Etoro Review

Table of Contents

Etoro 30 Second Summary

eToro is mostly popular for its easy-to-use copy trading platform where traders can copy investors’ trades on more than 2,300 instruments, including exchange-traded securities, forex, CFDs, and popular cryptocurrencies.
eToro users can start trading cryptocurrencies for as little as $50, and its innovative trading platform allows investors to mirror select traders with successful track records, move by move. But consider the risks inherent in trading these highly speculative assets.

pros

  • 15 cryptocurrencies that can be traded 24/7
  • User-friendly website and mobile app
  • Large community for cryptocurrency traders

Cons

  • Spreads for cryptocurrency trading are relatively wide
  • $25 minimum to buy any cryptocurrency
  • Relatively high minimums are required for most copy operations

company overview

Founded in 2007 and headquartered in Israel, eToro has millions of customers in more than 140 countries. As of mid-2018, US-based clients in registered states have access to a subset of assets (by regulation) that brokerage enables, primarily focused on cryptocurrencies.

In the beginning, eToro was a chart-intensive forex platform and has adapted those tools for crypto trading. Non-US clients can trade additional asset classes such as CFDs and stocks on a variety of exchanges. In this review, we will highlight the different capabilities of eToro for US residents versus non-US clients.

eToro serves UK clients through a unit regulated by the Financial Conduct Authority (FCA) and Australians through an entity regulated by the Australian Securities and Investments Commission (ASIC). All other clients are served by a Cypriot unit that is regulated by the Cyprus Securities and Exchange Commission (CySEC).

eToro is not listed on any stock exchange, does not disclose its annual report on its site, and does not have a parent bank.

Who is eToro recommended for?

eToro is best for international Forex and CFD traders who are fairly new and looking for an easy way to get started with copy trading. It is also ideal for people who want a platform that can combine CFD trading with stock trading and cryptocurrency buying/selling all in one place and on the go.

Is eToro suitable for day trading?

If you are a beginner trader just starting out, eToro will be the right broker to trade with. The ability to do social trading is indeed a feature that can greatly improve 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 who relies on small margins and a large number of trades to make an overall daily profit, the extra cost incurred can be eroded by any profit made from day trading.

eToro Awards

eToro has won multiple awards over the years for its innovation in trading technology. eToro is continually awarded Best Crypto Trading Broker and Best Social Trading Platform, two titles that will not be easily lost.

eToro Sponsorships

After a successful campaign in 2019, appointing Alec Baldwin as its US brand ambassador to promote its copy fund and cryptocurrency products, the broker decided to dominate football in Europe.

As one of the biggest football club sponsors in Europe, eToro has expanded its UK Premier League partnerships with Crystal Palace, Everton, Leicester City and Southampton, adding West Bromwich Albion and Burnley to its portfolio.

In the German Bundesliga, the investment platform announced new partnerships with FC Augsburg, 1. FC Cologne, Hamburger SV (Bundesliga 2), Union Berlin and Vfl Wolfsburg, as well as Eintracht Frankfurt.

These deals add to eToro’s existing sponsorships across Europe, including Danish champions FC Midtjylland and recently announced AS Monaco.

Security and Regulation

As a financial services provider based in Cyprus, eToro is subject to the regulatory oversight of the Cyprus Securities Exchange Commission (CySEC). Authorized under CIF license no. 109/10, eToro has “transferred” its authorization to the UK and is registered with the UK Financial Conduct Authority (FCA).

The European Securities and Markets Authority (ESMA) also supervises investment providers across Europe and influences EU regulatory rulings.

Is eToro Safe?

eToro is not publicly traded and does not operate a bank. However, it is a well-known brand with clients around the world and a pioneer in the fintech space.

eToro is also authorized by two Tier 1 regulators (high trust), one Tier 2 regulator (average trust), and zero Tier 3 regulators (low trust). Therefore, it is considered a safe broker to trade.

Accepted Countries

eToro accepts traders from Australia, Thailand, United States, United Kingdom, South Africa, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar, and most other countries. Traders cannot use eToro from Iran, Turkey, Japan, Canada, Hong Kong, Singapore.

United States residents who live in Delaware, Minnesota, Nebraska, New Hampshire, New York, Nevada, Puerto Rico, or Tennessee can sign up for an account, but cannot trade yet.

