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eToro Review 2021

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eToro is an online broker, known for their copy trading feature, founded in 2007. This broker offers CFDs, cryptocurrencies, stocks, and ETFs. eToro has a large customer base of 11 million investors. eToro operates in more than 140 countries. Company headquarters are in Israel, and it’s entities registered in many tier-1 jurisdictions. These include the US, Australia, and the United Kingdom.

eToro is a safe broker, regulated by top-tier authorities. We recommend eToro to traders both advanced and beginners who want to enjoy commission-free stock trading or copy the trades of professional traders.

Review Summary:

eToro is a top brokerage firm for investors looking for commission-free stock trading. Their trading platform offers competitive fees, a great mobile trading app, a wide range of investment options, and a copy trading feature. We selected eToro as the best broker for copy trading and crypto trading.

Disclaimer: CFDs are complex leveraged derivatives that come with a high risk of losing money rapidly. 75% 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 Trading 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 main appeal is copy trading. This allows eToro users who don’t want to trade, to copy the trades of successful traders. The investment platform allows for this sort of engagement between peers by providing a messaging feature, a social media platform feed, and other similar add-ons that we will explain in further detail.

eToro 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.

The following is a list of eToro’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

Pros and Cons of eToro

PROS
CONS
Easy Trading Account Opening
CFD and Forex Fees
Website and Mobile App
Withdrawals can Take Longer Than Usual
Best Social Trading Platform
Great for Crypto Trading

Why should you read this review?

We researched and wrote this comprehensive review. 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 can use this, and other similar reviews, to compare certain key features and characteristics of trading platforms. You can short-list them and give them a try through their demo accounts – 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 support, user-friendly trading interface, and, of course, you want to make sure your money is safe.

Trading Platform Overview

eToro is a multi-asset copy trading platform. It offers a variety of investment products including stocks, fiat currencies, commodities, exchange-traded funds, and popular cryptocurrencies, among others. You can trade some via CFDs and some as assets.

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

Social trading is a combination of a social-media-like environment within a platform. Traders can connect and chat service via eToro. Meaning that 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™.

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

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

Web-Based Platform

eToro Platform

eToro offers a web-based and a mobile proprietary platform for trading. No desktop platform is available.

This broker’s trading interface features 26 different languages. It looks polished and modern, appealing to a young audience in opposition to the classical trading offered by other brokers.

One downside of eToro’s platforms is that the workspace is not customizable. Traders have to feel comfortable with the interface as is.

Mobile App

eToro mobile app

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

Both versions include 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.

eToro Fees

eToro trading fees are on the low-end of the industry. The platform doesn’t charge fees for trading US-listed stocks and ETFs. eToro CFD trading fees are low and they are built into the spread.

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

Trading crypto assets has a spread from 0,75% to 5%. Cryptocurrency investors get ownership of the asset, unless trading under ASIC.

Currency pairs are expensive to trade by using the eToro platform, as the cost of trading EUR USD is 3 pips while many other platforms 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 into accounts.

Withdrawal fee

eToro charges 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

Traders us eToro to trade hundreds of financial assets. These include currencies, indicies, ETFs and crypto trading. 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 real stocks, ETFs, 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 at eToro:

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

eToro offers CFDs for other financial assets including commodities and stock indexes along with certain asset management solutions that come with its copy trading approach, such as eToro Copy Portfolios™ and Copy Traders™ solution.

The Copy Portfolio™ allows traders to copy the trades of eToro’s team or by other traders. Copy trading allows you to mimic trading strategies. The platform takes charge of the trading account and modifies the user’s portfolio based on the changes that the copied portfolio makes over time.

Copy Trader™ solution allows traders to browse through a list of traders within the platform to pick the best performing traders to copy their portfolios.

Both of these features are attractive for passive traders and for inexperienced traders. Traders that are starting out can get insights from successful traders.

eToro Wallet

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

Research Tools

eToro offers 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 alright, as the platform features more than 70 technical indicators and charts. The longest time span permitted by the charting tool is 6 months, which is disappointing.

