Etoro Review

eToro

Forex Broker

  • Company name: eToro (Europe) Ltd
  • Founded: 2006
  • Offices: Cyprus, UK, Israel
  • Regulators: UK FCA Registration No.583263 EU CySEC License No. 109/10
  • Broker type: Market Maker

Trading info

  • Min. Deposit: £200
  • Leverage: 400:1
  • Min. Spread: 2 pips
  • Deposit/Withdrawal: Bank wire, Visa/Mastercard, Skrill , Neteller, PayPal
  • Currency pairs: 47

Trading platform

  • Platform: eToro Platform
  • Web based: Yes
  • Mobile: Yes

Open Account

8.3 FXScouts
Pros
  • The Leading Social Broker
  • An award-winning trading platform (8 major awards since 2010)
  • Follow Successful Traders
  • Low Deposits Accepted
  • Good customer support
Cons
  • New and advanced charts in the platform
  • Costs a lot for a Premium account
  • Platform tends to suffer with slow connection
  • Best deals and features reserved only for Premium members
Summary

Starting in 2007, eToro aimed to open the global markets for everyone to trade and invest simply and transparently. With awards for innovation of their platform, they have been pioneers of technology and disrupting the traditional approach of the industry.

With this 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 with the idea that it creates transparency between a community of over 6 million traders and the overall experience more enjoyable. As cryptocurrencies have become more popular, eToro has introduced a wide variety of cryptocurrency CFDs to traders.

Account Types8
Client Support & Onboarding9
Free Services7
Deposit & Withdrawal9

Is eToro safe?

Client funds are safe with eToro. While the organisation does flirt often with recognition from the industry, they offer a robust award-winning platform and trading product that is entirely different from what other brokers offer.

Recently winning awards at Finovatefor Best in Show 2015 & 2017 for leadership in the Financial Technology industry, eToro does get the attention of the trading community for their innovation in technology.

eToro is a well-regulated brokerage with current regulation from all three major international regulators. eToro (Europe) Ltd has been regulated by CySEC (license 109/10) since Licence Date: 14/01/2010, eToro (UK) Ltd is regulated by the FCA (license 583263) since 09/05/2013, and eToro AUS Capital Pty Ltd is regulated by ASIC (license 491139) since 04/09/2017.

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 the 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, but not for clients who want a career in trading.  With the social component always available, 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 which other brokers have.  The focus at eToro is simplicity and fun, which presents a very different kind of broker than all others.

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

With the explosive growth in popularity of eToro that started at 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 a community of traders is also 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.

Demo Account

Since this account is 100% free, you won’t get a lot of features with it. Once you open an account with eToro, you can receive this demo account to practice your trading, with $100,000 (play money) to trade to help you grow accustomed to the platform.

Basic Account

The basic account is the next step up, and 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.

Premium Account

The premium account is the VIP account offered at eToro for those depositing a minimum of $20,000. You receive a demo for practicing, the same features of a basic account, and premium management of your portfolio by a trained professional with eToro.

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, then 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 EURUSD it is a 250 pip conversion fee, and for GBPUSD it is 50 pips, which is approximately 2.5% on Euro deposits and 0.5% on Pound deposits.

The minimum withdrawal amount at eToro is 50 USD, and a fee of 25 USD will be 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 platform.  They have both the eToro browser trading system and eToro Mobile.  The web-based platform is very customizable, so you can select what currencies, commodities, stocks, and crypto you want to have in an easy-to-reach dashboard.

My watchlist on eToro

To see more detail about any of the currency pairs, click on one of them in your watchlist to show detailed graphs on any time range you want.  While this is no replacement for any technical analysis, it does give a lot of insight without much effort.

CopyTrader

eToro does copy trading like no one else in the business.  They are pioneers in this area 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.  Or 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 the beginner trader.

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.

eToro in their own words

eToro Compared

eToro Vs. Plus500

 eToroPlus500
FundingBank wire, Visa/Mastercard, Skrill , Neteller, PayPalBank wire, Visa/Mastercard, Paypal, Skrill
RegulatedUK FCA Registration No.583263 EU CySEC License No. 109/10Authorised Financial Services Provider in South Africa, FSP #47546
Broker TypeMarket MakerMarket Maker
Currency Pairs47N/A
Minimum Spread2 pipsVariable
Minimum Deposit£200$100
Max Leverage400:1300:1
Expert ReviewRead reviewRead review
Visit WebsiteVisit eToroVisit Plus500

eToro Vs. FXTM

 eToroFXTM
FundingBank wire, Visa/Mastercard, Skrill , Neteller, PayPalBank wire, Visa/Mastercard, Skrill & Western Union, Neteller and many more
RegulatedUK FCA Registration No.583263 EU CySEC License No. 109/10FSCA No.46614, FCA, CySEC, IFSC
Broker TypeMarket MakerECN/STP
Currency Pairs4759
Minimum Spread2 pips0.1 pips
Minimum Deposit£200£5
Max Leverage400:1Flexible
Expert ReviewRead reviewRead review
Visit WebsiteVisit eToroVisit FXTM

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 for its innovation in the trading industry for creating a different way of introducing the clients to trading. There are few similarities between the eToro platform and other software offered by the traditional broker, so any trader changing brokerages will need to learn new software.

eToro focuses on accessibility for traders who want a simple, fun and collaborative platform, and 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.

 

Jeffrey Cammack Administrator
Editorial Director at TradeForexSA
Jeff Cammack is the Editorial Director, a Forex trader since 2008, and educator. Always in search of new trading opportunities, Jeff can always be found doing research in the charts or combing through the financial news. When not trading, he is always researching his next article.
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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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