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eToro Review

Edited by: Louis Schoeman

eToro Review

Overall eToro is considered low-risk with an overall Trust Score of 89 out of 100. They are regulated by ASIC and has a maximum leverage of 1:400. The broker offers 1 trading account namely a Standard Live Account.

 

eToro Review – 13 key points quick overview:

  1. ☑️ Overview
  2. ☑️ At a Glance
  3. ☑️ eToro Account Types
  4. ☑️How To Open an eToro Account
  5. ☑️eToro Deposit & Withdrawal Options
  6. ☑️Trading Instruments & Products
  7. ☑️Trading Platforms and Software
  8. ☑️eToro Spreads and Fees
  9. ☑️Leverage and Margin
  10. ☑️Educational Resources
  11. ☑️eToro Pros & Cons
  12. ☑️Security Measures
  13. ☑️Conclusion

 

Overview 

Overview 

Founded in 2007 as RetailFX by a trio of entrepreneurs, the broker sought to upend the established financial arena with their primary goal being trade democratization.  

The launch of the eToro OpenBook in 2010 marked a significant turning point from its earlier avatar as RetailFX.  

This innovative social hub, coupled with the pioneering CopyTrader feature, empowered users to replicate expert investors’ strategies automatically. Consequently, such an approach fostered a culture of cooperation that thrived on shared knowledge and collaboration.

The broker has broadened its product offerings beyond currency trading. In addition to foreign exchange, it now includes equities, commodities, and cryptocurrencies. This expansion caters to a wider range of investor interests. Moreover, its vast community comprising millions of members offers a distinct blend of social interaction, educational resources, and investment opportunities.

Although some view it beneficial for novices to navigate the markets effectively, there are also cautionary warnings about potential risks attributable to social trading perils and eToro’s pricing policies. 

 

What sets eToro apart from other forex and CFD brokers?

They distinguish themselves with their social trading platform, which allows users to observe and mimic the trades of experienced investors while providing a diverse selection of financial instruments for trading.

 

Is there a demo account option available?

Yes, the broker provides a demo account with a $100,000 virtual balance, allowing users to practice trading methods without risk.

At a Glance

🗓 Established Year2007
⚖️ Regulation and LicensesCySEC, FCA, ASIC, FSA, NFA, FinCEN, FINRA, SIPC
🪪 Ease of Use Rating5/5
📞 Support Hours24/5
💻 Trading PlatformseToro platform
🛍 Account TypesStandard Retail Account
🤝 Base CurrenciesUSD
📊 SpreadsFrom 1 pip EUR/USD
📈 Leverage1:400 (eToro Seychelles Ltd)
💸 Currency Pairs55; minor, major, exotic pairs
💳 Minimum DepositFrom 10 USD (US)
🚫 Inactivity FeeYes, 10 USD after 12 months of inactivity
🗣 Website LanguagesEnglish, Italian, German, Russian, Simplified Chinese, Traditional Chinese, French, Arabic, Polish, German
💰 Fees and CommissionsSpreads from 1 pip, zero commission fees
✅ Affiliate ProgramYes
🏦 Banned CountriesCanada, Japan, Brazil, Turkey, North Korea, Iran, Cuba, Albania, Serbia, Sudan, and Syria
✔️ ScalpingNo
📉 HedgingYes
🎉 Trading InstrumentsForex, stocks, crypto (physical), crypto CFDs, indices, commodities, ETFs
🎖 Open an AccountOpen Account

eToro Account Types 

eToro Account Types

Standard Live Account
✅ AvailabilityAll traders
🛍 MarketsAll
💸 CommissionsNone; only the spread is charged
💻 PlatformseToro platform
📊 Trade SizeFrom 0.01 lots
📈 LeverageUp to 1:400 (Under the Seychelles entity)
💰 Minimum Deposit10 USD (US Clients)
🎖 Open an AccountOpen Account

eToro Standard Live Account

The Trading Account is suitable for both beginners and experienced traders, and it stands out for its low entrance barrier of 10 USD for US clients, and between $50 to $10,000 for other regions.  

The broker provides access to over 5,000 financial products and unique features such as copy trading, making it suitable for leveraging collective investing techniques.  

Overall, this account uses market execution, which ensures transactions are handled at the best available price, with spreads beginning at 1 pip.  

The simple design eliminates the minimum charge per transaction, which aligns with the broker’s user-friendly attitude; nonetheless, traders should be aware of overnight and currency conversion costs linked with their activity. 

