eToro Review 2020 – Start Social Trading now

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Contents

eToro Review: The Social Trading & Investment Platform

While eToro is a key player in the world of CFDs and cryptocurrency trading, the company also offers a lot more than this now. They have led the fintech revolution for over a decade and built up a reputation as the leading social trading platform in the world.

The company began as a general trading platform but has added cryptocurrency and other trading instruments to keep up with changing markets and growing demands. They are one of the pioneers in adding social features to their platform in the form of CopyTrading and CopyPortfolios.

Today, there are over 6 million users registered on eToro, securing it’s status as an industry leader – Read on for our comprehensive review.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

eToro at a Glance

Broker eToro
Regulation FCA (UK), ASIC (Australia), CySEC (Cyprus)
Minium Initial Deposit
$200
Demo Account
Yes
Asset Coverage CFDs, ETFs, Forex, Cryptocurrency, Shares, Commodities, Indices
Leverage 20:1
Trading Platforms Proprietary Web, Mobile Apps

What Is the History of eToro?

eToro actually began back in 2007 with three entrepreneurs who wanted to make trading more accessible for every day users.

At the same time, they wanted to reduce dependency on banks and other traditional financial institutions. eToro started off as an online trading platform with graphs representing financial instruments and an intuitive interface.

In 2009, eToro launched the trading platform, WebTrader, with a range of professional tools for traders of all skill levels.

75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

  • A big step forward came in 2020 with OpenBook, the first social trading platform in the world. This included the then-new CopyTrader feature, which let anyone copy successful traders.
  • In 2020, eToro added stocks to its other assets, like currencies and commodities.
  • The eToro mobile app launched in 2020 for both Android and Apple, expanding the reach of the platform. This is also when eToro dipped into crypto, making it possible to trade Bitcoin via CFDs.
  • In 2020, the platform updated the interface for an even more innovative and intuitive experience.
  • In 2020, it added CopyPortfolio, managed portfolios that bundle various assets or top traders within a market strategy.
  • In January of 2020, eToro expanded its reach in the world of cryptocurrency by adding support for trading crypto to the platform. It began with a range of popular cryptocurrencies, including Ethereum, Litecoin, and XRP.
  • In 2020 they launched eToroX, a full crypto to crypto exchange.

Which Cryptocurrencies Does eToro Support?

Compared to other platforms, the options for supported cryptocurrencies on eToro are relatively limited.

This is a result of its nature as a general trading platform as opposed to one focused solely on cryptocurrency.

Even so, you can short or own the most popular cryptocurrencies. Supported options include Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, and Ripple.

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Cryptoassets are highly volatile unregulated investment product. No EU investor protection. Your capital is at risk. Indicative prices; current market price is shown on the eToro trading platform

What Sets eToro Apart from Other Platforms?

One of the biggest ways that eToro stands out from other platforms is the sheer number of investment and trading options available.

Thanks to the numerous ways to invest and trade, users can take advantage of the same platform for their cryptocurrency trading needs as for traditional assets.

The social elements of eToro also make it unique. An example is CopyPortfolios, which is a long-term thematic investment in the form of a managed portfolio bundling assets and top traders with a predetermined strategy. The ability to copy the investments of successful traders is also innovative, as is the Popular Investor program.

What Trading Tools Does eToro Offer?

This platform aims to educate traders as well as provide them with a platform for investment.

Upon registration, eToro users get “virtual-money accounts” with $100,000 so they can work on strategies and skills before investing any real money.

It also provides multiple other tools to help with actual trading, such as an economic calendar. Simply input the dates and time zone you want to look at and the assets you trade. The calendar will then display how events are likely to impact your assets.

Additionally, it provides regular market analyses that include great detail as well as quick overviews, so you can utilize as much or as little information as you want.

Every asset which is tradable on the platform has it’s own page where you can view detailed information, news, charts and research.

What Are CFDs?

A CFD, or contract for difference, is a type of derivative trading. With a CFD, investors can speculate on whether fast-moving global financial markets will rise or fall. This can be done with cryptocurrencies as well as indices, shares, fiat currencies, treasuries, and commodities.

The important thing to note about CFD trading is that you will not be buying or selling the asset underlying it, in this case, cryptocurrency. Instead, you sell or buy a certain number of units for that instrument based on your prediction of if the price will rise or fall.

When the instrument moves in your favor, you get multiples of the existing CFD units you already sold or bought. You make a loss for every point it moves against you. CFDs require caution since it is possible for losses to exceed deposits.

You can read more about CFDs in our Beginner’s Guide here.

Highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.

On eToro, CFD trading and cryptocurrency go hand in hand. As mentioned earlier, eToro first entered the world of cryptocurrency by offering Bitcoin trading via CFDs in 2020, making it one of the earliest players in the world of crypto investments.

CFD trading continues to play a key role on eToro since many of the trades involving crypto are still CFDs instead of dealing with the actual asset.

Starting on Sept. 3, 2020, those who invested in the BUY position for crypto on eToro actually own the asset underlying the transaction. Before this, they owned a CFD, not the asset. Additionally, eToro offers actual cryptocurrency trading. If you choose to open short or SELL positions for cryptocurrencies on eToro, this is still a CFD position.

