eToro Broker Review

etoro_Broker review

eToro has been operational for nearly 2 decades and it is a regulated, modernized and technologically enhanced platform that focuses on CopyTrading and Social trading.

CopyTrading is where you can copy the Forex trading strategy of popular and successful Forex brokers and they earn a percentage of your profits.

The eToro team takes pride in its loyal customer base of over 12 million users who have opened more than 300 million combined trades over the last decade.

The platform can be accessed from 140 countries and the website can be viewed in 19 of the most common international languages.

eToro’s platform is well-developed and its functionality may exceed the expectations of most traders, providing a variety of advanced trading tools and features that can be used to control trading activity and manage exposure to risks.

This may be one of the most social and intuitive platforms currently available and is made accessible to Forex traders from around the world, who can choose to trade online with a variety of in-demand market instruments.

Traders with all levels of experience will appreciate how easy it is to navigate the web platform, which can be used to find out more about the company, investment opportunities and top markets for on-demand market instruments.

They have excellent trading tools and market news, combined with an impressive library of educational content to ensure that customers are informed and trade responsibly.

 

Overview of eToro

Time to open an account 10 minutes
Country of regulation UK, Cyprus, Australia
Trading fees class Low
Inactivity fee charged Yes
Withdrawal fee amount $5
Minimum deposit $500
Deposit with credit card Yes
Deposit with electronic wallet Yes
Number of base currencies supported 1
Demo account provided Yes
CFD Commodities Yes
CFD Stock Indices Yes
CFD Bonds Yes
Total CFDs offered 1980
Stocks Offered 957
Spreads 0,9 pips
Currency Pairs (Total Forex pairs) 47
Publicly Traded (Listed) No
Tier-1 Licenses Yes
Tier-2 Licenses No
Deposit & Withdrawal time 2-3 days
History 14 years
Registered Traders 12 000 000
Demo Trading Account Yes
STP Account Yes
Standard Account Yes
MetaTrader 4 (MT4) No
MetaTrader 5 (MT5) No
Android App Yes
Apple iOS App Yes
Bonus Up to $ 4000 free Credits Bonus
Live support 24/5
Trust Score 98%
Languages English, German, Spanish, French, and Italian

 

eToro Pros and Cons

✔️Pros ❌Cons
EU citizens enjoy free stock and ETF trading Fees on Forex trading are high
Ideal for social traders Withdrawals are time-consuming and expensive
Opening an account is quick and easy Only one account base currency used
CFD fees are low High non-trading fees applicable
Transactions are processed within minimum time Penalty fees for inactivity
Account creation and trading is fully digital No MetaTrader platforms
Minimum deposit is low
Credit and debit cards available
No fees charged on deposits
Positive user experience

 

Regulations

eToro is compliant with regulatory bodies in the various operational jurisdictions including:

  1. Cypriot Investment Firm (CIF)
  2. Cyprus Securities & Exchange Commission (CySEC)
  3. Financial Conduct Authority (FCA)
  4. Markets in Financial Instruments Directive (MiFID)
  5. Australian Securities and Investments Commission (ASIC)
  6. Corporations Act (Commonwealth)

 

Client funds are kept in segregated accounts held by highly rated financial institutions, and not classified as company assets or kept in company accounts.

eToro also adheres to a strict anti-money laundering policy and all their policies can be viewed from the website.

Their transparency regarding policies and compliance to the most common regulatory bodies makes them scam-free and safe to use.

 

Leverage

Choosing the right leverage option may require some research and patience, as each instrument on eToro has a specific minimum and maximum leverage.

Leverage is available for stocks, ETFs, commodities, indices, currencies and under special conditions, leverage can be requested for cryptocurrencies.

eToro adheres to industry-guided leverage limitations and promotes responsible trading and leverage options on major currency pairs (30:1), non-major currency pairs, gold and major indices (20:1), commodities other than gold and non-major equity indices (10:1), individual equities and other reference values (5:1) and cryptocurrencies (2:1).

 

Account Types

The eToro trading environment is highly regulated and Forex traders can choose to register as retail clients or as professional clients.

The following applies to Retail Clients:

  1. They can access all eToro’s trading assets
  2. They can trade Forex manually
  3. They can use Copy Trading
  4. Their leverage is restricted
  5. They receive negative balance protection, margin closeout restrictions and certain protections, such as coverage by the Investor Compensation Fund and recourse to the Financial Ombudsman Service

 

The following applies to Professional clients:

  1. They must pass a suitability test to qualify as a professional Forex trader
  2. They waiver certain ESMA protections, such as the Investor Compensation Fund and recourse to the Financial Ombudsman Service
  3. They get negative balance protection and eToro may absorb the loss and balance the account under special circumstances
  4. They can open positions with a leverage of up to 1:400 for certain instruments
  5. They will receive a reduction in current margin rates

 

Clients who are of Muslim faith have the option to use Islamic accounts, in accordance with Sharia Law, which requires a minimum deposit of $1000USD and proof of identification.

 

Market Instruments

eToro offers hundreds of liquid asset classes to trade with, including cryptocurrencies, Forex currencies, indices, commodities, stocks and ETFs.

Forex traders can experiment with a variety of investment strategies provided by eToro, to comfortably navigate the markets and maximize their profits.

Some traders prefer to use CFD trading, which is characterized by leveraged trades, fractional ownership and short (SELL) positions.

Other traders have long (BUY) positions and trade using non-leveraged positions on stocks and cryptos, which requires ownership of underlying assets.