 

eToro Demo Account

The Demo Account is a secure platform that offers new traders and seasoned investors the option to practice their trading methods using virtual money.  

A sizeable balance of $100,000 enables users to get familiar with market dynamics without putting any real funds at risk.  

Furthermore, the simulated environment mimics actual market scenarios by providing access to similar assets and tools as those available on the live site. Additionally, it includes social trading options powered by the brokers’ latest technology.

This feature-packed training ground gives aspiring traders an excellent opportunity to learn before transitioning into active investment activities where they can potentially earn profits or lose capital if they are not careful in their decision-making processes. 

 

eToro Islamic Account

Overall, the Islamic Account meets the specific needs of Muslim traders per Sharia law by abstaining from charging overnight interest and disallowing rollover on contracts that exceed 24 hours.  

Furthermore, this account reduces additional rollover expenses while accumulating profits through wider spreads. A deposit minimum of $1,000 is necessary and grants access to all tradable assets offered by the broker.  

The distinguishing feature lies within its ethical trading assurance, enabling faith-based investors to participate in financial markets without compromising their religious values. 

 

eToro Professional Account

The Professional Account targets discerning traders with substantial financial expertise.  

To qualify, applicants must demonstrate a certain level of trading know-how and possess a portfolio worth that enables them to access leverage options up to 1:400—significantly more than standard accounts offer.  

Despite the amplified exposure linked to greater leverage, professional account holders benefit from the negative balance protection provided by the broker.  

With proficiency in complex instruments and sophisticated risk management functionalities at their fingertips, this account is tailor-made for advanced traders seeking dynamic approaches while considering stringent qualification requirements. 

 

Can professional traders access higher leverage?

Yes, professional traders can access greater leverage rates, subject to eligibility and qualification requirements.

 

Does the broker offer PAMM accounts for money managers?

Yes, the broker offers PAMM accounts.

 

How To Open an eToro Account 

To register an account, follow these steps: 

Step 1 – Click on the Sign up button.

To begin the account opening procedure, go to their official website and click the “Join Now” or “Trade Now” buttons. 

How To Open an eToro Account Step 1

Step 2 – Fill out the form.

Fill out the registration form with your personal information, including your full name, email address, and contact information, and set up a username and password for your new account. 

How To Open an eToro Account Step 2

 

eToro Deposit & Withdrawal Options 

💳 Payment Method🏛 Country⚖️ Currencies Accepted⏰ Processing Time
Credit CardAllUSD, GBP, EUR, AUDInstant
Debit CardAllUSD, GBP, EUR, AUDInstant
PayPalAllUSD, GBP, EUR, AUDInstant
NetellerAllUSD, GBP, EURInstant
SkrillAllUSD, GBP, EURInstant
Klarna/Sofort BankingAllEURInstant
Bank TransferAllUSD, GBP, EUR4 – 7 working days
eToro MoneyAllGBPInstant

Deposits Methods:

Bank Wire

✅Log into your account and select ‘Deposit Funds’ from the screen’s bottom left corner. 

✅Choose ‘Bank Transfer’ as your deposit option. 

✅Enter the amount and currency you want to deposit, then click ‘Continue. 

✅Make a note of the bank information supplied for the wire transfer. 

✅To begin a wire transfer, log into your online banking platform or visit your bank and enter the supplied bank credentials. 

✅Provide the transaction ID and eToro login as payment references in the wire transfer. 

✅After completing the transfer, notify the broker by opening a customer care case and attaching a screenshot of the transfer confirmation or SWIFT document. 

 

Credit or Debit Card

✅Navigate to your account and choose ‘Deposit Funds.’ 

✅Select your deposit amount and selected currency. 

✅Select ‘Credit / Debit Card’ as your deposit method. 

✅Enter your card information, including the card number, expiration date, CVV code, and cardholder name. 

✅Confirm the transaction by clicking ‘Deposit.’ The funds should be credited to your account in minutes. 

 

e-Wallets or Payment Gateways

✅Log in to your account and choose ‘Deposit Funds.’ 

✅Enter the deposit amount and choose a currency. 

✅Select your favourite e-wallet (PayPal, Neteller, Skrill, etc.) as the payment method. 

✅You will be routed to the e-wallet login page. Enter your e-wallet information and confirm the transaction. 

✅Once confirmed, the deposit will be processed and credited to your account shortly. 

 

Withdrawals Methods:

Bank Wire

✅Go to the withdrawal page on your account. 

✅Select ‘Credit/Debit Card’ from the withdrawal choices. 

