eToro is a Cypriot investment firm (CIF) regulated by Cyprus Securities & Exchange Commission (CySEC). eToro is a forex brokerage firm serving in Europe, UK and Australia. The broker is providing trading in stocks, cryptocurrencies, commodities, currencies, ETFs and indices. eToro also offers CFD trading and multiple trading platforms like multi-asset platform, social trading platform and CopyTrader. All top brokers like ETfinance and PrimeFin offer MetaTrader 4 platform to their clients.
Established in 2007, eToro is regulated in tier-1 and tier-2 jurisdictions that make it a low-risk broker for trading forex and trading CFDs. eToro is widely known for crypto trading. The trading fees of brokerage firm are pocket friendly.
Pros and Cons
- User-friendly Web Trader
- Over 10 cryptocurrencies are available 24/7 to trade.
- Copy trading is available.
- Offers social trading
- Minimum deposit of $25 to buy any cryptocurrency
- Spreads are relatively wide.
- For Copy Trading, the minimum deposits required are relatively high.
- Only one account base currency can be used
Is eToro a Scam : Regulations
eToro is a Cyprus Securities & Exchange Commission (CySEC) regulated brokerage firm under the license number 109/10. In the UK and Australia, the company is authorised by Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). eToro is secure as it offers its own web trader platform, which is encrypted to keep transactions secure and safe.
eToro does not operate a bank or is not listed or publicly traded online forex broker. In case eToro becomes insolvent, Financial Services Compensation Scheme (FSCS) holds the right to provide compensation to eToro UK clients.
eToro is authorised by tier-1, tier-2 and tier3 regulators of low-risk, average risk and high risk respectively.
eToro Trading Account Types
eToro offers four different account types which are Professional Account, Retail Account, Islamic account, and Demo account. The forex broker also offers VIP club membership to its clients with five tiers such as silver, gold, platinum and diamond. The VIP membership on eToro is available only for members who maintain balances from $5000 to $ 250,000. The minimum account opening fee is relatively high. eToro charges a minimum of $50 to open an account.
Retail Account: For retail investor accounts, eToro offers all trading assets available in both options manually and via copy trade. Leverage is restricted for retail accounts. While trading CFDs, over 65% of retail investor accounts lose money with this brokerage firm.
Professional Account: To open a professional account with eToro, a trader has to pass a certain test as professional clients need to obey certain ESMA protections like the Investor Compensation Fund. eToro offers negative balance protection to its professional clients just like it provides to its retail investors but on rare occasions when equity goes negative.
On eToro, Professional clients can take advantage of leverage up to 1:400 to open their positions for certain instruments. Again, to open a professional account with eToro, the minimum opening deposit can vary between $50 to $10,000 which is relatively high.
Islamic Account: eToro charges overnight fees when traders hold positions for a long time. The brokerage firm offers Islamic accounts only to traders who follow sharia law. For Islamic accounts, minimum deposits may differ from other individual account types.
Other features of Islamic accounts may also vary as eToro often make changes in certain limitations for Islamic accounts.
Demo Account: Traders can imitate expert investors on eToro in a risk-free environment and they can gain experience using virtual funds.
To open an account with the web trading platform eToro is simple. Once you have submitted all required information, it takes several days to verify the details of your identity that you have entered.
To open your account with eToro, you have to fill up personal information including your name, email, date of birth, country, etc along with your account type and the platform you choose for trading.
After submitting the trading application and verification, fund your account and start trading.
Before withdrawals can be processed, you need to submit your supporting documents after the approval of your account. For experienced traders, eToro offers personalized service and competitive spreads for higher leverage rates. Traders can access their account with any device whether desktop, mobile, iPad or MAC.
eToro Trading Platforms
Multi-asset Trading Platform
The multi-asset platform gives you access to more than 2000 trading instruments across various categories like stocks, commodities, crypto and more. Clients can deposit and withdraw funds with eToro using a variety of payment options, including wire transfers, credit cards, and others. eToro has relatively high minimum deposits and standardised fees.
