eToro was founded in 2006 by three partners, who aimed to create a financial trading platform suitable to the traders of all levels, offering easy and convenient trading tools. In fact, nowadays the parent company becamethe largest and one of the most popular brokers along with eTorosocial trading network that serves more than 6 million users from around 150 worldwide countries.
eToro specializes mainly in CFD trading and is a social trading community, also is a fully regulated broker including respected FCA and authority of Australian securities (ASIC).
eToro offers both live accounts and demo one with advanced trading capabilities also proved giant in the social trading world as confirmed by regular annual reports.
In fact, every day thousands of new traders continue connecting to eToro expanding community globally, so let us get closer and understand a reason for that.
•Great Social trading environment
•Free Stock and ETF trading options
•Competitive trading in the EU
•High Forex fees
•USD is the only one account base currency
•Withdraw money or withdrawal fee is 5$
10 Points Summary
1. eToro is European broker with headquarters in Cyprus and offices in UK, Australia
2. eToro considered a safe broker due to its regulatory obligation set by ESMA, ASIC, FCA, etc.
3. Is one of the biggest Social Trading providers with great algorithms and selection between portfolios, particular traders and investments
4. A great amount of assets to trade including Stocks, CFDs, Forex, Commodities, Portfolios, Metals, Cryptocurrencies
5. Demo Account offered with unlimited basis conditions along with Education materials and webinars
6. Trading costs and spreads are rather high compared to competition for Forex, while Stocks and CFDs traded with no commission charges
7. eToro charge additional fees like withdrawal fee and inactivity fee
8. Minimum deposit – 200$ for Europeans, yet deposit may vary according to your residence
9. Base currencies as standard is USD, with deposit option including Credit Card, e-wallets, Bank Wire
10. eToro trading platform is proprietary web-based software with very customer-friendly layouts
How does eToro work?
Since its launch, eToro has gone a path of innovation, creation and introduction of features that moved investment technology and online trading to a new level. Apart from the fact that eToro traders obtaining fast and convenient access to the world financial markets, it provides the ability to copy successful traders from around the world without any commission.
So the wat eToro work being a brokerage firm that uses modern technology to execute orders and provide you with live quotes available from the word exchanges also enables a trading solution to international traders despite its size and experience. Eventually, eToro is a trading platform with social trading capabilities that acts as a market maker and gaining its profits from the charges of eToro spread.
Further on we will cover how to use eToro platform and how to trade on eToro step by step.
Actually, eToro is a highly rewarded broker too, which gained not only great reviews from the global traders but also timely rewarded by the world reputable editions or international magazines, expeditions, etc. Eventually, eToro Review found that broker holds awards as Best Broker for Cryptos, Best Broker for Social Trading and many more “best” titles are in its list.
3. Is eToro safe or a scam?
Apparently, this is the first question any trader should check before any further actions, obviously verify is eToro legit or not in reverse bringing you safe trading conditions. In terms of eToro brokering services, Yes eToro is safe due to heavy regulation the company complies with.
Hereby you can trade assured of protection under eToro safety measures with the strict set of various regulatory standards, while all eToro procedures sharply concord with the international rules. As the funds safety is the primary aim, clients’ funds’ are segregated at all times and supervised internally and externally.
This ensures maximum protection of account holders and does not allow eToro to manage client money or use funds in the company own purpose. In addition, applied negative balance protection means the trader can’t lose more than his initial balance is, therefore secures positions. Further on we will cover more details about safety in our eToro Review.
•Authorized by leading authorities worldwide
•Regulated live trading account and CFD assets
•Fully audited Financial service
•There is no financial information available for public
How is eToro regulated?
eToro provides its trading service through headquarters in Cyprus and its additional entities eToro Europe, eToro United Kingdom and eToro Australia Capital authorized by three separate jurisdictions FCA, CySEC and ASIC.
Therefore it means the trading account and financial services fully comply with the measures and regulations set by the respected authorities. According to MiFID that serves European clients and provided by Cyprus Securities and Exchanges Commission (CySEC)and UK Financial Conduct Authority (FCA) licenses eligible to trade CFD assets.
In regards to Australian clients, eToro AUS Capital operates and provides live trading with authorization and compliance of ASIC license.