✅Determine the withdrawal amount. 

✅Confirm that your card’s information is valid and that it can accept payments. 

✅Submit the withdrawal request, which the broker will process and reimburse back to the card used to deposit. 

 

Credit or Debit Cards

✅Go to the withdrawal page on your account. 

✅Select ‘Credit/Debit Card’ from the withdrawal choices. 

✅Determine the withdrawal amount. 

✅Confirm that your card’s information is valid and that it can accept payments. 

✅Submit the withdrawal request, which the broker will process and reimburse back to the card used to deposit. 

 

e-Wallets or Payment Gateways

✅On your account, navigate to the withdrawal area. 

✅Choose your e-wallet as the withdrawal method (e.g., PayPal, Skrill, Neteller). 

✅Input the amount you wish to withdraw. 

✅Confirm that the e-wallet account information is valid and submit your request. 

✅The broker will withdraw, and the funds will be deposited into your e-wallet account per the withdrawal deadlines. 

 

Are there any fees for depositing funds into an account?

No, depositing funds into an account is free. However, withdrawals are charged, and non-USD contributions may be subject to conversion costs.

 

How can I withdraw funds from my account?

Withdrawals from the broker may be done in various ways, including bank transfers, credit cards, PayPal, and other e-wallets launched through the platform’s withdrawal area.

 

Trading Instruments & Products 

The broker offers the following trading instruments and products: 

➡️Forex – The broker provides 55 currency pairs for trading, including major, minor, and exotics, allowing traders a diverse range of forex trading chances.

➡️Commodities – With 32 commodities accessible, they offer a wide range of trading opportunities in this asset class, which generally comprises energy, metals, and agricultural items. 

➡️ETFs – Traders have access to a diverse portfolio of 531 ETFs that provide exposure to various sectors, indexes, and commodities via a single investment. 

➡️Indices – The platform includes 21 indices that allow traders to bet on the performance of baskets of top-performing firms in certain industries or worldwide marketplaces. 

➡️Cryptocurrencies – The broker now offers 77 cryptocurrencies for trading, providing a large offering for traders wishing to participate in this relatively young and unpredictable sector. 

➡️Stocks – They provide an excellent selection of 4,610 stocks from various industries and foreign marketplaces, allowing diversified equities trading. 

➡️NFTs – The broker has expanded its trading capabilities to include NFTs (Non-Fungible Tokens), allowing users to engage in the rapidly growing digital asset market.

 

Can I trade ETFs?

Yes, the broker has a diverse portfolio of 531 ETFs for trading on its platform.

 

Does the broker offer trading in stocks and indices?

Yes, they trade over 4,610 equities and 21 indices, providing a wide range of trading styles.

 

Trading Platforms and Software 

Trading Platforms and Software

Traders of all skill levels can enjoy a thrilling and user-friendly investment experience on the platform, which integrates an advanced online portal with an equally intuitive mobile app. 

With this dual approach, traders can easily trade over 5,000 assets of various equities, cryptocurrencies, and more. The low and transparent costs make it an attractive proposition for potential investors. 

The simplicity-oriented design philosophy of the platform aims to make financial markets accessible for novices without compromising on the level of complexity needed by experienced traders. 

By incorporating social trading and Smart Portfolios, the platform introduces a collaborative feature that enables users to leverage the broker’s extensive trading community expertise for optimal outcomes. 

The broker’s commitment to providing a smooth trading experience is exemplified by the ease of accessibility its platform offers, both through its website and mobile app. 

eToro’s multi-asset platform is a financial gateway with access to over 3,000 diverse financial instruments, such as conventional stocks, state-of-the-art cryptocurrencies, and various other asset classes. 

The broker utilizes Contracts for Difference (CFDs) to navigate the complexity of contemporary trading. This enables clients to employ sophisticated methods, including leverage and short selling, even with non-tradeable assets like commodities and indices. 

They offer more than just CFDs, enabling investors to own stocks and cryptocurrency assets directly. By securely storing these in the client’s name, the broker provides a direct market experience.  

Therefore, incorporating traditional asset trading with the adaptability of CFDs showcases eToro’s innovative investment strategy that accommodates various trading preferences and techniques. 

 

What trading platforms are offered?

The broker provides a proprietary web-based trading platform and mobile app with a user-friendly UI.

 

Is there a desktop application for eToro?

No, they do not provide a desktop application; instead, they concentrate on their web-based platform and mobile app to meet their traders’ demands. 