Residents of Hawaii, Guam, American Samoa, and the US Virgin Islands are not eligible to become customers. The business is registered in all other states, allowing those residents to open accounts and trade

Etoro Trading Platforms

Since the launch of the revolutionary eToro trading platform in 2010, the company has greatly improved on the trading platform.

Today, the trading platform used is called eToro CopyTrader. This new platform incorporates the main features and products of the old Openbook and Webtrader trading platform, thus giving clients access to the best of both worlds from a single trading interface.

As well as being able to copy trades and trade independently, eToro also allows its clients to earn additional income by becoming a “Popular Investor”. This is not something many brokers can offer.

As a popular investor, the trader allows others to view their trading activities. Once the merchant has reached a minimum number of copiers, he will be rewarded with cash and rebates on the spreads he pays. To qualify as a Popular Investor, he must deposit a minimum of $1,000. In addition, he must also hire a photocopier for a minimum of 2 months with at least $500 of equity or financing.

To maintain its 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 variety of assets selected by eToro. These funds are classified into Market CopyPortfolios and Top Trader CopyPortfolios.

The world of trading is often not welcoming to beginning traders. eToro offers a simple, beginner-friendly platform that anyone can master in just a few trades.

Registration process

A simple, fast and clean registration process. Signing up to eToro is as simple as entering a little personal information and verifying your identity. Most traders will be able to create an account in as little as 10 minutes.

customer dashboard

A panel similar to a social network, which has information that matters. Have you ever wondered what people are saying about Bitcoin, Litecoin, and other cryptocurrencies on social media?

The eToro trading platform not only allows you to buy and sell cryptocurrencies, but also allows you to communicate with other traders and see what other traders think about the coins you want to trade. Simply click on the crypto you are thinking of buying or selling to find out more about what the traders are saying.

eToro’s trading platform also functions as a social networking website. Learn more about your favorite cryptocurrencies and connect with other traders on eToro’s all-inclusive platform.

platform orders

Intuitive placement of buy and sell orders. The eToro platform is easy for beginners to navigate, with simple order placement and up-to-the-minute price information. eToro also includes real-time charts and price updates in its ProCharts feature (which allows you to display multiple charts and access charting tools) and a free sentiment calculator for every currency available on the platform.

Although it may not offer as many charting and analysis tools as its competitors, eToro’s simplicity can be a welcome change for traders just beginning their research into the crypto trading sphere.

Advanced graphics features

eToro also offers research and technical analysis tools on the platform. These features are flexible enough to benefit both professional and amateur traders. The offer includes deep market data across the entire product range, which means that the strategy can also be tested.

Of course, these tools also allow real-time price analysis. So that trends can be identified and flagged. While other forex brokers may score higher in terms of analysis tools, eToro’s charts will suit most traders, whatever their experience level.

Business hours

Similar to other brokers like XM, IG, and Saxo Bank, the platform is available 24/7, but the markets will only be available for trading when the major 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 XNUMX hours during the week, as there is always at least one open market somewhere in the world.

Weekend trading is available where the markets are open, so Forex is available during Sunday, and the Australian and Asian markets open and start the week.

mobile trading app

eToro has also provided free mobile trading apps that their clients can download and install on their smartphones and mobile devices to allow them to trade on the go.

These apps have been designed for iOS and Android mobile devices to allow full mobility and access to financial markets at the same time. Other operating systems are also supported. You can trade prices in real time, 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 within the app. The apps are very well thought out. All the functionality of the main web platform is retained, but it’s well designed so it doesn’t feel cluttered.

Security is also vital with mobile apps and eToro apps are very secure, you need to be able to trust the app. The security tools within the Android and iOS systems are used, so your account is safe.

All versions of the app are regularly updated. The most recent update reduced the size of the Android version by 50%, with no loss of features. The iOS version was similarly improved. Both saw a huge increase in speed from the new lighter program.

eToro Crypto Wallet

eToro now offers a multi-cryptocurrency on-chain wallet. The phased rollout will see the feature open on a country-by-country basis, and the available list of cryptocurrencies will also expand as time goes on.

The wallet offers a high level of security, with multi-signature login supported, this means users can view their blockchain transactions without having to expose their private key. The mobile app (available on Google Apps and the Apple Store) will allow the buying and selling of cryptocurrencies using fiat currency.

It will also allow the conversion of one virtual or crypto currency to another. The app is open to any registered eToro customer and makes it easy to access an otherwise complex market.

