Founded in :  2007

Headquarters : Cyprus

Regulation : CySEC, ASIC, FCA

 

 

 

 

Platforms : OpenBook and WebTrader

Leverage : 1:30

Minimum Deposit : USD 200 to USD 10,000

 

 

 

 

Summary of eToro

eToro was created in 2007 by three entrepreneurs who had a vision to innovate the world of trading. They aimed to fashion a trading platform that was appropriate to all kinds of traders, albeit beginner or expert.

Since 2007, eToro sustained its easy-to-use trading platform and has become the biggest and most popular trading brokerage firm and network. They are utilized by millions of users in more than 150 countries, globally.

eToro have defined the world of financial trading by offering an array of features and innovation. eToro have provided traders with the ability to access financial markets immediately and conveniently; they also have the ability to reach traders from around the world without any financial compensation.

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

ProsCons
Largest Social Trading PlatformWithdrawal Fee of 25USD
Regulated by the CySEC, the FCA, and the ASICDoes Not Have a Banking License
Easy and Convenient Method of Opening a Trading AccountNo 24\7 Customer Support

The advantages overcome the drawbacks that come with eToro, especially since they are considered the biggest and the most popular social trading and brokerage firms. They are also safe and secure with their client’s information and financial accounts. eToro is a very popular and up-and-coming brokerage company; it is guaranteed to give a client what they need, along with the access to social trading and mobile applications.

What eToro Offers

eToro is mostly known as the leading CFDs and Forex trading service provider, but they have been rewarded consecutively for being the best cryptocurrency trading provider. Their main attraction is that they provide traders the option of copy trading, copying the strategies of other traders and adopting it as their own via social platform.

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

Trading Accounts of eToro

With account types, eToro have only one trading account that is available to create a safe account for clients, the Standard account. There are currently more than 200 million clients who are socially trading or investing at eToro; this means that the standard account is adequate for any required financial services.

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

The Demo Account provides traders 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, throughout the process. 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 and Cons of an eToro Demo Account

ProsCons
Provided for an Unlimited TimeNone
Real Prices of the trading platform
Helps explain the trading experience to traders

Pros and Cons of eToro Account Standard Account

ProsCons
Fast-paced in opening an accountHigh trading fees
Easy to use and user-friendlyLack of options of trading accounts types
No account fee

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 trade with the Account and copy-trade with it too! The social platform is a feature that is integrated into the Standard Account.

eToro have three conditions for any client, beginner or expert, who want to open an account at eToro Brokers. The three conditions are for beginners, a fixed spread, auto, and copy-trade. The conditions for eToro are simply manufactured through the single standard account; this is established to give access to tools for any potential to progress. The account has the ability for Premium services, with the ability to access professional tools and features; it also offers clients their very 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.

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.

[caption id="attachment_4627" align="aligncenter" width="624"]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.

 

 

 

Deposits And Withdrawals of eToro

In eToro, the funding methods are simple, to the trader’s 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.

With, eToro, you are lucky enough to have to worry about deposit fees, eToro does not have any. However, it has a minimum deposit, depending on the client’s regional and country regulations. This can vary from USD200 to USD10, 000.  However, the standard amount for the minimum deposit is 200USD for almost all traders.

Deposits

ProsCons
No deposit feeOne base currency
Many options to choose fromTransaction limit for credit\debit card and electronic wallet deposits
No maximum deposit for bank transfers

Deposit Options

  • PayPal
  • Skrill
  • Neteller
  • WebMoney
  • Bank transfer
  • Credit/Debit card

As for withdrawal, eToro Brokers process withdrawal requests rather quickly and efficiently. eToro have a withdrawal fee of USD25; this occurs with every withdrawal request, while the minimum withdrawal amount is USD50. It is considered to be a high withdrawal fee, especially since it will occur with every withdrawal request. Yet, there are benefits right and left from eToro that surpasses the high withdrawal fee.

Withdrawals


ProsCons
Many options to choose fromWithdrawal fee of 25USD
User-friendly in withdrawalSlow process of withdrawal
50USD minimum withdrawal limit

Withdrawal Options

  • PayPal
  • Skrill
  • Neteller
  • WebMoney
  • Bank transfer
  • Credit/Debit card

How To Trade

Trading Platforms

  • 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!

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.

ProsCons
Provides social trading interactionsNo fundamental data available
Offers traders with advanced technical tools such as ProCharts, which allows traders to compare charts from other assets and time periods.Charting tools are only available for the past six months
Provides the option of CopyPortfolio
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

Resources

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. They also provide an internal blog that covers various topics on the Forex market and Forex trading in general; the most detailed and accurate topics that are tackled is crypto-currencies.

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, in an easier and more convenient way.

