eToro Review Best Social And Copy Trading Platform App

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

eToro Review

eToro is a global multi-asset platform that lets users trade traditional stocks, shares, and major cryptocurrencies. Compared with other crypto trading services, it is a fully regulated exchange with more than 10 million registered users worldwide. Launched in 2007, it has been an active advocate for Bitcoin and cryptocurrencies and has been offering Bitcoin trading since 2020. In 2020, it also launched its crypto trading platform and wallet in the United States. The service is ideal for new traders and investors who want to learn and experience the best of both crypto and traditional finance worlds.

General info

  • Web address: eToro
  • Support contact: Link
  • Main location: Limassol, Cyprus
  • Daily volume: ? BTC
  • Mobile app available: Yes
  • Is decentralized: No
  • Parent Company: eToro Group Limited
  • Transfer types: Bank Transfer, Credit Card, Debit Card, Crypto Transfer
  • Supported fiat: USD
  • Supported pairs: 16
  • Has token: –
  • Fees: Medium (Compare rates)
  • Easy to use
  • Highly social and regulated platform
  • Ability to follow and copy other traders
  • Helpful ‘virtual account’ training feature
  • Withdrawals don’t work for all cryptocurrencies
  • Not an exchange, so there’s no buyer/seller marketplace
  • Only crypto trading in the U.S.

Screenshots

Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% 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.

The information below is not investment advice.

eToro key features

eToro is an ideal social trading and multi-asset platform for investors who are new to the investment world. The platform has been pioneering online investment space since 2006 and has earned its reputation as a credible broker. eToro platform is an excellent option if you’re interested in cryptocurrency or traditional assets like stocks, commodities or ETFs, and operates as a one-stop-shop for all these products.

Disclaimer: Indicative prices for illustration purposes.

Advanced traders may benefit from eToro margin trading, which allows you to access a myriad of trading instruments with leverage. Less experienced traders can benefit from eToro social trading where you can follow and copy seasoned investors, their research, and insights.

Note that the recently launched eToroU.S. platform allows trading cryptocurrencies only, but other asset classes are coming soon.

The key features of eToro include:

eToro social trading. eToro offers a unique social trading experience, which makes it the best social platform for traders. You can follow, copy, interact with your favorite traders, and create a custom news feed to keep tabs on your preferred assets and their news.
Best platform for learning. Plenty of educational materials, including a virtual portfolio for training.
A vast range of assets. Aside from 16 cryptocurrencies, you can also learn and trade in traditional markets like stocks, bonds, forex, ETFs, commodities, and other markets.
Excellent customer support. If there’s an issue, you can reach eToro’s team via phone, live chat, and support ticket. Besides, the platform is translated into more than 20 languages. The customer service is available Monday to Friday 24 hours per day.
Mobile trading apps. eToro is easily accessible on the go so that you can make trades from your Android or iOS powered phone.

eToro global trading instruments include:

  • 47 currency pairs (including EUR, USD, CAD, GBP, AUD, PLN, SGD, SEK, JPY, and many others).
  • 13 stock index CFDs (SPX 500, UK100, NSDQ100, China50, AUS200 and others).
  • Over 1300 stock CFDs.
  • 83 commodity CFDs (including oil, gold, silver, copper, natural gas and platinum).
  • 16 cryptocurrencies (BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, EOS, NEO, XLM, IOTA, TRX, ZEC, BNB. XTZ).

The U.S. customers can trade cryptocurrencies only for now but that is likely to change anytime soon.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Disclaimer: Cryptocurrencies are a highly volatile unregulated investment product. No EU investor protection.

Sign up on eToro 62% of retail investor accounts lose money when trading CFDs.

In this eToro review, we focus on its fees, usability, security, deposit and withdrawal methods, and the company’s background.

eToro background

Founded in 2006, eToro has a history stretching further back than Bitcoin and crypto. It started its life as an online foreign exchange brokerage. In 2020, it launched its famed copy-trading feature, which enables users to copy the investment strategies of successful traders.

It made its first move into crypto in January 2020, when it began offering Bitcoin trading to the three million users it boasted at the time. At the time, these were contracts for difference (CFD) trades, which meant that the trader didn’t purchase the underlying asset (e.g., bitcoin). Instead, it constituted an agreement that he or she will either pay the difference if the asset drops in price, or will receive the difference if it rises. However, eToro switched to offering direct trades in crypto in September 2020, so now you actually own and can withdraw the cryptocurrencies you buy into eToro wallet. Since March 2020, eToro is finally open to the US residents.

eToro’s core team. Source: eToro.com

Today eToro boasts over ten million users, with its growth primarily driven by the crypto boom. And for a platform of its size, its interface is streamlined and straightforward to use, while its mobile app makes managing your portfolio on the go painlessly convenient.

eToro fees

Compared to ‘standard’ crypto platforms (e.g. Coinbase, Kraken, Binance), eToro’s fee structure is a little different, and slightly complicated.

