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eToro Broker Review

FX Scouts By Jeffrey Cammack Updated: October 23, 2019
Average Score
3 / 5
Min. Deposit USD 200
Max. Leverage 30:1
Min. Spread 2.0 pips
Regulators CySEC,FCA,ASIC
Regulator Origin CySEC FCA ASIC
Broker Type Market Maker

Summary

Founded in 2007, eToro’s aim was to make global markets more open, so that anyone could trade and invest simply and transparently. eToro has won multiple awards for innovation, are pioneers in technology, and have successfully disrupted the traditional industry approach.

With a unique proprietary trading platform, eToro has succeeded in making trading more accessible to the beginner trader, but only by completely upending the traditional broker space.

The social component, which sits at the centre of the platform, seeks to inspire and encourage traders. eToro also believes that making its community of 6 million traders integral to the platform creates transparency and makes the overall experience more enjoyable. As cryptocurrencies have become more popular, eToro has introduced a wide variety of cryptocurrency CFDs to traders.

Reviews

Trust Rating
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Bonuses
Beginner Friendly Good
About our review process

Trading Conditions

Minimum Deposit USD 200
Base currencies USD, EUR, GBP, AUD
Number of FX Pairs 47
Hedging Allowed
Scalping
Swap-Free Accounts

Average Spreads

EUR / USD 3
GBP / USD 4
USD / JPY 2

Company Details

Company name eToro (UK) Ltd
Founded 2006
Website Visit Website
Type Market Maker
Regulators CySEC,FCA,ASIC
Office locations Cyprus,UK,Israel

Deposit & Withdrawal Methods

Supported Platforms for eToro

eToro Broker Detailed Review

Is eToro safe?

eToro offers a robust award-winning platform and trading product that is very different from other brokers.

Recently winning awards at Finovate for Best in Show 2015 and 2017 for leadership in the Financial Technology industry, eToro has received attention from the trading community for their innovation in technology.

eToro is a well-regulated broker with regulation from all three major international regulators. eToro (Europe) Ltd has been regulated by CySEC (license 109/10) since 2010, eToro (UK) Ltd has been regulated by the FCA (license 583263) 2013, and eToro AUS Capital Pty Ltd has been regulated by ASIC (license 491139) 2017.

Clients should be aware that the quality of the trading advice coming from the eToro community varies and should be considered unreliable until it has been well vetted.

Because of eToro’s strong commitment to regulation and regulatory processes that are designed to protect client funds and legal operations on the platform, we consider eToro a safe broker with which to trade.

eToro for Beginners

eToro’s web platform is very easy to use and is a big draw for beginner traders.  With its unique integrated social component, advice and trading opportunities are always available from a community of traders.  The customer support ticket system is open 24/7, but there are no live chat or telephone options found at other brokers.  The focus at eToro is simplicity and fun, marking them out as a unique prospect among their peers.

Educational Material

The eToro trading academy has a small set of e-courses and videos that teach traders the basics of trading; more from an overview perspective rather than in-depth courses that are sometimes found at brokers. Webinars are held occasionally, which approach more granular topics that have a connection to current market conditions.

Analysis Material

The analysis material comes from the community of traders on the eToro platform. The news feed is central to the web-based trading platform and is a never-ending unfiltered list of trading ideas and accompanying graphs.  This analysis material is generated by the community, and the accuracy of this information should be considered poor until proven otherwise.

Customer Support

Following the explosive growth in popularity of eToro from the end of 2017, customer service started using a ticketing system for maintaining client relationships and ensuring all clients get answers. While customer service is open 24/7 and the community of traders is available to help with trading and platform questions, there is no way to contact eToro by phone or live chat.

Trading Conditions

Account Types

eToro offers different types of accounts for its customers – a demo account, a basic account, and a premium account.  The basic and premium accounts are identical during the signup, with the benefits premium accounts showing once a deposit is made.

Demo Account – Since this account is 100% free there are few features. After opening an account with eToro, you will receive this demo account with 100,000 USD to help you grow accustomed to the platform and practice trading.

Basic Account – This is the basic live account available with eToro. This account gives you access to a free demo account, plus eToro’s exclusive promotions, which are deals and savings sent to users via email. The minimum deposit is 200 USD.

Premium Account – The premium account is for those depositing a minimum of 20,000 USD and may only available after passing a test to determine suitability, depending on your location. You receive a demo account, the same features of a basic account, premium management of your portfolio by a trained professional and no restrictions on leverage in the EU.

Cryptocurrency Trading

As the winner of Best Cryptocurrency Broker 2018 (FX Empire), eToro has more cryptocurrency pairs to trade than most other brokers. The currencies available to you are Bitcoin, Dash, Ethereum Classic, Ethereum, Litecoin & Ripple. The screenshot below is the cryptocurrency overview of the trading platform.

Spreads and Commissions

Spreads at eToro are higher than at many other brokers, but as their platform is proprietary and they are the market maker, there is no opportunity for slippage.

