Etoro Review

In this comprehensive Etoro review, we aim to provide you with a detailed analysis of Etoro, assisting you in evaluating whether it suits your trading or investment requirements.

Our review encompasses a wide range of crucial aspects of Etoro, such as regulatory compliance, advantages and disadvantages, product offerings, available markets, trading platforms, account types, payment methods, educational resources, and customer support services.

By the end of this review, you will have a thorough understanding of Etoro and be better equipped to make an informed decision regarding its suitability for your trading or investing needs.

Etoro Overview

Etoro is a highly reputable multi-asset trading platform that has gained the trust of over 20 million users in more than 140 countries worldwide. The broker offers a range of investment products, including stocks, crypto-assets, and trading through CFDs.

Etoro also provides other unique financial products including social and copy trading, Smart Portfolios, and the Popular Investor Program. One of its standout features is social trading, where traders can connect with others, discuss strategies, and use the CopyTrader technology to automatically copy the portfolios of successful traders or receive benefits for being copied.

79% 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.

Etoro Broker Features

Broker	Etoro
Established	2006
Regulations	FCA (United Kingdom), ASIC (Australia), CYSEC (Cyprus)
Publicly Listed	No
Product Offering	Stocks, Crypto Assets, Social Trading, Copy Trading, CFDs
Asset Classes	3000+ including Currencies, Stocks, Commodities, Cryptocurrencies, ETFs, and Indices.
Trading Platforms	eToro Trading Platform (Web and Mobile app)
Minimum Deposit	$50
Account Currencies	USD
Payment Methods	Bank transfer, Cards payments, Paypal, Neteller, Skrill, UnionPay, Klarna, Sofort, Rapid, Transfer, Przelewy 24, WebMoney, Trustly, and iDeal.
Fx Conversion Fee	50 pips
Maximum Leverage	1:30
Minimum Trade Size	$10
Pricing Model	Spreads
Fee Rating	High
Demo Account	Yes
Education
Customer Support	Support Ticket, Live Chat (for eToro club members).
Supported Languages	English, Spanish, Italian, Deutsch, Russian, Chinese, French, Arabic, Polish, Netherlands, Norwegian, Portuguese, Swedish, Czech, Danish, Romania, Vietnamese, and Finnish.

Regulatory Compliance

Etoro operates in multiple regions and is regulated by top-tier regulatory bodies worldwide. The regulatory bodies overseeing Etoro’s operations in different regions include:

• FCA – eToro is regulated in the United Kingdom by the Financial Conduct Authority (FCA) under the license FRN 583263.
• CYSEC – Authorised and regulated by the Cyprus Securities Exchange Commission (CySEC) under license #109/10.
• ASIC – eToro is a holder of an Australian Financial Services Licence (AFSL) 491139 issued by the Australian Securities and Investments Commission (ASIC) in Australia.

These regulatory bodies ensure consumer protection, industry stability, and healthy competition among financial service providers by setting national standards for financial institutions’ qualifications and activities.

Pros and Cons of Etoro

Advantages

• Strong regulatory framework.
• Hassle-free account registration process.
• Variety of financial products including CFDs, stocks, cryptocurrency assets, social trading, CopyTrader, CopyPortfolios™️ , and Popular Investor Program.
• Free demo account with unlimited usage duration.
• Low minimum deposit.
• Access to over 3000+ financial instruments across a variety of asset classes.
• User-friendly proprietary trading platform.
• Innovative social trading and copy trading features.
• offers zero commissions on stock trading.
• No management, administration, or ticketing fees are charged for stock trading.
• Unique perks for club members and popular investors who reach higher tier levels.
• Multiple fast and secure payment methods.
• Dedicated customer support 24/5 via email and live chat.

Disadvantages

• High CFD trading fee.
• A fixed fee of $5 is charged on all withdrawals.
• Only one account base currency is offered.
• Does not support all types of trading strategies (e.g., scalping and algorithmic trading).
• Customer support service can be improved.

Product Offering

eToro offers investing in stock and crypto-asset and trading through CFDs. Other unique financial products offered by Etoro include social trading and copy trading through its award-winning CopyTrader, Smart Portfolios, and Popular Investor Program.

