eToro Broker Review

Justin Freeman

Broker Information

  • Company Name: eToro
  • Founded: 2006
  • Country: Cyprus

Platform Info

  • Platform: eToro Platform
  • Dealing Desk: Yes
  • Web Based: Yes
  • Mobile Trading: Yes

Broker Services

  • Regulators: CySEC, FCA
  • Minimum Deposit: $200
  • Leverage: From 1:2 to 1:30
  • US Clients: No
  • Funding Methods: Credit card, PayPal, Neteller, Moneybooker, bank wire, money gram
  • Pairs Offered: over 1100

Expert’s Viewpoint

Whilst many brokers support tens or hundreds of thousands of clients, eToro has revolutionised online broking and now boasts 13m clients. Its growth has been nothing short of miraculous and comes down to more than clever branding and effective advertising campaigns.

The reasons for eToro’s success can be traced back to them offering beginner traders an easy and effective route into the financial markets.

  • It takes less than 20 seconds to sign up for a Demo account and start practising trading.
  • The process of registering for a Live account is probably the most straightforward in the sector.
  • By offering self-trading and market leading Copy Trading services from the same account eToro has grown into the ‘go to’ account for busy people looking to gain exposure to the financial markets.

 

The approach has been based on keeping things simple and eToro is a ‘no-brainer’ option for those starting out in trading.

 

 

Since first being founded in 2006 eToro has truly gone from strength to strength, and they are now by far one of the most trusted brokers in the industry.

 

When it comes to actually trading on the eToro website, the platform has a distinctive look and feel that easily distinguishes it from the competition. As a beginner-focused platform, eToro is incredibly easy to trade on, with a very low learning curve overall.

Amongst the many notable features on offer is a comprehensive Copy Trading feature, which is one of eToro’s trademarks. This feature allows you to follow the leading trader using the eToro platform and to ‘copy’ their trades with your own investment funds. This is a great tool for beginners trying to get a feel for trading and investment strategy and allows you to learn directly from the most successful traders on the platform. Another way eToro score points over their rivals is they allow new users to Copy Trade using a Demo account so they can practise using that approach. Not all brokers offer this.

Broker Summary

eToro offers a huge variety of financial instruments to trade—which includes CFDs, real fractional stocks, cryptocurrencies, and forex pairs.

The eToro platform is well thought out, stable, and beginner-friendly.

 

 

Broker Introduction

Based in Tel Aviv, Israel, eToro was founded in 2006 by two brothers, Ronen and Yoni Assia and partner David Ring. The brokerage was founded with the vision of a popular financial trading and investment platform suitable for everyone. eToro has grown significantly since its founding and is currently ranked among the top social trading networks, as well as an online forex broker.

eToro is headquartered in London where it is regulated by the Financial Conduct Authority (FCA). It is a global broker and has clients in over 170 countries. This makes eToro by far one of the largest brokers around by customer base alone and being a big player helps in terms of access to markets and offering good trading terms to clients.

The wide geographic spread means eToro come under the regulatory oversight of several financial regulators. This includes CySEC in the EU, ASIC in Australia, the FCA and possibly most importantly it is making ground in the US where it has recently been approved to take US clients in several States.

eToro has a good track record of keeping their customer information secure. The company uses advanced Secure Socket Layer or SSL technology for the authentication of users and data transfers.eToro is considered a safe broker. eToro (Europe) Ltd. is based in Limassol, Cyprus and is a registered Cypriot Investment Firm or CIF, registered under the number HE200585. The company is regulated by the Cyprus Securities and Exchange Commission or CySEC under license number 109/10.

In the United Kingdom, eToro (UK) Ltd. is headquartered in London and is a registered UK firm under registration number 7973792. eToro UK is authorized and regulated by the Financial Conduct Authority or FCA under the firm reference number 583263.

Both eToro (UK) Ltd. and eToro (Europe) Ltd. comply and operate under the Markets in Financial Instruments Directive or MiFID.