 

eToro Spreads and Fees 

eToro Spreads and Fees 

Spreads

The most significant cost for clients involves the spreads, which vary based on market conditions and financial products traded. To balance out the company’s brokerage services provided, these costs are included in an asset’s purchase and sale prices.  

This feature is crucial for traders aiming to boost their earnings as it helps estimate trading expenses more accurately without additional commissions beyond spread rates. Particularly, those with high-volume or frequent trades may be intrigued by this aspect of spreads. 

 

Commissions

The broker distinguishes itself in terms of commissions by not imposing direct trading charges on stock trades. This streamlines the pricing system for investors as there is no need to consider supplementary expenses with each transaction. 

eToro’s elimination of commission fees gives them a competitive edge in the market, making it an attractive choice for traders who prioritize minimizing their transaction costs. Nevertheless, traders must remember that other possible fees could influence their overall trading expenditures. 

 

Overnight Fees

The overnight costs and rollover fees are payable when a position is maintained open after the market closes. These fees are common practice, rewarding brokers for funds leveraged overnight.  

While these expenses are unavoidable in trading CFDs, eToro’s fee structure is transparent, allowing traders to plan their strategies fully aware of the possible penalties for holding positions for a lengthy duration. 

 

Deposit and Withdrawal Fees

The broker follows a fee policy that applies to both deposits and withdrawals. Deposits are generally free, while withdrawals incur an administrative cost that the broker charges for processing these transactions.  

Traders who frequently make small sums or regular withdrawals should consider this nominal fixed charge. However, this amount ensures top-notch services with optimum security during financial transactions on eToro’s platform. 

 

Inactivity Fees

The broker applies penalties for inactivity when an account remains inactive over a long period. This is to promote continuous trading activity among customers, and the fee only takes effect after prolonged periods of no activity.  

The charge will be deducted from the available account balance, so traders should take note of this potential cost and ensure proper management of their accounts to prevent unnecessary expenses.  

By imposing this penalty for inactivity, the broker highlights the importance of actively maintaining one’s account while motivating users to remain engaged with its platform. 

 

Currency Conversion Fees

When depositing or withdrawing funds in a currency different from the US dollar, they charge currency conversion fees.  

Since trading on eToro is solely in USD, consequently customers using other currencies need to convert them, which incurs additional costs based on current market rates plus a small margin that’s transparently communicated with users.  

Although these expenses are typical of the industry standard, traders must factor them into their cost calculations, especially if they are trading with non-USD base currencies. 

 

Does the broker charge commissions on trades?

No, the broker does not collect commission costs for stock trading; instead, it earns from spreads and overnight fees.

 

How does eToro handle currency conversion fees?

The broker charges conversion fees for deposits and withdrawals in currencies other than USD, which are computed using the current market rate plus a modest margin.

 

Leverage and Margin 

Leverage and margin are crucial concepts in trading, particularly for investors seeking to maximize asset profits.

Additionally, margin refers to the locked money in a trading account that a broker lends leverage to a trader, covering any losses in trading situations. Traders must be cautious about margin levels, as dropping below a threshold may result in a margin call or stop-out. 

Leveraged trading allows traders to invest more money in a transaction than they have on hand, increasing their exposure and possible return.  

Furthermore, the specific leverage ratio defines the extent of exposure to the margin. In this context, the broker provides varied leverage levels across asset classes, with more volatile markets often offering lower leverage possibilities.

For example, trading with a $100 margin and a 1:5 leverage would have a total trading exposure of $500. A favourable price movement would result in a larger return, while a negative price movement would result in a magnified loss.  

The financing cost of leverage, also known as the overnight fee or swap price, is an important consideration, as it can impact profitability, particularly in long-term investments. 

 

Are there risks associated with using high leverage?

Using high leverage can considerably raise potential gains and losses, demanding a prudent risk management plan.

 

Can I adjust the leverage on my trades?

Yes, the broker allows traders to choose their chosen leverage amount for each transaction within regulatory constraints.

 

Educational Resources 

The broker offers the following educational resources: 

➡️The Academy is a comprehensive instructional platform that provides a variety of interactive courses, tutorials, and guidelines. Overall, the Academy’s offerings have developed dramatically, demonstrating eToro’s dedication to trader education. 

➡️Digest & Invest – Additionally, for audio learners, the “Digest & Invest” podcast is a unique resource that delivers financial news and market observations in an understandable style.

➡️Classroom Course – Besides online materials, the broker provides in-person classroom training in London.

