eToro Review 2021

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eToro is an multi-asset online broker, known for their copy and social trading. It was founded in 2006 by Ronen Assia, Yoni Assia and David Ring. They offer CFDs, cryptocurrencies, stocks, and ETFs. eToro operates in more than 140 countries and has a large customer base of investors. Company headquarters are in Israel, Tel Aviv. eToro is a safe broker, regulated by top-tier authorities. These include the US, Australia, and the UK.

Summary:

eToro is a top brokerage firm for investors looking for commission-free stock trading. They offer competitive fees, great mobile app, wide range of investment options, and a copy trading feature. We recommend eToro as the best broker for copy, stock, and cryptocurrencies.

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Disclaimer: CFDs are complex leveraged derivatives that come with a high risk of losing money rapidly. 67% of retail investor accounts lose money when trading CFDs with this provider. Make sure you understand how CFDs work and if you can afford to take the high risk of losing your money.

eToro
Demo account:Yes
Minimum deposit:$50 – $200
Copy Trading:Yes
Minimum Trade:$50 – $1000 (less with leverage)
Mobile App:iOS, Android
Desktop:N/A
Web Platform:Proprietary
Countries not available:Canada, Japan, Cuba, Iran, North Korea, Sudan, Syria and Venezuela
Deposit Methods:Bank Transfer, Maestro, Visa, MasterCard, Diners Club, PayPal, Skrill, Neteller
Withdrawals:3 – 8 days
Islamic Account:Yes
Regulated by:FCA, CySec, FinCen, ASIC
Our Score:4.9/5

eToro's main appeal is copy trading. This allows users who don't want to trade, to copy trades of successful investors. They allow for this sort of engagement between peers by providing a messaging feature, a social media feed, and other similar add-ons that we will explain in further detail.

Their platform has facilitated more than 300 million trades. The company is expanding its operations, focusing on entering the Asian markets to provide brokerage services to China and Hong Kong.

Here is a list of company's subsidiaries registered:

  • United Kingdom: eToro (UK) Ltd. regulated by Financial Conduct Authority (FCA)
  • Australia: eToro AUS Capital Pty Ltd. regulated by Australian Securities and Investments Commission (ASIC)
  • Cyprus: eToro (Europe) Ltd. regulated by Cyprus Securities and Exchange Commission (CySEC)
  • United States: eToro USA LLC regulated by US FinCEN
PROSCONS
Easy Account OpeningCFD and Forex Fees
Website and Mobile AppWithdrawals can Take Longer Than Usual
Best Social Trading Platform
Great for Crypto

Why should you read this review?

We researched and wrote this comprehensive eToro analysis. It will help you save time in reviewing what eToro has to offer before you make a decision on which brokerage firm you go with. You should use this to compare certain key features and characteristics. You then short-list them and give them a try through their demo – if available – to choose the one you will use to conduct your trades.

There are many details to consider. It may seem overwhelming as you have to figure out which one provides competitive fees, the best customer service, user-friendly interface, and, of course, you want to make sure your money is safe.

Overview

eToro offers a variety of investment products including stocks, fiat currencies, commodities, exchange-traded funds, and 15 cryptocurrencies, among others. You trade some via CFDs and some as actual assets.

They were one of the first brokers to offer a social trading feature. They pioneered the trend. These days many rivals are offering similar alternatives. eToro continues to lead the way in this field.

Social trading is a combination of a social-media-like environment where people connect and chat. Other traders can follow them and check out see their performance and what instruments they are trading.

They have introduced two innovative products in this field: CopyTrader™ and CopyPortfolios™.

They gained their reputation as a safe and attractive broker for both experienced and amateur day traders. This is due to its low fees and user-friendly platform.

In 2019 they launched a crypto exchange called eToroX, which is regulated by the Gibraltar Financial Services Commission.

Web-Based Platform

Dashboard - eToro

eToro has a web-based and a mobile platform, however no desktop platform is available.