What Are CopyPortfolios?

CopyPortfolios were added to the eToro platform last year. This feature is available for cryptocurrency trading as well as traditional fiat trades. This creates a single tradeable asset that is made up of carefully selected assets or traders of a predetermined strategy.

The eToro Investment Committee composes the CopyPortfolios and rebalances them periodically. There are several cryptocurrency CopyPortfolios available for investors to choose from.

One of these is simply called “Cryptocurrency” and delivers exposure to Ethereum and Bitcoin.

In the cryptocurrency bull run of May 2020, the fund had a 66 percent increase. Within the first three months, that fund generated over 125 percent in profits. Another option is called “Crypto CopyPortfolio.”

This is a more recent CopyPortfolio made up of a balanced crypto portfolio containing Bitcoin, Ethereum, Ethereum Classic, Litecoin, Dash, and Ripple.

What Is CopyTrading?

Another exciting option on eToro that you can use for crypto and fiat investments is CopyTrading.

Copy trading is an innovation that allows users to look through the track record of other traders and copy them, which means they will mirror their trades.

Traders have the ability to become “Popular Investors” if they have a low-risk score and deliver consistent returns.

They then receive rewards for sharing wisdom. By taking advantage of CopyTrading and copying an investor who includes cryptocurrency in your portfolio, you can get exposure to the market without having to do too much research yourself.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This is not investment advice.

Who Can Use eToro?

eToro can be used by anyone, as long as it is legal to do so in their country. eToro keeps a running list of countries where the platform is blocked due to changes in the regulations that conflict with trading laws.

This means that those in the United States, Canada, Cuba, Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania, and Sudan cannot legally use eToro.

Does eToro Have a Minimum Trade Size?

eToro prides itself on offering tools that investors and traders of all levels of experience can take advantage of, so it tries to limit the use of minimum trades.

  • Even so, you must have $200 to participate in CopyTrading and make a minimum investment of $5,000 for CopyPortfolios.
  • The minimum quantities for manual positions are based on the instrument. For currencies (such as cryptocurrencies) and commodities, it is just $25.
  • For stocks, it is $50.
  • Finally, for ETFs and indices, it is $200.

For those who registered on April 2, 2020, or after, the size of a minimum trade depends on exposure, in the form of leverage times the invested amount. For cryptocurrencies, this total minimum amount is $200.

The minimum for ETFs and stocks is $500, for commodities is $2,500, and for indices and Forex is $5,000.

As an example of this exposure-related policy, if you open a crypto trade with a leverage of x1, you must invest at least $200. If, however, you chose to invest $100, you must have a minimum leverage of x2.

eToro Fees

As an exchange, eToro makes its profits from the various fees that it charges. On eToro, no fees are charged when opening a position, instead generating the fee based on the spread. It has a list of minimum spreads for each cryptocurrency, and those rates are not guaranteed.

The team points out that the spread can vary based on liquidity and market conditions.

The daily break spreads are as follows: 1.5 percent for BTC, 5 percent for BCH, 3 percent for DASH, 2 percent for Ethereum, 5 percent for ETC, 3 percent for LTC, 5 percent for NEO, 5 percent for XLM, and 3 percent for XRP.

Instrument Market Hours Daily Break Spread SELL BUY
1.5 % -0.471233 -0.471233
3 % -0.039452 0
2 % -0.036712 -0.036712
5 % -0.001726 0
3 % -0.006575 0
5 % -0.012383562 0
5 % -0.0000416 0
3 % -0.000022 0

Because of the nature of cryptocurrency trading, it is available 24/7, and there are no fees for overnight or weekend trades. Instead, eToro only charges fees for users who hold leveraged Ethereum or BTC positions or for shorting cryptocurrencies. The team does point out that the various fees are subject to change.

eToro Customer Reviews & Reputation

Users and reviewers of the platform generally agree that eToro is very easy to use. It was designed to be intuitive, so those without trading experience could get the information they need and make trades.

You can use the platform on PCs, Macs, Android, or iOS devices, always taking advantage of its intuitive functionality and readily displayed information regarding cryptocurrencies and other assets via graphs and more.

In general eToro has a good reputation online, the company is large and well established so you can be sure your funds are safe there. Complaints from people online are generally about traders they have copied not performing as well as they thought they would.

This isn’t the fault of the traders themselves, trading is a complicated business as everyone experiences losses as well as gains.

Other issues revolve around the fact that eToro advertises heavily that you can buy Cryptos with them, when in fact you don’t actually hold the assets themselves. This is the same for all brokers of this type, if you want to physically own the crypto asset then you will need to purchase them on an exchange that offers this, like Coinbase or Binance.

How Do You Deposit and Withdraw Money on eToro?

There are multiple deposit methods for eToro, so you can choose the one that best meets your needs, keeping in mind that different methods have varying minimum deposits.

You can choose to deposit via wire transfers, bank transfers, Visa, MasterCard, NETELLER, PayPal, Yandex, Webmoney UK, Skrill, and others.

