A 2020 Must Read: Detailed eToro Review
A 2020 Must Read: Detailed eToro Review
eToro is making trading accessible to anyone, anywhere, with the goal of reducing dependency on traditional financial institutions.Open live account
This is a full eToro review for trading in 2020. Is eToro the right broker for you? We’ll help you decide with our detailed review and assessment of eToro from multiple touchpoints.
|Maximum Leverage:||Up to 400:1|
|Minimum Deposit:||$50 USD|
|Trading Platforms:||Web Trading Platform,|
|Trading Options:||CFDs, Forex, Stocks, Crypto, Commodities|
|Demo Account:||Yes, $100,000 USD in virtual funds|
|Regulating Authorities:||FCA, ASIC, CySEC, FinCEN, MiFID II|
eToro – Pros
- Strong fintech company with a global presence
- Licensed by reputable authorities, such as: FCA, ASIC, CySEC, FinCEN and MiFID II compliant
- Proprietary, easy-to-use web trading platform
- A collection of over 2,000 financial instruments
- The possibility to buy underlying assets stocks, cryptocurrencies, ETFs
- A large variety of crypto based trading assets
- Zero commission for trading stocks
- World class social trading facilities via CopyTrader and CopyPortfolios
- eToroX – Cryptocurrency wallet
- Possibility to buy and hold real assets and trade CFDs under the same roof
- Provides cryptocurrency investing services for US clients
- Advanced traders may build a new stream of income via Popular Investment Program
- High end facilities for investors that trade large amounts of money via eToro Club
- Multiple payment methods
eToro – Cons
- High spreads
- Withdrawal fees and conversion fees
- The web platform lacks advanced features
- Reduced leverage ratio of 1:30 for retail clients
- No VPS service
- Limited customer support
What was established as a small, run-of-the-mill Forex broker, became the world renowned FinTech mammoth eToro. eToro offers the possibility to trade cryptocurrencies, stocks, commodities, Forex, indices and ETFs from anywhere in the world. Investors and traders will be pleased to know that eToro is one of the pioneers of social trading. With a global community of over more than 12 million users, eToro successfully built the largest social trading network in the trading industry. As of 2020, they have branches in the UK, Cyprus, Russia, Australia and US. Since 2018, they offer cryptocurrency trading services to US clients.
Founded in 2007 in Israel, under the brand name of RetailFX, eToro evolved into a FinTech company supporting investors to make the transition from traditional assets to the new ones like blockchain. eToro is among the very few, if not the only place where you can hold underlying assets like stocks and cryptocurrencies into the same account. They rank highly in the top of trader preferences because of their intuitive trading platform that integrates social trading capabilities, extended offer of cryptocurrencies, crypto exchange and wallet, and zero commissions for buying stocks.
The eToro group provides the following services under the same umbrella: the eToro platform (a multi-asset environment dedicated to investing and trading) and eToroX (the proprietary crypto exchange and crypto wallet of eToro). eToro proposes to their clients a unique trading platform – their infrastructure is built in-house.
As one of the trading industry leaders, eToro is regulated by the following (non-exhaustive) list of authorities: FCA, FinCEN, CySEC, ASIC and is MiFID compliant. Being a veteran Forex broker with extensive experience in the trading industry, eToro has won a series of prestigious awards. The most notable are the “Best Social Trading Platform” and the “Best Platform for Trading Cryptocurrencies” awarded by ADVFN International Financial Awards in 2019; winner of the 8th “Invest Cyprus International Investment Awards” edition.
Safety and Regulations
Score 4.9 out of 5 The first criteria is that a reputable broker should meet is strong regulation. For the simple reason that the broker’s services can easily make or break the success of your trading activity. In addition to this, no one appreciates ugly surprises like the impossibility of withdrawing the funds from their trading account. eToro has a reputation of being qualified as a secure and safe broker. Being a global broker, each branch of the group handles a different jurisdiction. eToro has licenses delivered by:
- Financial Conduct Authority (FCA) in UK, having the license number FRN: 583263 for eToro UK Ltd
- Australian Securities & Investment Commission (ASIC) in Australia, having the AFSL license number 491139 for eToro AUS Capital Pty Ltd
- Cyprus Securities and Exchange Commission (CySEC) in Cyprus, having the license number 109/10 for eToro (Europe) Ltd
- Financial Crimes Enforcement Network (FinCEN), eToro USA LLC is registered as a Money Services Business
- MiFID II in Europe (Directive on Markets in Financial Instruments 2014/65/EU), two branches of the eToro group, eToro UK and eToro Europe are fully compliant.