Each user receives a free $100,000 demo account when they register an account with eToro. eToro customers can use their account to create a virtual portfolio to practise and experiment with. The Research Tab compiles the collective knowledge of investors and specialists from some of the world’s biggest financial organisations, allowing you to gain insights from prominent analysts in one spot.
eToro platform launched this tool after realising that many of eToro users frequently repeat their trading patterns, opening the same positions for the same assets at different times. One-Click Trading allows clients to start a new position with a single click, utilising pre-set parameters. That’s how eToro users are few steps ahead of other traders. eToro trading platform allows clients to set specified price targets for closing open positions to assist them in better managing their positions, preserve their assets, and secure their profits. Stop Loss closes the trade if it hits a predefined loss, whilst Take Profit does the same for securing winnings at a predetermined price point.
This tool is an extension of the Stop Loss feature, allowing clients to keep a position open as long as the markets are going in their favour. ProCharts, a professional-grade technical analysis tool, allows you to compare charts from multiple financial instruments and/or time frames while trading CFD assets. Because trading is frequently a 24-hour activity, eToro allows particular trading and investing orders to be placed even while the platform is unavailable for maintenance.
CopyTrader allows traders to duplicate the actions of other traders in real-time. eToro established the Popular Investor programme to encourage successful traders to be copy trading. CopyPortfolios are ready-made investment strategies that offer thematic investing, such as people-based portfolios, and are another unique product supplied by eToro. eToro has increased its emphasis on social trading, leveraging the expertise of the public for the advantage of its clients.
Whether you’re a novice trader, learning the basics or simply don’t have time to follow the markets, it’s now simple to tap into the knowledge of other traders. You can automatically imitate top-performing traders using eToro’s CopyTrader, instantly replicating their trading in your own portfolio.
EToro’s CopyTrader allows you to automatically replicate and trade depending on the movements of other traders. Here’s how it works: You select an investor to mimic, and with the touch of a button, you can begin automatically matching their positions.
eToro offers multiple financial instruments for its different tier traders to trade on that can be stocks, cryptocurrencies, commodities, currencies, ETFs, indices and CFDs.
Stocks: Opening a long, non-leveraged position on eToro means you are investing in the underlying asset, and the stock is acquired and held in your name. eToro, on the other hand, provides extra services through CFD trading. CFDs allow you to open short bets, apply leverage, and purchase fractional shares.
Popular stocks offered by eToro include Apple, Google, Facebook and Tesla.
Cryptocurrencies: Bitcoin, Ethereum, Litecoin, Ethereum Classic, Dash, XRP, Stellar Lumens, Bitcoin Cash, EOS, Cardano, IOTA, NEO, Zcash, TRON, Tezos, Dogecoin, Chainlink and Uniswap are presently available for trading on eToro. EToro charges trading fees for cryptocurrency trading in the form of spreads, which fluctuate in response to market conditions.
eToro, unlike some other providers, charges a single round-turn spread for crypto trading. Spreads for Bitcoin trades varied from 0.75 percent to 5 percent for Tezos trades. By comparison, ABinvesting charges less on crypto transactions. Users can move cryptocurrency from the eToro platform to their own digital wallet. However, eToro warns that coin transfers are one-way, which means that any coins transferred cannot be returned to the eToro trading platform for crypto trading.
Commodities: Commodities are only traded as CFDs on eToro, which means you don’t have to buy the underlying asset to trade it. Furthermore, CFDs allow for short positions, leveraged transactions, and fractional ownership. Even for assets when regular trading does not provide the possibility. On eToro, for example, you may invest as little as $100 in gold, even if a single unit costs $1,000.
Popular commodities offered by eToro include Oil, Natural gas, Gold and Silver.
Currencies: Currencies are only traded as CFDs on eToro, which means you don’t have to buy the underlying asset to trade it. CFDs also allow for short holdings and leveraged trading. Even for assets when regular trading does not provide the possibility.
Popular currency pairs offered by eToro include EUR/USD, GBP/USD, USD/JPY.
Exchange-Traded Funds (ETFs): By initiating a long, non-leveraged position on eToro, you are investing in the underlying asset, and the ETF is acquired and held in your name. eToro also provides extra services through CFD trading. CFDs allow you to open short bets, apply leverage, and purchase fractional shares.
Popular ETFs offered by eToro include VXXB, SPY, HMMJ
Indices: Indices are traded as CFDs on eToro because they are not financial assets that can be invested directly. CFDs allow you to open long or short positions as well as leveraged trades.
