eToro Review

By | February 26, 2021

eToro is an Israeli fintech company. It is also a social trading broker, estd. In 2007. It serves UK clients under FCA regulations, and Australian clients under ASIC regulations. Rest of the clients and countries are regulated by a Cypriot unit, Cyprus Securities and Exchange Commission (CySEC).

 Although it is not listed on any of the stock exchange and does not either have any parent bank. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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

Account opening:

Account opening process at eToro is fast and simple. It requires only a day to activate the account and to start trading. 

 What is the minimum deposit at eToro?

In most cases the required eToro minimum deposit is $200. However, there are some exceptions:

  • If you are from Israel, the minimum deposit is $10,000.
  • For Australia and the USA, the minimum first-time deposit is $50.
  • For residents of Russia, China, Hong Kong, Taiwan and Macau, the minimum first-time deposit is $500.
  • The minimum amount for a bank transfer is $500.

eToro offers only two types of account: live account or demo account. 

eToro

eToro Fees:

It offers free stock and ETF trading. The forex and CFD fees are also average. On the other side, non-trading fees are high: there is a $5 withdrawal fee and an inactivity fee is also charged. 

eToro fees snapshot

AssetsFee Terms
S&P 500 CFDThe fees are built into the spread, 0.7 points is the average spread cost during peak trading hours.
Europe 50 CFDThe fees are built into the spread, 3 points is the average spread cost during peak trading hours.
EURUSDThe fees are built into the spread, 1 pip is the average spread cost during peak trading hours.
Inactivity fee$10 per month after one year inactivity

eToro CFD fees for a $2,000 long position held for one week

S&P 500 index CFD fee$1.5
Europe 50 index CFD fee$2.7
Apple CFD fee$6.7
Vodafone CFD fee

eToro forex benchmark fees of a $20,000 held for one week

EURUSD benchmark fee$8.8
GBPUSD benchmark fee$8.5
AUDUSD benchmark fee$8.2
EURCHF benchmark fee$12.6
EURGBP benchmark fee$12.3
eToro

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Deposit and Withdrawal

eToro does not charge any deposit and withdrawal fees. It charges an inactivity fee, which is reasonable. You can withdraw your amount via credit/debit card for free, but bank transfer and other eWallet withdrawals are quite costly.

eToro provides currency as a base currency, that is USD. If you have your bank account operating in any one of the currencies mentioned above, then you trade assets in the base currency. 

In such a case, you don’t have to pay a conversion fee.  You can deposit money from the account in your name. Bank transfer can take several days, whereas payment through credit/debit card are frequent. 

eToro

eToro Trading Platform

eToro provides two types of platform – online or through mobile app. The website is easy to use and user friendly.  All you have to do is is to log in to your account and you’ll be redirected to the main trading dashboard. There you can search the assets you are looking for through the search bar.

eToro’s mobile app offers the same user friendly interface. It is basic and straightforward to use. The mobile app is available in the language similar to those of your account. It provides you safe login by providing two-step authentication and touch and face ID support.

eToro’s web platform is available in 21 languages. 

Products Offered:

At eToro you can trade with CFDs and forex, as well as real stocks, ETFs and many cryptocurrencies. In addition, the broker offers innovative services like social trading and CopyPortfolio.

eToro asset availability

Currency pairs (#)47
Stock index CFDs (#)13
Stock CFDs (#)2000
ETF CFDs (#)145
Commodity CFDs (#)14
Bond CFDs (#)
Futures CFDs (#)
Cryptos (#)16

eToro has two distinctive innovations, CopyTrader and CopyPortfolio. CopyTrader is the so-called social trading feature. One by one you can copy the portfolio of traders, who also trade with eToro. You can browse through the profiles of other eToro traders, checking their previous performance on an annual and a monthly level. The minimum amount you can invest in one trade is $200, while the maximum is $500,000. Furthermore, you can copy a maximum of 100 traders, simultaneously.

With CopyTrader you were following one trader, with CopyPortfolio you can invest either in a theme or in a portfolio of top eToro traders.

  • Investing in themes means, for example, investing in a portfolio of big banks or cryptocurrencies. The Crypto Portfolio, for instance, consists of the biggest cryptocurrencies, weighted by market cap.
  • Another way to invest via CopyPortfolio is to invest in a portfolio composed of multiple “star” traders.
  • There is also a crypto CopyPortfolio available.

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Is eToro Safe ?

eToro is regulated by top financial institutes like; FCA, ASIC and CySEC. 

All clients onboarded to these three entities above are eligible for eToro’s private insurance. It is a £/$€ 1,000,000 insurance for cash, securities, CFDs  

eToro investor protection

Country of ClientsProtection AmountRegulator Legal Entity
United Kingdom£85,000 + £1,000,000Financial Conduct Authority (FCA)eToro (UK) Ltd.
Australia$1,000,000Australian Securities and Investments Commission (ASIC)eToro AUS Capital Pty Ltd.
Other clients€20,000 + €1,000,000Cyprus Securities and Exchange Commission (CySEC)eToro (Europe) Ltd.
ProsCons
Seamless account openingOnly one account base currency
 Social trading experienceHigh non-trading fees
 Free stock and ETF trading$5 withdrawal fee
User-friendly Conversion fee for non-USD deposits
 Analyst recommendationsFinancial information is not publicly available
eToro

Customer Service

eToro’s customer service is average. You can reach them via various measure, like;

Phone Support

Live Chat

Email Support

But the negative thing is that you’re not able to reach customer support at weekends. They stay offline most of the time.

eToro

The Verdict 

eToro is a user friendly platform that helps you to perform your trading function easily. It provided a good amount of research and educational tools. On the other hand, it charges high forex fees and products are limited to forex and CFDs. Its withdrawal fees are also high. 

You can definitely give it a try since it is regulated by top financial institutions, no minimum deposits required and inactive fee only kicks after one year.

eToro

eToro Review

9.1

Fees

8.9/10

Platform

9.2/10

Products

9.1/10

Customer Support

9.2/10

Pros

  • Seamless account opening
  • User-friendly

Cons

  • High non-trading fees
  • Only one account base currency

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