According to regulation, in case of financial hardships or bankruptcy, eToro clients benefit from the following protection:
- Clients trading under eToro UK are covered by the Financial Services Compensation Scheme (FSCS) for sums of up to £85,000
- Clients trading under eToro Europe are covered by the Cypriot Investor Compensation Scheme for sums of up to €20,000
- Clients trading under eToro Australia do not benefit of protection
- Trading cryptocurrencies does not qualify for any protection
To further protect their clients, eToro has implemented the following measures:
- Account segregation – Clients trading funds are held in separate accounts from those belonging to the company and are not used for brokers’ own operations.
- Negative balance protection – Are applicable to European retail clients. Protection against negative balance means that a trader cannot lose more than the equivalent of his balance account.
eToro does not publish financial reports and for the moment, is not listed on a stock exchange.
Offer of Financial Instruments
Scoring: 4.8 out of 5 eToro proposes a wide portfolio of trading assets to invest in capital markets. A collection of over 2,000 financial instruments could be considered more than satisfactory by the huge majority of investors. With eToro, you can trade CFDs on the following asset classes: cryptocurrencies, stocks, Forex, indices, commodities and ETFs. In addition to this, you can buy and hold physical assets such as stocks, ETFs and cryptocurrencies within the same trading account. Their offer of trading assets includes:
- Cryptocurrencies – A comprehensive selection of over 94 instruments, comprising individual cryptocurrencies, crypto crosses and crypto – fiat currency crosses. Buying cryptocurrency without leverage means you are buying the underlying asset – eToro buys it and holds it for you. Leveraged positions are executed as CFDs. Maximum leverage allowed is 1:30.
Trading cryptocurrencies is the powerhouse of eToro. You can access the largest selection of cryptocurrency based instruments available on the market, including (but not limited to) the following: Bitcoin, Ripple, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, IOTA, Cardano, Binance coin, ZCASH, Dash, EOS, Stellar, NEO.
- Stocks – You get access to more than a thousand stocks listed on 17 stock exchanges. Remember, long positions without leverage mean that you are buying the real stock, eToro buys and holds it for you. Leveraged positions and short positions are executed as CFDs. You also have the possibility to buy fractions of a share. The stock exchanges included in their offering are the following: London, NYSE, Nasdaq, Paris, Euronext Brussels, Amsterdam, Euronext Lisbon, Frankfurt, Hong Kong, Zurich, Madrid, Milan, Oslo, Helsinki, Copenhagen, Stockholm and Saudi Arabia. It’s worth noting that just a selection of the stocks listed on an exchange are available; these are usually the most important ones.
- Forex – 47 currency pairs (majors, minors and exotic pairs). All currency pairs are traded as a CFD product.
- Indices – 13 stock indices are available as CFDs. One can invest in indices of the most important exchanges worldwide, among those are the following: NSDQ100, UK100, CAC40, China50, DJ30, etc.
- Commodities – 15 commodities traded as CFDs. They include spot metals – gold, silver, energies and agricultural products.
- ETFs – 153 ETFs are included in eToro’s offer. Buying non-leveraged positions means buying the physical asset itself. Trading these assets on leverage are executed as CFDs.
When trading with eToro, you are offered the possibility of modifying the level of leverage desired when executing CFD trades.
