Etoro Review

eToro is a highly reputable multi-asset trading platform, trusted by over 20 million users in 140+ countries worldwide. It offers access to stocks, crypto-assets, and CFD trading on various asset classes including currencies, stocks, commodities, cryptocurrencies, ETFs, and indices, with over 3000+ instruments available to trade.

eToro is also well known for its leading social trading offering, where traders can connect with other traders, discuss trading strategies, and use its patented CopyTrader™️ technology to automatically copy other traders’ trading portfolios or receive great perks for allowing others to copy you.

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68% 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.

At a Glance

🏛 BrokerEtoro
🏛 Established2006
⚖️ RegulationsFCA (United Kingdom), ASIC (Australia), CYSEC (Cyprus), GFSC (Gibraltar)
📊 Publicly ListedNo
📉 Product Offering Stocks, Crypto Assets, Social Trading, Copy Trading, CFDs (on currencies, stocks, commodities, ETFs and Indices).
📉 Asset ClassesCurrencies, Stocks, Commodities, Cryptocurrencies, ETFs and Indices.
📉 Assets3000+
🖥 Trading PlatformseToro Trading Platform (Web and Mobile app)
💰 Minimum Deposit$50
💰 Account CurrenciesUSD
💳 Payment MethodsBank transfer, Credit/ Debit Cards, Paypal, Neteller, Skrill, UnionPay, Sofort, Rapid, Transfer, Przelewy 24, WebMoney, Trustly and iDeal.
📈 Maximum Leverage1:30
📈 Lot SizesMicro, Mini and Standard.
🏷 Pricing ModelSpreads.
🎮 Demo AccountYes
📚 Education
📈 ScalpingNo
📈 HedgingYes
📞 Customer SupportSupport Ticket, Live Chat (for eToro club members).
🗣 Supported LanguagesEnglish, Spanish, Italian, Deutsch, Russian, Chinese, French, Arabic, Polish, Netherlands, Norwegian, Portuguese, Swedish, Czech, Danish, Romania, Vietnamese, and Finnish.

Pros and Cons

Below are the pros and cons of using the eToro platform;

ProsCons
Strong regulatory frameworkHigh CFD trading fee.
Hassle-free account registration process.$5 fee charged on all withdrawals.
Newbie friendlyOnly one account base currency is offered.
Variety of financial products and trading features including CFDs, stocks, cryptocurrency assets, social trading, CopyTrader, CopyPortfolios™️ , and Popular Investor Program.Does not support all types of trading strategies (e.g., scalping and algorithmic trading).
Free demo account to experience the trading platform or practice trading without risk.Customer support service can be improved.
Low minimum deposit.Algorithmic trading is not supported on the proprietary trading platform.
Negative balance protection.
Access to a variety of asset classes.
Over 3000+ assets to trade.
User-friendly proprietary trading platform.
Innovative social trading and copy trading features.
Zero commissions on stock trading.
Unique perks for club members and popular investors who reach higher tier levels.
Fast and secure payment methods.
No deposit or clearing fee.
Dedicated customer support 24 hours a day, from Monday to Friday.

Regulations and Safety

eToro operates in a multi-regulatory environment and is regulated by multiple top-tier regulatory bodies worldwide. These regulatory bodies protect the interest of consumers, keep the industry stable, and promotes healthy competition between financial service providers by establishing national standards for the qualifications and activities of financial institution.

Furthermore, eToro has maintained a good reputation in the online trading industry and amongst traders since it was established in 2006, with multiple awards, partnerships, and sponsorships. For these reasons, we consider the broker safe to trade with.

The entities under which eToro operates and their respective regulatory bodies can be seen in the list below.

