Home » Brokers » eToro Review

eToro Review

Published by Usman Ahmed, MBA (Researcher)

Reviewed by Bowen Khong, ACCA

eToro is a trusted global brand that offers online traders an easy-to-use trading platform through a wide range of financial instruments. In this article, I will look into when it gets started, its regulations, its brand reputation among traders and why it is used by millions of traders worldwide. I also discuss why it is safe to trade  with.

Overview 

eToro was founded in 2007 and has grown to be a leader in the global Fintech revolution. It is a leading social trading network with millions of registered users and varieties of innovative trading and investments tools. The company was established as RetailFx in 2007 by Yoni Assia, Ronen Assia and David Ring. The goal was to make trading accessible to anyone, anywhere, and reduce dependency on traditional institutions. eToro presently has its headquarters  in Tel Aviv-Yafo, London, Limassol even though the main research and development office is located in Tel Aviv, Israel.[1

The brokerage platform is regulated by CySEC, FCA, FinCEN, and ASIC. Different securities are available and they include currency pairs, stocks, cryptocurrencies and commodities. The broker also provides copy trading services which allows you to get involved in trading based on orders executed by another eToro trader of your choice.

ProsCons
Easy method of making deposit 
Free stocks and ETF trading 
Social trading 
Easy to open an account 
Only one account base currency 
Charges inactivity fees
Not all its services are available in the U.S.$200 minimum deposit 

Who eToro is for?

The brokerage platform is easy-to-use and also provides professional services for its clients. From my experience, I have discovered that the broker is good for beginners and pro traders. Those who do not have enough knowledge also can trade from the platform through the copy trading program that allows someone else to execute trades on your behalf. The platform is flexible ⁶ making it possible to trade with multiple strategies  and trading with or without leverage while holding real equities.

Rating: 4/5

Sign up bonus:  The broker offers a $50 signup bonus to all clients. 

Is eToro Safe? 

eToro has millions of users worldwide, the broker is safe and reliable. eToro is safe and regulated by top financial authorities and tier-1 financial regulators like the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the U.S. FinCEN, and the Australian Securities and Investment Commission (ASIC).[2]

The broker also protects clients privacy  and does not share clients data with third parties.

Investors from the UK are also protected by the Financial Services Compensation Scheme (FSCS), European investors are also protected.

Rating: 4.5/5

Year founded:2007
Publicly traded: No
Licenses: CySEC, FCA, FinCEN, ASIC
Backlist: No

Offering of Investments 

eToro offers a wide range of assets that its clients can invest in. The broker provides cryptocurrencies, stocks, commodities, currencies. 

Cryptocurrencies: Bitcoin, Ethereum, Bitcoin cash, Ripple, Dash, Litecoin, Cardano, Stellar and many others. 

Stocks: this is in different categories. The broker has NYSE stocks like JP Morgan Chase, Hewlett Packard, American Express; technology stocks like Zynga, Telefonica; consumer good stocks like Toyota, Ralph Lauren Corp, Manchester United; Services stocks like Starbucks Corporation, Avis Budget Group; Financial stocks like Citigroup, Deutsche-Bank, JPMorgan Chase; Healthcare, Corbus Pharmaceuticals  and lastly Basic Materials and so on.

Commodities: major commodities like oil, silver, copper, natgas, platinum and some other commodities are available.

Currency: There are major, minor, and exotic currency pairs. Crosses are crosses available to be traded.

There are many assets from which traders and investors can choose the one that is best for them.

eToro does not offer equity trading; its portfolio of financial products is not the biggest. The available assets are diverse enough to be considered decent and satisfying for most traders. 