Popular indices offered by eToro include NSDQ100, SPX500, GER30.
Commission and Spreads
eToro is a market-maker broker with a spread variation of 1 pip on the EUR/USD, which is slightly above than the industry average. When comparing costs alone, retail traders pick eToro for its social copy-trading platform capabilities rather than its spreads. If we discuss etoro fees for stocks and ETFs, eToro charges no commission or management fee, with no rollover and additional broker fees. eToro offers spreads from 1 pip for currencies, from 2 pips for commodities, from 100 pips for industries, from 0.09% on stocks and ETFs and from 0.75% for cryptocurrencies
Privileges range from a specialised account manager to decreased withdrawal and deposit fees, access to exclusive signals, and exclusive assets, among other VIP-style account benefits, depending on the tier or the level of account. eToro’s Popular Investor programme offers four tiers, from novice to elite eToro clients, where you can earn various benefits. This program’s benefits might range from spread rebates to monthly payments and even a management fee for those who achieve elite status. The term popular investor refers to traders that allow other investors to copy their approach.
eToro’s price for trading actual cryptocurrency is close to the industry norm, such as 0.75 percent for buying or selling bitcoin, but its fiat to crypto conversion charge is exorbitant at 5 percent. Meanwhile, converting from crypto to crypto at eToro costs only 0.1 percent on top of the current spreads.
eToro is currently providing two times leverage on stocks if you open BUY (Long) position, equal amount of leverage on cryptocurrencies if you open SELL (Short) position, two times leverage on ETFs if you open BUY (Long) position, twenty times leverage on Index if you open SELL (Short) position, ten times leverage on commodities if you open BUY (Long) position and twenty times leverage on currency if you open BUY (Long) position.
Deposit and Withdrawal
Depending on the level of eToro client, benefits range from a specialised account manager to decreased withdrawal and deposit costs, access to exclusive signals, and unique assets, among other VIP-style account benefits on trading fees. eToro charges a fixed withdrawal fee of $5 on the minimum withdrawal amount of $30. If there is no login activity for 12 months, a $10 monthly inactivity fee will be imposed on any remaining accessible amount. To meet the trading fees, no open positions will be closed.
Withdrawals and deposits should be in US dollars. Any other currency will have to be exchanged, which will result in a conversion cost. iDEAL, Trustly, Sofort and Diamond members are automatically excluded from conversion costs when depositing or withdrawing AUD, EUR, and GBP by bank transfer. Platinum and Platinum members get a 50% discount.
On eToro, it takes longer than usual for withdrawal via bank transfer. It may take 4-5 business days to complete the transaction process through bank transfer. Withdrawal fees vary according to the payment method you choose.
Educational and Research Support
eToro’s blog includes materials from different areas such as research and company updates, as well as weekly webinars and a good selection of instructional resources. To compare you can visit eToro competitors and read full review PrimeFin Review and Brokereo Review, they are education leaders among forex brokers.
There are a few videos in eToro Academy series that can be considered to be easy to understand. On its YouTube page, the broker has a good variety of films, including seven archived webinars and content covering cryptocurrency and shares, as well as platform instructions.
A regular economic calendar, earnings report calendar, news headlines, daily market analysis series, and podcasts are all available. Several of these tools, however, are not directly integrated into the eToro platform. eToro employs a wall feed of collective commentary for a certain instrument in the style of Twitter. This public feed displays as a stream of updates from other eToro users, giving you a sense of what other traders are talking about on the eToro network. The content is contributed by eToro users and varies in quality.
Once you’ve found the light blue link to the chat service, you can talk with eToro’s live agent. Members of eToro’s Club, which begins when you have a minimum balance or greater, are granted a dedicated account manager. Accounts with a balance of higher fee of $25,000 or more, at the Platinum Club level or higher receive benefits such as priority customer support.
The Customer Service page on eToro includes an option for online chat.
eToro provides newbies to bitcoin trading with an appealing interface that is easy to use until you need assistance. The research offerings are wide on eToro, so you’ll have to do some exploring and open a slew of different browser tabs to get to the accessible education.
Clients of eToro, who can trade various asset classes and equities from different countries, have a significantly different experience. Transferring crypto holdings to an external wallet is a rather uncommon feature that may appeal to investors who want to use their Bitcoin holdings for purposes other than trading.
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