eToro Review

Exchange Rating:
4
5
Good
eToro is a multi-asset platform that offers social copy and cryptocurrency trading, founded in 2007 and has been growing exponentially ever since.

Good

  • Leading pricing structure
  • Great for amateurs
  • User-friendly
  • Free-stock trading

Bad

  • High non-trading fees
  • Scalping not allowed
  • Average customer service
  • Not accessible universally
Etoro review
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Dylan Garcia
Dylan Garcia

Content of eToro

eToro Review

eToro is a company on the up, which is gaining millions of new users and sharing with them the tools to become experts in social and copy trading and cryptocurrency. Currently, eToro offers stocks and equity trading, crypto, commodities, forex, CFDs, indices, and EFTs from both their website and mobile app.

Keep reading our eToro review to find out more about what they do and whether you should sign up.

Who Is eToro For?

If you are interested in cryptocurrency or copy and social trading and want to begin trading, then eToro is the firm you should be using.

The platform is easy to navigate on a mobile device and allows you to communicate with other investors casually and copy their trades, future trades, and strategy, making the process markedly different from competitors.

For a beginner and casual investor, eToro will provide you with everything you need and help you to learn the ropes of trading stocks. You can easily open up an account with eToro, deposit funds, and buy cryptocurrencies with no commission, making it ideal for those starting in the world of trading. 

eToro Company Information

eToro was set up by a group of Israeli fintech entrepreneurs with the aim of creating an easy-to-use platform where traders can copy the trades of other investors, including cryptocurrencies, CFD, forex, and much more.

While eToro does not have a bank parent and is not listed on any stock exchange, it is considered safe and reliable because its UK branch is regulated by the financial conduct authority (FCA).

eToro has been judged as one of the best brokerage firms for cryptocurrency and social trading, which comes as no surprise thanks to its web design, which makes setting up a trading account and investing incredibly simple.

eToro Pros

One of the biggest pros of using eToro is how simple and quick it is to create an account. The process only takes a matter of minutes and is fairly seamless, meaning that investors of all experience levels are able to get involved.

The innovative and social design of eToro is another huge selling point. You can interact with other users much in the same way as you would on a social media platform, only you communicate about stocks and shares!

Lots of newcomers are attracted to eToro because of this, as it allows them to get investment advice, copy the trades of other investors, and discuss future strategies and trading ideas.

What’s more, the stock trading is 100% commission-free. This means that you will not be charged a broker fee when trading, but this does not apply to all positions.

eToro Cons

eToro’s customer support has been criticised for being difficult to contact and unhelpful when contacted. They have several different ways that you can reach them, but are unavailable on weekends and do not always respond to the live chat on their website.

With eToro, you run the risk of being charged without realising it due to an inactivity fee. After one year of not using eToro, they will charge you $10 a month every month until you cancel your account or log into it again. There is also a withdrawal fee of $5, which is much higher than other multi-asset platforms.

No matter where in the world you are, eToro only offers one account base currency, which is US dollars. This can be frustrating for users outside of the US but ultimately will not disrupt your trading.

eToro Usability

The eToro experience has been applauded for being smooth and simple. The process is easy to understand, from creating accounts to depositing funds.

Both the web platform and mobile platform can be navigated with ease, meaning you can access whatever you need in a few clicks, crucial when dealing with real money and stocks.

eToro Trade Experience

The overall trading experience with eToro is reported as being overwhelmingly good.

Navigating the platform is easy, as is setting up an account and trading once you have got to grips with the basics.

The experience is heightened by the sheer variety of stocks that you can invest in. Cryptocurrency traders and forex brokers alike use eToro because it is a trusted platform with a long history of offering stocks, crypto, and social trading.

eToro Crypto Trading

eToro is one of the only brokers that offer cryptocurrencies, which is part of the reason it has become so popular.

You can purchase and trade cryptos such as Bitcoin, Litecoin, and Ethereum with an investment as small as $25, which allows those with less experience in cryptocurrency to earn assets with minimal risk.