To withdraw, you must fill out a form and then typically receive the money via PayPal, a bank transfer, or your credit or debit card. To withdraw, you will need a copy of your signature, color passport copy, and proof of address.

Cryptocurrency Expansion

eToro has recently added approximately 35 new fiat pairs to its platform which sees a total of around 44 trading pairs available to its users. The new pairs cover a number of different regions and currencies and are aimed at the inhabitants of countries such as Canada, Australia, and Japan. The updated pairs are as follows:

  • Australia BTC/AUD, ETH/AUD, XRP/AUD, ETC/AUD, BCH/AUD, LTC/AUD,
  • Canada BTC/CAD, ETH/CAD, XRP/CAD, ETC/CAD, BCH/CAD, LTC/CAD
  • Japan ETC/JPY, BCH/JPY, LTC/JPY
  • New Zealand BTC/NZD, BCH/NZD, ETH/NZD, ETC/NZD, LTC/NZD XRP/NZD
  • Switzerland BTC/CHF, ETH/CHF, XRP/CHF, LTC/CHF, BCH/CHF, ETC/CHF
  • United Kingdom BCH/GBP, ETC/GBP, LTC/GBP, XRP/GBP
  • The EU BCH/EUR, ETC/EUR, LTC/EUR, XRP/EUR

Furthermore, eToro has officially announced a cryptocurrency focused trading platform aimed at customers in the U.S., alongside a crypto wallet, and integrated mobile app which allows cryptocurrency purchases by credit card.

The service was unveiled in May and enables U.S. customers from 32 states and territories to trade a growing number of different cryptocurrencies including popular assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP, Dash (DASH), Neo (NEO), and EOS.

At the same time, the multi-signature crypto wallet supports six cryptocurrencies, namely Bitcoin (BTC), Bitcoin cash (BCH), Ethereum (ETH), Litecoin (LTC), Stellar (XLM) and XRP with additional currencies set to be added in the future.

The team have also announced that their cryptocurrency mobile wallet has been made available for both iOS and Android device users.

Existing eToro users are currently able to log into the wallet directly in order to transact and store cryptocurrencies, while in-wallet asset conversion is also possible with just few clicks, additionally, funds can also be received and sent out by sharing the wallet address or using a QR code.

The eToro Wallet allows users to:

  • Manage and store multiple cryptocurrencies
  • Exchange crypto for crypto
  • Transfer cryptos from their eToro accounts (limited to certain coins and to Gold accounts and above)

How to Buy Crypto with a Credit Card

eToro customers can also buy cryptocurrencies directly from the eToro wallet by using a credit card. The investment platform has partnered with well renowned third-party payment provider Simplex, with allows eToro to integrate Visa and MasterCard payments.

Here’s how to buy some cryptocurrency using your credit card:

  • Open your eToro Wallet
  • Click on the “BUY CRYPTO” section of the wallet and select your preferred coin and amount that you would like to buy
  • Enter your payment details into Simplex’s billing form.

Upon successfully completing the process, your purchased coins will be transferred to your eToro wallet.

It’s important to note that Simplex can choose to immediately approve or decline your request, as well as request further documentation or proof of identity. These may include official government issued documentation or a selfie photo. This service is also subject to the following fees and limitations.

eToro Wallet Fees

Fiat to Crypto Conversion Fees

  • eToroX fee 1%
  • Simplex fee 4%
Currency Min transaction Max transaction Max / Day Max / Month
GBP £96 £7,350 £14,700 £36,750
EUR €112 €8,624 €17,248 €43,120
USD $125 $10,000 $20,000 $50,000

The actual market rate is determined by eToroX once the transaction is approved by Simplex, and blockchain fees are deducted from the crypto purchased in addition to the above fees and are applied to every crypto transaction.

It’s worth noting that additional fees may also be accrued as a result of charges applied by your bank or credit card issuer.

These may include cash advance or foreign transaction fees to your card transactions, and any transactions carried out will appear on your credit card or banking statement as eToroX LTD, with the credit card descriptor being Simplex_eToroX, however, a confirmation email will also be sent Simplex.

Any pending payment may be cancelled, with customers advised to open a ticket directly on the Simplex website or to use the Live Chat feature on the bottom right side of the Simplex.com website.

It’s also important to note that once a payment has been approved it can’t be cancelled. The approval process is actually authorised by Simplex, and as a result, questions about the transaction process should be first directed to the Simplex customer service team. However, the eToro Customer Service team is also available to deal with any issues.

eToroX Review

eToroX, the blockchain subsidiary of eToro’s more traditional investing platform has officially launched in Gibraltar and is being regulated by the Gibraltar Financial Services Commission (GFSC). The exchange aims to cater to specialist crypto traders and incorporate many of the features found on their social trading platform.

The crypto to crypto exchange features an intuitive user interface, a mobile wallet app, is regulatory compliant, and makes use of cutting edge security protocols, and aims to provide crypto enthusiasts in a number of region with enhanced trading options.

Supported Currencies

The platform originally launched with a limited number of cryptocurrencies, however, 16 digital assets and 37 crypto-to-fiat pairs are currently available, and eToroX also incorporates eight branded stablecoins that allow traders to protect themselves from the volatility of the market without having to “cash out” into fiat.