Additional level and amount protection is also provided to eToro clients through investment protection coverage. Which is a regulatory rule that assures the traders’ accounts by the compensation scheme in case things go wrong with the company. Yet, this rule is different in each jurisdiction, therefore the clients under UK’s FCA eligible to eTorocompensation of GBP 50,000 through FSCS and EUR 20,000 for the CySEC clients.
Leverage, known as a loan given by the broker to the trader is another important point in our eToro Review, as leverage enables trading with a larger size than the initial invested capital is. As the leverage significantly increases the potential to higher gains, in reverse it does increase risk level too. Eventually, it may be quite risky at the point you set leverage wrongly or too high, depending on the strategy you deploy.
What is risk level at eToro?
Trading with a particular leverage level sets your risk level at eToro. However, as of the involved risk recent regulatory update in Europe and its ESMA regime also mandated brokers to lower a maximum leverage level to 1:30 with a purpose to protect European clients.
Thus, Europe eToro traders can use a leverage multiplier with a maximum of
x30 for major currency pairs
x10 for commodities
x5 for CFD stocks
x2 for Cryptocurrencies
However, if you are holding an account with another eToro entity that complies with ASIC regulation, as an example, you may access higher leverage ratios as the authority defines so.
5. Account Opening
Account at eToro offers conditions in a structured manner through a single account, simplifying account opening with access to Demo accounts and quite low deposit requirement or account balance at the start. designed to give tools for professional development and the potential to progress even if you are a beginner.
The traders account may be entitled to Premium services along with VIP club membership, through access to professional tools, unique promotions, exclusive assets, funding benefits as well as the personal account manager. This offer, yet, available for those traders who maintain balances from a min $5k.
•Fast and fully digital account opening
•Single Account with VIP club option
•Easy switch between Demo and Live Account
•Min deposit for some regions is relatively high
Can you open an eToro account in South Africa?
If you are South African resident you may open an account as our eToro Review found. The entity which is eligible to offer its service holds an Australian license and also authorized Financial Service provider in South Africa. Moreover, there is even the South African eToro Community which is full of discussions between the traders.
Minimum deposit requirement
Minimum deposit depending on clients’ region and country regulations and varies from $200 for Europe clients and up to $10,000.
Russia citizens also the one from Taiwan, China, Hong Kong or Macau should process a minimum of 500$
Australia and USA traders may start with first deposit of only 50$
Israel residents may start with a minimum of 10,000$
How to open an account step by step?
So in order to sing up eToro, you should follow the process with an online application form, or simply sign with you Facebook and access free demo account instantly. Obviously for opening an account with real money or live account, you will need to submit all the necessary proves of your identity and registrations. This means you need to verify your account through a process that is clear to understand or follow.
Once your account is activated you may go to eToro login page make eToro sign in, perform initial deposit of funds (see more details on how to fund your account in our review further) and enjoy powerful eToro trading capabilities.
eToro account opening process
1. Select and Click on eToro Sign In page
2. Enter the required personal data (Name, email, phone number, etc.)
3. Verify your personal data by upload of documentation (residential proof, ID, etc.)
4. Complete the electronic quiz confirming you trading experience
5. Once your account is activated and proved, follow with the money deposit.
6. Trading Fees
Another crucial point while choosing a broker is a trading fee, so let us have a closer look at eToro fees defined as CFD fees and Forex trading fees. eToro live prices will show you spreads that may vary according to the liquidity terms and generally spreads are on average level comparing to the industry Europe offers.
Eventually, there are indeed other firms that offer lower trading conditions, see the comparison and more details below.
What are eToro Fees?
Trading fees are always defined by several points, which are typically consisted of the spreads as the main fee charged on each position you take, commissions if applicable, inactivity and non trading fees. Typically CFD Brokers and eToro among them eToro charges no commissions, their fees are generated and built into a dealing fixed spread, which is a difference between bid and ask price.
•Free Stock or 0$ Stock trading
•Low CFD fees
•Competitive trading conditions in Europe
•High Forex trading fees
•Additional withdrawal fees
Also, Forex and CFD spreads might be calculated in a slightly different way, as well as spreads for Stock or ETF fees, also may vary according to country rules alike US stock, UK or German one applies different strategy. Yet, you should not be worried as all the calculations are done by the broker so you will see fee conditions upon the opening of the trade.