Business accounts offered

To simplify the trading process, the company has chosen to offer its clients a single standard type of trading account. Opening a trading account is a simple and straightforward process that requires you to complete and submit the registration form.

Before you can participate in live trading, you need to make a minimum deposit of $200. And if you want to participate in the “Popular Investor” program, you need to make a minimum deposit of $1000 before you can qualify for the program.

However, if you are unsure and want to test the platform before committing real money, you can do so by using the free demo account feature. This provides a kind of simulator, although you can still use real-time prices. The virtual balance allows operators to learn about 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 real account status by selecting the “Real” account tab.

How to open an account with Etoro

The account opening process is simple and completely digital. It’s also fast, as we were able to open an account within a day.

You need to start by registering with your email account or with your Facebook or Google+ account. And that’s basically it, you can immediately access the trading platform and start trading with a $100,000 demo account.

If you want to go further and fund it with real money, you need to verify your identity and residency by uploading the required documents:

Proof of identity: copy of your passport or personal identification.
Proof of residence: a copy of a utility bill or bank statement.

Assets and products offered

eToro offers a total of 2361 tradable symbols. Today, traders can trade 16 cryptocurrencies, 47 currency pairs, more than 30 contracts for difference, 150 ETFs, and more than 2,042 types of stocks from around the world.

The firm has also long been a pioneer in cryptocurrency trading. They offer the widest range of cryptos anywhere and are focused on expanding this market whenever an established token hits the mainstream.

Stocks and ETFs

If you buy shares or ETFs without leverage, you are buying the real asset, not a CFD. This feature is generally not offered by other forex and CFD brokers. In that regard, eToro’s selection of 17 stock markets to access is excellent. However, compared to brokers like Saxo Bank or Degiro, it is poor.

At eToro, you have access to the following 17 stock exchanges:

Amsterdam
New York Stock Exchange
Nasdaq
Euronext Brussels
Euronext Lisbon
Frankfurt
London
Paris
Madrid
Milan
Zurich
Oslo
Stockholm
Copenhagen
Helsinki
Hong Kong
Saudi Arabia

However, you can only trade popular stocks. For example, the number of shares traded on the Nasdaq with eToro is currently 370, which is only about 10% of the companies listed on the Nasdaq market.

Why would you care about this? If you only trade the most popular stocks, like Microsoft or Apple, you probably won’t notice the lack of smaller stocks. eToro will, from time to time, make new shares available for trading, usually in a batch.

For example, on March 30, they added 185 new stocks, including a very trendy one, Zoom Technologies. However, if you had to wait for eToro to add the shares, you missed the initial recovery of the shares.

cryptocurrencies

If you reside in the US, you will be limited to trading cryptocurrencies through eToro. eToro currently supports the buying and selling of 15 unique currencies, including:

Bitcoin (BTC)
Ethereum (ETH)
Bitcoin Cash (BCH)
Ripple (XRP)
Dash (DASH)
Litecoin (LTC)
Ethereum Classic (ETC)
Cardano (ADA)
MIOTA (IOTA)
Stellar Lumens (XLM)
EOS (EOS)
NEO (NEO )
TRON Coin (TRX)
Zcash (ZEC)
Tezos (XTZ)

These represent 15 of the most popular cryptocurrencies, which means that eToro has a strong and diverse selection of cryptocurrencies. Although this list is a bit short compared to other US-based cryptocurrency hubs like Coinbase (21 coins in non-professional accounts) and Binance US (30 supported coins), it offers much more than the major brokerages that they focus on actions.

Copy Trader

eToro’s revolutionary CopyTrader tool allows you to mimic the trading strategies of professionals in just a few clicks.

First, professional and experienced traders sign up for the CopyTrader program, which authorizes eToro to disclose the percentage of assets each trader has in their portfolio to the general community of eToro users. eToro also reveals traders’ stats to show how well they are performing and their portfolio which shows the instruments they are trading.

You can choose to «copy» a professional trader’s portfolio and mimic their asset allocation. In return, professional traders earn a commission every time a trader chooses to copy them. Users can communicate with CopyTrader in the newsfeed.

CopyPortfolio

CopyPortfolio is basically a mutual fund, but under the hood, it is a CFD portfolio. Whereas with CopyTrader you followed a trader, with CopyPortfolio you can invest in a theme or a portfolio of the top eToro traders. Investing in themes means, for example, investing in a portfolio of large banks or cryptocurrencies.