Deposit & Withdrawal fees

There are both deposit and withdrawal fees at eToro. eToro only uses USD as a wallet currency, so depending on what currency you are depositing in, you will be charged a conversion fee, measured in pips from your home currency to USD. For EUR/USD it is a 250 pip conversion fee, and for GBP/USD it is 50 pips, which is approximately 2.5% on Euro deposits and 0.5% on Pound Sterling deposits.

The minimum withdrawal amount at eToro is 50 USD, and a fee of 25 USD is charged on all withdrawals regardless of the amount.

Inactivity Fee

A fee will be charged to all accounts that don’t have a login for 12 months. A fee of 10 USD will be charged monthly until the account owner logs in, making the account active again.

Trading Platform

Etoro has developed a proprietary trading platform available in the browser and on mobile.  The web-based platform is very customisable, so you can select what currencies, commodities, stocks, and cryptocurrencies you want to have in an easy-to-reach dashboard.

My watchlist on eToro

To see more information about a currency pair, click on one in your watchlist to show detailed graphs for any time range you want.  While this is no replacement for technical analysis, it does provide a degree of insight with little effort.

Trading Tools

CopyTrader – eToro are pioneers in the area of copy trading and have invested time and energy to launch new and unique features.  CopyTrader allows you to copy or mimic the trades of any of the active traders in the brokerage.

Filters are used to find traders to copy based on their gains, location, preferred assets etc.  A more advanced search is also available.

eToro also groups traders by Trending, Most Copied and Low Risk so you can find the right trader to copy.

CopyFunds –  CopyFunds is the latest in innovation from eToro.  It allows traders to invest in a fund or group of top-performing traders on eToro.  It also allows investment in a market fund which bundles together all asset classes in a single market strategy.  This kind of risk mitigation and diversification system is unique to eToro and a powerful tool for new traders.

eToro in their own words

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the eToro offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

eToro risk statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. eToro would like you to know that: 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.

Overall

eToro has been recognised across the industry for its innovative and social approach to trading. There are few similarities between the eToro platform and other platforms offered by traditional brokers, so any trader changing brokers will need to learn new software.

eToro focuses on accessibility for traders who want a simple, fun and collaborative platform. It falls a little short when it comes to educational material and analysis that would give traders a better view of how the traditional industry operates.

Please note that when you trade with eToro, your capital is at risk.

Most retail CFD accounts lose money. Your capital is at risk.

Compare Brokers

Overall Rating 3/5 3/5 4/5
Minimum Deposit USD 200 USD 100 USD 10
Regulation
CySEC CySEC
FCA FCA
ASIC ASIC
CySEC CySEC
ASIC ASIC
FSCA FSCA
CySEC CySEC
FCA FCA
FSCA FSCA
Broker Type Market Maker Market Maker ECN/STP
Read Full Review Read Full Review
Trading Conditions 3 / 5 2 / 5 5 / 5
Trading Platforms 3 / 5 3 / 5 5 / 5
Deposit & Withdrawal 4 / 5 4 / 5 4 / 5
% Lose with this broker 76% of retail investor accounts lose money when trading CFDs with this provider 76.4% of retail investor accounts lose money when trading CFDs with this provider 83% of retail investor accounts lose money when trading CFDs with this provider
Leverage 30:1 30:1 Flexible
Spread 2.0 pips 0.7 pips 0.1 pips
Hedging
Scalping
Account Types
  • Standard
  • Standard
  • Mini,Professional,Standard,Vip
Trading Platforms etoro Plus500 MetaTrader4, MetaTrader5, WebTrader
Funding Methods Visa, Mastercard, Neteller, Unionpay Bank Transfer, Visa, Mastercard, Skrill, Paypal Bank Transfer, Visa, Mastercard, Maestro, Skrill, Neteller, Bitcoin, Unionpay
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Overall Rating 3 / 5 3 / 5 5 / 5
Min. Deposit USD 200 USD 100 USD 10
Regulation
CySEC CySEC
FCA FCA
ASIC ASIC
CySEC CySEC
ASIC ASIC
FSCA FSCA
CySEC CySEC
FCA FCA
FSCA FSCA
Broker Type Market Maker Market Maker ECN/STP
Read Full Review Read Full Review Read Full Review
Trading Conditions 3 / 5 2 / 5 5 / 5
Trading Platforms 3 / 5 3 / 5 5 / 5
Deposit & Withdrawal 4 / 5 4 / 5 4 / 5
Risk Disclaimer 76% of retail investor accounts lose money when trading CFDs with this provider 76.4% of retail investor accounts lose money when trading CFDs with this provider 83% of retail investor accounts lose money when trading CFDs with this provider
Leverage 30:1 30:1 Flexible
Spread 2.0 pips 0.7 pips 0.1 pips
Hedging Allowed Yes Yes
Scalping Allowed No Yes
Platforms etoro Plus500 MetaTrader4, MetaTrader5, WebTrader
Funding Visa, Mastercard, Neteller, Unionpay Bank Transfer, Visa, Mastercard, Skrill, Paypal Bank Transfer, Visa, Mastercard, Maestro, Skrill, Neteller, Bitcoin, Unionpay

Share your knowledge

Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Most retail CFD accounts lose money. Your capital is at risk.