Rating: 4.5/5

Forex: Spot TradingYes
Currency Pairs (Total Forex pairs)Yes (49)
Social Trading / Copy-TradingYes
CFDs instrumentsI.e forex, stocks, crypto

Commissions & Fees

eToro does not charge  commissions on stock trading, markup, ticketing, stamp duty. No amount is also charged as management fees, roll over fees, hidden broker fees, ticket fees. This is  not to say that there are no charges, eToro charges withdrawal fees  and some other fees like conversion fees.[3]

Rating: 4/5

Minimum Initial Deposit$200
Average Spread EUR/USD – Standard0.2 pips
All-in Cost EUR/USD – Active
Minimum withdrawal $30

Platforms & Tools 

The eToro platform is built and customized in a way that makes navigating around it easy. This applies to both the web and  mobile platforms.[4]

Ease of use: Newbies can find their way around here because the platform is well designed and focuses on simplicity. Almost all the features needed are at the top ribbon of the platform 

Desktop platform: the platform works on different windows versions. It has been tested from windows 7 up till windows 10. 

Charting: eToro webtrader provides charting tools and indicators for technical analysis. There are various line tools like the trend line, fibonacci, rectangle and many others. There are also many chart types based on the markets and whichever way you choose to view the market. You can always modify the charts from setting (theme, colours,etc) to your preferred setting. 

The platform has about 70 technical indicators and also has constant news releases which means it is suitable for technical and fundamental analysis. 

MetaTrader, copy trading: The broker does not support the MT4 platform but its social trading platform has won several awards based on the services it offers.

A copy trading program is available and you can follow professional traders of your choice. The results of the traders over time can be seen on the platform.

Rating: 4/5

Virtual Trading (Demo)Yes
Proprietary PlatformYes
Desktop Platform (Windows)No
Web PlatformYes
MetaTrader 4 (MT4)No
MetaTrader 5 (MT5)No
Charting – Indicators / Studies (Total)Yes (about 70)
Charting – Drawing Tools (Total)Yes (13)
Charting – Trade From ChartNo
Order Type – Trailing StopYes

Research  

eToro doesn’t offer many research instruments. The broker has the news feeds which usually have detailed news and opinions about different assets. The news feeds, asides from being a section to read market news, is also a point where different people can make comments about what they feel about a particular news. You can also like or share the news after reading. 

I have not noticed the broker organizing weekly webinars or providing daily market commentaries even though the news provided also has elements of opinions and commentaries which are good for fundamental and technical analysis.

Rating: 4/5

Education 

Even though eToro has a section where it offers trading education on its platform, the courses and video guides are only as good as introducing a beginner to trading and not taking such beginner to a level of being a pro trader. The broker has a place for news and analysis, financial market guides and video tutorials. 

These tutorials and guides only explain topics relating to investing in the stock market, managing risks, how to buy bitcoin and many other basic topics. These topics are basic and I will recommend them for a newbie, a pro trader won’t gain so much from it. Even though on the video tutorial page, there is a section for pro traders it is not yet accessible yet.

Rating: 3/5

Mobile Trading 

eToro offers an amazing mobile trading platform on both android and IOS devices. The web platform has a well defined interface and the broker is able to transfer such professionalism even to the mobile platform.

Just like the website, the mobile app is user-friendly, one can do technical and fundamental analysis from the mobile app and execute trades too. Different asset types could be traded from the mobile app.  You can set watchlists, price and trade alerts, and personal portfolios through the app.

The downside I have seen about the mobile app is that it does not have many tools for technical analysis like the web version. A trader who wants more tools and in-depth analysis might need to do the analysis on the web version and make necessary adjustments on the mobile app.

Rating: 4/5

Mobile devices I.e apple, android, etc
FeaturesI.e. allow making trade, watchlist, charting, alert, etc.

Final Thoughts 

The broker has an array of instruments, and some research instruments; it is also safe to trade with. The regulations assure traders that the broker is closely watched against making fraudulent activities.

The broker does  not offer enough trade education that can equip beginner traders to become pro traders. Learners might need to get more information from mentors and some other sources.

I recommend this broker to trades who want security and professionalism. If you are interested in trading with eToro or want to know more you can just click here.

Overall rating : 4/5

Frequently Asked Questions

Can you make money on eToro?

Yes. It is possible to make money on eToro. You can make money through trading forex and other CFDs. You can also profit from the copy trading programs. Making money through trading is not easy, so you should not expect instant riches. 

Do you pay tax on eToro?