The cryptocurrency portfolio, for example, consists of the largest cryptocurrencies, weighted by market capitalization. Another way to invest through CopyPortfolio is to invest in a portfolio made up of multiple “star” traders. There is also a Crypto CopyPortfolio available.

Business costs and fees

eToro is a market maker broker and lists a typical variable spread of 1 pip on the EURUSD, which is slightly higher than the industry average. When comparing fees alone, retail traders choose eToro not for its spreads, but for its social copy trading platform capabilities.

VIP account fees

eToro offers a VIP club membership with five levels ranging from silver to diamond for traders who maintain balances between $5 and $250. Depending on the level, benefits range from a dedicated account manager to withdrawal and deposit fees. with discount, access to private signals and exclusive assets, among other VIP-style account benefits.

Popular Investor Program

eToro’s Popular Investor program has four levels, from Cadet to Elite, where you may be eligible to receive various benefits. The benefits of this program can range from distribution rebates to a monthly payment and even a management fee for those who achieve elite status. Popular Investor is for traders who allow other investors to copy their strategy.

Cryptocurrency trading fees

Overall, eToro is priced close to the industry average for physical cryptocurrency trading, such as 0.75% to buy or sell bitcoin, while its fiat-to-crypto conversion fee is high at 5%. Meanwhile, crypto to crypto conversion on eToro only costs 0.1% on top of prevailing spreads.

Exchange-traded securities fees

In addition to stock CFD trading, eToro also offers $0 commission for US stock trading (not available to US investors) and supports fractional shares.

Stock Fees and ETF Fees

eToro offers commission-free real stock trading. As of May 2020, this is valid for all countries, but clients in Australia can only trade US stocks commission-free. Please note that with the free feature you are buying real shares, not a CFD product and you cannot use leverage.

eToro used to be primarily a CFD broker and they also let you trade stocks and ETFs as CFDs, if you set the leverage to more than one. For this CFD product, eToro charges low fees, meaning the spread (the difference between the ask and bid prices) is low.

CFD fees

eToro generally has average CFD trading fees. The eToro CFD fees for a $2,000 long position held for one week are as follows:

  • S&P 500 Index CFD Fee – $1.5
  • Europe 50 Index CFD Fee – $2.7
  • Apple CFD fee – $6.7

Forex fees

eToro Forex rates are average. eToro’s forex referral fees for a $20,000 long position 30:1 held for one week are as follows:

  • EURUSD Reference Fee – $8.8
  • GBPUSD Reference Fee – $8.5
  • AUDUSD Reference Fee – $8.2
  • EURCHF Reference Fee – $12.6
  • EURGBP Reference Fee – $12.3

non-commercial rates

eToro has average non-trading fees, charging $10 per month after a year of inactivity, but simply logging into your account counts as an activity. The withdrawal fee has recently been reduced to $5.

Leverage

The maximum leverage on eToro is 1:30. However, the leverage is different for each instrument as follows:

  • 1:20 for CFDs on stock indices
  • 1:5 for Stock CFDs
  • 1:30 for forex

Deposit and Withdrawal

There are several ways you can fund your eToro trading account or withdraw funds.

Currently supported methods include deposits via credit cards such as VISA, Mastercard or Diners. Electronic wallets such as China UnionPay, Neteller, PayPal, Skrill, WebMoney and Yandex are also available for merchants to deposit their funds. For merchants who do not have a credit card or e-wallet, they can also fund their merchant account via bank transfer.

What is the minimum deposit requirement to open a trading account with eToro?

The minimum deposit requirement at eToro is $200 for non-US traders. US traders can open an account with just $50.

How long does it take to withdraw money from eToro?

It usually takes 3 business days to create and process a withdrawal request.

Promotions and contests

eToro is currently running a big promotion on its crypto trading products. For a limited time only, eToro customers can get $500 when they trade $5,000 worth of crypto. That is how:

  • Sign up for an eToro account
  • deposit funds
  • Open $5,000 worth of crypto trades in your wallet
  • Automatically receive $500 directly into your trading account balance
    *Subject to Terms and Conditions

Market research and education

Overall, eToro’s research is competitive but not entirely award-winning.

