eToro Review

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5/5
0% commission
CopyTrader™ Systems
More than 60 Crypto
OPEN ACCOUNT *Risk is involved with all trading actions
Pros
  • 20+ cryptocurrencies to trade (only 5 in the U.S.)
  • Intuitive desktop and mobile interfaces
  • Regulated by financial and government bodies
  • Community-based trading platform – making it easier for those who want to copy other investors
  • Transparent fee structure
Cons
  • High fees depending on the currency and transaction
  • Certain feature restrictions for U.S. residents (i.e. only crypto and FX trading allowed)
eToro Highlights
📈 Demo Account Yes
💸 Leverage Forex 1:30, Commodities 1:10, Stocks $ ETFs 1:5, Crypto 1:2
📊 Available assets Stocks, ETFs, crypto, forex, commodities, indices
💵 Deposit Methods Bank Transfer, Maestro, Visa, MasterCard, Diners Club, PayPal, Skrill, Neteller
🗠 Minimum Trade On Stocks $50
💰 Min Deposit $200
⚖ Regulation FCA, CySec, FinCen, ASIC
🌐 Countries 140 countries

To see the list of blocked countries click this link: Is eToro blocked in my country?

What is eToro?

eToro is a social trading and investment platform that allows users to buy and sell a variety of assets, including stocks, currencies, commodities, and cryptocurrencies. The platform was founded in 2007 by two brothers, Yoni and Ronen Assia, and has since grown to become one of the largest and most popular online brokers in the world with more than 17 million users in 140 countries.

One of the main features of eToro is its social aspect, which allows users to connect with other traders and investors and share ideas and strategies. This can be especially useful for new traders who are looking to learn from more experienced investors, as well as for more experienced traders who want to share their knowledge with others.

In addition to its social features, eToro offers a range of tools and resources to help traders make informed decisions. These include market analysis and research, educational resources, and a range of trading tools, such as charts and technical indicators.

Another key feature of eToro is its commitment to safety and security. The platform uses robust security measures to protect users’ personal and financial information. It is regulated by several authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). Recently eToro launched in the United States as well, hence further expanding its user coverage. However, for its US customers, the platform has certain limitations since it just allows crypto and forex trading, unlike European users who can trade many asset classes, including Contracts for Difference (CFDs).

Is eToro Legit?

Considering the number of online brokers available these days, many may wonder whether eToro is a legit platform to trust your money and portfolio.

In a nutshell, eToro is a legitimate platform for investing in a variety of assets. The company was founded back in 2007 hence it has about 15 years of track record. Since its inception, the company became one of the largest and most popular online brokers with a worldwide presence, a large customer base and more than 1 500 employees globally.

Furthermore, eToro is regulated by FCA and CySEC which oversee the operations of financial firms and ensure that they adhere to strict rules and regulations designed to protect consumers and maintain the integrity of the financial markets.

In addition to its regulatory oversight, eToro is also committed to ensuring the safety and security of its users. The company puts significant focus on security measures to protect users’ personal and financial information with additional authentication or privacy measures recommended to users in order to minimise any possibility of a data breach.

Nevertheless, as with any investment, it is important to do your own research and carefully consider the risks before making any decisions, since you need to identify what platforms and investment products are best suited for your needs. Moreover, it is always advisable to diversify your portfolio and invest only what you can afford to lose.

Is eToro Regulated?

Yes, eToro is regulated by many financial authorities around the world. The company is regulated by the FCA in the UK and the CySEC in Cyprus as mentioned before.

In the United States, eToro is registered with the Financial Industry Regulatory Authority (FINRA) as a broker-dealer and is a member of the Securities Investor Protection Corporation (SIPC).

In addition, eToro is also regulated by the Australian Securities and Investments Commission (ASIC) in Australia and the Monetary Authority of Singapore (MAS) in Singapore. Being regulated by these authorities means that the company passed all the requirements to receive a license, which enables eToro to offer its services in several countries around the world.

Although it is important to check whether the brokerage of your choice is regulated or not, it is still fundamental to note that regulation does not necessarily guarantee the safety of your investments.

What are the benefit of regulations:

Regulated brokers, such as eToro, are required to undergo certain audit processes by submitting both financial and non-financial reports to the designated regulatory authorities. This process ensures sound operations and business continuity while at the same time making sure that the customer portfolios and money are safe.

As a regulated broker, the platform is obliged to show its users a risk warning before creating their first trading account to highlight risks associated with investments, capture certain data about the customer for know-your-customer (KYC) purposes as well as ensure that the client has at least some basic understanding about investing by asking certain questions related to trading and risk associated to it.

Leverage involves borrowing money from your broker for investment purposes. Thanks to regulations, there are certain limits in place in terms of how much leverage a person can use in a transaction, which further protects your capital given the high risks associated with leverage investing.

