eToro Review 2022
This eToro review covers everything a trader needs to know about the eToro online platform. From fees, the demo account and becoming a copy trader, to explaining how social trading works and finding the traders who make money. Whether you are trading Ethereum, Bitcoin or Forex, eToro open up trading to everyone via their platform.
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eToro For USA
eToro is now available to US citizens, but it is a much reduced offering. Below are the key points for using eToro in the USA.
Cryptocurrency Trading Only
Right now, only trading on cryptocurrencies is available (on 15 cryptocurrencies). The tradeable markets will be expanded throughout 2022 though. The plus side is the minimum deposit for US traders, which is just $50.
Also, trading is available with No CFDs, no shorting and no leverage. The underlying instrument or crypto is traded directly, with no derivative element. So traders can buy or sell virtual currencies directly.
Copy trading allows users to replicate the trades of other investors, and allocate some or all of their funds to this form of trading. This means you can replicate the positions of eToro’s top traders. Thousands of providers are available and eToro does not charge additional management fees.
Users can compare and contrast different providers, considering historical performance, fees and the markets traded in. Clients benefit from clear visualisation tables and charts and can easily amend how much capital is allocated to a provider. eToro also provides useful risk management alerts and tools.
For more information on copy trading, see here.
Portfolios are ready made sets of investments that diversify a traders trades. The crypto portfolio is specifically designed to include a ‘basket’ of various cryptocurrencies with no large exposure to any of them in particular.
The remainder of the review focusses on the European / rest of the World platform, but these features and offers will doubtless be made available to US traders as eToro expand their licensing in the US.
Regulation & Reputation
As a financial services provider that is based in Cyprus, eToro is subjected to the regulatory oversight of the Cyprus Securities Exchange Commission (CySEC).
Authorized under the CIF license no. 109/10, eToro has “passported” its authorization to the UK and is registered with UK’s Financial Conduct Authority (FCA).
The European Securities and Markets Authority (ESMA) also oversee investment providers across Europe and influence regulatory rulings across the EU.
Since the launch of the revolutionary eToro trading platform in 2010, the firm has improved on the trading platform tremendously.
Today, the trading platform used is called the eToro CopyTrader.
This new platform incorporates both the main features and products of the old Openbook trading platform and Webtrader hence giving clients access to the best of both worlds from a single trading interface.
In addition to being able to copy trades and trade independently, eToro also allow their clients to earn extra income by becoming a “Popular Investor”. This is not something many brokers can offer.
As a Popular Investor, the trader allows others to view his trading activities. Once the trader has managed to achieve a minimum number of copiers, he will be rewarded with cash and rebates on the spreads that he pays.
To qualify as a popular investor, you need to deposit a minimum of $1000. In addition, you must also recruit a copier for a minimum of 2 months with at least $500 equity or finance.
In line with keeping their reputation as an industry innovator, eToro introduced the concept of “portfolios” to copy.
The new service appropriately named as “CopyPortfolios” will allow traders to copy a range of assets selected by eToro.
These funds as categorized into Market CopyPortfolios and Top Trader CopyPortfolios.
eToro also deliver technical analysis and research tools on the platform. These features are flexible enough to benefit both professional and amateur traders. The offering includes deep market data across the range of products, which means strategy can also be back tested.
These tools allow analysis of real-time prices too of course. So trends can be identified and marked up. While other forex brokers may score higher in terms of analysis tools, the charts at eToro will suit the majority of trader, whatever their level of experience.
The platform is available 24/7 but markets will only be available to trade when the main markets for that asset are open. So US Stocks will only be available when US markets are open on Wall Street for example. Forex is available around the clock during the week, as there is always at least one market open somewhere in the world.
Weekend trading is available where markets are open, so Forex becomes available during Sunday and the Australian and Asian markets open and start the week.
eToro has also provided free mobile trading apps which their clients can download and install onto their smartphones and mobile devices in order to enable them to trade on the go.
These apps have been designed for both iOS and android powered mobile devices to allow full mobility and access to the financial markets at the same time. Other operating systems are also compatible.