Since eToro is a brokerage service and not an exchange, it doesn’t charge trading fees the way regular crypto exchanges do. However, you’ll pay something called “spread fees” when selling crypto, and when buying crypto using leverage (i.e., when borrowing from the platform to make a purchase). In other words, if you want to sell (or margin trade) a cryptocurrency, you have to pay a percentage of the sale price. This percentage derives from the ‘spread’ of the asset and constitutes the difference between its ‘buy’ price and its ‘sell’ price.

For example, if you sell one bitcoin at a market price of USD 7,000, you’ll also have to pay 0.75% of the value of this one bitcoin (0.75% being the current BTC spread value at the time of writing). Assuming that 1 BTC equals USD 7,000, you’ll have to pay USD 52.50.

And for any advanced trader taking out a leveraged position on a cryptocurrency, eToro also charges ‘overnight fees,’ which are often referred to as ‘rollover fees’ on other crypto trading platforms. Because the trader is borrowing money from eToro to hold a trading position, eToro essentially charges them interest.

Spread and overnight fees at eToro

Let’s review the spread and overnight fees for some of the most popular cryptocurrencies currently listed on eToro:

Cryptocurrency eToro Spread Fee eToro Overnight Fee (per unit)
Bitcoin 0.75% 4.377224
Bitcoin Cash 1.9% 0.161194
Ethereum 1.9% 0.117836
XRP 2.45% 0.000158
Cardano 2.9% 0.000033
EOS 2.9% 0.002339
Dash 2.9% 0.062788
Binance Coin 2.45% 0.013034
TRON 3.5% 0.000013

As indicated by the table above, overnight fees for BTC are pretty steep. By contrast, traditional crypto platforms are cheaper. For instance, Kraken charges 0.01% every four hours when holding leveraged BTC/EUR or BTC/USD trades. So, if someone has a trade worth 1 BTC on Kraken, they’ll have to pay around 0.00056 BTC if they hold onto this position for 24 hours, whereas an eToro customer would pay approx. 0.0075 BTC.

Similarly, the spread fees generally mean that trading buying or selling crypto on eToro is more expensive than trading on other platforms. For example, Binance and Bitstamp each charge 0.1% for every trade a user makes, which compared to eToro’s spread fee of 0.75% for BTC is noticeably cheaper.

And lastly, eToro also charges withdrawal fees and inactivity fees. The withdrawal fee is a flat USD 25, with users being allowed to withdraw amounts of USD 50 and above. Meanwhile, the inactivity fee is $10 per month. It is charged to every user whose account hasn’t been active for 4 or 12 months, depending on whether they have made a deposit.

Note that eToro adjusts its fees according to the market conditions, so by the time you read this review, they may already be different.

eToro charts. Disclaimer: Indicative prices; current market price is shown on the eToro trading platform. Visit eToro 62% of retail investor accounts lose money when trading CFDs.

Security of the platform

If you were to review eToro’s website and platform, you would find that eToro has experienced no significant scandals in the past. Nevertheless, security isn’t eToro’s major selling point. It is mostly because, up until 2020, cryptocurrencies weren’t directly traded and transferred using the eToro platform. Instead, users held a contract for difference (CFD), meaning that they agreed to either pay or receive the difference if the price of a coin sunk or rose.

In other words, eToro didn’t hold any crypto that was owned by its customers. There was no need for it to use the kinds of security measures deployed at competing crypto platforms, such as cold wallets and multi-sig verification.

Today, it does offer direct cryptocurrency, but the website doesn’t specify what crypto security measures it takes to protect customers’ assets. Mind that eToro wallet keeps your private key, so you have to trust the platform to keep your funds secure. That said, it does hold its customers’ holdings separate from its bank accounts. Also, eToro deals only with major, internationally recognized financial institutions, such as Barclays Banks and Coutts. Besides, eToro is one of the most secure platforms in terms of its general compliance with financial regulation, being regulated by CySEC in Europe, FinCEN in the US, and the FCA in the UK.

Go to eToro 62% of retail investor accounts lose money when trading CFDs.

eToro usability

While eToro offers a couple of essential features that make it highly suitable for starting and novice traders. It provides a Virtual Portfolio, which is a ‘demo mode’ that lets users trade without staking any real money. Using this mode, you can buy as much ‘virtual’ bitcoin, dash or XRP as you like and watch how each cryptocurrency performs.

eToro’s use of copy trading is excellent for traders who don’t feel confident in their ability to consistently select winners. With the CopyTrader system, eToro lets you copy the best-performing traders in a variety of asset markets (e.g., commodities, stocks, ETFs, and crypto). You choose how much to invest, and then it mirrors every action the trader takes. Besides, users can make adjustments here and there (such as copying only new trades rather than all open positions).