Differentiation Elements and Unique Features
Scoring: 4.8 out of 5 Differentiation features make a broker stand out among its competitors. eToro offers unique tools, products and services – They are a top broker of choice for traders seeking to trade cryptocurrencies and for social trading purposes.These unique product features and benefits are the following:
- eToro trading platform
- Cryptocurrency trading
- Social trading – CopyTrader and CopyPortfolios
- Popular Investor Program
- eToro Club
eToro Trading Platform
With a user-friendly and minimalist interface, the eToro proprietary platform appeals to all types of traders, beginners included. eToro has had a strong focus on innovation and back in 2011 they came up with the OpenBook that included the CopyTrader feature offering the possibility to copy the trades of other profitable traders. It was a premiere in the world of trading. Two years later the mobile versions of the platform were launched and cryptocurrencies were added to the products’ offer. CopyPortfolios – a proprietary algorithm allowing the mirroring of managed portfolios – arrived in 2016 to enrich the copy trading capabilities. The next year saw the advent of new cryptocurrency based investment instruments. The crypto exchange eToroX was integrated into the platform in 2019 to complete the offer. The unquestionable strengths of eToro’s platform are:
- The in-built social trading facilities and social sentiment data
- Automated portfolio copy trading
- Extended cryptocurrency based products selection
- Possibility to own real assets within one trading account
One major plus of eToro is that they managed to build a vivid community of investors and traders that interact, socialises and shares trading strategies.
eToro is notorious for their comprehensive cryptocurrency offer of more than 100 crypto pairs. Their purpose is to address all cryptocurrency exigencies under one umbrella and one account. As a fintech leader dealing with blockchain since its inception, eToro aims to offer a complete cryptocurrency trading solution that includes:
- Cryptocurrency trading platform, including API trading program for algorithmic traders
- Cryptocurrency exchange
- Multi cryptocurrency wallet supporting more than 120 coins
The eToro Wallet offers the possibility to store, buy, transfer or receive over 120 cryptocurrencies and more than 500 crypto pairs. With an eToro wallet you may exchange crypto for crypto via one unique private key and on-chain address. In addition to this, eToro offers cryptocurrency trading services, crypto wallet and integrated mobile app for U.S. clients.
eToroX is the blockchain branch of the eToro group and is dedicated to crypto traders. It’s a crypto to crypto exchange and is a regulated entity. eToroX shares many of the social trading features of the eToro trading platform. The exchange comprises a user-friendly interface and a mobile wallet app sustained by high level security protocols.
At the time of writing this Forex broker review, eToroX proposes 101 digital asset pairs (crypto to crypto and crypto to fiat). And eight branded stablecoins (stablecoin is a crypto pegged to a financial asset like US dollar, gold, Euro), which offer the possibility to manage volatility risks without converting assets into fiat. eToroX branded stablecoins are:
- USDEX – eToro United States Dollar
- EURX – eToro Euro
- GPBX – eToro Sterling Pound
- JPYX – eToro Japanese Yen
- CHFX – eToro Swiss Franc
- CADX – eToro Canadian Dollar
- AUDX – eToro Australian Dollar
- NZDX – eToro New Zealand Dollar
In digital assets pegged to commodities’ prices like GOLDX (gold) and SLVRX (silver). A primary concern when using crypto exchanges and wallets is security. eToroX privileges security and includes by default data encryption protocols, secured mechanisms to prevent cyber attacks and a 3 layer identification process.
Social Trading – CopyTrader and CopyPortfolios
CopyTrader and CopyPortfolios are unique characteristics of eToro and the most appreciated by their traders.
This is the most popular feature of eToro. It’s embedded into their platform and allows you to choose the most profitable traders from eToro’s community and automatically copy their trades. You are in full control and may allocate a portion of your trading capital to mirror other traders’ orders. You decide when you start, stop and pause the copy action, which is the sum allocated for copy trading at any moment. You can copy up to 100 traders simultaneously.
eToro provides detailed statistics related to each trader like: monthly and yearly performance, risk score, number of trades per week, average time for order, performance on instruments, etc. Copying successful traders that have steady results, which may spear you the effort of doing extensive research yourself. In 2019, the most profitable 50 traders on eToro had an average yearly profit of 29.1 %. In addition to this, you have the possibility of becoming a popular eToro investor and be rewarded for sharing your knowledge with others.
Another innovative feature of eToro is CopyPortfolios, launched in 2019. CopyPortfolios is the next level of copy trading and allows investors to diversify their portfolio by copying successful traders or successful strategies. In two words, they are investment vehicles that select a collection of assets, such as an investment fund composed of CFDs. eToro financial assets included in CopyPortfolios are sorted periodically by their investment committee, following an established strategy. There are 2 types of CopyPortfolios:
- Top Trader Portfolios – They are comprised of a selection of the highest performing traders on eToro
- Market Portfolios – They are comprised of assets belonging to certain markets like stocks, ETFs or commodities. The assets are chosen based on a clearly established strategy.