Let’s take a closer look at the products offered by eToro;

• CFDs – eToro offers Contract For Differences (CFDs), which is a financial instrument that allows traders to profit from the price movement of an underlying asset without actually owning it. With eToro, traders can trade CFDs on various asset classes including currencies, stocks, commodities, cryptocurrencies, ETFs, and indices with over 3000+ financial instruments available.
• Share Dealing – Etoro offers actual stocks, which means you can buy and own the underlying asset on the broker from as low as $10. However, contrary to traditional online stockbrokers, eToro holds stocks on behalf of its users, and dividends are paid in proportion to the number of stocks owned. Clients are offered over 2000+ stocks which are constantly updated according to ongoing market conditions. Some of the popular stocks available on the Etoro trading platform include Amazon, Facebook, Google, Tesla, and Apple.
• Cryptocurrency Trading – eToro offers actual cryptocurrency assets, which means you can buy, own and sell an underlying cryptocurrency asset on the platform. Etoro also offers easy accessibility to over 41 major cryptocurrency assets, and clients can invest a small amount of money. Some popular cryptocurrency assets on the eToro trading platform include Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, and Litecoin.
• Social Trading – eToro offers one of the largest social trading communities with 20+ million users in over 140 countries worldwide. With the social trading feature, you can communicate and share thoughts, knowledge, and ideas about the financial markets with other traders and investors on the platform.
• CopyTrader – eToro offers copy trading through its award-winning patented copy trading technology called CopyTrader. This technology takes the concept of social trading one step further by enabling individuals to copy the trades of top-performing traders in real time automatically.
• CopyPortfolios – eToro’s Copy Portfolio is an investment product that groups multiple related assets into single portfolios that users can invest in. These portfolios include groups of diverse asset types such as stocks, technologies, cryptocurrencies, and even top traders on the Etoro.
• Popular Investor Program – The eToro Popular Investor Program is designed for professional traders who want to potentially generate a substantial level of income annually by allowing other clients to copy them on the eToro platform. Traders who qualify for this program can earn up to a 2.5% annual fee in AUM.

Asset Classes

Etoro offers a wide variety of markets and asset classes across the various financial products offered on the platform.

The table below shows the asset classes offered by Etoro across its product offerings.

Product	Assets
CFDs	3000+ assets including currency pairs, indices, stocks, commodities, ETFs, and cryptocurrencies.
Share Dealing (Stocks)	Over 3000 Shares and ETFs across 19 Exchanges
Cryptocurrency	72 Cryptocurrencies

Account Types

Etoro offers three account types which are the demo account, live account, and Islamic account. Let’s take a closer look at the types of brokers offered by Etoro;

• Demo Account – Etoro offers a free demo account that users can access when they complete their account registration. It works just like live trading but functions with demo money. Etoro’s demo account also comes with unlimited duration, which means you can use it for as long as you want.
• Live Account – Etoro’s live account gives users access to all the brokerage services offered by the broker. To get full access to the services on Etoro’s live trading account, users are required to deposit actual funds into their accounts.
• Islamic Account – Etoro offers an Islamic trading account (swap-free account) designed for people of Islamic beliefs. The Islamic account complies with Sharia law and offers several benefits including zero interest on settlements, and zero additional commissions on rollovers. To open an Islamic account with eToro, you must open a normal trading account and contact the support team for a change of account.

Trading Platform

Etoro provides users with a user-friendly proprietary trading platform available in web and mobile versions only. The trading platform offers an extensive list of great trading features and stands out for its simplicity and ease of use. This makes it a good choice of platform for newbie traders and investors.

While Etoro’s trading platform may be a great platform for beginners, the trading platform lacks the sophisticated tools and resources required to perform advanced trade analysis, making it a less suitable platform for experienced traders who want to perform advanced trade analysis.

Also, eToro provides no support for third-party trading platforms which can be a problem for traders who want to trade with the broker but from the comfort of their preferred third-party trading platforms.

Leverage

For retail clients, eToro offers leverage from 1:2 up to 30:1 on CFDs, although it might vary depending on the client’s country. In addition, retail clients who qualify for Etoro’s elective professional status are eligible for higher leverage and are not subject to ESMA’s leverage restrictions.

Below are the leverage specification for eToro’s retail clients;

Asset	Leverage
Major Currency Pairs	1:30
Non-major Currency Pairs	1:20
Commodities CFD	1:10
Stocks CFD	1:5
Cryptocurrencies CFD	1:2

The leverage specifications stated above are determined by the European Securities and Markets Authority (ESMA) and apply to retail clients of eToro (UK) Ltd (FCA regulated) and eToro (Europe) Ltd (CySEC regulated).

Fees

Etoro offers spreads and overnight fees for CFD trading, while stock and ETF investing are offered for free on the platform. Also, the broker charges a fixed fee of 1% on every cryptocurrency transaction. Other fees clients may encounter with Etoro includes withdrawal fee, FX conversion fee, and inactivity fee.

Let’s take a closer look at Etoro’s trading fees.

