eToro Review
- Anthony L.
- Read time: 18 minutes
- Updated March 1, 2022
eToro
Trading Platforms
- MT4
- MT5
- Web Trader
- cTrader
- Mobile App
- Proprietary
Available Assets
- Forex
- Crypto
- Stocks
- Indices
- Commodities
- Futures
Funding Options
- Bank Wire
- PayPal
- Visa/MC
- Crypto
Company Information
- HQ: Israel
- Excluded: AF, AI, AL
- Founded: 2007
Pros
- Social trading
- No deposit fees
- Interactive charts
Cons
- High Inactivity fees
- No banking licence
- Basic educational resources
General Information
- Min. Deposit: $200
- Max. Leverage: 1:5
- Average Spread: 1.0
- Demo Account
- 24/7 Support
- Free Withdrawal
Overview
eToro is an Israeli fintech startup that offers many financial instruments to trade. The broker is well-known for its copy trading attribute. eToro was established in 2007 and has a sound performance history of over a decade. eToro is well-known for its impressively diverse portfolio offerings and compliance with FCA, CySEC, ASIC, DNB, FSAS, and FinCEN. The broker provides over 3000 instruments from various asset classes such as forex, commodities, cryptocurrencies, stocks, indices, ETFs, and options.
Trading Platforms
Customers can use the broker’s cutting-edge web trading platform and mobile trading application. The broker, however, falls far behind in providing its clients with the most popular trading platform, MetaTrader. eToro does not have a desktop trading platform, limiting the options available to its customers. Some asset classes, including equities and crypto assets, provide direct ownership of the underlying assets, which eToro acquires and keeps in each client’s name to provide traders and investors with direct market access. eToro offers demo trading to its customers but fails to provide sufficient trading tools.
eToro Social Trading Platform (WebTrader)
eToro stands alone from most other online brokers by providing its own unique “social trading” platform. The eToro platform is simple and easy to use, and it offers an interesting trading experience. It includes a variety of instructions and tutorials to help you get started with the platform.
Mobile Trading application
Traders may access all of the platform’s features by utilising eToro’s mobile trading app, which you can download from the relevant app stores for both Android and iOS devices. Using the eToro mobile trading app, traders may manage their portfolio, follow markets, interact with other traders, and execute any trade available on the site from their smartphone or tablet. The mobile app is useful for people who wish to trade from different mobile devices and on the go from anywhere in the globe with an internet connection.
Tools
Copy Trading
Traders in the eToro community may connect with other traders to observe, compare, and debate on trading strategies. eToro’s CopyTrader technology allows traders to automatically replicate trades from another trader’s portfolio, allowing them to create their own bespoke portfolio depending on their individual requirements. Traders can replicate 100 traders at the same time.
Copy Portfolio
CopyPortfolio is a CFD portfolio that seems to be an investment fund on the surface. Unlike CopyTrader, which only enabled you to follow one trader, CopyPortfolio allows you to invest in a specific portfolio of top eToro traders. The Crypto Portfolio is comprised of the most valuable cryptocurrencies, as determined by market capitalisation. A portfolio of several star traders is another way to invest using CopyPortfolio, while the crypto CopyPortfolio option is also available. CopyPortfolio requires a $5,000 investment to get started.
| Platform | |
|---|---|
| MetaTrader 4 (MT4) | ✖ |
| MetaTrader 5 (MT5) | ✖ |
| cTrader | ✖ |
| Proprietary | ✔ |
| Desktop | ✖ |
| Web | ✔ |
| Mobile | ✔ |
| Social Trading | ✔ |
| Other | ✖ |
Fees
Commission and Spreads
When compared to its competitors, eToro has relatively competitive spreads and commissions. eToro offers commission-free trading on stocks and ETFs. Customers with low investments can use the broker to trade fractional shares. eToro charges its investors 2% in management fees for copy trading, but the broker offers 100% spread reimbursements. Customers may trade CFDs with the broker at competitive spreads starting at 1.0 pip. The overnight costs charged by the broker are quite low. Traders are also paid low to average overnight fees. Customers of the Muslim religion can open Islamic accounts with this swap-free and an interest-free broker. eToro imposes fees beginning at 0.09 percent for stock and ETF CFDs and beginning at 0.75 percent for cryptocurrency CFDs. Compared to its competitors, the broker charges exceptionally low spreads and commissions. Traders with low investments can use a retail trading account, while traders with higher investments can use a professional trading account to experience a professional trading environment.
| Fee | Retail Account | Professional Account |
|---|---|---|
| Commission (per standard lot per side) | $0 | $0 |
| Spreads from | 1.0 | 1.0 |
Deposit and Withdrawal Fees
For its clients, eToro exclusively offers the US dollar as a base currency. As a result, non-US customers must pay a conversion fee when converting their local currency to US dollars. The broker does not charge deposit fees. Despite the fact that there are no deposit fees, the broker charges a $5 withdrawal fee every transaction, with a minimum withdrawable amount of $30.
eToro offers a variety of payment options for deposits and withdrawals to its customers. The broker allows deposits by bank transfers, credit/debit cards, e-wallets, and even offers its clients with a cryptocurrency wallet.