Forex, CFD Spreads
eToro spread table and comparison between the competition on the most traded instruments gives you an example of minimum spreads. Typically EURUSD spread is fixed on 3 pips, Ripple price eToro about 50 pips and BTC eToro 45 pips while we considered eToro low CFD trading fees and high Forex fees among the industry.
Fee conditions upon opening of trade
Why is this comparison important?
It is always important to see and know what you should pay and compare other industry offerings. Even though eToro costs are quite high, they are still bearable with our point of view and considering other great points we saw in etoro Review.
You don’t choose a broker only based on a spread. So along to numerous other eToro investment benefits, you’re still winning. For instance, you may check out and compare eToro fees with its peer Plus500.
Costs are not guaranteed and presented for reference only, as the fee may vary according to market conditions and liquidity.
Trading Fees of eToro vs Similar Brokers
Crude Oil WTI
eToro overnight fee
You should consider also eToro overnight fee charged by the broker in addition to the traditional spread, in case you hold a leveraged position for more than a day. The fee given by eToro is rather to be high, yet still among the competitive ones in comparison to a similar offering, e.g. eToro EUR/USD overnight fee is 3.7%.
Non trading fees
Lastly, there is an inactivity fee, which exists too when depositing account deemed inactive for 12 months, a monthly fee to the sum of $10 will be charged. There are no account charges if you remain active, also additional fees will be charged as deposit fee and withdrawal fee which you may read about further in our eToro Review.
7. Deposit and Withdrawal
The money management and funding methods at eToro are also quick and simple, which is very pleasant and important for your account management convenience.
•Fast digital deposits, including Neteller
•Withdrawal requests take up to 3 days
•Withdraw money fee – 5$
•USD is the only one account base currency
Money transfer may be performed through the following methods, while all transactions are made as secure as possible and protected by SSL technology. However, methods may vary according to the regulatory obligations in the region or another.
Credit Card or Debit Card
Payment systems PayPal, Giropay, Skrill, WebMoney, Yandex, China Union Pay
Account Base Currencies
eToro account base currency defines only USD as its measure.
So an additional conversion fee will be applicable while transferring the money either by the broker or by the bank account you use.
Minimum deposit requirement
Minimum deposit depending on clients’ region and country regulations and varies from $200 for Europe clients and up to $10,000. See some of the examples below, yet you should always check with particular entity customer service in terms of its conditions.
Russia citizens also the one from Taiwan, China, Hong Kong or Macau should process a minimum of 500$
Australia and USA traders may start with first deposit of only 50$
Israel residents may start with a minimum of 10,000$
eToro deposit fees are set to a 0 fee, so whatever amount you deposit also according to the chosen account base currency, it will be all available as your eToro dividend, which is, of course, an advantage.
Deposit Option Comparison
Credit Card, Debit Card
eToro withdrawal funds requests are usually processed quickly, while you shouldn’t have any eToro withdrawal problems. Also, recently since February 2020 eToro significantly improve its withdrawal policy and establish a Withdrawal Dashboard, where the process of withdrawal may be seen along with other information.
Is it a long process to withdraw your money from eToro?
So in order to withdraw funds from your trading account you should proceed with a withdrawal request available from your account management area. Also note, you can withdraw money only to account with your name, third party transactions are restricted and never allowed by any regulated broker.
How do you withdraw money from eToro account?
1. Select and Click on Withdraw Funds’ at the menu tab
2. In the form enter the withdraw amount
3. Choose the withdrawal method either Credit Card, Debit Card, Electronic wallets etc
4. Complete the electronic withdrawal with necessary requirements
5. Confirm withdrawal fee and Submit
6. Check the current state of withdrawal through your Dashboard
Upon confirmation, you will receive notification about the withdrawal request along with updated statuses to your email. The broker will process the withdrawal transaction request within a few business days. In addition, you should allow your payment provider to process funds into your account, which also takes a few days and depending on international laws or requirements.
However, you should count eToro withdrawal feeis now only – $5, which is subject to every withdrawal request from your eToro wallet, while the minimum withdrawal limit is $50. This is a great improvement, as before eToro charged 25$ but now significantly lower its fee, which is definitely fantastic.
In addition, eToro Club members of the Platinum tiers and above pay no withdrawal fees.