Because eToro is also a copy trading platform, you can mimic the crypto investments and trades of other users. It also features a crypto wallet in which you can store your digital coins, making it overall a very safe and inexpensive way to buy and trade cryptocurrency.

eToro App For Mobile

The eToro app for mobile devices operates in much the same way as their website does.

The mobile app is available for Android and iOS and functions excellently. It is compatible with most smartphones as it includes mobile-specific features such as push notifications and touch interaction.

eToro Deposits and Withdrawals

eToro charges a withdrawal fee of $5 and has a minimum withdrawal of $30.

In terms of deposits, eToro has a minimum of $200 and also has a currency conversion charge of 0.5%. So if you are trading from the UK, you will pay a small fee when you deposit funds into your account.

eToro Fees

When it comes to stock, CFD, and forex, eToro generally offers low trading fees. Specific numbers depend on the instrument that is being traded, as with CFD or forex there are associated fees that are not present with stock and EFT trading.

Non-trading fees are also low, with users only being charged flat-rate withdrawal fees of $5 and inactivity fees of $10 per month after a year. What’s more, eToro does not charge you a deposit fee and have also waived the stamp duty fee, which would usually require UK investors to pay 0.5% tax on share purchases.

eToro Account

Opening an account with eToro could not be easier.

There are two main accounts that you can choose from: a live account or a demo account. With a demo account, you are able to test out the platform before committing any real money. You are given $100,000 of play money and get to try out all of the features that eToro has to offer.

eToro Educational Resources

The main educational resource that eToro offers is its virtual account which you can use to get to grips with the platform’s features.

Besides this, there are some basic, entry-level videos on how to use the eToro platform and on information about investing and trading more generally, as well as educational articles on their crypto blog.

All of the educational resources are geared towards beginners to trading and content is often interspersed with promotional resources, making it hard to navigate.

eToro Customer Service

eToro’s customer service is effective at times but unreliable and difficult to reach at others. During the week, their team are quick to respond and you can contact them via live chat or through an efficient web-ticketing system.

Customer support is provided in 21 different languages, which means that issues can be dealt with quickly and easily if they arise.

However, the live chat function is difficult to find in the first place and getting in touch with someone is harder at weekends, not to mention there is no phone support.

eToro Reviews and Reputation

eToro has a positive reputation as a reliable, easy-to-use, and relatively inexpensive multi-asset brokerage firm. It has built this name for itself from over 14 years of operating and is also known for its wide range of financial instruments like CDF, as well as digital assets like cryptocurrency.

Based on reviews by eToro users, the company is a legitimate and safe place to trade and invest.

eToro Security

eToro can be trusted as secure and safe to use, especially as its UK and Australian branches are heavily regulated.

There is a two-step login, which ensures that your confidential information is protected, as well as the use of tier-1 banks for any payments you receive from traders. A tier-1 bank is the safest way to store client money and describes a bank with a high level of financial strength.

Final Verdict

The bottom line is that eToro is one of the best multi-asset trading platforms out there at the moment. In particular, if you are looking for a brokerage firm that allows you to buy and trade crypto, then you should be using eToro.

There are many benefits to eToro, including its innovative features of social copy trading, easy-to-use web and mobile design, zero-commission trading, and presence in many countries globally.

Having said that, the non-trading fees are higher than other platforms and the educational resources on offer could be improved to increase the ease of use.

FAQ

Is eToro safe or a scam?

eToro is considered safe because it is regulated by the Financial Conduct Authority, the Australian Securities and Investments Commission, and the Cyprus Securities and Exchange Commission, and is a registered legal entity, making it low-risk for CFD and forex trading.

Even though eToro is not publicly traded, on any stock exchanges, and does not operate a bank, it is completely safe to use due to its regulation and authorisation.

On top of this, eToro has been trading for over 14 years and has amassed over 12 million users, so you have nothing to worry about.

What is social trading/copy trading?

eToro has features like CopyTrader and CopyPortfolio, which enable you to partake in copy-trading. Copy-trading means that you can choose an investor on eToro and get the platform to automatically copy all of their trades, including future trades and strategies. You can customise your settings to control losses and the amount of money you put into stocks.