• CFD Fees – CFD fees on eToro are quite high compared to other CFD brokers. The spreads offered are generally higher than that of its competitors, and can even go higher depending on the asset and market condition.
• Stock Fee – eToro offers zero commission on real stock trading. No broker fee will be charged when clients open or close a stock position.
• Cryptocurrency Fees – eToro charges a fixed fee of 1% on every cryptocurrency transaction. This means a 1% fee is added to the market price (Bid-Ask spread) when you BUY a crypto asset and a 1% fee when you SELL a crypto asset.
• Withdrawal Fee – eToro charges a fixed withdrawal fee of $5 to cover some of the expenses involved in international money transfers.
• Conversion Fee – With eToro, transactions (withdrawals and deposits) are conducted in USD. Any other currency deposited will have to be converted and, therefore, will incur a conversion fee.
• Inactivity Fee – eToro charges an inactivity fee of $10 if there is no login or trading activity on your Etoro account after 12 months.

While stock and ETF investing are offered for free on Etoro, the CFD trading fees (including spreads and overnight fees) are relatively high compared to that of other CFD brokers. Also, its fixed withdrawal fee of $5 is quite high.

Payment Methods

Etoro supports a wide range The payment methods offered by the platform include credit/debit cards, bank transfers, and popular e-wallets like PayPal, Skrill, Neteller, Klarna, etc. The platform’s commitment to offering multiple payment options ensures that clients from around the globe have the flexibility to select a payment option that aligns with their personal preferences.

The table below contains a breakdown of Etoro’s payment features;

Payment Features	Specification
Minimum Deposit	All Eligible Countries – $200 United States – $10 Europe – $50
Base Currency	USD
Bank Payment	Bank Transfer
Card Payment	Credit and Debit Cards
E-Wallets	Paypal, Neteller, Skrill, UnionPay, Klarna, Sofort, Rapid, Transfer, Przelewy 24, WebMoney, Trustly, and iDeal.
Payment Processing Time
Deposit Fee	$0
Withdrawal Fee	$5
Fx Conversion Fee	50 pips

Education

Etoro offers several educational trading resources which are available in different formats, such as videos, articles, podcasts, and webinars. The broker also offers a robust trading academy that contains several educational materials, organized by category and experience level.

Though the educational materials provided by Etoro are organized to some extent, there is still room for improvement. This is because it’s a bit challenging to distinguish between tutorials, promotional, educational, and research content, as they are sometimes clustered together even under individual categories.

Also, regardless of eToro’s robust educational offering, some of the resources provided are a bit mediocre, especially when compared to other industry-standard brokers and improvements can be made in that aspect.

Customer Service

Etoro offers a dedicated customer support service which can be reached via web-based support tickets and live chats. The broker also offers a multi-lingual customer support service, with support available in over 19 languages. Unfortunately, the platform offers no support for telephone support.

Although the customer support team was professional and helpful whenever we reached out, the response time was between 2 hours to a day, which is quite slow, especially when there is an issue to be resolved quickly. The Live chat, on the other hand, is available only to eToro Club members, which are members who maintain account balances between $5,000 and $250,000.

In conclusion, Etoro offers a dedicated and professional customer support team, although, the customer support service has several limitations, and lots of improvements can be made, such as additional customer support mediums and a better response time.

Conclusion

Etoro is a trusted, regulated multi-asset trading platform with a user-friendly interface. It offers a wide range of investment and trading products, including stocks, crypto-assets, and trading through CFDs. Other unique financial products offered by Etoro include social trading, copy trading, Smart Portfolios, and its Popular Investor Program.

Notably, Etoro stands out for its social and copy trading features, allowing traders to connect, discuss strategies, and automatically copy successful traders or receive benefits for being copied. This makes it an attractive platform for beginners and professionals alike.

However, it is essential to note that the broker has its limitations. For traders, CFD trading fees are quite high compared to other CFD brokers, the maximum trade size is small, and it lacks support for certain trading styles including hedging, scalping, and algorithmic trading. For stock and crypto investing on Etoro, investors would have to place a non-leveraged buy position to own an asset, which is unlike traditional online stock or crypto trading and therefore comes with several limitations. In addition, customer support could be improved in terms of response time and available support mediums.

Despite these limitations, Etoro provides advantages like easy registration, low minimum deposit, access to over 3000 diverse financial instruments, zero commission on stock trading, and multiple payment methods, making it a convenient choice for traders worldwide.

In conclusion, this comprehensive Etoro review has provided a detailed analysis of the platform, helping you evaluate its suitability for your trading or investing needs. Our review covered various essential aspects of Etoro, and by considering these factors, you should now have a thorough understanding of Etoro and can make an informed decision about whether it aligns with your requirements.

Frequently Asked Questions