You can deal on real-time prices, check what has been traded and open news and customer service sections – all from your device. Copy-trading and watchlists are also fully functional from the app.
The apps are very well thought out. All the functionality of the main web platform is retained, but is well laid out so does not feel cramped.
Security is also vital with mobile apps and the eToro applications are very secure, you need to be able to trust the app. The security tools within the android and iOS systems are utilised, so your account is safe.
All versions of the app are regularly updated. The most recent update saw the android version reduced in size by 50% – with no loss of functions. The iOS version was similarly improved.
Both saw a large increase in speed from the new, lighter programme.
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 ($50 for US based traders, or just $10 for UK based traders). 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 virtual balance allows traders to learn the platform at no cost.
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 950+ types of stocks from all over the world. Fractional shares are also available, allowing users to own a portion of a single share and lowering the barriers to entry for beginners.
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.
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 crypto currencies 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 or virtual currency 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.
Following rising demand for non-fungible tokens, eToro launched a $20 million NFT fund in 2022 to promote new art and build out its suite of investment services. Known as eToro.art, the initiative will support both NFT creators and brands and will ultimately help reduce barriers to entry for aspiring investors. eToro also has plans to spend a further $10 million on NFT projects in 2022.
The company has made clear that it wants to expand beyond digital art and will turn to third-parties to improve the valuation process. The aim is to improve the sometimes extortionate floor prices and sales that reach tens of millions of dollars. If the project goes to plan, everyday investors should find it easier to get in on NFT drops and collections with more affordable entry points.
See our guide to investing in NFTs here.
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, or withdraw.
At present the supported methods include deposit through credit cards such as VISA, Mastercard or Diners.
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 fee to withdraw, 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 has also rolled out a free debit card for UK traders. This is available to holders of the broker’s investment account and enables instant, fee-free deposits and withdrawals. From the payments area, users can also make global payments with highly competitive conversion rates. eToro has hinted at plans for a global roll out of its new eToro Money program and free debit card, so stay tuned.
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.
On the downside, the broker’s spreads are higher than those offered by other providers. 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 may erode away at any gain that is made from day trading.
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
eToro accepts traders from Australia, United States, United Kingdom, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Kuwait, Luxembourg, Qatar and most other countries.
Traders can not use eToro from Iran, Turkey, Japan, Canada, Hong Kong, Singapore, Saudi Arabia, India, Madagascar, Macao, South Africa, Thailand.
Alternatives to eToro
If you are looking for alternatives to eToro we have compiled a list of the top 5 brokers that are similar to eToro below. This list of brokers like eToro is in order of similarity and only includes companies that accept traders from your location.
- LQDFX – LQDFX offers online trading with multiple STP accounts and MT4 analysis tools.
- Forex.com – Forex.com boast a global reputation. Regulated in the UK, EU, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.
- EagleFX – EagleFX is a popular trading broker offering forex, stocks, cryptos & commodities.
- Exinity – Exinity provides flexible low-cost trading in FX, commodities, indices and equities alongside unique education and support provided by teams located across the world. Now operating in the Middle East, through regulation from the Financial Services Regulatory Authority in Abu Dhabi and the Financial Services Commission of Mauritius, Exinity provides a range of services to traders and investors looking for new opportunities in the financial markets.
- Kraken – Kraken is a top-rated cryptocurrency trading exchange offering the largest tokens and altcoins by market cap.
What is the minimum deposit requirement to open a trading account?
The minimum deposit requirement at eToro is $200 for Non-US and Non-UK traders. US Traders can open an account with just $50. UK traders can now open an account with $10.
How fast can my withdrawal request be processed?
Typically, it takes 3 business days to create and 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 proprietary trading platform called “CopyTrader”.
What is the maximum leverage available at eToro?
The maximum leverage that is available at eToro for EU and UK traders is 1:30. For traders in other regions, leverage can reach 1:100, though it varies by asset.
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. 68% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Yourcapital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
|eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. eToro USA LLC does not offer CFDs, only real crypto assets available.
68% 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 vs Other Brokers
Compare eToro with any other broker by selecting the other broker below.
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