The layout of eToro’s platform is user-friendly and easy to navigate. The user has a control panel on the left-hand side of the screen. The right-hand side shows all the charts, data, and profiles you’ll need to make your investment choices. Likewise, eToro’s mobile apps allow you to do pretty much everything you can do on the desktop version of the platform. The ability to receive notifications on the go means you’ll be able to stay on top of your trades regardless of where you are. The apps are available for both Android and iOS devices.

eToro social trading

eToro social trading feature. Dislcaimer: Indicative prices; current market price is shown on the eToro trading platform.

eToro’s copy trading enables you to copy the actions of traders of your choosing. It is like having seasoned traders from all over the globe trade on your behalf. You can follow specific traders in the social feed, monitor their actions in real-time, and opt-in to copy everything they do.

As such, eToro is the social media platform of traders that bridges the gap between you, your favorite traders, and favorite markets.

Disclaimer: Past performance does not guarantee future results. Trading history presented is less than 5 years and may not suffice as basis for investment decision.

eToro deposit and withdrawal methods

At the moment, eToro users can deposit only fiat currency into their eToro account, unless you transfer cryptocurrency directly to the eToro wallet. Besides that, you can use your credit/debit cards and a variety of other options, such as wire transfer and PayPal. All fiat funds held by eToro are actually in US dollars, so if you deposit EUR or GBP into your account eToro will convert it to USD. As such, you will incur a conversion fee.

Withdrawals work in much the same way, with credit/debit card, bank transfer, and PayPal options all available. However, there is a flat fee of USD 25 for every withdrawal, so make sure to plan your withdrawals to avoid extra costs. The eToro crypto wallet also allows the platform users to hold and withdraw cryptocurrencies it supports.

eToro withdrawal methods.

Final thoughts

eToro is a unique social investment platform with a diverse variety of investment products. Although it comes at a higher cost compared with regular crypto trading services, the benefits outweigh the costs as eToro offers significantly more. Overall, eToro is an excellent place to start learning about the online investment world, diversify your portfolio, connect with other investors, and build a career as a wholesome trader.

Visit eToro 62% of retail investor accounts lose money when trading CFDs.

Frequently asked questions (FAQ)

Where is eToro based?

eToro has offices in London, United Kingdom, Sydney, Australia, New Jersey, USA, Israel, and Limassol, Cyprus.

In which countries eToro is legal?

eToro is accessible in most countries in the world. Due to the challenges and legal regulations, eToro is not available in the following countries: Afghanistan, Albania, Belarus, Bosnia and Herzegovina, Botswana, Brunei, Burundi, Canada, Chad, Congo Republic, Crimea, Cuba, Ethiopia, Guyana, Guinea & Guinea-Bissau, Iran, Japan, Laos, Libya, Mali, Myanmar, Namibia, Nicaragua, North Korea, Palau, Samoa, Serbia, Somalia, Sudan, Syria, Turkey, Uganda, and Yemen.

Due to regulatory reasons, eToro is also unavailable for the US citizens who reside outside of the US.

Is eToro regulated?

Yes. eToro is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investments Commission in Australia.

Is eToro trustworthy?

eToro is one of the most trustworthy platforms out there. It has been operating since 2006, have a good track record, cooperates with the law, and is regulated by FCA (United Kingdom), CySEC (Cyprus), and ASIC (Australia).

How does eToro make money?

Like most platforms, eToro earns when users pay fees. The most common source of income spreads, but there are also overnight fees, currency fluctuations, exchange rates, and leveraged trading.

What happens if eToro goes bust?
Leaving your funds on eToro introduces additional counterparty risk. Despite that, eToro is a member of the Investor Compensation Fund for Customers of Cypriot Investment Firms which compensates the clients of bankrupt forex brokers. Nonetheless, the maximum payout is 20,000 EUR per client, so if it goes bankrupt, you could lose at least some of your funds without a refund.

Does eToro pay dividends?
eToro is one of a few brokers that does pay its brokers dividends. You reap all the dividends multiplied by leverage, as stated in the dividend calendar. They will show up under the “Refunds” section and will be used to pay for the platform’s accrued fees. If the net difference between the “Refund” amount and fees is positive, you will be credited with the difference when the trade is closed.

Does eToro have fees?
eToro does not charge any deposit or trading fees except for spreads. There is also a $25 withdrawal fee and extra overnight and weekend fees for CFD positions. The size of the fee varies per traded instrument.

What is the minimum deposit for eToro?
The minimum deposit on eToro is $200.

How do I invest in eToro?
After you open an account on eToro and make the first deposit, you can invest in various CFDs and cryptocurrencies with a simple few clicks. Alternatively, you can copy other traders moves and invest together with them.

How do I deposit in eToro account?
eToro supports many deposit methods, including credit and debit cards, wire transfers, PayPal, Skrill, Neteller, Webmoney, and UnionPay.

How do I withdraw money from eToro?

eToro allows you to withdraw money through the same methods used for making deposits. These include wire transfers, credit and debit cards, e-wallets, and cryptocurrency transfers from eToro wallet to an external wallet. The process takes approximately 24 hours.

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. 62% 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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short
timeframe and therefore are not appropriate for all investors. Other than via CFDs,
trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory
framework.
space

eToro Review

eToro is a winner in 2020 for its easy-to-use copy-trading platform where traders can copy the trades of other users across over 1,900 instruments, including CFDs on popular cryptocurrencies. The one downside of eToro is pricing; otherwise, eToro delivers.

