|Support Types||Phone , Email , Live Chat|
|Minimum 1st Deposit||$100|
|Minimum Trade Amount||$25|
|Free Demo Account||Open Demo|
|Regulation||CySEC (Cyprus) , FCA (UK) , MiFID (EU) , NFA (USA)|
|Deposit Methods||Credit Card , PayPal , Wire Transfer , UnionPay , Skrill , Neteller|
|Trading Currency||GBP , USD , EUR , Ethereum , Ethereum Classic , Bitcoin , Bitcoin Cash , Ripple , Dash , Litecoin|
|US Traders Allowed|
- One of the Largest Online Brokers
- Intuitive, User-Friendly Design
- Competitive Spreads
- CopyTrader™ Technology
- Small Leverage on Cryptos
eToro Review: What is eToro Trading Broker?
eToro is an award-winning multi-asset CFD broker and online trading platform that allows people to trade and invest in currencies (including Ethereum and Bitcoin), commodities, indices and stocks in a simple, transparent and more enjoyable way. eToro is also famous for its investment marketplace and social trading platform where ordinary investors can follow and copy professional traders or invest in popular portfolios or copy funds. eToro is a privately owned company and was established in 2007 in Israel as a forex CFD broker. In the past 5 years, a number of large financial institutions invested in eToro and its trading platform became extremely popular among individual investors. eToro currently has 10 million users in more than 170 countries offering revolutionary solutions for online trading in traditional and digital assets. Please read this comprehensive eToro review to learn how you can start investing in cryptocurrencies and other asset classes online.
eToro Review: Regulations
eToro is one of the leading multi-asset brokers that were among the first ones to introduce trading CFDs in cryptocurrencies, like Bitcoin and Ethereum. Its marketing strategy is also based on the platform’s key strengths which are intuitively perceived interface, ‘Copy People’ and ‘CopyPortfolios’ sections as well as a wide variety of assets in the portfolio.
eToro broker currently has offices in the UK, Cyprus, Australia and Israel. eToro regulations include FCA in the UK, CySEC in Cyprus, MiFID in EU and ASIC in Australia. eToro is also compliant with European Securities and Markets Authority rules and provides EU and U.K. broker default protection for €20,000 or £50,000.
eToro Review: Marketplace & Investment Products
eToro offers rather a wide choice of assets to trade on with an option to choose leverage for a particular asset:
- eToro cryptocurrency trading has impressive 77 pairs with the largest available leverage 1:2. Besides the most common crypto assets, the broker also offers such a rare combination as cross-rates of cryptos versus fiat currencies like BTC/AUD or ETH/JPY, for instance. Those can be traded as actual cryptocurrencies or CFDs. Short positions are available as well.
- eToro Forex portfolio consists of 47 currency pairs with a maximum leverage of 1:30.
- The number of ETF CFDs exceeds 80 companies listed on 13 exchanges. Stock indices can also be chosen for trading as CFDs with the highest leverage of 1:5.
- CFDs for single shares have 1300 items in the list.
- There are also 6 CFDs for commodities with the leverage up to 1:20.
How to Start Trading with eToro Demo Account?
Traders can check out all of the trading platform’s features by opening an eToro Demo Account with $100,000 of virtual currency. Trading conditions, fees, quotes and order tickets are exactly the same as per real-money accounts, so the broker’s strengths and weaknesses can be trialled without any risk. This option is perfect for beginners traders who just start discovering the mechanisms of online trading. Experienced traders can backtest their trading strategies with eToro Demo or verify other traders’ performance to follow them in real-time conditions.
eToro Fees Compared – eToro Leverage
eToro charges no fees in case of unleveraged long positions for cryptocurrencies and ETFs. So if a trader buys cryptos or single company shares (stock and ETFs) with the leverage 1:1, there will be zero commission charged by eToro. All other cases suggest several layers of fees, which are clearly stated in the order ticket before opening any deal.
There are two types of fees in eToro: trading and non-trading fees. For example, the broker has an annoying flat withdrawal fee of $25, but deposits are not charged. There is also quite a large conversion fee of 2.5% (25 pips for EUR/USD) when depositing or withdrawing in other currencies except for USD. So, for example, if an investor wanted to deposit and withdraw funds in AUD, he will be charged two times for currency conversion as eToro has accounts in USD only. Leveraged long and short positions for CFDs are also charged for overnight and over the weekend. Traders should pay attention to trading hours as they would not have a chance to close the deal if appropriate exchanges are inactive.
In terms of trading fees, eToro’s spreads for Forex currency pairs and cryptocurrencies are highly competitive. For instance, the most popular currency pair – EUR/USD – has a spread of 3 bps. However, all of the spreads and rollover fees are clearly mentioned in watchlists (the difference between the buy and sell price) and in order tickets. The only concern about the platform is that it’s not easy to get a report of charges for a previous trading period.
eToro leverages depend on the asset class, and in most cases, they comply with regulatory restrictions. Another unique feature is that a trader can choose the leverage for every deal. For example, Forex pairs can be traded with leverage up to 1:30, while the leverage choice for cryptos is restricted to 1:1 or 1:2.