  • eToro (United Kingdom) Ltd – Authorised and regulated in the United Kingdom by the Financial Conduct Authority (FCA) under the license FRN 583263. The registered office is at 5 Fleet Place, London EC4M 7RD and the principal place of business is on the 24th floor, One Canada Square, Canary Wharf, London E14 5AB.
  • eToro (Europe) Ltd – Authorised and regulated by the Cyprus Securities Exchange Commission (CySEC) under license #109/10. The registered office is 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus.
  • eToro AUS Capital Pty Ltd – is the holder of an Australian Financial Services Licence (AFSL) 491139 issued by the Australian Securities and Investments Commission (ASIC) in Australia.
  • The wallet is provided by eToro X Limited (“eToro X”). eToro X is a regulated DLT provider licensed in Gibraltar by the Gibraltar Financial Services Commission under the Investments and Financial Fiduciary Service Act with Licence FSC1333B. Its distributed ledger technology (DLT) provider license was granted by the Gibraltar Financial Services Commission in December 2018 (license number FSC1333B).
ProsCons
Strong regulatory framework.None.

Account Types

eToro offers its users three account types which are;

  • Demo Account
  • Live Account
  • Islamic Account

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.

The demo account comes with endless access, which means users can use it for as long as they want. It also comes with $100,000 in demo money which can be replaced at any time by the user.

With the demo account, users can practice trading, test trading strategies, or better still, use it to check out the trading platform without risking actual capital.

Live Account

eToro’s live account gives users access to all the brokerage services offered by the broker. Users are required to deposit actual funds into their live trading account to get full access to the services offered by the broker.

To gain access to an eToro live account, here are the procedures that need to be completed:

  • Complete your registration for a real account
  • Complete your account verification by providing the requested identification documents.
  • Deposit funds into your trading account.

Islamic Account

eToro offers an Islamic trading account (aka Swap-free account) designed for people of Islamic beliefs and complies with Sharia law.

The benefits of opening an Islamic account with eToro include:

  • No interest on settlement for more than 24 hours, consistent zero-rollover interest.
  • No additional commission is charged on rollover for more than 24 hours.
  • No fees or commissions are charged for account management, and revenues are made strictly from the spreads (the difference between the BUY and SELL prices of a financial instrument).

To open an Islamic account with eToro, you must open a normal trading account and contact the support team for a change of account.

Account Registration

Account registration on eToro is fully digital, and the registration process is pretty straightforward. We opened an account and completed the verification process in less than 2 hours of signing up.

ProsCons
Fully digital account registration process.None.
Fast and easy account registration.
Fast account review time.

eToro Club

eToro offers a VIP club called eToro Club. This VIP club comes with five levels of membership, ranging from Silver to Diamond. These tiers of memberships are for traders and investors who maintain account balances between $5,000 and $250,000, and they feature several attractive benefits depending on the level of membership.

Silver

Silver tier members are offered premium access to data-based Smart Portfolios, in-depth market webinars, and a dedicated Customer Success Agent to maximize Club membership offerings.

Gold

Gold tier members receive the same offers as the Silver tier, with additional advantages including access to live webcasts and expert weekly market analysis.

Platinum

Platinum tier members receive the same offers as the Gold tier, with additional advantages including access to a premium digital publication, exemption from withdrawal fees, and access to hand-picked partner platforms and mobile apps designed to assist members in making better investment decisions.

Platinum+

Platinum+ tier members receive all the services offered to the previous tiers, with additional benefits including one-on-one Zoom meetings with their dedicated Account Manager, exclusive access to special eToro events, and much more.

Diamond

The Diamond tier is the highest in the eToro VIP club, and members of this tier receive all the services offered to the previous tiers and additional benefits. Also, Diamond members are offered exclusive access to eToro’s prestigious Diamond events.

Paper Trading

eToro offers paper trading through its demo trading account which comes for free upon completion of the account registration.

With the demo account, users can practice trading, test trading strategies, or better still, use it to check out the trading platform without risking actual capital.

The demo account works just like the live trading account, but instead of actual money, users are provided with $100,000 in demo money which can be replaced at any time by the user. It also comes with unlimited time access, which means you can use the demo account for as long as possible.

