Etoro REVIEW 2020

$200
Min. Deposit
50%
Bonus
Regulated byCySEC,FCA,ASIC
Leverage1:30
Customer Support24/5
Open Account

etoro Summary

eToro is a financial technology broker that started in 2007. This broker is considered to be one of the best in the industry for its innovations in copy trading, cryptocurrencies and the adoption of blockchain technology.

eToro is famous for its copy trading application. It is also the first non-US broker to expand in the US and offer cryptocurrency trading. In 2019, eToro appointed Alec Baldwin as their US brand ambassador, promoting their copyfund and cryptocurrency products.

This Etoro review is an in-depth analysis and assessment of what eToro brings to the table.

eToro Main Features
Established in:
2007
Headquarters:
Cyprus
Regulations:
CySEC, ASIC, FCA
Country of regulation:
Cyprus
Minimum Deposit:
USD 200 to USD 10,000
Platforms:
OpenBook and WebTrader
Demo Account Available:
Yes
Leverage:
1:30/1:400
Withdrawal fee amount:
25$
Inactivity Fee:
Yes

Pros

  • Largest Social Trading Platform
  • Regulated by the CySEC, the FCA, and the ASIC
  • Easy and Convenient Method of Opening a Trading Account

Cons

  • Withdrawal Fee of 25USD
  • Does Not Have a Banking License
  • No 24\7 Customer Support
eToro comply with all safety and data protection protocols when it comes to client’s personal information and financial accounts, since it is regulated by top-tier regulatory financial agencies that ensure safety and transparency of the broker.

Safety and Regulation

eToro is a safe broker to trade with as it operates in multiple jurisdictions with multiple licenses. It should be noted that the broker is regulated by three of the best financial regulators in the world, the Cyprus Securities and Exchange Commission, the Australian Securities and Investment Commission, and the Financial Conduct Authority.

Pros

  • eToro is regulated by Cyprus Securities and Exchange Commission (CySEC), the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC)
  • Provides negative balance protection
  • Globally-acclaimed financial technology company

Cons

  • Does not have a banking license
  • Does not provide financial information to the public
It is understandable that a trader would be uncertain when it comes to choosing the right brokerage firm, and eToro would be a good choice for you because of how safe it is.

eToro is based in Cyprus, therefore they comply with CySEC; they also have the UK Financial Conduct Authority (FCA) and the Australian (ASIC) licenses. All licenses must abide by the three branches of jurisdictions. Along with the three licenses and its regulations, eToro comply with the MiFID that benefits the clients in Europe.

Regarding the residents of UK, they are covered under the regulations of the FCA, and are expected to be financially compensated by the maximum amount of 85,000EUR, in case of any financial misconduct from the broker.

For Cyprus, eToro traders are expected to be financially compensated by the maximum amount of 20,000EUR.

Considering that eToro is one of the largest and most popular broker and copy trading application, it is approved as a safe trading firm; however you should always consider the risk warning below.

eToro Fees

eToro does not charge any account opening or deposit fees.

However, it does require a withdrawal fee and an inactivity fee after 12 months, on a monthly basis. There is also an overnight fee of EURUSD 3.7%, for traders with overnight trading positions.

Pros

  • Low trading fees
  • Low CFD fees
  • No deposit fee
  • No account fee

Cons

  • Withdrawal fees required
  • High Forex trading fees
  • Overnight fees required
eToro does not charge any commissions whatsoever; their fees are produced and established into a fixed spread. In this trading provider, spreads may differ and are generally at a low and an average level, at least compared to the industry’s average spread level.

As for the fees that concern the trader in eToro, there is a ten dollar fee for inactivity per month, if the account has been inactive for 12 months. eToro also provides an overnight fee that charges the trader, along with the trading fee, in case the trader holds their leveraged position for more than one consecutive day.

Deposit and Withdrawal Fees
Deposit Fee 0USD
Withdrawal Fee 25USD
Minimum Withdrawal Limit 50USD
Minimum Deposit 200USD
There are no deposit fees for eToro traders, but there is a withdrawal fee of 25USD. The withdrawal fee is considered very high, to other competitors. There is a minimum deposit of 200USD, and a minimum withdrawal limit of 50USD; this means that you have to deposit at least 200USD and you have to withdraw at least 50USD.
Fees between competitors and eToro
eToro XTB Plus500 MarketsX
Account Fee No No No No
Inactivity Fee Yes No Yes Yes
Deposit Fee 0$ 0$ 0$ 0$
Withdrawal Fee 25$ 0$ 0$ 0$
eToro trading leverage level is a ratio of 1:30, as per the regulatory requirements of Europe and ESMA, with the aim to protect clients from financial risk. Leverage is a loan given by the brokerage firm to the client; it allows trade to occur with a more significant size than the initial capital.

eToro allows traders to use a leverage multiplier with a maximum of x30 for major currencies, x10 for commodities, x5 for CFD stocks, and x2 for crypto-currencies.