Top Takeaways for 2020

After spending five months testing 30 of the best forex brokers for our 4th Annual Review, here are our top findings on eToro:

  • Founded in 2007, eToro and is regulated in two tier-1 jurisdictions and one tier-2 jurisdiction, making it a safe broker (low-risk) for forex and CFDs trading.
  • eToro is excellent for social copy trading and cryptocurrency trading, our top pick for both categories in 2020. Furthermore, eToro offers a user-friendly web platform and mobile app that is great for less experienced investors.
  • For regular CFDs and forex spot trading, eToro is pricier than most of its competitors and charges wide spreads, despite offering a premium account for high deposit clients. Also, while eToro offers traders unique research for social trading, we found its market research tools to be unimpressive.

Overall Summary

Feature eToro
Overall 4 Stars
Trust Score 91
Offering of Investments 4.5 Stars
Commissions & Fees 3 Stars
Platform & Tools 4 Stars
Research 4 Stars
Mobile Trading 4 Stars
Customer Service .1 Stars
Education 4 Stars

Is eToro Safe?

The bottom line is that eToro is regulated, licensed, and is a safe broker to trade forex and CFDs with. eToro is considered low-risk, with an overall Trust Score of 91 out of 99. eToro is not publicly traded and does not operate a bank. eToro (UK) Ltd, a Financial Services Company, is authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263. eToro (or one of its subsidiaries) is also authorised by Australian Securities & Investment Commission (Licence 491139) and the Cyprus Securities and Exchange Commission (license # 109/10). Learn more about Trust Score.

Feature eToro
Year Founded 2007
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses 2
Tier-2 Licenses 1
Tier-3 Licenses 0
Trust Score 91

Offering of Investments

eToro offers forex and CFD traders a wide variety of investment options. Alongside 47 currency pairs for spot trading, eToro also provides 1,933 CFDs, including on cryptocurrencies.

When it comes to trading cryptocurrency, eToro is our top pick for 2020. Note: Trading in the actual (non-CFD) underlying cryptocurrencies is available through the firm’s eToroX offering, regulated by the Gibraltar FSC, and registered in the US with FinCEN as a Money Service Business (MSB).

Feature eToro
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs) 47
CFDs – Total Offered 1980
Social Trading / Copy-Trading Yes
Cryptocurrency traded as actual Yes
Cryptocurrency traded as CFD Yes

Commissions & Fees

eToro is a market-maker broker and lists a typical minimum fixed spread of three pips on the EUR/USD, which is on the high end of the range when comparing brokers with fixed and floating spreads, making it a more expensive platform.

When comparing fees alone, retail traders don’t choose eToro for its spreads, but rather for its platform and social trading capabilities tools (see further down for more details), as its pricing is otherwise expensive.

VIP accounts: eToro offers a VIP club membership with five tiers ranging from gold to diamond for traders who maintain balances between $5k -$250k. Depending on the level, benefits vary from a dedicated account manager to discounted withdrawal and deposit fees, access to private signals, and exclusive assets, among other VIP-style account benefits.

Account tiers: eToro’s Popular Investor program has four levels – from cadet to elite – where you can can be eligible to receive various perks ranging from spread rebates to a monthly payment and even a management fee for those who reach elite status. Unlike an active trader program, which usually requires volumes or deposit thresholds to be met, the Popular Investor program encourages traders to focus on producing successful results to receive applicable incentives.

Cryptocurrency trading: The fee for exchanging crypto to fiat at eToroX is 5% (based on an eToroX fee of 1% plus a 4% Simplex fee), while converting from crypto to crypto is only 0.1% with a minimum trade size of $20 and maximum of $10,000 per transaction. In terms of crypto trading costs, spreads at eToro range from 0.75% on Bitcoin (BTC) to as much as 4.5% on crypto-assets such as Miota (IOTA).

Feature eToro
Minimum Initial Deposit $200
Average Spread EUR/USD – Standard 3 (as of May 19)
All-in Cost EUR/USD – Active N/A
Active Trader or VIP Discounts Yes

Platforms & Tools

eToro has done well merging self-directed trading and copy trading under a unified trading experience. It’s a winning combination. See Best FX Brokers for Copy Trading 2020.

Ease of use is at the heart of the eToro platform experience. It is easy to carry out basic operations and do things quickly, such as creating several watchlists and adding instruments by searching available markets, as well as placing a trade from each watchlist directly. These qualities helped eToro rank Best in Class in the Ease of Use category, as well as for Beginners in 2020.

CopyPortfolios: One innovative tool is CopyPortfolios, where eToro groups traders into a single fund you can copy trade. CopyPortfolios help bridge the gap for investors who want to use eToro on a passive basis, as they can create a portfolio based entirely on one or more CopyPortfolios. On the other hand, self-directed traders can also use CopyPortfolios to diversify their trading, making it potentially useful for all eToro clients.