The eToro-branded tokens pegged to fiat currencies include the eToro United States Dollar (USDEX), eToro Japanese Yen (JPYX), eToro Euro (EURX), eToro Pounds Sterling (GPBX), eToro Australian Dollar (AUDX), eToro Canadian Dollar (CADX), eToro New Zealand Dollar (NZDX), and the eToro Swiss Franc (CHFX).

In addition to these stablecurrencies, digital assets pegged to the price of commodities also feature and these include the GOLDX and SLVRX coins which respectively remain pegged to the prices of gold and silver.

The inclusion of these digital assets help eToroX to remain a crypto to crypto exchange, and more familiar cryptocurrencies such as Bitcoin (BTC), Bitcoin cash (BCH), Ether (ETH), Litecoin (LTC), Dash (DASH), and XRP also feature with more cryptocurrencies, stablecoins, and tokens scheduled to be added in the coming weeks.

Exchange Fees and Limits

eToroX doesn’t charge for deposits, and withdrawal fees are as follows:

Currency Quick withdraw limit Withdrawal fee
AUDX 50,000 3.75000
BCH 166 0.01000
BTC 10 0.00060
CADX 50,000 3.90000
CHFX 50,000 3.00000
DASH 400 0.02500
ETH 278 0.01700
EURX 45,000 2.65000
GBPX 40,000 2.30000
JPYX 5,500,000 330.00000
LTC 555 0.03300
NZDX 50,000 4.25000
USDEX 50,000 3.00000
XRP 166,667 8.50000

The exchange uses a tiered approach with regards to trading fees and the fees for all transactions (under a monthly volume of $100,000) are calculated according to Tier 1.

When the monthly trading volume grows beyond Tier 1 (over $100,000), a rebate will be applied during the first week of the month, and depending on the Tier Level, the rebate will be calculated based on the percentages in the following table.

  • The calculation will be done for each calendar month.
  • The rebate will be given in ETH
  • The Rebate will be given during the 1st week of the month.

eToroX also incorporates Maker and Taker fees, and the former are charged for trades where Maker orders add liquidity to the exchange, while Taker orders remove liquidity from the order book and incur their own charges.

As a result, Maker fees are lower in comparison due to these orders helping the exchange to remain liquid.

An example of a Maker trader order includes placing an order for pending execution, such as a limit order which is not automatically filled (partially or fully).

This action helps “make” the market and adds liquidity to the order book, while a Taker order can take the form of placing an immediate order that doesn’t go on the order book, by being filled partially or fully for example. This type of activity “takes” liquidity off of the order book.

How Secure is eToroX?

The exchange incorporates a number of cutting edge security protocols and these include data encryption by default, with a dedicated secured mechanism being used to prevent CSRF attacks.

In addition, the team have developed their own backlog analytic mechanism, based on N.N machine learning algorithm which assists in decision making, and incorporate multiple PT and Code reviews as well as a bug bounty program.

User accounts are further secured as all eToroX customers are required to complete Level 3 Identity Verification, and updating financial account information requires dual-process verification.

Furthermore, the platform makes use of two factor authentication (2FA), limits login attempts and uses whitelisting attribution models to prevent automation attacks.

More stringent security examples include all employee workstations being protected and verified based on multiple security mechanisms that include deception and traps, while the exchange’s custody solution is based on a three level military grade FIPS140 custodian process with multi separation between the different environments.

These include a warm environment, or process engine secured solution, a cold, secured isolated gap environment, and a deep, military grade secured isolated environment.

On top of this, eToro has been operating in Fintech since 2007 and has established regulated entities in Cyprus, UK, USA, Australia, and South Africa, with Gibraltar now becoming its sixth jurisdiction.

The Government of Gibraltar and the Gibraltar Financial Services Commission (GFSC) have set out regulations covering distributed ledger technology (DLT) businesses and eToroX operates under the framework administered by the GFSC.

The company is one of the more transparent in the cryptocurrency sector, and ETORO X LIMITED is a limited liability company incorporated in Gibraltar with a registration number 116348, and a registered office at 57/63 Line Wall Road, Gibraltar.

The company is authorized by the GFSC as a Distributed Ledger Technology Provider under the Financial Services (Investment and Fiduciary Services) Act, with a license number of FSC1333B.

Account Verification

Gibraltar’s regulatory requirements ensure that each new account must be verified as part of the registration process, and the exchange aims to simplify the verification process as much as possible.

After submitting all your information and uploading all the necessary documents, it can take up to two business days to verify your account.

New users are required to upload documents to help prove their identity and residence, and the following documentation will be asked for.

Proof of Identity (POI) Document

This POI document must include your name, date of birth, a clear photo, the issue date and expiry date of the document. Accepted forms of POI documents include a passport, a government-issued ID or driving license.

Proof of Identity and Selfie (POIS)

It’s necessary to upload a selfie that includes you holding the proof of identity document you have uploaded.