➡️Webinars – For individuals unable to attend the in-person session, they offer webinars as an alternative. These online seminars are extensive and cover important trading subjects such as market cycles, strategy building, risk management, and more. The webinars are organized as a series, each giving a deep dive into certain trade topics and available from anywhere globally. 

 

Are there any real-time market analysis resources available?

Yes, the broker provides real-time market analysis with its “News and Analysis” function, which keeps traders updated on the latest market events.

 

Does the broker offer resources for learning about social trading?

 

Yes, they teach users about social trading through platform features like CopyTrader and the community social feed, where traders exchange ideas and techniques.

 

eToro Pros & Cons 

✔️ Pros❌ Cons
Copy trading allows less experienced investors to benefit from the expertise of more successful traders by automatically repeating their transactionsThe platform's hidden expenses, which include trade spreads, withdrawal fees, and inactivity penalties, can raise trading costs and reduce profitability
Fractional share trading makes high-priced stocks such as Amazon and Google more accessible to investorseToro's limited investing possibilities in asset classes like bonds and mutual funds may prevent investors from exploring these markets
eToro has a big and active community, which fosters a social environment where users can discuss ideas, techniques, and insightsWhile social trading has distinct advantages, it also has risks
The eToro Academy is a comprehensive educational platform that provides a variety of interactive courses, tutorials, and guidelineseToro’s spreads are wide despite commissions not being charged on trades
The user-friendly platform has a straightforward layout that facilitates navigation and tradingThe eToro website might be complex for beginners to navigate
Commission-free stock and ETF trading dramatically lower the entrance barrier for new investors while also benefiting active tradersThere is a high minimum deposit for all other countries apart from the US

 

Security Measures 

Overall, the broker places utmost importance on safeguarding its users’ funds and confidential data, implementing rigorous measures to ensure a secure trading atmosphere.  

An essential safety measure is the adoption of Two-Factor Authentication (2FA), which offers an additional layer of protection while logging into one’s account.  

As part of this process, when signing in, customers must enter a verification code sent directly to their mobile phones – significantly improving resistance against unauthorized entry attempts. 

The platform utilizes sophisticated encryption protocols to guarantee the safe transmission of personal and financial data across the internet, thus shielding against cyber-attacks and information breaches. This security measure ensures that sensitive information remains fully secured at all times. 

In addition, the broker abides by rigorous regulatory protocols and routinely undergoes third-party assessments to validate its security measures. Such evaluations ensure that the security infrastructure of eToro aligns with top-tier industry standards. 

The broker employs technological safeguards and ensures its clients are well-informed about the best security practices for account protection.  

 

What measures does eToro take to protect user accounts?

eToro safeguards user accounts with two-factor authentication, high-level encryption, and adherence to top-tier regulatory requirements.

 

Does eToro offer guidance on securing my trading activities against potential cyber threats?

Yes, eToro provides information on safeguarding trading operations. Such as instructional tools for detecting phishing attempts and recommended practices for digital security.

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Conclusion 

Overall eToro stands out with a powerful and adaptable platform that appeals to novice and experienced traders in the competitive landscape of Forex and CFD brokers.  

Additionally, eToro has carved itself a niche by offering a wide range of tradable assets and emphasizing social trading. Allowing users to not only engage in individual trading but also learn from the techniques of their peers.  

For more information on FXLeaders.

Faq

Yes, the user-friendly site and copy trading capabilities may appeal to newbies, but rigorous study and risk assessment are required.

Withdrawals are normally made using your original deposit method. Be careful of processing timeframes and possible withdrawal costs.

Withdrawals normally take a few minutes up to several business days, depending on the payment type and user verification status. The platform’s compliance with financial rules guarantees that these transactions are performed safely and effectively.

The minimum investment is typically $10 for US traders and much higher for other regions. 

In the active community, you can copy or learn from expert investors’ trades and methods.

Yes, eToro is regarded as a safe broker since it is regulated by many top-tier financial agencies that enforce strong investor protection requirements. 

While stock and ETF trades are commission-free, keep an eye out for spreads, withdrawal fees, and possible inactivity costs. 

The broker allows traders to diversify their portfolios by trading various products, such as FX pairings, equities, commodities, ETFs, indices, and cryptocurrencies.

Yes, the broker allows you to buy and trade several cryptocurrencies, but remember that these assets are inherently volatile. 

eToro is based in Tel Aviv-Yafo, Israel, and has multiple global offices, including those in Cyprus and the United Kingdom, demonstrating its international presence and reach. 

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