 

Spreads & Leverage

There are no extra commissions for electing to Copy Trade rather than self-trade and the spreads in markets are competitive. eToro has shaken off its reputation for having wide spreads and some forex pairs now trade with spreads as narrow as 1pip. As the broker has grown, it has passed on some of the cost-savings to its clients.

Leverage can be set on a trade-by-trade basis. This flexibility allows clients to adjust their risk appetite to market conditions. The minimum leverage is 1:1 and the maximum rate is determined by national regulators which in the UK and EU means the cap is set at 1:30.

Platform & Tools

In addition to the company’s excellent educational program and all-inclusive trading platform, eToro’s most striking feature is its online financial trading community, which is among the world’s largest.

.In 2010, eToro launched its first Android apps to enable investors to make trades over their mobile devices. These innovative platforms allowed investors to watch, follow and copy the top traders in the network automatically, and they have now been replaced with an updated all-in-one eToro trading platform that is also available on Android.

 

As of April 29th 2018 eToro has moved from trading stocks as CFD to real stocks on their platform. All the countries will now be real stocks and only the listed countries will remain CFDs: Afghanistan, Angola, Australia, Belarus, Macedonia, Iraq, Liberia, Libya, Nauru, New Zealand, Nigeria, Sierra Leone, Zimbabwe, Cote d’Ivoire, Congo Republic and Myanmar.

 

Commissions & Fees

In most markets, eToro doesn’t charge separate commissions on trades. Instead, the company generates most of its income on the difference between buy and sell prices, the spread.

A survey of real time dealing spreads at eToro showed they start at 2 pips for the USD/JPY pair and three pips for EUR/USD, USD/CHF and USD/CAD.

Pairs like GBP/USD and AUD/USD show spreads of up to four pips wide, while the NZD/USD spread was 5 pips wide and the USD/RUB spread as 7 pips wide. The dealing spreads for Minor currency pairs looked as wide as 20 pips, and spreads in Bitcoin trades are average out at about 225 pips, according to the broker’s website.

Since eToro only allows trading in U.S. Dollars, any deposit in another currency is converted to that currency upon receipt. The minimum eToro deposit required to open a live trading account ranges from $200 to $1,000, depending on the regional regulations that a customer’s account is subject to.

For example, Neteller minimum deposits range from $200 – $1,000 and a maximum of $10,000; while Webmoney and GiroPay have a $200 – $1,000 minimum and a $50,000 and $30,000 maximum respectively. Russia based Yandex has a $5,000 maximum deposit.

For their client’s convenience, deposits and to open an account can be made through Visa, MasterCard and Diner’s Club credit and debit cards, by bank wire transfer, and via Wirecard – Wire and Credit Card, Yandex, Neteller, Skrill Limited UK, China Union Pay, PayPal, Wirecard and Webmoney UK.

For withdrawals, the user must fill out a withdrawal form in the Cashier section of the website, clicking on the “WITHDRAWAL” tab. The amount is entered on the form and eToro will then notify the client via email of the withdrawal process. Typically, funds are withdrawn via credit card, PayPal or bank transfer, in that order of priority.

For first time withdrawals, clients must submit a clear color copy of their Passport including their written signature, as well as a clear copy of a utility bill not older than three months and that was mailed to your address of residence. Also, if the deposit to fund the account was originally via credit card, a clear copy of both sides of the credit card must be submitted.

eToro charges a fee of $5 for withdrawals. Withdrawals take up to five days to process and may be delayed even further due to third party withdrawal payment methods.

 

 

Education

Another great feature for new and intermediate traders are the numerous educational programmes eToro offer through the platform. This includes not only trading articles, guides, and lessons, but also the financial trading community they have grown through the platform. For users looking to connect with other similarly minded traders from across the world, this trading community is a great resource for connecting with and learning from hundreds of experienced traders.

If you want to try out eToro before committing any funds, they provide all new users with a full-featured demo account which gives you full access to the platform. This allows you to try out all the features on offer and to get a feel for using the platform on the live markets in a risk-free environment.