ProsCons
Unlimited demo account usage time.Algorithmic trading is not supported.
$100,000 in paper money which can be replaced.

Trading Platform

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

Although the eToro trading platform has an extensive list of great features suitable for newbies and professional traders, it lacks the sophisticated tools to perform advanced trade analysis. This makes it a less suitable platform for advanced and seasoned traders looking to perform advanced trade analysis on the platform.

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 platforms.

eToro Trading Platform Details

FeatureseToro
Demo Trading✔️
Proprietary Trading Platform ✔️
Third-party Trading PlatformNone
Web Platform✔️
Mobile Application✔️
Desktop Application
Social Trading✔️
Copy Trading✔️
Algorithmic Trading
VPS Hosting
Watch List✔️
Watch List Syncing✔️
Alerts✔️
Charting – Chart TypesCandle, Hollow Candle, Bar, Line, Mountain
Charting – Order TypesMarket, Limit, Stop-loss, Trailing stop-loss.
Charting – Technical Indicators66
Charting – Analytical Objects13
Charting – Timeframes9
ProsCons
Offers advanced risk management features, such as real-time alerts and customizable stop loss.No third-party trading platforms are available.
The proprietary trading platform is not fully customizable.
Does not support algorithmic trading.

Product Offering

eToro primarily focuses on CFD and forex trading. Regardless, clients can also trade real stocks and crypto-assets on the platform.

Other unique features offered by the broker include; social trading, CopyTrader™️, Smart Portfolios and Popular Investor Program.

As noted earlier, eToro offers a wide and diverse array of unique investing and trading products and they collectively include;

  • CFDs
  • Stocks
  • Cryptocurrency Assets
  • Social Trading
  • Copy Trading (CopyTrader™️)
  • CopyPortfolios™️
  • Popular Investor Program

Note – If you live in the United States of America, the only product that you can trade on eToro is cryptocurrency.

Contract For Differences (CFDs)

eToro offers Contract For Differences, which are financial instruments that allow traders to profit from the price movement of an underlying asset without actually owning it.

Most notably, CFDs allow traders to trade in both directions (buy long or sell short) and profit from both upward and downward price movements. They also enable traders to use leverage to control a larger amount of money than they have deposited on the trade.

With eToro, traders can trade CFDs on various asset classes including currencies, stocks, commodities, cryptocurrencies, ETFs, and indices with over 3000+ assets. This is a significant advantage for traders who want to diversify their portfolios from the comfort of one trading account.

ProsCons
Wide variety of markets to trade.High CFD trading fees compared to other brokers.
Over 3000+ assets to trade.
CFDs are not offered in some countries. (e.g. United States)

Stocks

eToro offers both actual stocks and CFDs (Contract For Differences), which means you can either buy and own the underlying asset or use CFDs to apply leverage and trade (buy long or sell short) the underlying assets without actually owning them.

Contrary to the traditional online stockbrokers, eToro holds stocks on the behalf of its users, and dividends are paid in proportion to the number of stocks owned.

Buying actual stocks on the platform is done by opening a ‘BUY non-leveraged position‘. On the other hand, leveraged positions (buying long or selling short) are conducted using CFDs (Contract Of Differences), and profit is made from the change in price movement of the underlying asset.

Users have access to a wide variety of over 2000+ stocks which are constantly updated according to ongoing market conditions. Some of the most popular stocks available on the platform include Amazon, Facebook, Google, Tesla, and Apple.

eToro also offers fractional shares which allow investors to buy a portion of a stock that is less than one entire share. For instance, you can buy stocks in bulk or just a fraction, from as little as $10.

Additionally, eToro offers zero-commission stock investing when clients invest in ‘non-leveraged BUY stock positions.’ However, this only applies to you if you reside in countries under ASIC, FCA, and CySEC regulations.