Social trading can be done using the CopyTrader feature, with which you can browse the profiles of other eToro users and see their performance and risk level, amongst other things. You can communicate with other investors and mimic their trading decisions.

What can I trade on eToro? 

Whilst mainly a CFD and forex broker, eToro is becoming increasingly used by crypto traders thanks to the fact you can trade a wide variety of cryptocurrencies, including Bitcoin, Litecoin, Ethereum, and many more.

You can also trade with EFTs and real stocks from 17 international markets, including Saudi Arabia, the UK, the US, Germany, and more.

Can you make money with eToro?

It is more than possible to make substantial money using eToro, by learning good trading strategies and copying customers and investors who are doing the right thing.

The process is not always quick, and being over-ambitious could leave you at high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider due to a lack of education and impatience.

How Secure is eToro? Is eToro regulated?

eToro is regulated by the Financial Conduct Authority in the UK, the Australian Securities and Investment Commission in Australia, and the Cyprus Securities and Exchange Commission everywhere else.

The use of tier-1 banks for trader’s funds also assures us that eToro is secure, regulated, and safe to use.

How do I withdraw money from eToro?

You can withdraw money from eToro very easily, but be aware that there is a flat $5 withdrawal fee each time you take money from your account and a minimum withdrawal of $30.

You can withdraw money either by using a bank transfer, a debit/credit card, or an electronic wallet.

Where is eToro based?

eToro has 10 internal offices, including bases in the UK, the US, Israel, Australia, and Cyprus.

How does eToro make money?

eToro generates the majority of its revenue through three main streams: spreads, which are the gaps between the price that customers and brokers buy and sell at, overnight fees, and other non-trading fees such as inactivity fees and withdrawal fees.

How can I deposit into an eToro account?

Depositing money into your eToro account is very simple. There are no deposit fees, but there are currency conversion fees because eToro only allows accounts to be made with US dollars as the currency.

Your first deposit may require the use of a credit/debit card or bank transfer, but any deposits after that can be made with credit cards, bank transfers, or by using your electronic wallet.

Is eToro an ISA?

No, at current eToro is not an ISA.

What is the minimum lot size at eToro?

The minimum lot size at eToro is $25.

When does a margin call take place at eToro?

At eToro, a margin call will take place when you do not have adequate cash equity in your account.

What is the maximum leverage offered by eToro?

Retail investor accounts are able to leverage their stock trades by up to 5 times with eToro.

How do I open an account with eToro?

It is very simple and fast to open an account with eToro trading. You register with either your email address or Google/Facebook account. After that, you can either open a live account or virtual account, where you can try the platform before committing any money.

If you want to trade with real money, then you will need proof of identity and proof of residency in the form of a passport or personal ID and a copy of a bill or bank statement respectively.

What trading platforms does eToro offer?

eToro offers a customisable and easy-to-navigate web platform, as well as a social platform in the form of a mobile app, which is slightly less able to be personalised.

The processes of placing orders, creating watchlists, searching for products or investments, and receiving notifications are all very simple.

Do I pay tax on eToro?

In terms of any profits generated through using eToro, you can be subject to the taxation laws of your country. eToro handles stamp duty and financial transaction tax for its traders.

Is eToro legal in the USA?

Unfortunately, US citizens can not currently use all of the features of eToro because of US regulations, which does not allow brokers to provide CFD instruments for their population. CFDs are complex instruments and come with a high risk of losing your money.

However, US citizens can use eToro for cryptocurrency trading.

How much is the eToro minimum deposit?

The eToro minimum deposit is $200.

What are the eToro market hours?

The market hours for eToro depend on whereabouts in the world you are situated, apart from cryptocurrencies which operate 24 hours a day.

The times for stocks, commodities, indices, and currencies all have individual market hours which can be seen on the eToro website.

Cryptoassets are volatile instruments which can fluctuate widely in a very short time frame 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. Your capital is at risk.