How to Open Account with eToro
New users can register an eToro account in minutes with the easiest option to sign up using Facebook or Google account. An alternative option is to fill out a short form to create a new account on eToro.
Account verification requires a government-issued ID, and proof of address to comply with anti-money-laundering rules. In some cases, the company might require a selfie photo to check the identity.
eToro Withdrawal and Deposit Methods
Deposit and withdrawal method has to be the same in eToro. The number of options is quite a wide as eToro supports the most popular ways of transferring funds including credit and debit cards and e-Wallets. Here is the full list of options available:
eToro Review: eToro Cryptocurrency Wallet
For those investors who are interested to own, buy, sell or exchange physical cryptocurrencies, the company offers a separate wallet. eToroX is a fin-tech company registered in Gibraltar, regulated by Gibraltar Financial Services Commission, and it provides operations with physical cryptos. Security options include Level 3 Identity Verification, dual-process verification to upload financial documents, two-factor authentication to log in to the platform, limited login attempts and whitelisting attribution models. The wallet uses eToro-branded tokens for fiat currencies, for example, USDEX for eToro United States dollar. The list of digital assets includes 16 coins and the number of cryptocurrency pairs is 37. Deposits are made via Simplex platform with commission 4%, while eToroX fee is 1% when buying cryptos (5% in total).
What is eToro copy-trading or social trading?
The CopyTrading feature is suitable for beginner traders who are in the initial stage of learning how to invest and trade in the financial markets. Investors can choose any trader to follow automatically in a proportional way, so there is no need to worry about the difference in account balances. The search engine is simple to understand and traders can be filtered by many parameters of their trading performance. eToro platform also calculates a risk-factor for every trader depending on several crucial indicators of the trading performance, so investors can select a trader to copy according to his risk appetite and estimated return. Besides, eToro social trading platform has a lot of additional sections for investors and traders to communicate. Investors can also set a stop-loss for automated trading and limit the number of deals opened at the same time. Every trader can earn additional bonuses from eToro depending on the number of their followers.
eToro Review: eToro CopyPortfolios
eToro CopyPortfolio was developed for long-term investors aimed to build an investment portfolio. A machine-learned algorithm helps the platform to combine traders in groups with a focus on a certain sector or asset class. The minimal amount to invest in CopyPortfolios is significantly higher than to follow a single trader ($5000 compared to $200). Investors have access to the same data as per CopyPeople section including past trading performance, return, risk-factor and the structure of the portfolio in terms of exact assets.
CopyPortfolio is a good way to invest in a diversified professionally managed investment portfolio, as it is run by professional traders. When you invest yourself, you need to monitor your trading positions on a continuous basis in order to be able to buy or sell positions when you need to make a trade. when you invest in eToro CopyPortfolio, all buy and sell orders will be handled by the portfolio manager.
eToro Trading platform on Desktop and Mobile App
eToro represents a unique mix of social media and web-based financial trading platform. Both beginner and experienced traders will easily comprehend the structure at a first glance while blocks and sections are user-friendly and informative. The Mobile App also reflects key features of the desktop platform with some restrictions to keep the fast operational speed. The software is online and available for gadgets working on most of the operating systems including PC, Mac, Android and iOS.
eToro Watchlists can be easily configured with an option to open trades from any of them. This helps traders to monitor and filter different asset classes and market segments.
Investors have access to the detailed trading performance of more than 10 million traders from 170 countries. The Copy People advanced search engine allows users to filter traders by location, return and risk factor in order to highlight potential leaders to follow automatically.
In contrast to many other brokers, eToro does not have compatibility with third-party platforms such as MetaTrader, for example. All of the deals are operated manually except the CopyTrade algorithm, so automated trading systems and advisors are not available.
Is it safe to invest with eToro?
Given the number of regulations in different countries and the number of eToro users worldwide, we can conclude that the broker is safe. The company participates in several investor default protection programs and complies with European Securities and Markets Authority (ESMA) rules, which makes it secure for investing. However, particular terms and conditions have to be checked depending on the country of residence. eToro does not accept clients from several countries including the United States and Canada.
The wide variety of assets, proprietary intuitive platform and the focus on social trading make eToro’s offer unique compared to other brokers. However, the lack of MetaTrader and auto-trading compatibility restricts the range of potential eToro users.
eToro Review – Our Verdict
Overall we liked eToro’s online trading platform and find it is suitable for both beginners and professional traders. You can invest in all major asset classes such as stocks, forex, indices, ETFs and cryptocurrencies. eToro has a community of more than 11 million users worldwide and also allows you to invest with and copy successful traders. Its social trading platform considered to be one of the best in the market where you can find and follow many top-performing investment strategies. You can also invest with other people in eToroPortfolios which are essentially managed similar to funds.
Many ordinary people are able to make additional income by running successful investment strategies and sharing revenues with their followers.
eToro is backed by some of the major global investment houses which are heavily invested in eToro to support its growth strategies. The team is also constantly working on new featured and constantly improves its proprietary trading platform.
RISK WARNING: Cryptocurrencies can fluctuate in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.