 

 

Customer Service

The eToro platform is incredibly straight forward and with 13m customers has been tested to destruction. In the unlikely event that you do need to contact their customer services team this can be done by email.

 

Response times are quoted to be 48hrs but in reality are much shorter than that. Alternatively, the FAQ section of the site covers most of the issues which users might face.

 

Final Thoughts

eToro is at the forefront of social investing and is the preeminent online broker for traders who value such networking activities. With their newly integrated eToro trading and social investment platform, as well as their mobile app, eToro offers traders an excellent opportunity in this exciting new field. In addition, the company offers a Trading Academy, a Blog, a Trading eCourse and live webinars to educate novice traders.

Their proprietary online eToro trading and social investment platform is fairly easy to use and the free Demo account is a great place to start practising trading. eToro also rewards its most successful clients, since in addition to making money in their own accounts, profitable traders can also generate a secondary income by having other traders follow their activities.

eToro offer traders a safe environment to learn how to trade and the potential to sell their newly learned skills to others.

FAQs

How can I open a Demo account with eToro?

It can take less than 20 seconds to sign up for an eToro Demo account and start practising trading. All you need to provide is an email address and then you’re taken through to the trading platform.

 

What fees does eToro charge?

Most of eToro’s revenue is generated by the difference between sell and buy prices – the spread. There are no additional charges for Copy Trading, but cash withdrawals incur a $5 charge per transaction and account inactivity fees kick in after 12 months.

 

How can I change leverage with eToro?

Leverage is set at time-of-trade. Whatever market you are trading you’ll be asked to input the amount you want to trade, be offered the option of setting stop-losses and then able to set leverage rates.

 

eToro Website and Trading Platforms Across Devices

Unique Features of Trading with eToro

In addition to the company’s excellent educational program and all inclusive trading platform, eToro’s most striking feature is its online financial trading community, which is among the world’s largest. eToro recently replaced its two popular WebTrader and OpenBook trading platforms into a new all-in-one platform that gives the trader access to all of their services across all types of devices.

Depending on what region and country the client resides in, the minimum first time deposit for an eToro live account ranges from $200 to $1,000. In addition to being able to open a funded account, the company offers a practice account just for signing up at no cost.

The eToro practice account allows the potential customer to test the trading platform without any financial obligation with an initial deposit of up to $100,000 in virtual currency. In addition to the standard funded account and the practice account feature on their platform, eToro also offers an Islamic account, with a minimum deposit of $1,000.

Much like other online forex brokers, eToro charges no commissions on trades. Instead, the company relies on quoting their customers a slightly wider dealer spread to compensate themselves. A survey of real time dealing spreads at eToro showed they start at two pips for the USD/JPY pair and three pips for EUR/USD, USD/CHF and USD/CAD.

Pairs like GBP/USD and AUD/USD show spreads of four pips wide, while the NZD/USD spread was five pips wide and the USD/RUB spread as seven pips wide. The dealing spreads for other less traded currency pairs looked as wide as 20 pips, and spreads in Bitcoin trades are apparently 225 pips, according to the broker’s website.

As of April 29th 2018 eToro has moved from trading stocks as CFD to real stocks on their platform. All the countries will now be real stocks and only the listed countries will remain CFDs: Afghanistan Angola Australia Belarus Macedonia Iraq Liberia Libya Nauru New Zealand Nigeria Sierra Leone Zimbabwe Cote d’Ivoire Congo Congo Republic Myanmar.

As of August 1st 2018 eToro is fully compliant with new ESMA rules. Read more here.

eToro Trading Software

eToro Trading Platform Main Page

eToro has added some NEW FEATURES… eToro CopyPortfolio! Hear all about it Here

eToro Deposits and Withdrawals

Since eToro only allows trading in U.S. Dollars, any deposit in another currency is converted to that currency upon receipt. The minimum eToro deposit required to open a live trading account ranges from $200 to $1,000, depending on the regional regulations that a customer’s account is subject to.