Can I trade Cryptocurrencies on eToro?
eToro markets range is generally among the most advanced in the industry, as offers a truly wide range of products through thousands of different financial assets across categories with flexible eToro market hours. Each class has own characteristics and can be traded by a strategy suitable to your style or through a choice of the successful strategy to follow using eToro copy trading.
The eToro products range include Forex, commodities, eToro gold, stock indices, eToro CFDand a recent growing trend of eToro Bitcoin or other cryptocurrencies as well.
And yes, you can trade Cryptocurrencies on eToro, eventually, the platform offers popular cryptocurrencies through CFDs, yet always sick for CFD trading tips to know how to make best out of it. Cryptocurrency CFD indeed is a great instrument as it fluctuates widely and brings big advantage due to its affordable and secured nature that allows trading Bitcoin, Ethereum Classic, Binance Coin, Dash, eToro Ripple, eToro Litecoin etc.
eToro strives constantly develops not only its huge selection of assets while including more and more eToro Crypto pairs alike eToro xrp, or other instruments. But also advances controls, features and other innovative trading tools that enhance its already strong trading technology timely. Nevertheless, along with the regulatory framework and investor protection Cryptocurrency is not regulated in some jurisdictions which remains your responsibility to be verified.
9. Trading Platform
Web Trading platform
It is a fact that the eToro company rapid reveille started with the presentation of the freshly created platform called eToro OpenBook, the first platform with the concept ofsocial trading, which offered clients to connect to trading communities and successful investors.
Best of Show 2015 & 2017 | eToro innovative platform has received multiple awards and vast recognition as a leader in the Financial Technology industry.
As for the platform features themselves, the software is simple to use and understand, you can make transactions at the eToro platforms with no need to download or install the software. Everything happens right through the eToro website, also as a Cryptocurrency trading platform or through eToro mobile App.
So once you made a security login, you’ll see an interface with watchlists and options to manage your account, search, Portfolio settings and Fee reports with all-time statistics, which is very necessary.
One of the great features is eToro is its search function, with a comprehensive detailed search between the traders to copy, which we will see in detail further in eToro Review. Also you may find defined instruments to trade, communities and other searches organized and easy to use.
Alerts and Notifications
Together with a set of price alerts, notifications and browser notification you may stay updated about the direction you set, which is very useful as it offers easy tracking of the price movements.
The charting itself is clear with good visual characteristics and numerous tools to use for better analysis. Also, the platform offers different tools, eToro API, including a separate schedule for each asset, featuring a number of settings with a large number of indicators for efficient functionality.
Also together with its clean charts and other functions, there are various order types along with stop-loss configurations that make the trading process under good control. One-click trading or icon trade also may be enabled along with a set of price alerts, notifications and browser notification too.
So in order to trek your portfolio performance, there is a full portfolio and fee report available, here the historical data is in order and detail. On the ‘Portfolio” tab you will find all the data defined by month, year or specified timeframe including fees, cash flows and orders history.
Mobile Trading Platform
eToro mobile trader, which been integrated through two platforms OpenBook and WebTrader allows you to stay connected at any time through one single application eToro App. All features available: checking real-time feeds, copy other traders or to perform any permitted by platform action. Both Android and iOS devices are supported, which is a great way to trade at any time and under any conditions.
Recently, the proprietary program for trading CopyTrader, CopyFund are extremely popular and is one of the largest trading communities, which allows newly joined traders to “search” the best-ranked traders.
How does eToro Copy trade work?
So let us get into the essential details on how exactly eToro Copy trade works. Once you sign in and confirm all the necessary data for Live account opening you may join millions of traders from around the globe available at eToro community.
There are two options, either to invest into someone else’s by seamless automatic copying of selected eToro popular investor, or particularly developed trading portfolios specifying some layer of industry or group of instruments, traders, etc. Also, you are always defining all the necessary risk levels yourself, the amount you wish to invest and still with the capability to manage orders, see snapshot below.
Or if you are a professional you may get copied yourself and earn additional income through a commission received from your copiers.
Also, eToro measuring criteria to choose among the traders consistent with the comprehensive research based on risk level, stable weekly indicators, trading volumes, leading trades, etc. So you always may choose the most suitable trader or a portfolio, defining the most working option for you.
It is also interesting that not only transactions of individual traders can be copied, but various investments into some industry portfolio or groups too, which all in all brings truly great investment capabilities.
How to make money on eToro?