Cryptocurrency tools: In addition to self-directed trading across 93 cryptocurrency CFD pairs, users can find crypto trading ideas and copy other individual crypto traders, as well as copy groups of traders. For investors looking to trade the underlying crypto assets, eToroX offers the eToro Mobile wallet app that acts as a custodian using a multi-signature scheme and nearly matches the brand’s forex mobile app.

Copy-trading quality: All traders on eToro trade manually. Fully automated trading systems are not permitted, which means when you copy another trader, you can be sure they are placing each trade manually. This is useful to know as many other social trading platforms that aggregate the performance of traders usually permit both discretionary (manual) trades as well as automated strategies, while eToro’s network consists solely of manual trading.

MetaTrader: Unfortunately, MetaTrader is not available at eToro (see: Best MetaTrader Brokers 2020).

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Research

Overall, eToro’s research offering has a good foundation but can be improved. Beyond a standard economic calendar (which is only available on the website) and news headlines (also found only on the broker’s site), there are few research options on eToro in the traditional sense of technical and fundamental analysis.

Social Trading: eToro does, however, incorporate many social elements into its available research tools when it comes to market sentiment. For example, rather than show sentiment based on all users – only the trades of top traders are used to calculate sentiment data (taking it a step above the usual sentiment tools brokers provide). In addition, collective commentary about an instrument will appear as a stream of updates from users to give you an idea of what other traders are posting about in the eToro network, compared to StockTwits, for example.

Other market research: In 2020, eToro boosted its research offering with the addition of TipRanks, which powers the new research tab on its platform. That said, adding news headlines and incorporating the economic calendar into the platform experience would help fill the gap in the research tools available on the eToro platform.

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Mobile Trading

Overall, eToro has done a great job with its mobile experience. Testing the mobile app on Android, eToro maintains the look and feel of the web version, which is great. Functionality such as syncing watchlists helps to unify the platform experience across devices further.

Charting: Like the rest of the mobile app, the charts were responsive and closely matched the web platform, even though just five indicators are present compared to 67 on the web. Drawing tools were missing from the app entirely and would be a welcome enhancement. Otherwise, the charts in the mobile app are nicely integrated and function well, despite the lack of drawing tools.

Cryptocurrency wallet: The eToro Wallet is a separate mobile app where users can deposit and withdraw actual cryptocurrencies that are held by eToroX, which acts as the custodian of their private keys and broker. The eToro Wallet closely resembles the look and feel of the eToro mobile app, including support for social trading.

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Customer Service

To score Customer Service, ForexBrokers.com partnered with customer experience research group Customerwise to conduct phone tests from locations throughout the UK. For our 2020 Review, 229 customer service tests were conducted over six weeks.

Results

  • Average Connection Time: (23 brokers)

Final Thoughts

eToro can be great for retail traders who want to crowdsource investment ideas using the power of copy trading, or for highly experienced traders who want to be rewarded for sharing their ideas with other traders.

Less experienced traders requiring handholding may find the user-friendly platform an added benefit. That said, I do not recommend eToro for active or high-volume traders as high spreads and small maximum trade sizes will be a limiting factor. Otherwise, when it comes to social copy trading and crypto trading, eToro is our number one choice in 2020.

About eToro

As an early pioneer in social copy trading, eToro was founded in Israel in 2006 as a financial trading technology developer. After launching its first product, it has since grown to service over 9 million users with an innovative platform that continually evolves to be one of the largest social networks globally, with clients in over 170 countries.

In March 2020, eToro announced it had raised a $100 million round of private equity financing led by China Minsheng Financial, the SBI Group, and Korea Investment Partner, and other investors, valuing the company at $800 million. Read more on Wikipedia about eToro.

eToro Trading Features

Feature eToro
Virtual Trading (Demo) Yes
Proprietary Platform Yes
Desktop Platform (Windows) No
Web Platform Yes
Social Trading / Copy-Trading Yes
MetaTrader 4 (MT4) No
MetaTrader 5 (MT5) No
cTrader No
Charting – Indicators / Studies (Total) 66
Charting – Drawing Tools (Total) 13
Charting – Trade From Chart No
Watchlists – Total Fields 6
Order Type – Trailing Stop Yes

eToro Research Features

Feature eToro
Daily Market Commentary Yes
Forex News (Top-Tier Sources) No
Weekly Webinars No
AutoChartist No
Trading Central (Recognia) No
Delkos Research No
Social Sentiment – Currency Pairs Yes
Economic Calendar Yes

eToro Mobile App Features

Feature eToro
Android App Yes
Apple iOS App Yes
Trading – Forex Yes
Trading – CFDs Yes
Alerts – Basic Fields No
Watch List Yes
Watch List Syncing Yes
Charting – Indicators / Studies 5
Charting – Draw Trend Lines No
Charting – Trend Lines Moveable No
Charting – Multiple Time Frames Yes
Charting – Drawings Autosave No
Forex Calendar No

Disclosures

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.

Please note that 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.

Cryptocurrencies are a highly volatile unregulated investment product. No EU investor protection.

