eToro Review 2021 – Social Trading Broker

By | June 23, 2021

eToro is an Israeli fintech company. It is also a social trading broker, founded in 2007. It serves UK clients under FCA regulations and Australian clients under ASIC regulations. Read the full eToro Review in this article.

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The rest of the clients and countries are regulated by a Cypriot unit, Cyprus Securities and Exchange Commission (CySEC).

eToro Review

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. It would help if you considered whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Account opening

eToro Account Opening

The 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 Fees

eToro Commission and 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: a $5 withdrawal fee and an inactivity fee are also charged. 

eToro fees snapshot

AssetsFee
S&P 500 CFDThe fees are built into the spread; 0.7 points are the average spread cost during peak trading hours.
Europe 50 CFDThe fees are built into the spread; 3 points are 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

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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, 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 payments through credit/debit card are frequent. 

eToro Trading Platform

eToro provides two types of platforms – online or through mobile apps. The website is easy to use and user-friendly. 

All you have to do is 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 a 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 CFDs, forex, real stocks, ETFs, and many cryptocurrencies. Also, eToro offers some innovative services of social trading & Portfolio Copying.

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 to copy the portfolio of big traders associated with eToro.

You can check other traders’ profiles and trace their monthly & weekly profiles to get an idea of how trading works.

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 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 ?

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.

Pros/Cons

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

Customer Service

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

eToro Customer Service
  • 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 Review 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 top financial institutions regulate it, no minimum deposits required, and inactive fee only kicks after one year.


FAQs

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  

When can I forex crypto?

You can trade crypto anytime 7 days a week. But it will be unavailable from 5:30 pm–6:30 pm ET for regular maintenance & settlement.

Can I make a manual currency conversion?

Yes, you can convert currency from one form to another manually. To do so, you can go to the Orders tab and then select Currency Transaction.

eToro Review

9.1

Fees

8.9/10

Platform

9.2/10

Products

9.1/10

Customer Support

9.2/10
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