ProsCons
Zero commission stock investing for US stocks only.Does not function as a standard stockbroker.
No management, administration, or ticketing fees are charged.The broker holds stocks on the client’s behalf.
No additional broker fee.Not great for long-term stock investing.
Dividends are paid in proportion to the number of stocks owned.Stock transfer to other brokers is not supported.
eToro covers the bill for regulatory transaction fees when you sell a stock.Users do not have voting rights for stocks owned.
Not offered in some countries (e.g. United States)
Unlimited trading volume.
Offers fractional shares.
Free access to TipRanks’ expert stock analysis.

Cryptocurrency

eToro offers actual cryptocurrency assets, which means you can buy, own and sell an underlying cryptocurrency asset.

The broker offers easy accessibility to over 41 major cryptocurrency assets, and clients can invest with a small amount of money.

Some popular cryptocurrency assets on the eToro trading platform include Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin, and much more.

In addition, eToro offers over 60+ crypto-related assets including crypto crosses, currency crosses, and commodity crosses. Users can trade two types of cryptocurrencies against each other or crypto against another asset class entirely.

Some examples of crypto-related assets available on eToro include;

  • Crypto Crosses – ETHBTC (Ethereum/ Bitcoin), ZECXLM (Zcash/ Stellar), XRPDASH (Ripple/ Dash) etc.
  • Currency Crosses – BTCEUR (Bitcoin/ Euro), ETHGBP (Ethereum/ Pound), XRPGBP (Ripple/ Pound) etc.
  • Commodity Crosses – GOLDBTC (Gold/ BTC)

On the eToro trading platform, when a user opens a long (BUY) crypto position without leverage, the crypto is bought and held by eToro on the user’s behalf.

On the other hand, leveraged crypto positions (buying long or selling short) are conducted using CFDs (Contract Of Differences), and profit is made from the change in price movement of the underlying asset.

In the table below are the pros and cons of trading cryptocurrencies on the eToro platform;

ProsCons
Over 41 crypto assets to trade.
Over 60+ crypto-related assets including crypto crosses, currency crosses, and commodity crosses.
Crypto CFDs are not offered in some countries (e.g., the United States)

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.

eToro Social Trading
eToro Social Trading

You can also use its patented CopyTrader™️ technology to automatically copy other traders’ trading portfolios or receive great perks for allowing others to copy you. This makes trading or investing in the financial market more sociable and accessible to almost anyone worldwide.

In the table below are the pros and cons of using the eToro social trading features;

ProsCons
Global leading social trading platform.
A massive community of traders with over 20+ million traders to interact with.

CopyTrader

eToro provides users with an award-winning patented copy trading technology called CopyTrader™️. This technology takes the concept of social trading one step further by enabling individuals to automatically copy the trades of top-performing traders in real time.

Each user’s performance is displayed transparently, including risk score, fail/success ratio, and much more.

ProsCons
No management fees or other hidden costs are involved.

How To Copy Trade Using eToro

Setting up copy trading on eToro is simple and can be done in a few easy steps.

  • From your eToro account, choose the user that you would like to copy
  • Input the amount you would like to allocate,
  • Click the ‘COPY’ button.

After clicking the copy button, you’ll automatically duplicate their positions in real-time and direct proportion.

Important facts you should know before copy trading on eToro:

  • The minimum amount to copy a user is $200.
  • The maximum amount you can invest in a trader is $2,000,000.
  • Users can copy up to 100 traders simultaneously.
  • The minimum amount required to copy a trade position is $1.
  • If you close a copied trade manually, the funds from the closed position will be credited back to your copy balance.

Copy Portfolio™️

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 platform.

Here are a few important facts you should know about eToro’s Smart Portfolios;

  • The minimum investment amount starts at $500.
  • The weight allocation of individual Smart Portfolios can change over time.
  • The default Stop Loss for a CopyPortfolio is set at 10%.