Clients from the UK may be required to pay tax when they make profits on eToro either by copying successful traders or taking their trades themselves. 

Do I need an SSN on eToro?

In compliance with some regulations, eToro collects specific information to verify a user’s identity. This information includes Social Society Number (SSN). The broker also keeps clients’ personal information private and secure. 

Why does eToro not let me sell?

For now, not all markets are available to trade; some features are also disabled, and this is why you might not have the option of opening a short position in such markets. 

What are overnight fees on eToro?

An overnight fee refers to the interest paid on leverage. When clients trade on leveraged investment vehicles like contracts for difference (CFD) or use leverage in forex positions, they borrow from the broker to multiply the value of their investment capital or open larger positions. 

What is better than eToro?

Many brokers compete with eToro, but the choice of which broker to use will be determined by the trader or investors’ choice. eToro has professional and secure services and is suitable for forex and CFD enthusiasts. 

Is Bitcoin safe on eToro?

The eToro crypto wallet is simple to use and one of the safest in the world. It has several high-level security features that protect it against unauthorized access. The high-level security includes multi-signature facilities, DDoS protection, and standardization protocols.

Is Trade 212 or eToro better?

Trading 212 has more financial instruments than eToro, but this does not make it better than eToro. Trade 212 has up to 3000 financial instruments while eToro has around 2000 financial instruments, but this doesn’t mean that Trade 212 is better. 

Is eToro copy trading worth it?

Yes, it is worth it, and it can also be profitable as it is a low-risk investment program. In choosing your traders, check for a track record of success and if the trader makes an amount you are comfortable with. 

Which is better, Degiro or eToro?

Degiro can be said to be suited for European Countries while eToro is more international in its operations. Swiss investors may prefer Degiro because it accepts CHF deposits. To use the eToro services, Swiss investors have to convert their money either with their banks or with an exchange service. 

What is the best trading platform in the UK?

EToro UK Ltd. offers one of the best trading platforms in the UK. The brand was a pioneer of social trading, that is, the practice of sharing trading knowledge and giving its users the ability to follow the trades of other professional traders and make profits from their trades. 

Usman Ahmed, MBA (Researcher)
Usman Ahmed, MBA (Researcher)
Usman Ahmed is a currency trader and financial market analyst with more than 7 years of active trading experience. Besides holding a Masters degree in Business Administration, he has worked for some of the most renewed companies in the forex industry including FXCM, IQOption, MetaQuotes, Alpari, FXStreet, DailyFX and several others. Usman possesses strong technical analytical skills and is famous for his very own, informative and entertaining, writing style. He believes in naked chart trading analysis that is commonly known as price action trading. He follows global financial news and macro-economic events very closely.
You may also be interested in reading

What Is CBDC?

Central bank digital currencies (CBDCs) have definitely emerged as a hot

Topstepfx Review

Topstepfx offers trading account solutions to those who have mastered trading

FXPRIMUS Review

FXPRIMUS is an international brokerage firm that offers trading services across

Fact checked

ForexToStocks is committed to delivering content that adheres to the highest editorial standards in terms of accuracy, sourcing and objective analysis. 

Every article is written by topic experts with relevant academic credentials in the field of business, accounting and finance – including actual trading experience or someone who is a practitioner in the financial market. 

Before going live, each article is thoroughly reviewed and fact checked by a qualified member of the editorial team. 

Furthermore, we have a zero-tolerance policy regarding any level of plagiarism or malicious intent from our writers and contributors.

 
ForexToStocks articles adhere to the followings standards: 

  1. All referenced links must be from reputable websites and sources.
  2. All quotes, studies, data and significant claims must be referenced to its original sources.
  3. All commentary must maintain a high level of objectivity and provide balanced views.
  4. Content should avoid making claims or recommendations that would put readers financial well-being at risk. 
  5. Any potential conflict of interest must be clearly indicated and disclosed to readers. 

We are aware that our editorial process is not perfect, and we are constantly improving our editorial quality through readers feedback and internal review.  

Our #1 Top rated Forex Trading Platform

WORLD LEADER IN FINANCIAL TRADING SINCE 2010