2020 Review Methodology

For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers over a five month time period. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

“There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.” Learn more.

eToro Review – Social Trading Platform With Copy Trading

eToro is an instantly recognizable brand to anyone familiar with the world of financial trading. Famous for its trademarked Copytrader, which allows you to shadow and follow the most successful traders using the platform, it’s uniquely suited to both newbies and seasoned veterans alike. In this eToro review, we’ll take a closer look at all of the different elements of eToro, and compare them to what else is out there.

We’ll ask what it offers that other platforms don’t, if anything, and whether or not this is the right trading platform for you. By the end of this review, you’ll have a better idea.

Let’s dive right in and explore it.

Who should consider using eToro?

eToro is suitable for all, from beginner traders to advanced, and everyone in between. However, it is particularly suitable for two groups:

  • Those new to trading who aren’t confident enough to go it alone.
  • Professional traders who are looking for extra revenue streams

As mentioned previously, eToro is known for its Copytrader feature, which allows anyone to literally copy the trades of advanced traders. This works for both parties since it allows new traders to learn , and allows the trader being copied to make a 2% commission on each successful trade.

  • While these two groups will find eToro ideal, traders who deal in exotic instruments may find the platform a little limiting . All of the most common commodities and pairs are available to trade, but there are limits and eToro offers less than some of the other professional platforms in this regard.

Likes & Dislikes

Likes

Dislikes

  • Easy interface which loads quickly – it’s built on HTML5 which is much faster than Flash alternatives.
  • Social copy trading is great for beginners as a way to learn from more experienced traders.
  • Depositing is easy and the minimum is low at just $50.
  • eToro offers a free demo account which is fully functional.
  • There are multiple platforms to choose from, and there’s no requirement to download. eToro is a versatile platform .
  • The trading academy has a comprehensive range of educational materials , all of which are excellent in terms of quality.
  • eToro is not available to traders from the USA.
  • While most popular pairs are available, eToro can be limited when compared to other professional platforms.
  • Charts are both limited and clunky. Switching between them can be a hassle and can be confusing. This may not appeal to experienced ‘old school’ traders who are used to versatile charts which can be navigated seamlessly.
  • eToro has high spreads and its overnight fees are higher than average.
  • Only available in US D , meaning currency transaction fees will slowly eat into profits.

eToro Fees

A consideration of the fees you will incur for using a trading platform should be an essential factor in your decision about whether or not to register. The following is a quick overview of eToro’s fees:

Inactivity fees – If you don’t deposit or login for 4 months, you will have to pay a $5 inactivity fee. The same fee will apply if you deposit and don’t login for 12 months.

Withdrawal fee – You will be charged between $5 and $25 for withdrawals.

Trading Fees – Overall trading fees and spreads vary depending on the instruments you are trading, whether it be currency pairs, indices, commodities, stocks, ETFs, or something else. A full list of all the fees can be found here.

For example, here are some of the current overnight fees. Keep in mind that these are subject to change depending on market conditions and volatility:

Currencies

EUR/USD – Overnight fees 0.03 (sell) to -0.6 (buy)

UAD/CHP – Overnight fees -0.72 (sell) to 0.52 (buy)

Indices

SPX500 – Overnight fees – 0.003 (sell) to -0.15 (buy)

NSDQ100 – Overnight fees -0.36 (sell) to -0.36 (buy)

Commodities

OIL/USD – Overnight fees 0 (sell) 0 (buy)

GOLD/USD – Overnight fees 0 (sell) -0.6 (buy)

Keep in mind that eToro does not charge a fee for opening a position.

A brief overview of eToro

eToro was founded in 2007 and was built with both beginner and professional traders in mind. The platform is fully regulated by various financial regulatory bodies and is based in Cyprus. Leverage up to 400:1 is available.

The Copytrader feature is patented and is unique to eToro. It’s this feature that allows traders across the spectrum of experience to find the platform useful. You can also build a watchlist to keep an eye on traders you might like to follow as well as instruments you might want to trade.

Of course, you don’t have to copy other traders and can trade freely yourself.

eToro was one of the first on the social trading scene, which has grown tremendously since, as has eToro itself, which has a customer base well into the millions from around the world and is now the official sponsor of West Ham United football club in the English Premier League.

The platform is intuitively simple to use and has been designed with the beginner in mind. Even if you have no previous experience trading, it will take only a short while to get the hang of using the platform.

One of the biggest positives for eToro is the vast range of deposit and withdrawal methods you can use. On top of credit and debit cards, Skrill, PayPal, and even wire transfers are possible when funding your account or taking profits.

There’s also a first deposit bonus available on eToro. You can claim up to $4,000 in eToro credit when making your first deposit by using the bonus code start. In the highest bracket, which is for deposits between $2,500-$10,000 you can claim 40% of the value of your deposit.

eToro Review – Our take

eToro is extremely easy to use. When you first log on you will see a snapshot of all the most popular commodities and instruments and their current prices. You can customize this later to get an instant glimpse of the currencies, stocks, and commodities you are interested in or are currently trading – that will be your Watchlist .