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.

eToro Popular Investor
eToro Popular Investor

Traders who qualify for this program can earn up to a 2.5% annual fee in AUM. For instance, if a popular investor has 1,000 copiers with a total AUM (Assets Under Management) of $10 million, they can earn up to $250,000 in payments yearly, on top of their trading profits.

Asset Classes

eToro offers a wide variety of asset classes that can be accessed across the various financial products offered by the broker. The asset classes offered include; currencies, indices, stocks, commodities, ETFs, and cryptocurrencies, with over 3000+ instruments available.

Though eToro primarily offers CFD trading across all asset classes, clients can also invest exclusively in real cryptocurrencies, stocks, and ETF assets by opening a ‘BUY non-leveraged position‘.

Asset ClassesNo. Of Assets
Currencies49
Indices13
Stocks2,630
Commodities49
ETFs263
Cryptocurrencies41

Leverage

eToro offers leverage options from 2:1 up to 30:1, although it might vary for different clients depending on their trading experience or level of trading.

On the 1st of August 2018, the European Securities and Markets Authority (ESMA) introduced industry-wide rules and limitations designed to protect retail clients from the risks of trading with leverage.

Due to these limitations, retail clients are offered lesser leverage options to prevent the risks of trading with leverage, while clients who qualify for professional status are offered higher leverage options.

In compliance with these new rules and limitations, most brokers now categorise their users into retail or professional clients, including eToro.

Retail Clients

Who is a Retail Client? Quite simply, a Retail Client is a client who is not a Professional Client.

As mentioned earlier, retail clients are offered lesser leverage options to prevent the risks of trading with leverage.

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

AssetLeverage (Retail Clients)
Major currency pairs
(such as EUR/USD)
x30
Non-major currency pairs
(such as EUR/NZD, Gold and major indices)
x20
Commodities
(Other than Gold and non-major equity indices)
x10
CFD stocks (securities) and ETFsx5
Cryptocurrencies CFDx2

The limitations 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).

Note: While retail clients may have to face leverage restrictions, they do get certain protections on their trading accounts, such as Investor Compensation Fund, recourse to the Financial Ombudsman Service, negative balance protection and margin closeout restrictions.

Professional Clients

Who are professional clients? In simple terms, Professional clients are clients who have successfully passed a test, to determine their suitability to qualify as Professional Clients.

While there is an industry-wide leverage limitation designed to protect less-experienced traders, Retail Clients who are more experienced and would like to trade with greater flexibility can apply for elective professional status and get higher leverage options with eToro.

Note: Professional clients are not entitled to all protections that retail clients have under ASIC, CySEC or FCA regulations. This includes the Investor Compensation Fund and recourse to the Financial Ombudsman Service.

However, Professional Clients are also entitled to negative balance protection, just like retail clients.

How to apply for a Professional Client Account

To apply, please perform the following steps:

  1. Click here to visit the Professional Client application page.
  2. Scroll down and click the Apply Now button.
  3. Check the boxes next to the criteria that apply to you.
  4. Submit your application, and if you meet the criteria, the broker support team would get in touch with you.

Before applying for an eToro Professional Client account, here are a few things you need to know;

  • Only customers registered under eToro UK and eToro EU can apply to become Professional Clients.
  • You ought to have had an account with eToro, which is a Retail Client Account by default.
  • Only clients who satisfy at least two of the following three qualifying requirements can change their status from Retail Client to Professional Client. These requirements include;
    • Financial Portfolio: your financial portfolio should exceed $500,000. This does not include property or cash.
    • Big Trade Volume: you must have made at least 10 forex transactions with a minimum total value of $500,000 in a recent period.
    • Professional Experience: you must have at least one year of working experience within the financial sector.

