed, very transparent and highly sophisticated. The platform additionally offers lots of extra features like crypto wallets, eTorox app, crypto exchange, some mobile applications etc.

    Opening an account is also fast and easy, fees competitive, and the platform itself works very nicely.

    There are also drawbacks. We found that the customer support and education are still weak points, although eToro made some progress here. We will keep you updated on future developments.

    Trading-wise, eToro offers a decent amount of CFDs, although we would like to see more stock options.

    All in all, we do recommend eToro as a trustworthy and reliable online broker.

    Methodology 

    The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.

    Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.

    Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

    Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. 

    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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