Proof of Address (POA) Document

The POA document must include your full name, address and issue date, and also feature the name or logo of the company that issued the document. The POA documents must be no older than 6 months and all four corners of the document must be visible.

Your POA document can be one of the following:

  • Bank Statement
  • Utility Bill: Electricity, Water or Gas
  • Tax: Council, State or Country Tax Bill

Financial Questionnaire

The last step in the verification process involves completing a financial questionnaire which covers your financial suitability for investing. The questionnaire is made up of nine 9 questions and takes just a few minutes to complete.

How beginner friendly in eToroX?

As with any trading platform, eToroX takes some getting used to, however, the learning curve will be steeper for anyone completely new to the world of cryptocurrency trading.

In order to try and offset this, the team have a Help Section which aims to answer the most common questions, and can be contacted by their [email protected] email address.

The team can also be contacted via their Twitter account, Telegram group, and Facebook page. In addition to the Help Section, eToroX also aims to educate its users and incorporates a Blockchain Academy and Glossary Section which include a range of clearly written guides and definitions that help users to both navigate the platform and gain a better understanding of blockchain technology.

Depending on your background, the more limited selection of trading pairs should make it easier for new entrants to the market to start trading on the platform, while the unique selection of stablecoins should also help newer traders to gain an understanding of how to make profitable trades when dealing with digital assets.

eToro Competitors

eToro is in competition with our similar brokers which have covered before, as follows:

Is eToro Safe?

To provide users with peace of mind, eToro takes steps to provide security. The company as a whole is fully regulated and adheres to guidelines of FCA and CySEC. To help traders make responsible decisions, it offers a range of tools for all experience levels, such as guidance for the first steps and risk-management features.

eToro also takes precautions to ensure the funds and personal information of clients are safe. Traditional funds remain secure in European banks of tier 1.

With all that in mind, you should remember that there are no regulations for cryptocurrencies. Because of this, if you engage in cryptocurrency trading or other crypto-related investments, there is no insurance from the investor compensation schemes within the UK or Cyprus.

The lack of regulations also means that if you have a complaint, you cannot file it with your financial ombudsman service.

Despite this, eToro takes pride in working to resolve issues as seamlessly as possible. In addition, there are numerous social platforms where you can register complaints, which may influence other users.

Conclusion

Although eToro focuses on more than just cryptocurrency trading, it is a useful platform for those who invest in cryptocurrency or trade it.

The additional features of eToro are what give it an edge, such as CopyPortfolios and various graphs. The platform is also highly intuitive, something that will appeal to everyone.

While eToro will not be ideal if you want to trade less-popular cryptocurrencies, it is an excellent option for those who only care about the major ones or who want to use the same platform for both fiat and crypto trades.

It’s also a great platform for trading regular stocks and Forex or just invest in pre-built portfolios in different industries.

This review was updated with the launch of eToroX, Cryptocurrency investors now have the ability to purchase and hold crypto assets directly. This is a great addition to the platform and positions them well within the space now.

We have used eToro for years now and have not had any problems with them, deposits and withdrawals are processed quickly and reliably so you won’t have to worry about the safety of your funds.

eToro have proven themselves trustworthy within the industry over many years and come highly recommend – we recommend you try them out.

Risk Warning: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendations.

eToro Review and Tutorial 2020

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Traders in Russia welcome
62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
eToro Facts & Figures

eToro lead the way in Crypto trading. The lowest spreads (from 1% for BTC), their own wallet service and the largest number of Cryptos to trade. FCA Regulated.

Instruments CFD, Forex, Crypto, Stocks
Demo Account Yes
Min. Deposit $200 ($50 in US)
Min. Trade $1
Regulated By FCA
MT4 Integration Yes
Mobile Apps iOS, Android and Windows
Auto Trading Automate your trades via Copy Trading – Follow profitable traders. Open and close trades automatically when they do.
Trade Signals via Copy Trading
Islamic Account Yes
CFD
FTSE Spread 1 pt
GBPUSD Spread 4 pips
Oil Spread 5 pts
Stocks Spread 0.24% Var
Forex
GBPUSD Spread 4 pips
EURUSD Spread 3 pips
EURGBP Spread 4 pips
Assets 50+
Cryptocurrency
Spread BTC eToro Copy Portfolio

Trading Accounts Offered

To simplify the trading process, the firm has opted to provide their clients with only one standard type of trading account.

Opening a trading account is a simple and straightforward process which requires you to fill up and submit the registration form.

Before you can participate in live trading, you need to place a minimum deposit of $200. And if you wish to participate in the “Popular Investor” program, you need to place a minimum deposit of $1000 before you can qualify for the program.

However if you are unsure and wish to try out the platform first before committing any real money, you can do so using the free demo account facility. This provides a simulator of sorts, though you still get to use live real-time prices.

The process is the same as signing up for a live trading account. Once you have signed up for the demo account, you can also switch to a live account status by selecting the “Real” account tab.

Instruments & Assets

Over the years, eToro has expanded their assets to cover additional assets. Today, traders can trade with 53 currency pairs, 53 ETFs, 12 market indices, 7 types of commodities and 957 types of stocks from all over the world.