Their interface has 26 different languages available. It looks polished and modern, appealing to a young audience in opposition to the classic trading offered by other brokers.

One downside is that the workspace is not customizable. Traders have to feel comfortable with the interface as is.

eToro Mobile App

eToro mobile app

Both the web platform and mobile app – offer a two-step login, which increases their level of security for users. Search functions are predictive. They allow the trader to browse through the large number of available securities on their mobile devices.

Both versions include real-time market price alerts and notifications and can be sent via push notifications.

Reports are available under the portfolio tab. Traders can find a summary of their trades, their market value, and the fees paid. An account statement is available, summarizing the operations made during a certain period.

Minimum Trade Size

The minimum trade size at eToro as of December 6th, 2020

MarketMinimum Trade Size
Crypto$25
Stocks and ETFs$50
Currencies$1,000
Commodities$1,000
Indices$1,000
Copy Trading$1

*The minimum trade size includes leverage. If an eToro user wants to open a position on oil (commodity – $1000 minimum), they can open it with $100 using 10x leverage. The minimum to copy a trader is $200 and the minimum for each copied trade is $1.

Fees

eToro trading fees are on the low-end of the industry. They don't charge fees for US-listed stocks. CFD fees are low and they are built into the spread.

For stock indexes, the S&P 500 CFD fee is 0.75 while the Europe 50 CFD fee is 3.

Cryptocurrencies have a spread from 0,75% to 5%. You get ownership of the asset, unless trading under ASIC.

Currency pairs are expensive to trade, as the cost of trading EUR USD is 3 pips while many other brokers charge between 0.6 and 1 pip per trade. Traders looking for forex brokers are better off elsewhere.

Deposit fee

There is no deposit fee with eToro. Most brokers don't charge a fee for depositing money.

Withdrawal fee

eToro has a $5 withdrawal fee for bank transfers. This is in line with industry standard.

Inactivity Fee

eToro charges $10 per month in inactivity fees. if the user fails to log into the account for 12 months. For overnight rollover fees it depends based on current market conditions.

Order Types

eToro has four types of orders available:

  • Market: a market order is executed at the price quoted at the moment the order is placed.
  • Limit: this order sets a maximum or minimum price at which the financial asset class should be bought or sold.
  • Stop-loss: this order is executed once the price of the security reaches a certain level.
  • Trailing stop-loss: an order that allows the trader to lock in gains as it executes the sale of the asset only if the price goes down (or up for a short-position) to a certain point, while it remains inactive while the price keeps moving in favor of the trade.
eToro Order Types

Markets & Products

Hundreds of securities are available. These include currencies, indicies, ETFs and 15 cryptocurrencies. Each asset class is traded with different investment strategies. Equity trading is not available. eToro’s portfolio of available financial products is not the biggest. It is diverse to be considered decent and satisfying for most traders.

With eToro you trade stocks and cryptos. You can hold these assets directly and not via CFDs.

eToro is one of the best brokers for cryptocurrency traders, offering a large portfolio of available cryptos for traders who want to focus on this particular market. *Trading cryptocurrencies is not supervised by any EU regulatory framework.

Popular cryptocurrencies available:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Ripple (XRP)
  • Dash
  • LiteCoin (LTC)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • Stellar Lumens
  • plus 85 more…

eToro has CFDs for other financial markets including commodities and stock indexes along with certain asset management solutions, such as Copy Portfolios™ and Copy Traders™ solution.

Copy Trading With eToro

The Copy Portfolio™ allows traders to copy other traders. It allows you to copy successful strategies. The platform takes charge of the account and modifies the user’s portfolio based on the changes that the copied portfolio makes over time.

The Copy Trader traders to browse through a list of traders and pick the best performing traders to copy their portfolios.

This is attractive for passive traders and for inexperienced traders. Traders that are starting out can get insights from successful traders.

Crypto Wallet

The eToro wallet is a secure digital wallet with over 120 supported cryptocurrencies. The multi-crypto walled offers secure buying, receiving, and storing of crypto.