A menu on the left side allows you to view your own portfolio , an eToro news feed with the latest investment news, all of the markets you can invest in, and a list of the successful traders you can copy along with their profiles.

All of this is very easy to navigate and move around. At the bottom of this menu, you can deposit new funds to your account to trade with. It’s a sleek and simple interface, and you will feel familiar with it quickly.

There are actually three separate platforms which you can make use of, depending on the type of device you’re using.

eToro WebTrader

For those who are logging on via a desktop device or laptop, the eToro web trader will be the platform you encounter. It’s laid out exactly as described above and is compatible with both PC and mac devices.

A neat feature of the WebTrader platform is that it can be synced with OpenBook copied trades. These will appear under your ‘copied trades’ automatically in the WebTrader platform. The eToro OpenBook allows other members of the community to review your trades as you open and close them, as you can view theirs.

eToro Mobile Trader

For traders on the move, the mobile trader is a scaled down version of web trader but has all of the same functions.

It can be used on Android, iOS , and Windows devices including phones and tablets.

When you first log on via mobile you will see a snapshot of all of the popular markets, to which you can add the other markets you want to watch.

Scrolling down, you will see the ‘discover people’ section, which allows you to follow traders you are interested in learning from or copying.

The same left-hand menu with all of the same options can be found by clicking the menu icon, and likewise, can be made to vanish by simply clicking X.

There’s also an eToro mobile app which you can download for extra convenience. This allows you all of the same features as the live mobile site.

eToro OpenBook Platform

We mentioned this earlier, but OpenBook is really the main feature or highlight of what eToro is all about. It’s the social hub of the platform, where you can see others trades, swap strategies, and interact with other traders, some of whom might be far advanced on you if you are a beginner.

You can see each trader’s track record, too, which means you can make informed decisions about who to follow or trust. If you see a highly successful trader online, there’s nothing to stop you from watching what (s)he is doing and copying it.

One feature many new traders like is that you can start with a demo account , meaning no risk as you learn the ropes. If you want to test your hunches, theories, and some trading strategies, you can do so using $100,000 in eToro virtual money .

The old OpenBook and WebTrader applications are now combined and are known as CopyTrader. You will find this by clicking ‘copy people’ in the sidebar menu.

Getting started and making trades

Registering at eToro is actually a pain-free process and should take less than a minute to complete. There’s a simple, one-page form to complete asking for your name, username, password, e-mail address, and phone number. Filling this in will get you started, but you will have to complete your profile later to be able to actively trade.

Once you’re on the platform, you will see the ‘Trade Markets’ tab on the left-hand menu. Here you will see a selection of the markets you can trade, including ETF’s, stocks, indices, commodities, and currencies.

You will also see some information related to these markets like price charts which can be changed to different timeframes. You will also be able to see which investors are actively trading that market, and what information or thoughts they have shared on what’s going to happen, as well as what they are actually doing trade-wise.

You can pick from any of these and you will have the option to either buy or sell. There’s an almost game-like feel to the console, which will appeal to some. Don’t get carried away though, the consequences of trading recklessly are very real!

Making trades

Actually making trades can be done by clicking the desired pair, which will take you to a more detailed screen, and then clicking the blue ‘trade’ button. You will then be asked to confirm your trade before executing it.

If at any time you wish to see your live trades you can do so by clicking the ‘portfolio’ tab. To see all of the up to date stats on a specific trade, you will need to click it, and doing so will also give you the option to change some settings such as the stop loss. You will also have the option to close the trade if you’re ready to take profits or cut your losses.

One thing we dislike about eToro is the price charts themselves. They aren’t visually attractive and navigating between them can be clunky. We also would have liked to see options other than candlestick charts. The same criticism can be made of navigating between different pairs – it’s all very slow and doesn’t feel as quick and seamless as it does on some other platforms.

Before you place a trade eToro will always inform you by how much you are leveraged. Always pay attention to this and factor it into any calculations as it will affect your ability to absorb losses if a trade temporarily turns to wrong way, and could lead to the trade being closed if margin calls aren’t met.

CopyTrading

Without a doubt, the distinguishing characteristic of eToro is the Copytrader feature.

You can find this under the tab ‘Copy People’ on the sidebar menu and it is here that you can get a glimpse into the activities of the most successful traders on the platform and copy their trades.

There’s a very ‘social media’ feel about this section of the site, and it did in fact first arise when social media was just taking off about a decade ago.

One of the things beginner traders will probably like best about CopyTrader is the fact that you don’t even have to do anything . You can just pick a trader who has a record you would like to emulate and place a ‘copy’ trade. This will then shadow this trader’s activities, executing the same trades for you.

Searching for a trader to copy is a relatively simple process and several filters are available, allowing you to find a suitable trader to copy. You can filter your searches using the following criteria:

Profile country and verification status – If you prefer to only follow and copy traders from your own or other specific countries, this filter will allow you to do so. You will also be able to see if that trader has verified his or her profile, meaning you can be sure of who they really are.