The firm have also been long time pioneers of cryptocurrency trading. They offer the largest range of cryptos anywhere and are focussed on expanding this market whenever an established token reaches the mainstream.

Crypto Wallet

eToro now offer a multi-crypto on-chain wallet. The phased roll out will see the feature opened up country by country, and the available list of cryptos will also expand as time goes on.

The wallet offers high level of security, with multi-signature sign in supported – this means users can view their blockchain transactions without having to expose their private key.

The mobile app (available from Google Apps, and the Apple store) will allow the buying and selling of cryptocurrency using fiat currency.

It will also allow the conversion of one crypto to another. Four cryptos will be included at the launch (Bitcoin, Bitcoin cash, Ethereum and Litecoin). Others will be added as the app scales up.

Conversion will initially be limited to Platinum Account holders, but ultimately expanded to all traders.

The app is open to any registered eToro customer and makes accessing an otherwise complex market easily.

Customer Support

Customer support is available Monday to Friday, 24 hours a day. To contact the support team, traders can do so by submitting their query on the web contact form provided on their website.

Alternatively, traders can also reach out through support team by emailing the relevant departments concerning their queries.

Deposit & Withdrawal

There are several ways which you can fund your trading account at eToro.

At present the supported methods include deposit through credit cards such as VISA, Mastercard or Diners.

eWallets such as China UnionPay, Neteller, PayPal, Skrill, WebMoney and Yandex are also available for traders to deposit their funds with.

For traders who do not possess a credit card or eWallet, they can also fund their trading account through a bank wire transfer.

Processing of withdrawal requests typically takes 3 business days. However, traders should ensure that the withdrawn amount should be a minimum of $50, or else their withdrawal requests will be rejected.

Take note that eToro charge their clients a withdrawal fee of $5 for every withdrawal made (recently reduced).

Apart from the withdrawal fee, an additional cost to traders will be the currency conversion fee.

At present, the conversion fees are as follows:

AUD/USD: 100 Pips
CAD/USD: 250 Pips
EUR/USD: 250 Pips
GBP/USD: 50 Pips
JPY/USD: 250 Pips
RMB/USD: 50 Pips
RUB/USD: 50 Pips

eToro Copy Trader [Past performance is not an indication of future results]

Is eToro Suitable For Day Trading?

If you are a beginner trader who is just starting out, then eToro will be the right broker to trade with. The ability to conduct social trading is indeed a feature that can greatly enhance the profitability of a beginner trader.

However if you are an experienced trader looking to day trade, then eToro might not be the right fit. This is due to the fact that that the spreads charged by eToro are higher than average.

In addition, as a day trader that relies on small margins and a large number of trades to make an overall daily profit, the additional cost incurred will erode away at any gain that is made from day trading.

Company

eToro’s head office is located at 7th floor, Kanika International Business Center (KIBC), 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus.

Video – How To Trade With eToro

What is the minimum deposit requirement to open a trading account?

The minimum deposit requirement at eToro is $200 for Non-US traders. US Traders can open an account with just $50.

How fast can my withdrawal request be processed?

Typically, it takes 3 business days to process a withdrawal request.

Is eToro a reliable broker?

Yes. eToro is a well established broker that is regulated in multiple jurisdictions.

What kind of trading platform does eToro have?

eToro uses a proprientary trading platform called “CopyTrader”.

What is the maximum leverage available at eToro?

The maximum leverage that is available at eToro is 1:30.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you 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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

Accepted Countries

eToro accepts traders from Australia, Thailand, United States, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar and most other countries.

Traders can not use eToro from Iran, Turkey, Japan, Canada.

eToro Review

Since its creation in 2006, eToro has become a leading social trading platform for trading major financial markets including stocks, forex and cryptocurrencies. One of the reasons for the platform’s popularity is the effort eToro has made to ensure its platform makes online trading accessible to as many people as possible.

eToro offers both short and long-term options for traders, all accessible through the CopyPortfolios™ service which allows traders to set up a diversified portfolio. eToro also offers trading instruments with a varying degree of associated risk, while the platform is also available on its web interface and mobile app.

In addition, eToro has also created the CopyTrader™ system which, allows individuals to copy the trades of other users, enabling its clients to potentially benefit from the collective experiences of its network of traders. Beginner traders will also receive a series of guidance when taking their first steps into online trading. For example, eToro offers new traders a free practice account enabling them to practice trading online without risking any real money.

eToro is fully regulated and conforms to the guidelines of CySEC, the FCA and ASIC, and has partnered with major financial institutions, such as Russia’s Sberbank and China’s Ping An Group, to promote online trading and financial education in these markets.

  • Used by 6,000,000+ traders
  • Established in 2006
  • Regulated by Financial Conduct Authority, CySEC, ASIC
  • Min. deposit from €200
  • Doesn’t allow scalping (See alternatives)
  • Inactivity Fee
  • Limited range of instruments

To open a live account, you’ll need a minimum deposit of at least €200. Alternatively, eToro offers a demo account that you can use to practice and familiarise yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 583263), CySEC (Licence: 109/10), and ASIC (AFSL #491139). eToro puts all client funds in a segregated bank account and uses tier-1 banks for this. eToro has been established since 2006, and have a head office in Cyprus, UK.