Inactivity Fees
The broker charges a $10 inactivity fee on its clients’ remaining balance after 12 months of inactivity. The inactivity status is determined by the absence of login activity on the account for a period of 12 months. However, no open positions will be closed to meet the criteria for being charged an inactivity fee.
Trading Instruments
eToro offers a wide range of instruments from a diverse range of financial assets. Customers may use this broker to trade forex, CFDs, cryptocurrencies, commodities, shares, indices, and ETFs. It is ideal for new traders joining the trading industry. However, the broker does not allow you to trade options or bonds.
| Instruments | Availability |
|---|---|
| Forex | ✔ |
| Stocks | ✔ |
| Indices | ✔ |
| Commodities | ✔ |
| Cryptocurrencies | ✔ |
| Options | ✖ |
| Bonds | ✖ |
| ETFs | ✔ |
| CFDs | ✔ |
Customer Service
Most eToro queries will need you to send a support ticket using the crypto broker’s online platform. The company claims that it may take up to 7 days to obtain a response from customer service, which is much longer than most other big brokers. The live chat feature on eToro is only available to users with current eToro accounts. You may access live chat from your brokerage desktop 24/5, Monday through Friday, if you have an active eToro account. eToro does not presently provide phone support or support to persons with hearing limitations. There is also a support center available for instant assistance with the platform.
Usability
Signing up with eToro is as simple as inputting your personal information and verifying your identity. The majority of traders will be able to create an account in as little as 10 minutes. The eToro trading platform allows you to trade cryptocurrencies, communicate with other traders, and learn what leading traders think about the assets you wish to trade. Simply click on the crypto you’re considering buying or selling to read more about what other traders are saying.
The eToro platform is simple to use for beginners, with simple order placement and up-to-date pricing information. eToro’s ProCharts feature (which lets you show several charts and access charting tools) also features real-time charting and price updates and a free sentiment calculator for every currency available on the platform. Though it does not have as many charting and analysis tools as competitors, eToro’s simplicity might be a pleasant change for traders who are just starting out in the crypto trading world. You may even consider purchasing eToro shares when the eToro SPAC listing becomes available. While eToro stock may not be at the top of your priority list, it may be a simple method to join in on the ground floor of a growing company.
Research & Education
eToro, compared to its competitors, offers very minimal research and educational resources. Economic calendar is not readily available for eToro’s customers.
Demo Trading: Traders may open a demo trading account to practise and learn about the trading environment at eToro.
Trading Academy: eToro offers its customers with a trading academy that includes a number of educational resources, including manuals, videos, webinars, and more. It covers a broad range of trading topics, including online and social trading, and may help traders enhance their trading knowledge regardless of skill level. Other educational tools at eToro aren’t as helpful. There is a video tutorial guiding you to use the site and some basic educational videos on investing and financial markets. Traders can also attend webinars.
News and Market Analysis: Customers of eToro have access to a news and market analysis area, where financial market analyses are updated regularly to help traders stay on top of market trends. It’s worth noting that eToro’s stock trading platform performs an excellent job of mixing fundamental analysis. However, eToro is currently trailing industry leaders in this category due to a lack of publications from eToro’s in-house staff.
| Resources | |
|---|---|
| Market Analysis | ✔ |
| Guides | ✔ |
| Videos | ✔ |
| Webinars | ✔ |
| Autochartist | ✖ |
| Trading Central | ✖ |
| Economic Calendar | ✖ |
Safety
Because eToro is regulated in several jurisdictions, they must adhere to the strict criteria of some of the world’s most well-known financial regulators, including the FCA, CySEC, ASIC, DNB, FSAS, and FinCEN. This tight regulation assures traders to work with a dependable, trustworthy, and transparent broker. The broker takes all necessary precautions to ensure that client funds are kept safe and secure, employing industry-leading security standards. They maintain the highest levels of cyber security and will never reveal your personal information without your permission. Client funds held in separate bank accounts at well-known European tier-1 banks.
Pros & Cons
Pros
- Stocks and ETFs trading with zero commission
- Fast account opening process
- Low forex and CFDs trading fees
- Low minimum deposit
- No deposit fees
- Good navigation
- Interactive charts
- Trade recommendations options
- Negative balance protection
- Financial statement publicly available
- Ability to buy fractions of shares
- Copy Trading and Copy Portfolio
- Swap free Islamic accounts
Cons
- High Inactivity fees
- Just one base currency
- Limited charts customisability
- No 24/7 customer support
- Withdrawal fees
- Conversion fees for non-US clients
- No fundamental analysis resources
- No banking licence
Conclusion
eToro is one of the top-notch social trading platforms that offer a range of asset classes to trade and invest in other traders. They provide a varied range of trading instruments spanning a wide range of asset classes and a very user-friendly trading interface with a plethora of important trading tools for conducting lengthy and in-depth research.