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

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

eToro main strength is its social trading feature. This allows the eToro community to share trading ideas. No relevant third-party analysis is offered within the platform’s interface.

Education

eToro trading academy learning lab

Education tools is not the strongest suit of eToro. The educational material offered by this broker is limited to platform video tutorials and frequently asked questions. These intend to address matters regarding the platform’s functionalities, the financial assets available, trading fees, and similar topics.

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 from eToro is easy. eToro charges $5 withdrawal fees. 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, the eToro 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 with eToro?

Opening a new account with eToro is simple and fast and it can be 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 eToro. These countries inclued Albania, Canada, Cuba, Iran, Iraq, Jamaica, Japan, Nicaragua, Pakistan, Syria, and Serbia. US citizens outside the US territory cannot open an account with eToro.

Account types

There are two types of accounts available. eToro traders can open a retail account and a professional account.

Retail account

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

Professional Clients

For a professional account 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 Account

A demo account is available if you want to test eToro’s platform before depositing money. This practice account comes with an available balance of $100,000. Traders start virtual trading with virtual funds to get to know the platform.

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

Verification Process

Before you deposit money into the account 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 your eToro Account

Depositing money into an eToro account is easy and there are no deposit fees.

Deposit Methods

Deposit Methods

You can deposit money by using credit or debit cards or an electronic wallet such as PayPal or Skrill and it is credited in real time. Bank transfers take up to 7 days to clear. The platform is adding more funding options in the near future.

Minumum Deposit

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

  • Minimum for clients in Israel is $10,000.
  • Minimum for clients in the US and Australia is $50.
  • Minimum for clients in Russia, China, Hong Kong, Taiwan, and Macau is $500.
  • For bank transfers, the minimum deposit 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 credit or debit card. Subsequent deposits can be made using other methods accepted by the platform. One downside of this broker is that eToro offers one single currency base for its accounts, the US dollar. Other online brokers offer five or more different currencies for their accounts.

Traders must pay a conversion fee if they deposit funds on their eToro account 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 into the account. You can only deposit money from accounts in your name.

Is eToro Safe?

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).

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 publicly-traded company.

What’s best about this trading platform?

There are many good things to say about eToro. Positive elements put this broker at the top of the list of the best brokers to consider if you want to start trading.

eToro offers zero-fee stock and ETF trading for US-listed securities. This is a great advantage and puts the platform on top of many of its rivals.

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

eToro’s social platform 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 trading ideas to start off by using the social feed.

You should be aware that CFDs are complex instruments and come with a high risk of losing money due to leverage. Please note that 75% 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.

Conclusion

eToro is is a safe and regulated, zero-commission stock broker. It has a simple, easy-to-use trading 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 online broker operates in more than 140 countries and has over 11 million clients.

There are 30 countries that are banned to open an account. The minimum deposit to open an account with eToro is $200. This amount varies for residents of Israel, Russia, China, Hong Kong, Taiwan, Macau, Australia, and the United States. For bank transfers, the minimum deposit is $500. There are no deposit fees.

Users can sign up for a demo account before depositing money into eToro. The virtual trading account comes with a balance of $100,000. You have to complete ID verification, before depositing money into the account.

eToro is a multi-asset platform that offers a decent selection of US-listed stocks, ETFs, currency pairs, cryptocurrencies, and CFDs. The trading platform comes in 26 different languages. Charting tools include more than 70 technical indicators.

To summarize, we can recommend eToro as the best social trading platform and their zero-commission stock trading. Make sure you understand CFD trading is not appropriate for all investors.

eToro Logo

Our Score: 4.8/5

  • Best Social Trading Platform
  • Zero-Commission stock Trading
  • Regulated by top-tier Authorities
  • Easy to Use
  • Great Variety of Investments