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.

Note: Below content does not apply to US users

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 stock trading, cryptocurrency trading, 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 its social trading platform, 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.

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74% 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

BrokerEtoro
Established2006
RegulationsFCA, ASIC, and CYSEC.
Publicly ListedNo
Product Offering Stocks, Crypto Assets, Social Trading, Copy Trading, CFDs
Asset Classes3000+ including Currencies, Stocks, Commodities, Cryptocurrencies, ETFs, and Indices.
Trading PlatformseToro Trading Platform (Web and Mobile app)
Minimum Deposit$200
Account CurrenciesUSD
Payment MethodsBank transfer, Cards payments, Paypal, Neteller, Skrill, UnionPay, Klarna, Sofort, Rapid, Transfer, Przelewy 24, WebMoney, Trustly, and iDeal.
Fx Conversion Fee50 pips
Maximum Leverage1:30
Minimum Trade Size$10
Pricing ModelSpreads
Fee RatingHigh
Demo AccountYes
Education
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.

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.
  • Copy TradingeToro offers copy trading through its award-winning copy investment feature called CopyTrader. Etoro’s Copy Trader allows users to copy the trades of professional traders, enabling them to potentially achieve similar investment outcomes.
  • 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 – Etoro’s Popular Investor Program is designed for professional traders who want to generate substantial income by allowing other clients to copy them on the eToro platform. Traders who qualify for this program can earn an annual fee of up to 2.5% per AUM along with other perks and benefits.

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.

ProductAssets
CFDs3000+ assets including currency pairs, indices, stocks, commodities, ETFs, and cryptocurrencies.
Share Dealing (Stocks)Over 3000 Shares and ETFs across 19 Exchanges
Cryptocurrency72 Cryptocurrencies

Account Types

Etoro offers different account types, designed to suit the needs of various traders. The account types offered by the broker include the demo account, personal retail account, professional account, corporate account, and Islamic account.

Let’s take a closer look at the account types offered by Etoro;

  • Demo Account: Etoro offers a comprehensive demo trading account that allows users to experience the platform and its features without using real money. The demo account provides a simulated trading environment where users can test various trading strategies and features using virtual funds. The demo account can be accessed upon completion of the Etoro account registration process and comes with unlimited usage duration, which means you can use it for as long as you want.
  • Individual Retail Account: Etoro’s retail account is the standard option for retail traders and investors. This account type gives users access to the full range of services provided by the platform. However, it’s important to note that the leverage available to retail clients is limited in compliance with the regulations set by the European Securities and Markets Authority (ESMA).
  • Professional Account: Etoro’s professional account is designed for clients who meet certain criteria to qualify for Etoro’s elective professional status, such as having a significant trading history and meeting certain financial thresholds. Clients who qualify for this account type are eligible for higher leverage and are not subject to ESMA’s leverage restrictions.
  • Corporate Account: Etoro recognizes the needs of businesses and organizations interested in trading and investing. As a result, the broker offers corporate accounts specifically tailored for such entities.
  • 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 would have to open an Etoro 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, 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;

AssetLeverage
Major Currency Pairs 1:30
Non-major Currency Pairs 1:20
Commodities CFD1:10
Stocks CFD1:5
Cryptocurrencies CFD1:2

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.

  • Spreads – Etoro charges a spread on CFD trades, which is the difference between the buy and sell prices of an asset. The spread can vary depending on the specific instrument being traded, although, they are quite high compared to other CFD brokers.
  • Overnight Fee – If you hold CFD positions overnight, Etoro may charge overnight fees, also known as rollover fees. These fees are incurred for keeping positions open beyond a specific time, usually around 17:00 New York time.
  • Stock Fee – Etoro offers zero commission on stock trading (excluding Stock CFDs). No broker fee will be charged when clients open or close a non-leveraged 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 table below contains a breakdown of Etoro’s payment features;

Payment FeaturesSpecification
Minimum DepositAll Eligible Countries – $200
United States – $10
Europe – $50
Base CurrencyUSD
Bank PaymentBank Transfer
Card PaymentCredit and Debit Cards
E-WalletsPaypal, Neteller, Skrill, UnionPay, Klarna, Sofort, Rapid, Transfer, Przelewy 24, WebMoney, Trustly, and iDeal.
Payment Processing Time
Deposit Fee$0
Withdrawal Fee$5
Fx Conversion Fee50 pips

Etoro’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.