Technical Analysis Tools

eToro has technical analysis tools along with some recommendations by analysts, but lacks on the fundamental data.

Each financial asset has its own market sentiment tracker. It indicates the percentage of traders inclined to buy and sell the security. You can find comments from analysts for certain popular assets.

Charting tools are good, with more than 70 technical indicators and charts. The longest time span permitted by the charting tool is 6 months. These tools allow you to analyze prices.

The news feed is limited to tweets and comments from traders within the eToro ecosystem. No major media outlet such as Reuters or Bloomberg is included.

The fundamental data provided consists of basic financial ratios. No historical record of balance sheets, income statements, price targets, or earnings estimates included.

Their main strength is its hands-off trading and the community to share ideas. No relevant third-party analysis is offered.

Education

eToro trading academy learning lab

Education tools is not the strongest suit of eToro. The educational material offered is limited to video tutorials and frequently asked questions. These include basic platform tutorials, beginners trading guides and some advanced tutorials.

The demo account helps beginners in their process of learning without having to invest real money.

Customer Service

Customer Service

eToro customer support is decent, though it lacks in a few areas. The help center features a live chat feature but it is a bit hidden within the FAQ section. Traders have reported that representatives are busy and no attention is available during the weekends. There’s no e-mail or phone support, as this broker relies on support tickets sent through the trading interface. The response to these tickets is sent to the e-mail inbox of each user. The response time is fast – 24 hours or less. eToro customer service is not the best, but it is sufficient to deal with basic issues.

Withdrawals

eToro Withdrawal Methods

Withdrawing money is easy. eToro charges $5 withdrawal fee. It requires a minimum amount of $30 per withdrawal. Clients withdraw to a bank card, electronic wallet, or bank account. Withdrawing money to a account that has a base currency different than the US dollar will result in an extra conversion fee.

For cyptocurrencies, their wallet is available (eToroX), which is a multi-currency crypto wallet.

Credit, debit card, and electronic wallet withdrawals are instant, bank account transfers take up to 2 business days.

How to Open an Account?

Opening a new account is simple and fast and it is done 100% online. It will take a few minutes to go through the registration. You can take a look at the web platform if you have not yet registered.

eToro’s trading services are available in most countries. There’s a sizable list of countries that are banned from opening an account with them. These countries include Albania, Canada, Cuba, Iran, Iraq, Jamaica, Japan, Nicaragua, Pakistan, Syria, and Serbia. U.S. customers outside the US territory cannot open an account with eToro.

Account types

There are two types available – traders have a retail or a professional account .

Retail

Retail clients get access to all the assets and copy or manual trading. Leverage is restricted, but coverage by the investors compensation fund and negative balance protection is available.

Professional Clients

For a professional traders have to pass a test to determine their qualification. ESMA investor protection like the Investor Compensation Fund and recourse to the Financial Ombudsman Service is not available. As a professional client you get access to leverage.

Demo

A demo account is available with a balance of $100,000. Traders start virtual trading with virtual funds to get to know the platform. The account comes with real-time prices so it is a great way to practice.

For successful traders they have a program called the popular investor. You get paid a management fee when people copy your trades.

Verification Process

Before you deposit money you will have to go through an ID verification process. It will require proof of identity and proof of residency. The process takes less than a day to be completed when they recieve all the required documents. You’ll have to take a quick survey intended to assess your trading knowledge and experience.

Funding

Depositing money is easy and there are no deposit fees.

Deposit Methods

Deposit Methods

You can deposit money with debit or credit cards or an electronic wallet such as PayPal or Skrill. Funds are credited instantly. Bank transfers take up to 7 days to clear. They are adding adding more funding options in the near future.

Minumum Deposit

The minimum deposit to open a retail account is $200. Except for the following:

  • For clients in Israel is $10,000.
  • For clients in the US and Australia is $50.
  • For clients in Russia, China, Hong Kong, Taiwan, and Macau is $500.
  • For bank transfers, it is $500.