Before we dive into some of the more detailed aspects of eToro’s spreads, fees, platforms and trading features, you may want to open eToro’s website in a new tab by clicking the button below in order to see the latest information directly from eToro.

62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What are eToro’s spreads & fees?

Like most brokers, eToro takes a fee from the spread, which is the difference between the buy and sell price of an instrument.

The commisions and spreads displayed below are based on the minimum spreads listed on eToro’s website. The colour bars show how competitive eToro’s spreads are in comparison to other popular brokers featured on BrokerNotes.

eToro
EUR/USD (Average: 0.7 pips) 3.0 pips 0.01% 0.6 pips + $1.00
GBP/USD (Average: 1.1 pips) 4.0 pips 0.01% 0.9 pips + $1.00
USD/JPY (Average: 1.1 pips) 2.0 pips 0.02% 0.7 pips + $1.00
AUD/USD (Average: 0.8 pips) 1.0 pips 0.01% 0.6 pips + $1.00
USD/CHF (Average: 2.3 pips) 3.0 pips 0.02% 1.5 pips + $1.00
USD/CAD (Average: 2.9 pips) 3.0 pips 0.02% 1.7 pips + $1.00
NZD/USD (Average: 3.6 pips) 5.0 pips 0.05% 2.0 pips + $1.00
EUR/GBP (Average: 2.4 pips) 4.0 pips 0.02% 0.9 pips + $1.00

Spreads are dynamic and are for informational purposes only.

As you can see, eToro’s minimum spread for trading EUR/USD is 3.0 pips – which is relatively high compared to average EUR/USD spread of 0.70 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with eToro vs. similar brokers.

How much does eToro charge to trade 1 lot of EUR/USD?

If you were to buy one standard lot of EUR/USD (100k units) with eToro at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $36. Here’s a rough breakdown of the fees and how this compares against XTB & AvaTrade .

eToro XTB AvaTrade
Spread from : $ 30.00 $ 2.00 $ 7.00
Commission : $0.00 $0.00 $0.00
Total cost of a 100k trade: $ 30.00 $ 2.00 $ 7.00
$28 less $23 less
Visit eToro Visit XTB Visit AvaTrade

All fees/prices are for informational purposes and are subject to change.

What can you trade with eToro?

eToro offers over 1,083 different instruments to trade, including over 47 currency pairs. We’ve summarised all of the different types of instruments offered by eToro below, along with the instruments offered by XTB and AvaTrade for comparison.

FX / Currencies eToro XTB AvaTrade
# of forex pairs offered 47 48 59
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes Yes
Exotic forex pairs Yes Yes Yes
Cryptocurrencies Yes Yes Yes
Commodity CFDs eToro XTB AvaTrade
# of commodities offered 6 21 16
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural Yes Yes Yes
Index & Stock CFDs eToro XTB AvaTrade
# of stocks offered 957 1606 99
UK shares Yes Yes Yes
US shares Yes Yes Yes
German shares Yes Yes Yes
Japanese shares Yes Yes Yes
See eToro’s Instruments See XTB’s Instruments See AvaTrade’s Instruments

What’s the eToro trading experience like?

1) Platforms and apps

eToro offer a user-friendly custom trading platform, available as both a downloadable program or as a browser based WebTrader. If you are looking for a MetaTrader broker, see our comparison of MT4 brokers here

eToro also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

Still not sure?

2) Executing Trades

eToro allows you to execute a minimum trade of $25. This may vary depending on the account you open. eToro allows you to execute a maximum trade of 20% of equity. As eToro offer STP execution, you can expect tighter spreads with more transparency over the price you‘re paying to execute your trades.

As a market maker, eToro may have lower entry requirements compared to an ECN broker who benefits from a higher volume of trades and typically has larger capital and minimum trade requirements. Market makers typically have a lower minimum deposit, smaller minimum trade requirements and no commission on trades.

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments. You can see the latest margin requirements on their website.

Finally, we’ve listed some of the popular funding methods that eToro offers its traders below.

Trading Features:

  • Offers STP
  • Low min deposit

Accounts offered:

  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account

Funding methods:

  • Credit cards
  • Bank Transfer
  • PayPal
  • Skrill
  • Payoneer
  • Neteller

3) Client support

eToro support a wide range of languages including English, German, Spanish, French, and Italian.

eToro has a BrokerNotes triple AAA support rating because they offer a wide range of languages and support options.

4) What you’ll need to open an account with eToro

As eToro is regulated by Financial Conduct Authority, CySEC, ASIC , every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While you might be able to explore eToro’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with eToro you can visit their website here.

What is eToro’s Platform?

The eToro platform is a combined social trading application and web trading platform. The social trading component of eToro was initially developed in 2020 separate to the standard web trading platform. The original web trading platform was used to search for traders to follow, while the CopyTrader was used to automatically copy their trades into the followers’ accounts.

In 2020, eToro made the process of searching for top traders to follow as well as copying their trades much easier. The two platforms were integrated into a single platform, the eToro Platform, which is the current platform offered by eToro today.