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 regarding 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

  1. What is Etoro?

    Etoro is a reputable online brokerage platform that allows users to trade and invest in various financial assets, including stocks, cryptocurrencies, forex, and more. It also offers other unique financial products including social and copy trading, Smart Portfolios, and a Popular Investor Program among others.

  2. Is eToro trustworthy?

    Yes, Etoro is considered trustworthy, and safe to work with. The broker is regulated by multiple top-tier regulatory bodies worldwide including the FCA, ASIC, and CYSEC. Etoro has also maintained a great track record and reputation since it was established in 2006, with lots of great sponsorship, partnerships, and awards under its belt.

  3. What can I trade on Etoro?

    Etoro offers a wide range of asset classes including currencies, stocks, commodities, cryptocurrencies, ETFs, and indices, with over 3000+ financial instruments available to trade.

  4. What is Etoro's minimum deposit?

    On Etoro, the minimum deposit amount required is generally $200. However, the minimum deposit amount ranges from $10 to $10,000, depending on the user's country, account type, and payment method.

  5. 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. Additionally, Etoro also offers a user-friendly trading platform, along with a robust trading academy for beginners to kickstart a flourishing trading and investment journey.

  6. Is Etoro good for day trading?

    Etoro may not be the most suitable platform for day trading. While it offers a user-friendly trading interface and a range of financial instruments, it has certain limitations for day traders. Etoro does not support certain trading styles such as scalping and algorithmic trading, which are commonly used day trading strategies. Additionally, the trading fees and maximum/ minimum trade sizes on Etoro may not be ideal for frequent and quick trading activities.

  7. What is the downside to eToro?

    Although eToro provides several benefits, it also has some drawbacks. Firstly, the platform does not support trading styles like hedging, scalping, and algorithmic trading. Secondly, both trading and non-trading fees are comparatively high, and the maximum trade sizes are small in comparison to other brokers. Another concern is the customer support service, which currently has limited support channels and response time.

  8. What is the maximum Leverage on Etoro?

    Etoro offers leverage options for retail clients, ranging from 1:2 up to 30:1 on CFDs. However, the maximum leverage amounts may vary depending on the client's country. Additionally, clients who meet Etoro's elective professional status criteria can access higher leverage and are exempt from ESMA's leverage restrictions.

  9. How does Etoro CopyTrader work?

    Etoro's CopyTrader feature allows users to automatically replicate the trading activity of successful traders. By selecting a trader to copy, users can allocate a portion of their funds to mirror the trades executed by that trader. This means that whenever the copied trader opens or closes a trade, the same action is replicated in the user's account.

  10. What are the fees associated with trading on Etoro?

    Etoro charges various fees, including spreads, overnight fees, withdrawal fees, conversion fees, and inactivity fees.

  11. Does Etoro charge a fee or commission for copy trading?

    No, Etoro does not charge a fee or commission specifically for copy trading. However, it's important to note that standard trading costs such as spreads and overnight fees may apply to the underlying assets being traded.

  12. Are Etoro fees high?

    Etoro fees can be relatively high compared to other brokers. While certain products like stock trading, and access to investment products have no commission fees, there are other areas where high fees apply. For example, CFD trading fees on Etoro can be higher compared to other CFD brokers. Additionally, there is a fixed fee of $5 on all withdrawals.

  13. Is Etoro Crypto Fees High?

    Yes, Etoro crypto fees can be relatively high compared to other cryptocurrency trading platforms.

  14. Can I use Etoro in the UK?

    Yes, Etoro is available and can be used by individuals residing in the United Kingdom (UK).

  15. Can I use Etoro in South Africa?

    Yes, you can use Etoro in South Africa.

Disclaimer

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

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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 does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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 utilizing publicly available non-entity-specific information about eToro.