Aside from their charting tools, they have several ways of distributing information. They have a blog that discusses all the information needed for crypto-assets and other trading related topics. Their blog manages to provide all sorts of information about crypto-currencies; they do not talk much about Forex or analyzing the Forex Market. The blog topics on crypto-currencies mostly emphasize on the crypto-currency boost that occurred in 2017; blogs topics also include on crypto-currency technical or fundamental analysis.

ProsCons
Provides 70 technical indicators for charting toolsUnofficial news blog
Offers a daily newsletter on market analysisLimited number of stocks for recommendations
Provides a Trading AcademyFundamental data is unavailable
Provides trading ideas
User-friendly for traders
Offers 21 languages for resources

eToro also offers a Trading Academy link that is provided in the footer of the website, instead of being listed at the top menu. Traders will also find a Live Webinar link at the bottom; they also provide a page that should contain programs and archives on all the topics that were covered in the Live Webinar. They also have 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.

Customer Support

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 247.  Despite only having one means of communication, it is proven to be quite effective.          

ProsCons
Available in 21 languagesNot available 24\7
Fast responsePhone support is not available
Live chat is availableDifficult to find the live chat option on the platform
                        


Means of Communication for Customer Support

  • Live chat

Customer Reviews

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.

Safety of eToro: Licenses and Registrations

eToro is known as a social trading application, which provides traders with the best form of protection of their funds. They are 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.

ProsCons
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)Does not have a banking license
Provides negative balance protectionDoes not provide financial information to the public
Globally-acclaimed financial technology company

It is understandable that a trader would be uncertain when it comes to choosing the right brokerage firm. One of the options would be eToro. eToro have provided many regulations that the brokerage firm must abide by.

Since eToro is a trading application headquartered 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. The licenses that regulate the firm and its safety procedures will benefit Australian clients, European clients, and clients with the UK.

In regards to protection, each jurisdiction of the trader has their own set of protective measures. For UK residents, they are covered under the regulations of the FCA, eToro traders are expected to be financially compensated by the maximum amount of 85,000EUR. For Cyprus, eToro traders are expected to be financially compensated by the maximum amount of 20,000EUR.

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

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.

Learn EToro

With eToro, their top markets are cryptocurrency and international capital. There are 47 currency pairs, and there are 17 cryptocurrencies for you to choose from. The downside would be that they do not offer much variety in CFDs.

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. 

Trading Platforms

eToro have a 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 social trading platform that 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 Brokers is an advantage for clients because they can trade anytime, anywhere.

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.

ProsCons
User-friendly structureHard to locate the fee report
Two-step login processLimited options for customization
Easy To Use Search Functions
Price Alerts

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 trading platform for web 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.

ProsCons
Available in 21 languagesNo facial recognition or touch login option available
User-friendly for traders who prefer trading on the go
Two-step login process

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.

eToro Fees

eToro does not charge any account fees, 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.

ProsCons
Low trading feesWithdrawal fees required
Low CFD feesHigh Forex fees
No deposit feeOvernight fees required
No account fee

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. eToro has an overnight fee of EURUSD 3.7%..

Deposit and Withdrawal Fees0USD
Deposit Fee0USD
Withdrawal Fee25USD
Minimum Withdrawal Limit50USD
Minimum Deposit200USD

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    
eToroXTBPlus500MarketsX
Account FeeNONONONO
Inactivity FeeYESNOYESYES
Deposit Fee0$0$0$0$
Withdrawal Fee25$0$0$0$

 

Conclusion                                                           

eToro was established in 2007, with the sole purpose to establish a trading platform that was easy-to-use and appreciated by all types of traders. eToro is now one of the biggest trading brokers in the world, and a part of that global reputation relies on their security. The licenses that eToro registered under are the FCA, the ASIC, and the CySEC financial licenses, among other things. It offers their clients two types of trading platforms; OpenBook is an in-house trading platform and WebTrader is a world-famous trading platform. They also offer the option for mobile trading, so that clients can trade at any time and at any place.

eToro offers only one trading account, the standard account. However, despite being only one trading account, there are also many Premium features that facilitate traders to progress and increase their funds. The trading leverage eToro provides for their clients are a ratio of 1:30; this is because those are the regulations for Europe and ESMA. It does not have high leverage; this is because it must abide by the financial regulatory agencies and it wants to protect their clients from any financial risk. With eToro, spreads may be different and are commonly at a low and an average level, compared to the average spread level.

eToro is a very safe and secure broker that encourages complete transparency when it comes to handling client’s funds and keeping their information private. Since eToro is one of the biggest and best brokers in the world; we suggest that you trade with them, and we guarantee you will not regret it.

FAQ
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).

Summary
Review Date
Reviewed Item
eToro
Author Rating
51star1star1star1star1star
Software Name
eToro
Software Name
Metatrader