Well, eventually this is the most interesting and alluring question any trader is asking. As in order to make money on eToro, or with any other broker, you should either deploy your own strategy or may use Copy Trading capability as eToro offers. The copy option is definitely perfect if you just beginning with trading investment or do not wish to spend time trading yourself.
Once you found a trader you like to copy you decide how much you will put into copy account also which measures of risks to use. And of course, in parallel, you may copy as much as you find it suitable, also may gain commission from other traders that would copy you.
Nevertheless, in the trading process the most important remains the same and this is the smart management of risks, as trading is a quite tricky business that involves sufficient risk if you didn’t manage your positions correctly. eToro itself provides you will all the necessary tools to succeed in trading, yet the final result always depends on you.
You should stick to discipline strategy with eToro pending close orders and management of your eToro close trade positions with eToro stop loss or eToro take profit limit, etc.
Desktop trading platform
So does eToro have a desktop trading platform? Eventually no, you can’t login through desktop as the only options are either Web based platform or mobile application. Also, if you prefer to use industry leader MetaTrader4 you should find another broker available from the list, as eToro does not offer MetaTrader4 as a trading platform.
9. Customer Service
As for the assistance, eToro’sCustomer Support is available 24/5 excluding weekends and available in various languages, with live chat, phones and emails. Indeed, eToro takes client satisfaction quite a priority, therefore, created web based ticketing system so whatever concern or question you may have customer service remains at your disposal.
Also, all traders may use numerous features like eToro education and eToro guide also with eToro’s research that provides tutorials and education videos about a platform called all in all eToro learning Lab. Support content is intended to make you a better trader also, it is recommended to use eToro Demo Account to run trials and test strategies in a risk-free environment, which is easily accessible and available by the simple switch between live or demo account through your accounts area.
• Demo Account available for practice
• Educational videos
• Education videos are rather very basic
You may visit also eToro website and check on best practices, live webinars and the most recent data or updates. So you will learn how to sell on eToro and manage your trading positions smartly, which is crucial for trading success.
Even though, as we see eToro education materials and videos are not super comprehensive and rather medium or basic level, it is best to include some other detailed guides from leading providers in case you’re very beginner.
Also, with educational purposes and better decisions, you will stay updated with eToro’s research through updated research tools and research features with fundamental analysis too. In addition, being a social trading broker you may get trading ideas from the community or its diverse portfolio along with analyst recommendations.
Together with education eToro users may benefit from news feed by the use of common technology including social streaming through twitter, etc.
So why did 6 million customers choose this platform and is eToro good or is eToro worth it? There are several reasons, as we see through our eToro Review and the main ones are the flexibility of the trading on eToro platform and the possibility of broad communication with other trading participants. Working on this platform is truly easy and convenient that offers both investing option or regular trading, along with comprehensive automated trading capabilities.
Besides, if you would add to this the advantages and possibility of traders teamwork and high deal bonuses, it becomes obvious that cooperation can bring a good impact to all. In fact, though there are other social trading platforms available, eToro has become today the best and leading in its class.
Can US residents trade eToro?
Eventually, there are some restrictions towards specified county residents, which obviously happened due to regulatory restrictions including US regulation towards CFDs trading and other lists of limitations. Therefore, if you are a resident of the following county you won’t be able to trade eToro, these including:
United States of America
Democratic People’s Republic of Korea (DPRK)
Lastly, eToro is especially suitable for two types of traders. Firstly, the beginning traders interested in trading but want to learn and follow traders that are more experienced. And the second is the professional or experienced group of traders that would like to share the experience or unique strategy through unique exposure.
However note that eToro cryptoassets are volatile also cryptoassets is unregulated product meaning you should deeply learn how to trade stocks and cryptoassets, along with other instruments which can fluctuate.
In reverse both types of investors gaining more opportunities with eToro, funds to trade, option to earn commission and possibility to copy trades from a professional. And all that along with personal development among the community of traders around the globe, which all I all indeed made eToro so popular nowadays.
Also, we would be glad to know your personal opinion or thoughts about eToro, which you may share in the comment area below as well as verify some of the details if necessary. As we are always happy to assist your choices.
*CFDs are complex instruments and come with a high involved risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFD assets with this provider. You should consider whether you understand how CFDs work also by the use of higher leverage, and whether you can afford to take the high warning risk of losing your money.
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