Research tools

There’s a standard economic calendar, earnings report calendar, news headlines, daily market analysis series, and podcasts. That said, several of these features are not directly integrated into the eToro platform.

fundamental analysis

It is worth noting that eToro does an excellent job of incorporating fundamental analysis into its platform for stock trading. That said, eToro still lags behind leaders like IG and Saxo Bank in this category, as there are few articles from eToro’s internal staff in the market analysis category.

sentiment data

Instead of showing sentiment based on all users, only the trades of the top traders on eToro are used to calculate the sentiment data (a step above the usual sentiment tools provided by brokers). This is comparable to how CMC Markets displays sentiment data.

Wall Newsfeed

eToro uses a Twitter-style wall of collective comments for a given instrument. This public feed appears as a stream of updates from other eToro users to give you an idea of ​​what other traders are posting on the eToro network.

Content comes from eToro users and may vary in quality. It is certainly unique; That said, I find content generated by internal staff or external professionals to be of higher quality, on average.

Virtual Practice Portfolio

Although some of the major brokers and trading websites will allow you to create a “paper trading” account to practice your stock trading strategy, it is rare to see a broker extend the same skills to cryptocurrencies. In fact, the virtual account mimics the real trading account.

You can practice your trading strategy or practice placing buy and sell orders with a $100,000 virtual practice account. This feature can be especially useful for new crypto traders who are still getting to grips with reading indicators and spreads.

Etoro Customer Service

Customer service is available Monday through Friday, 24 hours a day. To contact the support team, merchants can do so by submitting their queries on the web contact form provided on their website.

For most eToro inquiries, you will need to submit a support ticket through the crypto broker’s online platform. The company claims that it can take up to 7 days to receive a response from customer service, which is significantly longer than most other major brokers.

eToro’s live chat feature is only available to users who have currently active eToro accounts. If you have an active eToro account, you can access live chat through your brokerage desk 24/7, Monday through Friday.

eToro does not currently offer any type of phone support or assistance for the hearing impaired. There is also a help center available.

overall verdict

eToro is ideal for retail traders who want to crowdsource investment ideas using the power of copy trading, or highly experienced active traders who want to be rewarded for sharing their ideas with other traders.

Less experienced traders who require hand grip may find the easy-to-use platform an added benefit. With that said, I do not recommend eToro for active or high volume traders as the higher spreads and small maximum trade sizes will be a limiting factor.

Although eToro may expand its offerings in the future, US traders are limited to 15 of the world’s most popular cryptocurrencies on both the mobile app and desktop platform.

Although you shouldn’t count on eToro to provide a one stop shop for all your investment needs, eToro can add a wide range of exposure to the cryptocurrency market.

eToro’s main strength is its simple and straightforward platform. Beginners can sign up for an account in as little as 10 minutes and the account verification process is intuitive.

Once you’ve opened your account, you’ll have access to an easy order placement platform, easy commission and pricing information, with a bustling social network that can help you inform your trades.

Its one-of-a-kind CopyTrader feature is just as beneficial for professionals as it is for novice traders. Experienced traders can share what they know with a wider audience (and earn some commission while doing so) while new traders receive an up-to-date, dynamic model portfolio to start trading.

Best of all, using the CopyTrader feature does not incur additional fees beyond the standard margin you would pay buying and selling.

There are some areas where eToro can improve. We’d also love to see eToro expand its forex offerings even further to include smaller names like Chainlink and Bitcoin SV for another layer of exposure and diversification.

Risk Warning

There is a high degree of risk involved in trading securities.

With respect to margin-based foreign exchange, off-exchange derivatives, and cryptocurrency trading, there is considerable exposure to risk, including, but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may materially affect the price or liquidity. of a currency or related instrument.

It should not be assumed that the methods, techniques or indicators presented in these products will be profitable or that they will not generate losses. More information on Wikipedia .

All investments involve risk and are not suitable for all investors. The value of securities may fluctuate and, as a result, clients may lose more than their original investment.

Past performance of a financial or securities product does not guarantee future results or returns. Keep in mind that while diversification can help spread risk, it does not ensure a profit or protect against loss in a falling market.

There is always the possibility of losing money when you invest in securities or other financial products. Investors should carefully consider their investment objectives and risks before investing. More details here.

Check Fonts

eToro website – https://www.etoro.com/
Wikipedia – Etoro – https://es.wikipedia.org/wiki/EToro