The professional account requires the same minimum investment. It allows the user to take on more leverage for transactions. The trader has to meet certain criteria to qualify as a professional client. eToro may require that the first deposit is made via a debit or credit card. Subsequent deposits are made using other methods accepted. One downside of this broker is that they offer one single currency base for its accounts, the US dollar. Other brokers offer five or more different base currencies for their.

Traders must pay a conversion fee if they deposit funds by using a payment method that features a currency different than the US dollar. Conversion costs start at 50 pips, which is around 0.46% of the amount deposited. You can only deposit money from accounts in your name.

Is eToro Safe?

eToro is a safe and reliable company that has millions of users worldwide. It is a platform you can trust and trade with confidence. There are a few things to keep in mind:

  • eToro is safe and regulated by the top financial authorities. eToro is overseen by tier-1 financial regulators. These include the Financial Conduct Authority of the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), the US FinCEN, and the Australian Securities and Investments Commission (ASIC).
  • eToro respects clients privacy. Your data is never shared or sold with third-parties.

UK investors are protected by the Financial Services Compensation Scheme (FSCS). European investors are protected by the Investor Compensation Fund designed for Customers of Cypriots Investment Firms.

eToro is not a listed on a stock exchange and not a publicly-traded company.

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Disclaimer: CFDs are complex leveraged derivatives that come with a high risk of losing money rapidly. 67% of retail investor accounts lose money when trading CFDs with this provider. Make sure you understand how CFDs work and if you can afford to take the high risk of losing your money.

They offer zero-fee stocks for US-listed securities. This is a great advantage and puts them on top of many of its rivals.

Their fees for CFDs are below the market average, even though its forex broker fees are higher compared to other brokers.

Their social interface has an incredible design and it is a captivating alternative for those who are starting out their journey. Traders can connect with more experienced peers or seek potential ideas to start off by using the social feed.

Conclusion

eToro is is a safe and regulated, zero-commission stock broker. It has a simple, easy-to-use platform, and a great mobile trading app. eToro offers investing in stocks, CFDs, forex pairs, and ETFs. It is best for copy and cryptocurrency trading. Account opening is easy and customer support is good.

This broker operates in more than 140 countries and has over 11 million clients.

There are 30 countries banned. This amount varies for residents of Israel, Russia, China, Hong Kong, Taiwan, Macau, Australia.

In the United States, users from registered states can sign up an trade cryptocurrencies.

The demo comes with a balance of $100,000. You have to complete ID verification, before depositing money.

eToro is a multi-asset broker that offers a decent selection of US-listed stocks, currency pairs, cryptocurrencies, and CFDs. They offer 26 different languages. Charting tools include more than 70 technical indicators.

eToro Logo

Our Score: 4.8/5

  • Best For Social Trading
  • 0% Commissions on Stocks
  • Regulated by top-tier Authorities
  • Easy to Use
  • Great Variety of Investments
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Disclaimer: CFDs are complex leveraged derivatives that come with a high risk of losing money rapidly. 67% of retail investor accounts lose money when trading CFDs with this provider. Make sure you understand how CFDs work and if you can afford to take the high risk of losing your money.

FAQ

How do they make money?

eToro makes money in 3 different ways. They operate as a market maker brokers utilizing a NDD – STP hybrid model. They make money from traders losing trades and are audited to ensure market fairness. The second way they make money, is through CFD fees and commissions. They also make some money from non-trading fees, like withdrawal fees and inactivity fees.

Disclosures

eToro is a brokerage firm that offers CFDs, stocks and cryptocurrencies. You should be aware that CFDs are complex instruments and come with a risk of losing money due to leverage. Please note that 67% of retail investor accounts lose money trading CFDs. You should 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.

Cryptocurrencies are volatile instruments and are not appropriate for all investors. Cryptocassets trading is unregulated and not supervised by European regulators.

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.