According to CySEC, regulated brokers including eToro, are governed by the law of the Investor Compensation Fund which ensures that investors still receive the entire or part of their capital even in case of a bankruptcy of the brokerage firm.

Regulated brokers often require investors to pass through the ID verification process and provide proof of address during registration. This further strengthens the KYC process and reduces the probability of a money laundering (ALM) procedure.

eToro is suitable for a wide range of investors. While the platform works well for professionals, it is particularly well-suited for beginner and intermediate investors who are looking to learn about the markets and trade in a variety of financial instruments.

eToro’s platform is user-friendly and easy to navigate, making it a good choice for those who are new to online investing. Furthermore, it offers a range of educational resources, such as market analysis, webinars, and trading courses, to help investors improve their knowledge and skills.

In addition, eToro is popular among those who are interested in social trading, as it allows users to follow and copy the trades of more experienced investors. This can be a useful way for beginners to learn from more experienced traders and potentially increase their chances of success in the markets.

Neverthless, it is important to note that investing carries risk, and investors should carefully consider their own financial goals and risk tolerance before using any platform.

eToro Trade Experience

In essence, the very first step for eToro to work is to deposit a fiat currency into your account (you also have the option to transfer cryptocurrencies). Once your transfer is visible on your eToro account, you may use eToro’s web or mobile interface to trade.

Thanks to eToro’s Copy Trader features, you may copy trades from professional investors if you are new to the stock or crypto markets.

Other features offered to its users are real-time market quotes, charts, and news updates, etc. to help users make more informed trading decisions. The platform also offers a range of other tools including stop-loss and take-profit orders, as well as risk management tools such as negative balance protection and margin call alerts for more sophisticated investors.

  • Dashboard:

The eToro’s dashboard is the main hub of the platform, where users can access a range of features and tools to manage their investments. On the dashboard, users can view their portfolio, which displays a summary of their holdings and the current market value of their investments with additional buttons to buy or sell portfolio holdings or instruments from your watchlist.

  • CopyTrader and CopyPortfolio:

CopyTrader is a feature that allows users to select other traders on the platform and automatically copy their trades. Users can choose which traders to follow based on their performance, risk profile, and other factors, and can adjust the size of their copy trades to suit their own risk tolerance and investment goals.

CopyPortfolio is a feature that allows users to invest in a diversified portfolio of assets, which is managed by eToro’s investment team. The portfolio is comprised of various financial instruments, such as stocks, commodities, currencies, and cryptocurrencies, and is rebalanced periodically to optimize returns. Users can choose from a range of different CopyPortfolios, which are based on various investment strategies and risk profiles.

  • Digital Wallet:

A digital wallet is a software application that allows users to store, send, and receive digital currencies, such as Bitcoin and Ethereum.

eToro offers a digital wallet service that allows users to store and manage a range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The wallet is integrated with the eToro platform, so users can easily buy and sell cryptocurrencies, as well as view their balance and transaction history.

  • News Feed:

The news feed is a feature on eToro’s platform that provides users with real-time news updates and market analysis. The news feed includes a range of content, such as market summaries, analysis of economic indicators, and updates on specific financial instruments or sectors. Users can also customize their news feed to receive updates on topics that are most relevant to their interests.

  • eToro Charts/Stats:

The charts on eToro’s platform provide real-time data and various technical indicators, such as moving averages, Bollinger bands, and relative strength index (RSI), to help users analyse price trends and identify potential trading opportunities. Users can customize the charts to suit their own preferences and can view different time frames, such as daily, weekly, or monthly.

In addition to the charts, eToro’s platform also provides a range of statistical data, such as market capitalization, trading volume, and 52-week high and low prices, to help users understand the performance and fundamentals of different financial instruments.

  • Available Cryptocurrencies:

The news feed is a feature on eToro’s platform that provides users with real-time news updates and market analysis. The news feed includes a range of content, such as market summaries, analysis of economic indicators, and updates on specific financial instruments or sectors. Users can also customize their news feed to receive updates on topics that are most relevant to their interests.

Commissions and Fees

eToro charges fees for its services as any other brokerage platform. The specific fees and commissions charged by eToro depend on the type of financial instrument being traded, as well as the country in which the user is located. We cover some of those fees below:

Fees Per Asset Class

Currencies: The fees depend on the currency pair you are interested in, and those are measured in Pips (Percentage in Point). If you are exchanging EUR/USD, for example, you may have to pay 1 Pip in fees. However, you may have to pay up to 50 Pips in cases of other FX transactions given the liquidity, time, day, or market conditions.

Commodities: Commodity fees start from 2 up to 20 000 Pips, depending on the instrument, timing, and market conditions.

Indexes: Index fees vary from 100 up to 1 200 Pips. The minimum trade size for currencies, commodities, and indices is $1 000.