Minimum Trade Size

Below are the markets offered by eToro and their corresponding minimum trade size;

MarketMinimum Trade Size
Stocks and ETFs$10
Crypto$10
Currencies$1,000
Commodities$1,000
Indices$1,000

Please note that the minimum trade size above includes leverage. This means you can use leverage to reach the minimum trade size. For instance: To reach a minimum trade size of $1,000, a user may invest $100 using ‘X10’ leverage (1:10) and still meet the minimum trade size requirement.

Fees

eToro’s trading fees are relatively high compared to that of its competitors. While stock and ETF trading is offered for free, the CFD fees (including spreads and overnight fees) can be quite high depending on the asset class and current market condition.

Also, non-trading fees on the platform are high, and these include a $5 withdrawal fee and a conversion fee for non-USD deposits.

eToro fees pros and cons;

ProsCons
Free stock and ETF trading.High CFD trading fees
eToro covers the bill for regulatory transaction fees when you sell a stock.$5 fee charged on all withdrawals.
Conversion fee for non-USD deposits.

Trading Fees

Trading fees are fees charged by the broker when a client executes a trade position through the broker. eToro mainly charges two types of trading fees and they include;

  1. Spread – Spread is the difference between the Buy and Sell price. This can vary depending on market conditions.
  2. Overnight Fee – Overnight fee is charged by the broker when clients hold a trade position overnight. It serves as an interest payment to cover the cost of the leverage that you use overnight.

CFD Fees

CFD fees on eToro range from average to high depending on the asset being traded. The spreads offered are generally higher than that of its competitors, and can even go higher depending on the market condition.

The table below shows the sample spreads on eToro’s most popular markets;

AssetsSample Spreads
Forex CFDs – EURUSD3 pips
Indices CFDs – NSDQ100 240 pips
Stock CFDs – AAPL0.18% per unit
Commodities CFDs – OIL50 pips
Cryptocurrency CFDs1% fee
Example

The example below is an illustration of how fees are charged when you open and hold a CFD trading position with eToro;

Position: BUY (Long) position
Asset: Forex CFDs
Instruments: EURUSD
Leverage: 1:20
Initial Investment: 1,000 USD
Total Investment worth = Initial Investment 1000 USD x Leverage 20 = 20,000 USD
EURUSD BUY/Ask rate: 1.1190 USD
Position Open 20,000 USD / 1.1190 USD Ask rate = 17,873 units
eToro Typical Spread for EURUSD: 3 pips (0.0003 USD)
Overnight fee: -0.000113 USD

  1. Spread = 0.0003 USD * 17,873 units = -5.36 USD
    Overnight Fee (for 1 night) = -0.000113 USD * 17,873 units = -2.01 USD
    Total Cost = Spread + Overnight fee = -5.36 – 2.01 = -7.37 USD
  2. Spread = 0.0003 USD * 17,873 units = -5.36 USD
    Overnight Fee (position opened Wednesday) = (-0.000113 USD * 17,873 units) * 3 = -6.03 USD
    Total Cost = Spread + Overnight fee = -5.36 – 6.03 = -11.39 USD

Stock/ ETFs Fee

eToro offers zero-commission on real stock trading. This means that no broker fee will be charged when clients open or close a stock position.

While zero-commission trading applies to real stocks on the platform, it does not apply to shorts or leveraged positions.

Example

The example below shows the cost of buying real stocks using eToro.

Position: Buy (Long)
Initial Investment: 1,000 USD
Apple Stock (AAPL) Ask Rate: 250 USD
Position: Open 4 Units AAPL BUY
Commission: NO
Overnight Fees: NO
Total Fees: 0 USD

Cryptocurrency Fees

eToro charges a single 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.

Example

The example below shows how much it cost to buy and sell real crypto assets on eToro.