Amount of copiers and change in the number of copiers – It stands to reason that a trader with a lot of followers is probably one worth watching and that one who has lost a lot of followers recently is probably on a losing streak. This can be invaluable information when deciding who to follow and copy (or not).

Amount of money following the trader – Of those watching and following, how many have gained enough confidence in this trader to take the plunge and copy them? This is a key indicator that should factor into any decision to copy a given trader.

Gain Percentage – You can see a percentage figure indicating the percentage of profitable weeks and percentage of overall profitable trades in a trader’s record.

Average risk score – A score is given to every trader based on the risk involved in his or her trading strategies and records.

Maximum weekly or daily drawdown – Again represented as a percentage, this will allow you to see the loss of a trader’s capital since s(he) achieved their most recent peak.

Maximum high leverage – This will allow you to see how leveraged a trader has been.

Instruments traded – You can search for traders who tend to play stock markets or traders who prefer commodities, currencies, ETFs, or a mix.

Average trade size and exposure – You will want to follow a trader who plays in your financial league. This filter will allow you to do so. Again this figure will be represented as a percentage.

Percentage of weeks active, exposure, & total number of trades to date – You will be able to see how active this trader is and identify patterns in their trading activity.

These filters definitely make finding a suitable trader to follow and potentially copy a lot easier and make Copytrader ideal for beginners.

Once you have found a trader you like you can just click ‘Copy’ . Once confirmed you will automatically follow this trader’s activities, but you will be asked to define stop limits at this stage so as to pre-determine any potential losses and manage risk.

One thing that is important to note is that you will be asked whether or not you want to copy the trader’s current open trades. If you do not exercise this option, the copy feature will kick in only on any future trades placed.

You can use Copytrader with a demo account using virtual money to get a feel for it, but when it comes down to trade for real, you will need to stake a minimum of $100 on any given trade.

You may also notice that some traders have a small green mark beside their names . This is a positive indicator as it means the trader has verified his name and added an image, which eToro has independently verified. This adds that extra element of trust when deciding who to copy.

CopyFunds Function

For those looking for a safer way to copy, eToro does bundle some successful traders together into a fund managed by them.

This has the added advantage that if there are one or two traders who are manipulating data or who will behave recklessly after a string of successes, the others are likely to cancel him or her out leading to an overall successful trade.

The drawback to this is that the minimum investment is $5000.

Investment Offerings

eToro offers ways to get in on the action of all of the popular pairs, but some experienced traders who wish to stray outside the safe lines and deal in more exotic instruments may find what’s on offer a little limiting.

That said, eToro does offer you the chance to trade forex, commodities, indices, stocks, ETFs and bitcoin . Remember that if you have a specific instrument in mind you can search for traders to follow or copy based on what they trade.

Customer Support

Getting in touch with someone when you need help can be done in one of two ways when trading on eToro.

First, you can use the Customer Support Wall, which is a Facebook-style feature, allowing you to drop comments or questions. It’s monitored continuously from Monday-Friday between 8am-5pm, and you will usually get a fairly rapid response.

Alternatively, you can contact the customer support team directly through a ticketing system. This will take up to 48 hours to get a response, which is OK considering the millions of active traders eToro has on its books.

Generally speaking, the customer support is good. It could always be better, but as far as comparing it to rival platforms go, it’s not bad at all.

Educational Material

Since eToro has many features geared towards the beginner trader, it only makes sense that there would be plenty of educational material for beginner traders. It does so through the trading academy.

You can take advantage of free trading e-courses , lots of webinars , and can browse through a vast number of how-to guides produced with the beginners in mind. There’s plenty of written material for those who like to read and there are also lots of videos if you prefer.

For example, if you click ‘ Trading Course’ you will be presented with sections of forex, trading psychology, information on global markets, capital management, market analysis, technical analysis, trading strategies, and even a glossary.

Most platforms these days offer some sort of educational material for traders. The eToro trading academy is very good in terms of quality and covers a broad range of topics related to trading. It’s one of the most comprehensive we have seen.

Conclusion

If you’re a beginner trader, you can’t go wrong with eToro. It’s built for newbies and you will quickly feel at home.

For more advanced traders, whether or not this is the right platform for you will depend on what you’re looking for. The Copytrader feature can work to your advantage in that you can build up a following and earn 2% commission on every successful trade, but you may find the limitations on the available currency pairs to be frustrating if you tend to venture outside the lines.

Overall, eToro could do a few things better such as speeding up the platform, bringing in more attractive visuals on graphs, and perhaps taking the extra measure of forcing traders to verify their accounts before others can copy them, but on the whole, it makes for a great choice.

eToro is an instantly recognizable brand to anyone familiar with the world of financial trading. Famous for its trademarked Copytrader, which allows you to shadow and follow the most successful traders using the platform, it’s uniquely suited to both newbies and seasoned veterans alike. In this eToro review, we’ll take a closer look at all of the different elements of eToro, and compare them to what else is out there.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Binary Options Trading School
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: