eToro is the world’s leading social trading platform, which offers both investing in stocks and cryptocurrencies, as well as trading CFD with different currencies.
This eToro review covers everything a trader needs to know about the eToro online platform. From fees, the demo account, and becoming a copy trader, to explaining how social trading works and finding the traders who make money. Whether you are trading Ethereum, Bitcoin, or Forex, eToro opens up trading to everyone via their WebTrader platform.
This is a comprehensive review. Use the table of contents to jump to the section you are most interested in:
Regulation & Reputation
As a financial services provider based in Cyprus, eToro is subjected to the Cyprus Securities Exchange Commission (CySEC).
Authorized under the CIF license no. 109/10, eToro has “passported” its authorization to the UK and is registered with UK’s Financial Conduct Authority (FCA).
The European Securities and Markets Authority (ESMA) also oversees investment providers across Europe and influences regulatory rulings across the EU.
Since the launch of the revolutionary eToro trading platform in 2010, the firm has improved its trading platform tremendously.
Today, the trading platform used is called the eToro CopyTrader.
This new platform incorporates both the main features and products of the old Openbook trading platform and Webtrader hence giving clients access to the best of both worlds from a single trading interface.
In addition to being able to copy trades and trade independently, eToro also allows their clients to earn extra income by becoming a “Popular Investor”. This is not something many brokers can offer.
As a Popular Investor, the trader allows others to view his trading activities. Once the trader has managed to achieve a minimum number of copiers, he will be rewarded with cash and rebates on the spreads that he pays.
To qualify as a popular investor, you need to deposit a minimum of $1000. In addition, you must also recruit a copier for a minimum of 2 months with at least $500 equity or finance.
In line with keeping their reputation as an industry innovator, eToro introduced the concept of “portfolios” to copy.
The new service appropriately named “CopyPortfolios” will allow traders to copy a range of assets selected by eToro.These funds as categorized into Market CopyPortfolios and Top Trader CopyPortfolios.
eToro also delivers technical analysis and research tools on the platform. These features are flexible enough to benefit both professional and amateur traders. The offering includes deep market data across the range of products, which means strategy can also be backtested.
These tools allow the analysis of real-time prices too of course. So trends can be identified and marked up. While other forex brokers may score higher in terms of analysis tools, the charts at eToro will suit the majority of traders, whatever their level of experience.
The platform is available 24/7 but markets will only be available to trade when the main markets for that asset are open. So US Stocks will only be available when US markets are open on Wall Street for example. Forex is available around the clock during the week, as there is always at least one market open somewhere in the world.
Weekend trading is available where markets are open, so Forex becomes available during Sunday, and the Australian and Asian markets open and starts the week.
eToro has also provided free mobile trading apps that their clients can download and install onto their smartphones and mobile devices to trade on the go.
These apps have been designed for both iOS and Android mobile devices to allow full mobility and access to the financial markets at the same time. Other operating systems are also compatible.
You can deal on real-time prices, check what has been traded, and open news and customer service sections – all from your device. Copy-trading and watchlists are also fully functional from the app.
The apps are very well thought out. All the functionality of the main web platform is retained, but is well laid out so does not feel cramped.
Security is also vital with mobile apps and the eToro applications are very secure, you need to be able to trust the app. The security tools within the android and iOS systems are utilized, so your account is safe.
All versions of the app are regularly updated. The most recent update saw the android version reduced in size by 50% – with no loss of functions. The iOS version was similarly improved.
Both saw a large increase in speed from the new, lighter program.
Trading Accounts Offered
To simplify the trading process, the firm has opted to provide its clients with only one standard type of trading account.
Opening a trading account is a simple and straightforward process that requires you to fill up and submit the registration form.
Before you can participate in live trading, you need to place a minimum deposit of $200. And if you wish to participate in the “Popular Investor” program, you need to place a minimum deposit of $1000 before you can qualify for the program.
However, if you are unsure and wish to try out the platform first before committing any real money, you can do so using the free demo account facility. This provides a simulator of sorts, though you still get to use live real-time prices.
The virtual balance allows traders to learn the platform at no cost.
The process is the same as signing up for a live trading account. Once you have signed up for the demo account, you can also switch to a live account status by selecting the “Real” account tab.
Instruments & Assets on eToro
Over the years, eToro has expanded its assets to cover additional assets. Today, traders can trade with 53 currency pairs, 53 ETFs, 12 market indices, 7 types of commodities, and 957 types of stocks from all over the world.
The firm has also been a long-time pioneer of cryptocurrency trading. They offer the largest range of cryptos anywhere and are focused on expanding this market whenever an established token reaches the mainstream.
eToro now offers a multi-crypto on-chain wallet. The phased rollout will see the feature opened up country by country, and the available list of cryptocurrencies will also expand as time goes on.
The wallet offers a high level of security, with multi-signature sign-in supported – this means users can view their blockchain transactions without having to expose their private key.
The mobile app (available from Google Apps, and the Apple store) will allow the buying and selling of cryptocurrency using fiat currency.
It will also allow the conversion of one crypto or virtual currency to another. Four cryptos will be included at the launch (Bitcoin, Bitcoin Cash, Ethereum, and Litecoin). Others will be added as the app scales up.
Conversion will initially be limited to Platinum Account holders, but ultimately expanded to all traders.
The app is open to any registered eToro customer and makes accessing an otherwise complex market easy.
Customer support is available Monday to Friday, 24 hours a day. To contact the support team, traders can do so by submitting their queries on the web contact form provided on their website.
Alternatively, traders can also reach out through the support team by emailing the relevant departments concerning their queries.
Deposit & Withdrawal methods offered by eToro
There are several ways in which you can fund your trading account at eToro, or withdraw.
At present, the supported methods include deposits through credit cards such as VISA, Mastercard, or Diners.
Traders who do not possess a credit card or eWallet can also fund their trading account through a bank wire transfer.
Processing of withdrawal requests typically takes 3 business days. However, traders should ensure that the withdrawn amount should be a minimum of $50, or else their withdrawal requests will be rejected.
Take note that eToro charges their clients a withdrawal fee of $5 for every withdrawal made (recently reduced).
Apart from the fee to withdraw, an additional cost to traders will be the currency conversion fee.
At present, the conversion fees are as follows:
AUD/USD: 100 Pips
CAD/USD: 250 Pips
EUR/USD: 250 Pips
GBP/USD: 50 Pips
JPY/USD: 250 Pips
RMB/USD: 50 Pips
RUB/USD: 50 Pips
Is eToro Suitable For Trading?
If you are a beginner trader who is just starting, then eToro will be the right broker to trade with. The ability to conduct social trading is indeed a feature that can greatly enhance the profitability of a beginner trader.
On the downside, the broker’s spreads are higher than those offered by other providers. As a day trader that relies on small margins and a large number of trades to make an overall daily profit, the additional cost incurred may erode at any gain that is made from day trading.
eToro’s head office is located on the 7th floor, Kanika International Business Center (KIBC), 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus.
Frequent Asked Questions
What is the minimum deposit requirement to open a trading account?
The minimum deposit requirement at eToro is $200 for Non-US traders. US Traders can open an account with just $50.
How fast can my withdrawal request be processed?
Typically, it takes 3 business days to create and process a withdrawal request.
Is eToro a reliable broker?
Yes. eToro is a well-established broker that is regulated in multiple jurisdictions.
What kind of trading platform does eToro have?
eToro uses a proprietary trading platform called “CopyTrader”.
What is the maximum leverage available at eToro?
The maximum leverage that is available at eToro is 1:30.
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, 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. 71% 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 that can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading crypto assets 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.
eToro accepts traders from Australia, Thailand, United States, Kenya, United Kingdom, South Africa, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Kenya, Saudi Arabia, Kuwait, Luxembourg, Qatar, and most other countries.
However, eToro does not from Iran, Turkey, Japan, Canada, Hong Kong, or Singapore.
We hope this eToro review helped you learn more about eToro. You may also want to see our step-by-step guide on how to open an account on eToro and our ultimate guide on how Login to an eToro account and even troubleshoot in case you are logged out.
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