As the leverage increases furthermore, then there is a higher level of potential gains. However, it also applies in reverse; it also increases the chance of risk on the client’s financial potential.

Account Opening

With account types, eToro only has one trading account that is available, the Standard account. However, the process of opening an account is fast, easy, and completely digital.

Pros

  • Very fast to open a trading account
  • Provide digitized method to open an account
  • No account fees
  • Minimum deposit is low

Cons

  • None

Etoro Demo Account

The Demo Account provides you with the ability to understand the structure and try out the trading platform of eToro, without having to face financial loss. The Demo Account allows you to trade 100,000USD of virtual funds without actually spending money.

For traders who wish to try out before going for a live account, the Demo account is available for all and it’s free!

Pros

  • Provided for an Unlimited Time
  • Real Prices of the trading platform
  • Helps explain the trading experience to traders

Cons

  • None

Etoro Standard Account

The Standard Account for the eToro account is easy and it is very user-friendly. You won’t have to worry about how complicated it is to make an account with eToro. The Standard Account is multi-faceted, which means you can both trade and copy trade with the Account! The social platform is a feature that you will find integrated into the Standard Account.

Pros

  • Fast-paced in opening an account
  • Easy to use and user-friendly
  • No account fee

Cons

  • Lack of options of trading accounts types
eToro have conditions for any client, beginner or expert, who want to open an account at eToro Brokers. The conditions are for beginners which are that they have to trade with a fixed spread, and they have to exercise the copy-trade application.

The conditions for eToro are manufactured on the Standard account to give you access to tools to help you progress. The Standard account can be upgraded to Premium services, with the ability to access professional tools and features, and you own personal account manager.

All it takes is one step for you to become a registered member with eToro trading. All they need is to provide your email, or sync to your social media account. You will need to verify your account with corresponding documents, such as proof of identity and residency.

How to Open an eToro Account

STEP ONE: Fill out the online application with your personal information
eToro Opening An Account

In order to open an account, all you have to do is fill out the online application and upload the documents of proof of identity and proof of residency.

STEP TWO: Fund your account by choosing the amount you will open your account with, your payment method, and the information of your payment method account.
eToro Funding Your Account

To fund your account, you need to choose the deposit and withdrawal option you prefer and the amount you will open your account with.

STEP THREE: Upload the documents of proof of identity (POI) and proof of residency (POR), make sure to keep in mind that:
eToro Proof of Identity

You need to make sure it is clear and in full.

For the proof of residency (POR), you can upload any of the following documents:
eToro Proof of Residency

Any of these options are feasible to represent your Proof of Residency.

Deposit and Withdrawal

In eToro, the funding methods are simple, which you will find to your benefit. All financial interactions are made as safe as possible since they are secured by SSL technology. However, eToro only accepts one base currency, which is US Dollars.

Deposits

With eToro, you won’t have to worry about deposit fees, since there are none. However, there is a minimum deposit, depending on the client’s regional and country regulations, varying from USD200 to USD10, 000.  However, the standard amount for the minimum deposit is 200USD for almost all traders.

Pros

  • No deposit fee
  • Many options to choose from
  • No maximum deposit for bank transfers

Cons

  • One base currency
  • Transaction limit for credit\\debit card and electronic wallet deposits

Etoro Deposit Options

  • Electronic Wallets
  • Bank Transfer
  • Credit/Debit card

Withdrawals

As for withdrawal, eToro processes withdrawal requests rather quickly and efficiently, but you will have to pay a withdrawal fee of USD25.  The minimum withdrawal amount is USD50. It is considered to be a high withdrawal fee compared to other competitors in the market.

Pros

  • Many options to choose from
  • User-friendly in withdrawal

Cons

  • Withdrawal fee of 25USD
  • Slow process of withdrawal
  • 50USD minimum withdrawal limit

Etoro Withdrawal Options

  • Electronic Wallets
  • Bank Transfer
  • Credit/Debit card

Trading Platforms

eToro offer few trading platforms, but they are effective and efficient to their clients in every country they are located in. They have their own trading platform, OpenBook. It is a trading platform that also allows clients to communicate and gives them access to trading communities and successful investors.

OpenBook provides the ability for new clients to find the best ranked traders, or a particular strategy to follow through with. Another trading platform that they offers to clients is WebTrader, another renowned trading platform that is completely safe.

For both trading platforms, WebTrader and OpenBook, there is always the option for mobile trading. Mobile trading is the ability to trade through cellular devices. Both trading platforms are supported by iOS and Android devices, which facilitates for clients. Mobile trading with eToro is an advantage for clients because they can trade anytime, anywhere.

Etoro Trading Platform Options

  • WebTrader
  • Multi-Asset In-House eToro Platform
eToro How To Trade

eToro’s trading platform is very accommodating and gives you all the options you need, up front!

Web Trading Platform

eToro’s web trading platform offers a user-friendly structure and price alerts for when an asset reaches a price target. You will find the trading platform available in several languages, and a clear fee report, where you will be able to track your fee reports and history.

Pros

  • User-friendly structure
  • Two-step login process
  • Easy To Use Search Functions
  • Price Alerts

Cons

  • Hard to locate the fee report
  • Limited options for customization
With eToro, placing orders is easy and convenient for traders of all levels to use, making it simple and user-friendly. To place an order, you can use the order types of: market, limit, trailing stop-loss, and stop-loss. Since it is super easy, then you will find it simple enough to navigate.

In regards to security and logging in, you have the option to a safer feature: the two-step login system. This process can take longer to login and make it more complicated for you, but it will add an additional layer of security.

eToro Web Trading Platform

eToro’s web trading platform offers traders the option to create their own portfolios, or copy other portfolios.

With eToro trade platform for web, you have the ability to be notified and generate price alerts, if you prefer. The price alert and notifications allows you to be alerted when an asset reaches a specific price, and you will also be notified when an order of yours has been fulfilled. On the web trading platform, you will find it in the form of an icon or as a browser notification.

The eToro web trading platform is easy to use and the design is easy on the eyes. You’ll find it hard to customize but the watch-list is easy to navigate. The design of the platform is both designed well and it is functional, a perfect merge of both for the trader.

Mobile Trading Platform

The eToro mobile application trading platform is very easy to use and it shares the same features as that of the web trading platform. You can find the eToro mobile application on iOS and on Android.

Pros

  • Available in 21 languages
  • User-friendly for traders who prefer trading on the go
  • Two-step login process

Cons

  • No facial recognition or touch login option available
The eToro mobile trading platform shares the same features as the web trading platform, of placing order. You can use the order types of: market, limit, trailing stop-loss, and stop-loss. The only difference of the mobile application and the web trading platform is that the mobile application is better at dealing with, than the web platform.

In regards to security and logging in, you have the option to a safer feature: the two-step login system, just like in the web trading platform.

With eToro mobile trading platform, you have the ability to be notified and generate price alerts, if you prefer. The price alert and notifications allows you to be alerted when an asset reaches a specific price, and you will also be notified when an order of yours has been fulfilled. On the mobile trading platform, you will find it in the form of a mobile notification.

eToro Mobile Trading Platform

The eToro mobile application trading platform is very easy to use and it shares the same features as that of the web trading platform. You can find the eToro mobile application on iOS and on Android.

You’ll find that the mobile application is susceptible to swipe interactions and touch screen options, but there is no facial recognition or fingerprint recognition for logging in.

Markets and Financial Instruments

eToro is mostly known as the leading CFDs and Forex trading service provider, but it has been rewarded consecutively for being the best cryptocurrency trading provider. Their main attraction is that they provide traders the option of copy trading via their own social platform.
eToro does not fall short in offering their clients a wide range of trading instruments and assets.

eToro has always been long time pioneers of cryptocurrency trading. They offer the biggest scope of cryptos and they are focused on growing this market at whatever point an established token reaches the mainstream.

Throughout the years eToro has extended their resources to cover additional assets. There is a total of 53 currency pairs, 12 market records, 53 ETFs, 957 types of stocks and 7 kinds of commodities that traders can trade with from everywhere throughout the world.

eToro markets and assets
Cryptocurrencies Exchange Traded Funds (ETFs)
Stocks Indices
Commodities Currency pairs
Contract For Difference (CFD)
Top eToro Instruments
BitCoin (BTC) Ripple (XRP)
Amazon Shares Apple Shares
Gold (Commodity) NSDQ100 Index

Market Research and Trading Tools

eToro offers you with many market research materials and trading tools that will help you pave the way for your trading strategies. The broker provides an internal blog, charting tools, and a Trading Academy for all types of trading information you might need.

With eToro, there is a research button that traders will find in the mobile application, where a message appears that any analysis or research will only be available with traders who have funded accounts.

You will also be provided with an internal blog that covers various topics on the Forex market and Forex trading in general, but mostly on cryptocurrencies.

eToro provides an extensive range of charting tools, revolving around 70 technical indicators for charting tools. These charting tools will help you be able to customize your trading positions.

Aside from their charting tools, eToro has several ways of distributing information. You can find the eToro blog that discusses all the information needed for cryptoassets and other trading related topics.

Their blog manages to provide all sorts of information about cryptocurrencies; they do not talk much about Forex or analyzing the Forex Market. The blog topics on cryptocurrencies mostly emphasize on the cryptocurrency boost that occurred in 2017.

Pros

  • Provides 70 technical indicators for charting tools
  • Offers a daily newsletter on market analysis
  • Provides a Trading Academy
  • Provides trading ideas
  • User-friendly for traders
  • Offers 21 languages for resources

Cons

  • Unofficial news blog
  • Limited number of stocks for recommendations
  • Fundamental data is unavailable

Etoro Trading Tools

 

With eToro, they provide the option of copy-trading, which is a very rare feature for most brokers. Social trading is a platform where traders can follow other trader’s strategies, copy them, and adopt them as their own. They can also interact with other traders while live trading.

Pros

  • Provides social trading interactions
  • Offers traders with advanced technical tools such as ProCharts, which allows traders to compare charts from other assets and time periods.
  • Provides the option of CopyPortfolio

Cons

  • No fundamental data available
  • Charting tools are only available for the past six months
eToro CopyPortfolio

eToro CopyPortfolio is a feature that allows traders to copy trading strategies and trading positions as their own!

With eToro trading tools, eToro CopyTrader is the best feature and what makes eToro so desirable. The CopyTrader permits traders to observe what real traders are doing in real time and copy their trading automatically.

To be able to copy trade, you will need to follow three short steps and you can start copy trading with everyone else!

STEP ONE: Choose a trader you want to copy trade from

STEP TWO: Set an amount for the copy trading

STEP THREE: Click on the “Copy” button and you will automatically copy the trader’s position

Customer Service

eToro’s customer service is available in 21 languages, with a fast response time. However, you can only reach them through live chat, and they are not available 24/7.  

Pros

  • Available in 21 languages
  • Fast response
  • Live chat is available

Cons

  • Not available 24/7
  • Phone support is not available
  • Difficult to find the live chat option on the platform

Means Of Communication

  • Live chat
With eToro, the overall customer experience is a success. The customer support is very accommodating, but it can be inconvenient that you can only reach them during the week, and not during weekends.

The customer support is very helpful, and it is available in 21 languages. This is extremely helpful for traders who do not speak English, or traders who speak more than one language.

The live chat button is hard to locate, but using it is very easy. The customer support responds very quickly and they make the trading experience run smooth.

Client Education

With eToro, their top markets are cryptocurrency and international capital. As a part of eToro, you will have access to their Trading Academy and programs that educate you on the trading basics. But, if you like your study material in written form, eToro does not have that.
eToro offers a Trading Academy link that is provided in the footer of the website, instead of being listed at the top menu. You will also find a Live Webinar link at the bottom, with a page that contains programs and archives on all the topics that were covered in the Live Webinar.

The Academy also has basic programs in PowerPoint form, along with an “Advanced Technical Analysis” course. The course explains all the information needed to know on technical analysis.

There are no written materials on the website, other than descriptions of the trading platforms and trading instruments in the FAQ; there are other educational resources. It maintains an informational and educational a YouTube video library, which covers all topics in the Forex industry.

For the tutorial section, there are only how-to presentations, which is beneficial for novice traders.

Conclusion

eToro is a top copy trading application and broekrage firm, with the safest regulators on their side. By being regulated by the FCA, CySEC, and the ASIC, eToro should be considered as one of the most transparent and guaranteed brokers for your funds.

The broker does not require any additional fees, like deposit fees or commissions, but they do have a withdrawal fee and an overnight fee.

To open an account, it will not take any time and it can be done completely digitally, and it is user-friendly for you to navigate through.

Overall, we believe that eToro is a safe broker that you should definitely consider trading with.

$200
Min. Deposit
50%
Bonus
Regulated byCySEC,FCA,ASIC
Leverage1:30
Customer Support24/5
Open Account

FAQ’s

Frequently Asked Questions
CAN YOU MAKE MONEY WITH ETORO?
Yes, you can. You can do it whether through trading, or through copy trading. Copy trading is when you observe other individuals trade and copy their trading position as your own.
IS ETORO COPY TRADING WORTH IT?
It is worth it, since it allows for traders to watch and interact with other traders, learn from trading strategies.
HOW DO I WITHDRAW MONEY FROM ETORO?
They are several withdrawal options for eToro, such as: PayPal, Skrill, Neteller, WebMoney, Bank transfer, and Credit/Debit card.
HOW MUCH DOES ETORO CHARGE TO WITHDRAW?
eToro charges a standard 25USD withdrawal fee.
CAN ETORO BE TRUSTED?
Yes, it can, since it is regulated by the three best financial regulators of CySEC, the ASIC, and the FCA. It also provides negative balance protection, and store funds into the segregated accounts away from corporate funds.
IS ETORO GOOD FOR BEGINNERS?
eToro is very accommodating for beginner traders, since they offer a Demo Account. The Demo account is a simulation of the trading platform in real time, with the ability to trade with 10,000USD worth of virtual funds, allowing traders to test the trading platform without facing financial loss.
WHAT IS THE MINIMUM DEPOSIT FOR ETORO?
The minimum deposit amount is 200USD.
WHAT IS THE MINIMUM INVESTMENT IN ETORO?
The minimum investment for ETFs and stocks is $500, for commodities is $2,500, and for indices and Forex is $5,000.
HOW DO YOU STOP AN ETORO COPY?
According to the website, if you wish to cancel an order, click on the red X on the right. Once cancelled, the funds allocated to that order will be freed up in your account balance and become available for trading again.
HOW DO I COPY A TRADE ON ETORO?
STEP ONE: Choose a trader you want to copy trade from
STEP TWO: Set an amount for the copy trading
STEP THREE: Click on the “Copy” button and you will automatically copy the trader’s position
DOES ETORO PAY DIVIDENDS?
Yes, they do have the option to pay dividends.
WHAT TIME DOES ETORO OPEN?
eToro is open 24 hours a day, 5 days a week for customer support.
DO YOU PAY TAX ON ETORO?
According to the website, eToro does not collect taxes for any government authority, and it is the trader’s responsibility to calculate and pay any applicable taxes relevant in the country they live in.
HOW MUCH CAN YOU EARN IN ETORO?
You can earn an annual 2% profit, from your initial deposit.
IS ETORO REGULATED?
eToro is regulated by three of the best financial regulators in the world, the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investment Commission (ASIC), and the Financial Conduct Authority (FCA).
HOW ARE DIVIDENDS PAID ON ETORO?
Dividends must be paid on eToro, where your account may be either credited or debited if you are trading a stock, ETF, or index that requires a cost of a dividend. According to the website, If you hold a BUY position, you will receive the dividend payment to your available balance. If you hold a SELL position, the dividend payment will be deducted from your available balance.
IS ETORO EXPENSIVE?
With eToro, there are relatively high fees in trading and non-trading. There are low CFDs fees, and no deposit fees, but there is a high withdrawal fee of 25USD and a 10USD monthly fee for inactivity.
WHAT CAN YOU TRADE ON ETORO?
With eToro, there are many products that you can trade with. You can trade currency pairs, stock index CFDs, stock CFDs, ETF CFDs, Commodity CFDs, Bond CFDs, Futures CFDs, and Cryptocurrency.
HOW SECURE IS ETORO?
eToro is regulated by three of the best financial regulators in the world, the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investment Commission (ASIC), and the Financial Conduct Authority (FCA).

Etoro Overall Performance

  • Safety and Regulation 98% 98%
  • Deposit and Withdrawal 97% 97%
  • Market Research and Trading Tools 96% 96%
  • Broker Fees 98% 98%
  • Trading Platforms 97% 97%
  • Customer Service 98% 98%
  • Account Opening 96% 96%
  • Market and Financial Instruments 98% 98%
  • Client Education 95% 95%