The web-based trading platform is built on JAVA technology and is accessible from any computer with an internet connection. It is a web-based application and no download is required. The platform allows the trader to access the platform from any of the popular web browsers like Chrome, Mozilla, Firefox and Internet Explorer.

The platform contains a complete suite of technical indicators and interactive charts, and can also be used to trade selected stock indices, crude oil, cryptocurrencies and gold. eToro’s platform is synchronised with eToro’s social trading platform, enabling trader’s to copy trades from successful traders listed on the leaderboard.

Trading on the eToro platform is exclusively under market maker conditions, and trades are executed by a dealing desk.

What mobile apps do eToro offer?

eToro offers a mobile trading application for iOS devices as well as Android phones and tablets. The app can be downloaded from the respective app stores (iTunes and Google Play store).

What is eToro CopyPortfolios?

The eToro CopyPortfolios program is a managed portfolio account system where traders can simply put funds in and have a top trader make all the trading decisions. All a trader needs to do to participate is to fund the trading account, find a CopyPortfolios that fits their investment objectives and strategy, and click to join the desired portfolio.

Traders have the choice to trade in two types of CopyPortfolios:

  1. Top Trader CopyPortfolios, made up of eToro’s best performing and most sustainable traders.
  2. Market CopyPortfolios where assets comprising stocks, commodities or ETFs are bundled together under a chosen trading strategy. For example, eToro offers portfolios for trading cannabis stocks, clean energy stocks, vegan stocks, self-driving car stocks, CRISPR stocks, and more.

With CopyPortfolios, traders can get a managed portfolio by simply copying a CopyPortfolios that makes sense for them.

Frequently asked questions about eToro

The following section details some useful details about trading on eToro:

Do eToro charge a commission?

eToro does not have commission charges on trading, instead, they mark up the spread. Example trading fees for popular instruments with eToro:

1.5% for Bitcoin
5% for Bitcoin cash
0.09% spread per side for Stocks and ETFs
2 pips for Copper
45 pips for gold
3 pips for EUR/USD
6 pips for GBP/JPY
150 pips for UK100
600 pips for DJ30

What are eToro’s trading hours?

The eToro platform is open for trading 24 hours a day, 5 days a week (Monday to Friday) from 9pm GMT on Sunday to 9pm GMT on Friday.

What leverage and margin do eToro offer?

The new leverage rate for retail investors are as follows:

  • 30:1 for major currency pairs (such as EUR/USD)
  • 20:1 for non-major currency pairs (such as NZD/USD), gold and major indices
  • 10:1 for commodities with the exception of gold and non-major equity indices
  • 5:1 for CFD stocks
  • 2:1 for cryptocurrency CFD

What’s the minimum and maximum I can trade on eToro?

The minimum trade contract size on eToro is 1,000 units of the base currency, which is equivalent to a lot size of 0.01 lots for currencies, 10 units for commodities and 1 unit for stock indices. There is no limit to the maximum contract size that can be traded.

What is the market depth offered by eToro?

The market dealing model provided by eToro is market making, so market depth is Level I. However, the eToro platform allows a trader to view what other traders on the eToro social medium are doing in the market, and trades of a successful trader can then be copied using eToro’s CopyTrader facility.

What risk control features do eToro offer?

Even though there is the ability to adjust leverage on the eToro platform, the company now has a responsible trading policy that limits the total exposure of a trader in the market to 50% and sets the below leverage limitations :
30:1 for major currency pairs (such as EUR/USD)
20:1 for non-major currency pairs (such as NZD/USD), gold and major indices
10:1 for commodities with the exception of gold and non-major equity indices
5:1 for CFD stocks
2:1 for cryptocurrency CFD

How to trade on eToro

eToro is based on a social trading model. Therefore, the interface of the eToro Platform is different to most other platforms where the trader is confronted with charts and indicators. Rather, the interface looks like this:

The assets that the trader is interested in trading can be selected from the watchlist. The watchlist is part of the trader’s navigation bar shown in the screenshot above.

The bid and ask prices, the line graph of the asset’s recent price movement as well as the market sentiment (percentage of buying and selling interests) is shown on the watchlist.

Trading an Asset: What Does the Social Community Say?

Once an asset is clicked for trading, a new window opens. This showcases the views of members of the eToro social trading community in the feed section. This allows a trader to access the views and sentiment of other eToro traders before making a trading decision.

You can also see the chart for the selected asset by clicking on ‘Chart’. You can see the example for the Bitcoin asset (BTC) below:

If you wanted to make the trade, you would click the ‘Trade’ button in the top right-hand corner of the screen. This will produce the trade selection interface shown below:

eToro is a multi-asset platform which offers both investing in stocks and
cryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

Past performance is not an indication of future results.

  • Written by Marcus Taylor
  • Founder & CEO

Marcus founded BrokerNotes in 2020 after trying hard to find a broker for himself to trade and struggling to compare brokers like-for-like. You can find more about BrokerNotes & Marcus here.

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from www.etoro.com on 01/04/2020.

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