Positions:
Open BUY (Long) position on DOGE (Ask rate – 0.2000 USD)
Close SELL position on DOGE (Bid rate – 0.1950 USD)
Initial investment: 1,000 USD
Position Open: 1,000 USD / DOGE Ask Rate (0.2000 USD) = 5,000 units
Overnight fees: No
Total Cost = 1% fee for BUY and 1% fee for SELL + Bid Ask price
Total cost breakdown:
1% * 5,000 units * (0.2000 / (1+1%)) (= 9.9 USD)
+
1% * 5,000 units * (0.1950/(1-1%)) (= 9.85 USD)
+
5,000 units * (0.2000 / (1+1%)) – (0.1950/(1-1%)) = (5.05 USD)
Total cost = 24.8 USD

Non-Trading Fees

Withdrawal Fees

eToro charges a fixed withdrawal fee of $5 to cover some of the expenses involved in international money transfers.

Conversion fees

A conversion fee is a fee charged by the broker to convert your currency into another.
With eToro, withdrawals and deposits are conducted in USD. Any other currency deposited will have to be converted and, therefore, will incur a conversion fee.

Inactivity fees

After 12 months with no login or trading activity, eToro charges a $10 monthly inactivity fee, which will be charged on any remaining available balance.

Other Fees

CopyTrader fee

eToro charges no fees or any hidden costs when clients use the CopyTrader feature. Although, spreads and overnight fees are applied according to each opened copied position.

CopyPortfolios fee

When clients invest in CopyPortfolios, eToro charges no management fees or any kind of commission, other than the fees applied with assets contained in each portfolio.

Customer Service

Due to eToro’s large and diverse client base, the broker offers a multi-lingual customer support service, with support available in over 19 languages including English, Spanish, Italian, Deutsch, Russian, Chinese, French, Arabic, Polish, Netherlands, Norwegian, Portuguese, Swedish, Czech, Danish, Romania, Vietnamese, and Finnish. This makes it easy for clients to resolve issues in their native language.

While phone support is not available on eToro, clients can mainly access the support service via web-based support tickets which can be a bit inconvenient. Live chat is also available, but only to eToro Club members, which are members who maintain account balances between $5,000 and $250,000.

Though the customer support team were professional and helpful whenever we reached out, the average response time we recorded was anywhere between 2 hours and 2 days which is quite bad, especially when there is an issue to be resolved quickly.

In conclusion, eToro’s customer support service is limited, and lots of improvements can be made, such as more support mediums and faster response time.

ProsCons
Professional and helpful support service.Limited support options.
Multi-lingual customer support service.No phone support.
Slow response time.

Education

eToro offers a good number of educational trading resources which are available in different formats, such as videos, articles, podcasts and webinars. It also offers a robust trading academy which contains several educational trading resources that are organised by category and experience level.

Though the educational materials provided by the broker are organised 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.

Prohibited Countries

Due to regulatory requirements in some countries, and the nature of eToro’s business operations, the broker does not offer services to new users in certain countries and territories. These countries include;