CFD Stocks: Contract for Difference (CFD) Stocks don’t involve ownership of the underlying stocks. The fee for each transaction is usually 0.09% of the total value of the trade which may vary. Note that you need a minimum of $50 to invest in stocks/ETFs.

CFD Crypto Trades: The fees for each transaction vary based on the crypto asset trades it can be fixed at 0.75% or go up to 3.9% and are subject to additional overnight fees. The minimum trade size for cryptocurrencies on eToro is $25,

Overnight Fees: Considering that CFD positions tend to stay open overnight, you may have to pay an additional fee according to your position’s value. Those fees are used to cover other costs such as leverage for example.

Non-trading Fees

  • Account Fees: Opening an account with eToro is free of charge, and there are no management fees.
  • Inactivity Fees: In case you fail to log into your eToro account for 12 consecutive months, the brokerage is going to charge you a monthly fee of $10 on your available balance.
  • Deposit Fees: Depositing with eToro is free of charge.
  • Withdrawal Fees: eToro charges a $5 fee for any withdrawal you make. What is also worth noting is that you need a minimum of $30 to make a withdrawal.
  • CopyTrader and CopyPortfolios Fees: Neither CopyTrader nor CopyPortfolios charge management fees. In the case of CopyTrader, you may still have to pay for overnight fees and spreads as applicable.
  • Conversion Fees: Deposits and withdrawals are in USD only, meaning that if you make any transaction with another currency, these are going to be subject to conversion fees. These fees usually depend on the platform you make transfers from such as PayPal, Skrill, Neteller, Credit Cards, RapidTransfer, or Local Online Banking so may vary based on the source. In case you are a member of the eToro Club and are a part of the Diamond tier, you don’t have to pay any conversion fees. On the other hand, if you are a Platinum or Platinum+ member, you receive a 50% discount for any conversion fees.

How to Open an Account with eToro

Go to eToro’s website and click on the “Sign Up” button. You will need to enter your personal details, including your name, email address, and password. Once you receive the verification email, verify your email address by following the instructions in the confirmation email that eToro will send.

Complete the registration process by providing additional personal and financial information, as required by eToro’s KYC and AML policies. This may include information such as your date of birth, employment status, and income to name a few. You will also have to provide your ID for verification purposes. Once verified you will be able to trade in all asset classes that are mentioned in this article with certain constraints based on your jurisdiction.

  • Step One:
    Click on the “Sign Up” button on eToro’s website.
  • Step Two:
    Fill out the registration form with your personal information. You may also log in via Gmail or Facebook. Make sure to read and check eToro’s Terms & Conditions before creating your account.
  • Step Three:
    All investors must go through the KYC process as mandated by the European Parliament and Council. The KYC process involves new traders to provide eToro with a Confirmation of Residence and Proof of ID. Additionally, the trader must fill out a questionnaire that includes questions regarding professional status, financial liquidity, investment goals, and more.

If you do everything correctly, you may not take more than 10-15 minutes to complete the process. Currently, eToro offers four different account types, including the following:

  • Retail Account
  • Professional Account
  • Islamic Account
  • Demo Account

In most cases, you may go for either the Retail or the Professional account.

Only customers registered under eToro UK and eToro EU can apply to be a Professional Client.

eToro Demo Account

eToro offers a demo account that allows users to try out its platform and practice trading and investing without risking any real money. The demo account is funded with virtual money and includes all of the same features and tools as the live platform, so users can get a feel for how the platform works and how to place trades and manage their portfolios.

eToro Education

  • Market analysis: eToro provides market analysis and commentary on a range of financial instruments and sectors.
  • Trading courses: eToro offers a range of trading courses, covering topics such as technical analysis, risk management, and trading psychology.
  • Webinars: eToro hosts regular webinars on various trading-related topics, such as trading strategies, or risk management.
  • Educational articles: eToro provides a range of educational articles on its website, covering topics related to markets trading and risk.  

eToro Customer Service

eToro offers live chat support to users, allowing them to get in touch with a customer support representative in real time. Users can also contact eToro’s customer support team via email if they have a question or issue that is not covered in the help center.

Conclusion

In conclusion, eToro is a regulated and popular trading/investment platform that is suitable for a wide range of investors. The platform offers a range of financial instruments, including stocks, commodities, currencies, and cryptocurrencies, and provides a range of features and tools to help users manage their portfolios.

eToro’s platform is user-friendly and easy to navigate and offers a variety of educational resources to help users improve their knowledge and skills. In addition, the platform’s social trading features, such as CopyTrader and CopyPortfolio, allow users to follow and copy the trades of more experienced investors, potentially increasing their chances of success in the markets.

Users should be mindful of the fees involved with the platform and identify whether there are alternative options that might offer better execution with fewer commissions involved. Please note that investments in the stock or crypto markets are associated with a high risk of losing part or entire capital so make sure to do your research before deciding in opening a brokerage account or starting to invest in any asset.

Risk Disclaimer

TrustPedia is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.

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