For example, Neteller minimum deposits range from $200 – $1,000 and a maximum of $10,000; while Webmoney and GiroPay have a $200 – $1,000 minimum and a $50,000 and $30,000 maximum respectively. Russia based Yandex has a $5,000 maximum deposit.

For their client’s convenience, deposits and to open an account can be made through Visa, MasterCard and Diner’s Club credit and debit cards, by bank wire transfer, and via Wirecard – Wire and Credit Card, Yandex, Neteller, Skrill Limited UK, China Union Pay, PayPal, Wirecard and Webmoney UK.

For withdrawals, the user must fill out a withdrawal form in the Cashier section of the website, clicking on the “WITHDRAWAL” tab. The amount is entered on the form and eToro will then notify the client via email of the withdrawal process. Typically, funds are withdrawn via credit card, PayPal or bank transfer, in that order of priority.

For first time withdrawals, clients must submit a clear color copy of their Passport including their written signature, as well as a clear copy of a utility bill not older than three months and that was mailed to your address of residence. Also, if the deposit to fund the account was originally via credit card, a clear copy of both sides of the credit card must be submitted.

eToro charges a fee of $25 for withdrawals. Withdrawals take up to five days to process and may be delayed even further due to third party withdrawal payment methods.

eToro Customer Support

eToro’s customer support is available 24/5 – Monday through Friday via telephone and email, with email having a 48 hour response time. They do not appear to have a live chat function, but a personalized digital customer service feature provided by a company called “Nano Rep” is available by clicking on a button to the bottom left corner of eToro’s customer service page.

The company also features a “Customer Service Wall”, where customers can interact with customer service in a forum type format. Most customer service queries are handled by referring customers to Online Guides and eToro’s Knowledge base.

If a client wishes to speak to a representative, a ticket is opened and a representative contacts the customer as soon as possible. Customers can choose their customer service representative by clicking on their photograph, which is included with a brief bio of the representative on eToro’s customer service team page. Customer support is currently available by region in the following languages: English, German, Spanish, French and Italian.

Is eToro Safe?

In addition to its CySEC and FCA oversight, which ensures the broker is duly regulated in the European Union and the United Kingdom, eToro keeps their customer information secure. The company uses advanced Secure Socket Layer or SSL technology for the authentication of users and data transfers.

eToro Review Conclusion

eToro is at the forefront of social investing and is the preeminent online broker for traders who value such networking activities. With their newly integrated eToro trading and social investment platform, as well as their mobile app, eToro offers traders an excellent opportunity in this exciting new field. In addition, the company offers a Trading Academy, a Blog, a Trading eCourse and live webinars to educate novice traders.

Their proprietary online eToro trading and social investment platform is fairly easy to use, and offers a free practice account just for signing up. eToro also rewards its most successful clients, since in addition to making money in their own accounts, profitable traders can also enter competitions, earn cash prizes, and have other traders follow their activities. The larger the following of a trader, the larger the proceeds become from eToro, which can significantly increase a trader’s income versus just their trading activity.

The most significant drawback with this broker are the rather long five day withdrawal period.

Risk warning

All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice.
Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk.

Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions.

Justin Freeman

Latest news

Is It Time to Test the Crypto Waters Once Again as Bitcoin Rises?
Bitcoin, the most popular cryptocurrency across the planet, has surged dramatically during mid-July, reversing its downward trend and powering past $41,000. Read more
Be Wary of Phony Lawyers Pushing Fraudulent Forex Recovery Scams
Have you ever lost money because of a crooked forex broker? Have you regretted those losses until a nice lawyer called you on the phone and promised the recovery of your losses for no upfront fees? Hope does spring eternal in these situations, but, unfortunately, the lawyer is a phony. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
4.9
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    City Index Logo
    OctaFX Logo
    Forex.com Logo
    IQ Option Logo
    AvaTrade logo
    IC Markets Logo
    XM Logo
    Exness Small Logo
    BlackBull Markets Logo
    Plus500 Small Logo
    skilling logo
    LegacyFX Small Logo
    FXTM Logo
    ATFX Logo
    Vantage FX logo
    HYCM Logo