  • A – Afghanistan, Aland Islands, Albania, Algeria, Andorra, Angola, Anguilla, Antarctica, Antigua and Barbuda, Armenia, Aruba, Azerbaijan
  • B – Bahamas, Barbados, Belarus, Belize, Benin, Bermuda, Bhutan, Bonaire, Bosnia and Herzegovina, Botswana, Bouvet Island, Brunei, Burkina Faso, Burundi
  • C – Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chagos Islands, China, Christmas Island, Cocos Islands, Comoros, Congo Republic, Cook Islands, Cote d’Ivoire, Crimea Region, Cuba, Curacao, the Democratic Republic of the Congo,
  • D – Djibouti, Dominica
  • E – Egypt, El Salvador, Equatorial Guinea, Eritrea, Ethiopia,
  • F – Faeroe Islands, Falkland Islands, Fiji
  • G – Gabon, Gambia, Georgia, Ghana, Greenland, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana
  • H – Haiti, Heard Island and McDonald Islands, Honduras, Hong Kong
  • I – India, Indonesia, Iran, Iraq
  • J – Jamaica, Japan, Jordan
  • K – Kazakhstan, Kenya, Kiribati, Kosovo, Kyrgyzstan
  • L – Laos, Lebanon, Lesotho, Liberia, Libya
  • M – Macau, Madagascar, Malawi, Maldives, Mali, Marshall Islands, Mauritania, Mauritius, Micronesia, Moldova, Mongolia, Montenegro, Montserrat, Morocco, Mozambique, Myanmar
  • N – Namibia, Nauru, Nepal, Netherlands Antilles, New Caledonia, New Zealand, Nicaragua, Niger, Nigeria, Niue, Norfolk Island, North Korea, North Macedonia, Northern Cyprus
  • P – Pakistan, Palau, Palestinian Territories, Panama, Papua New Guinea, Paraguay, Pitcairn Islands
  • R – Russia, Rwanda
  • S – Saint Barthelemy, Saint Helena, Saint Kitts and Nevis, Saint Lucia, Saint Martin, Saint Pierre, Saint Vincent and the Grenadines, Samoa, San Marino, Sao Tome, Saudi Arabia, Senegal, Serbia, Sierra Leone, Sint Maarten (Dutch Part), Solomon Islands, Somalia, South Africa, South Georgia and the South Sandwich Islands, South Sudan, Sri Lanka, Sudan, Suriname, Svalbard and Jan Mayen, Swaziland, Syria
  • T – Tajikistan, Tanzania, Timor-Leste, Togo, Tokelau, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Tuvalu
  • U – Uganda, Ukraine, Uzbekistan
  • V – Vanuatu, Vatican City, Venezuela, Virgin Islands (British)
  • W – Wallis and Futuna
  • Y – Yemen
  • Z – Zambia and Zimbabwe.

Alternative

Verdict

eToro is great for retail traders who want to take advantage of the brokers’ groundbreaking financial products, such as its social trading and copy trading features. Professional traders can also get great perks and earn an extra income when they allow other traders to copy them.

Other outstanding advantages of using eToro include its commission-free trading (for non-leveraged stocks and ETFs positions) and an unlimited demo account, which is available for free when you complete your account registration.

eToro also has some drawbacks. It does not provide support for certain trading styles including hedging, scalping and algorithmic trading. Also, Its trading fees and non-trading fees are a bit on the high side and the maximum trade sizes are small. That being said, eToro is not recommended for active or high-volume traders.

Another drawback clients may encounter with the broker is its customer support service. The support service offered is quite limited, and lots of improvements can be made, including more support mediums and faster response time.

FAQ

Is eToro trustworthy?

Yes, eToro is considered trustworthy, and safe to work with. It is regulated by multiple top tier regulatory bodies around the world including the FCA (United Kingdom), ASIC (Australia), CYSEC (Cyprus) and GFSC (Gibraltar).
eToro has also maintained a great reputation since it was established in 2006, with lots of great sponsorship, partnerships and awards under its belt.

What is the downside to eToro?

Though eToro has a bunch of benefits, it also has some drawbacks on some of its services. It does not provide support for certain trading styles including hedging, scalping and algorithmic trading.
Also, Its trading fees and non-trading fees are a bit on the high side and the maximum trade sizes are small.
Another drawback clients may encounter with the broker is its customer support service. The support service offered is quite limited, and lots of improvements can be made, including more support mediums and faster response time.

Is eToro legal in the USA?

Yes, the eToro platform is legal and available in almost all US states, although stocks and crypto trading are the only financial products available.

Is eToro good for beginners?

Yes, eToro is great for beginners who want to take advantage of the brokers’ groundbreaking financial products, such as its social trading and copy trading features.
It also offers a robust trading academy, with a category created for beginners to kickstart a successful trading and investment journey.

Disclaimer

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as CFD trading.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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. The trading history presented is less than 5 complete years and may not suffice as a basis for investment decisions.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

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 utilising publicly available non-entity specific information about eToro.