Stocks are suitable for medium- to long-term investments and can be used with CFD to open short positions (SELL) using leverage and to buy fractional shares.

CFDs take time to understand and are known as being high-risk investments, with 75% of retail investors losing money in the process of using this leveraged trading method.

Crypto Assets are volatile and fluctuate frequently and unexpectedly, making them less popular for serious investors who prefer trading with regulated assets.

 

Fee Structure

Deposits and clearings are free of charge, but there is a flat deposit fee of $5USD on all withdrawals and the minimum amount for a withdrawal is $50USD.

No commission is charged on long (BUY) positions, non-leveraged stock and ETFs, but there is a conversion fee and withdrawals are not free.

There is also a fee charged for holding overnight and weekend CFD positions, which includes leveraged positions and short (SELL) positions.

When trading with Stocks and ETFs, no commission is charged and there are no management or ticket fees. There is also no additional broker fee, rollovers carry no fees and using the CopyTrader feature is free.

Traders can visit the website at any time to check if fees have changed. It is important to note that inactivity is penalized after 12 months and $10USD will be payable.

 

Deposits and Withdrawals

The minimum initial deposit depends on your region and the regulations that apply, but it ranges from $50USD to $10,000USD.

For American citizens, the minimum deposit for online banking is $50USD and $500USD for bank wires.

The maximum daily deposit amount is $10,000USD and eToro can rightfully adjust the deposit limitations at any time.

Some users may be inconvenienced by the fact that all eToro trading accounts use USD, which will incur conversion fees and be subject to the exchange rates of currencies.

Withdrawals can be requested at any time, but they can take up to one business day to be processed, depending on the banks and payment methods used and whether all necessary documentation has been provided.

Withdrawals are linked to the account used for deposits and payments. The withdrawal limit is the value of your eToro account balance, but the value of margin used will be subtracted from the total amount.

If you decide to cancel a withdrawal request, you can visit your withdrawal history on your trading account and reverse the withdrawal for a small processing fee.

If you are using any currency that is not USD, there will always be a minor conversion fee.

 

Trading Platforms

eToro provides a simple, innovative solution to trading for beginners and professionals alike.

They have a user-friendly website and an app that is compatible with Android and IOS, offering advanced features that can be used by any trader, from any device.

This is a popular option for social traders who like to interact and be part of a community, and beginners may prefer this brokerage because of its intuitive tools and unique approach to CopyTrading.

CopyTrading allows traders to either copy the trading activity or portfolios of professionals, or expert traders can consent to being copied and get paid for it, using the Investor Program.

The platform interface is easy to navigate, with all relevant information and features conveniently accessible from the homepage.

eToro encourages interaction between traders and promotes healthy competition through spirited trading contests.

The community of traders will make beginners feel welcome, as they will have a support structure and possibly make some friends along the way!

Despite not being able to use MetaTrader platforms through eToro, traders can enjoy the convenience of a well-developed, user-friendly platform with an active community of over 12 million users and the risk-free advantage of using a demo account to learn the basics.

 

How to Open an eToro Account

Creating an eToro account is easy and involves the following steps:

  1. Visit the website and select “Sign up”
  2. Fill in all your personal details
  3. Supply documentation confirming identification and citizenship
  4. Answer some personal preference questions about trading aims and trading experience
  5. Accept terms and conditions and create a password
  6. Download and install the trading platform
  7. Begin your trading journey!

 

Customer Support

eToro has a dedicated team of multi-lingual professionals, ready to resolve any queries you might have.

Their FAQ section should answer some of the most common questions traders have, but they can be contacted directly regarding any other issues and recommendations.

They operate only during the week, but their team is available 24 hours a day.

Their main channels of communication are live chat and tickets, which can be found by clicking on “Customer service” under the “Help Centre” search bar.

 

Educational Resources

eToro offers demo accounts for new traders, which can be combined with their introductory Trading School guide to learn the basics of trading and using the eToro platform.

They also provide updates on market news and analysis, guides on financial markets, education video tutorials, podcasts and daily market reviews.

Their community of active traders and unique CopyTrading tools can also be used to learn how to trade, or to improve the knowledge and skills of more experienced traders.

 

Research Tools

eToro traders can rely on the updates on news, analysis and reviews of senior market analysts and professional traders, who provide detailed feedback and advice on investments, trading opportunities and economic activity.

Traders can download all research papers free of charge, directly from the website, and they have access to Analytical recommendations from professionals, interactive charts and a variety of trading strategies and different ways to approach markets.

 

Accolades

eToro was nominated for the following awards since 2020:

  • Best Copy Trading Platform
  • Best Crypto Trading Mobile App
  • Best Forex Broker Australia

 

Conclusion

eToro is an excellent choice for beginners, who can learn the basics of trading by copying other’s trades or by using their introductory guides and demo-accounts.

On the other hand, professional traders can use eToro as a career opportunity to earn extra income by allowing other traders to copy them.

Many social traders appreciate the large community of friendly, active traders and eToro has thousands of positive reviews from traders of all levels of experience.

Some might even say that eToro is the best social trading platform currently available.

eToro offers trading opportunities in some of the most liquid markets, to over 12 million users. Traders can explore the markets of commodities, ETFs, indices, stocks, cryptocurrencies and Forex to earn their share from popular companies, such as Apple, Snowflake and Netflix.

If you enjoy socializing and being part of a community, eToro may be the right brokerage for you. This is also the perfect platform for traders who have always wanted to try CopyTrading, either as a beginner or as a professional.