CopyPortfolios is a great tool for investors who want to invest passively by copying portfolios of others. This doesn’t involve much research activity. To be able to profit from the CopyPortfolios you need a minimum balance of $5,000.
Popular Investor Program
In addition to their most popular tool, CopyTrader, eToro rewards performing traders and investors. Therefore, highly profitable traders can enjoy a new stream of revenue. If you become a “Popular Investor” of eToro you will receive a 2% annual fee of the total volume traded by your followers. This fee is paid monthly.
The program has 4 levels of difficulty, which are based on various criteria: cadet, rising star, champion and elite. The “Popular Investor Program” is subject to “Terms and Conditions”, so before applying be sure to check them.
Potential traders and investors reading an eToro broker review will discover another interesting unique feature: eToro Club. eToro Club offers a set of dedicated services to clients that are ranked based on their trading balance, meant to enhance their trading experience and provide personalised advanced services.
eToro Club aims to offer a premium investment experience and helps clients navigate their way through the expansive range of financial markets offered by eToro. Here are some of the advantages of being an eToro Club member:
- Favourable Financing – Reduced conversion fees; zero commissions when investing in stocks; clients trading under CySEC receive capital credit lines with advantageous rates.
- Expert Investment Support – eToro’s team of experts is at your disposal and you can consult with your Account Manager and participate in live webcasts; access free prominent analytics and research tools, such as The Financial Times and Trading Central.
- Premium Analysis Tools – Privileged access to new features, assets and products; receive exclusive access to eToro’s partners: Trading Central (insights, market analysis, newsletters and expert investing tips from an industry leader) and Delta PRO Crypto Portfolio Tracker (advanced portfolio metrics, real time prices, unlimited exchange, unlimited wallet connection, first access to new features)
- Exclusive VIP Events – Be invited to industry events, as well as cultural and sporting events sponsored by eToro
When your account equity reaches the level required for the membership, you will automatically quality (starting from the next day):
- Silver membership starts with $5,000
- Gold membership starts with $10,000
- Platinum membership starts with $25,000
- Platinum+ membership starts with $50,000
- Diamond membership starts with $250,000
Facilities available for each club membership can be found bellow:
International Presence – Covered Countries
Score: 4.6 out of 5 eToro is a global broker and provides services world wide, where local legislation permits their business activity. Their Help Centre clearly indicates in which countries their services are forbidden. These are: United States of America (with the exception of cryptocurrencies), Canada, Japan, Afghanistan, Albania, Barbados, Bahamas, Belarus, Botswana, Bosnia and Herzegovina, Burundi, Brunei, Chad, Cambodia, Crimea, Congo Republic, Democratic Republic of the Congo, Cuba, Ethiopia, Ghana, Fiji, Guinea, Guyana, Guinea-Bissau, Iran, Jamaica, Iraq, Laos, Mali, Libya, Mauritius, Montenegro, Mongolia, Myanmar, Nicaragua, Namibia, North Macedonia, North Korea, Palau, Pakistan, Samoa, Somalia, Serbia, Sudan, Sri Lanka, Syria, Tunisia, Trinidad and Tobago, Turkey, Vanuatu, Uganda, Zimbabwe, Yemen.
eToro offers services in 21 languages.
Scoring: 1.5 out of 5
eToro does not clearly present the types of accounts offered, so potential clients have to hunt for this information. There is a Retail Account that is accessible to all clients and a Professional Account accessible to some. To qualify for the Professional Account a client needs to meet several criteria related to trading experience, volume of trades placed and frequency of trades. The main differences between the two accounts are:
- Leverage level – for the Retail Account the maximum leverage is of 1:30 in concordance with European regulations and 1:400 for the Professional Account.
- Coverage in case of financial struggle from the Investor Compensation Fund and the possibility to use the Financial Ombudsman Service for the Retail Account (European clients only). This benefit is foregone when you’re a Professional accountholder.
- Negative balance protection – Applicable to Retail account holders and in very rare cases Professional accountholders.
Opening a live account with eToro is a simple, online procedure. Click here to create an account. An online application form will have to be completed. Like most brokers, common personal details are requested, such as your name, surname, user name, email address, phone number and password.
Before submitting your details, you should read the PDS, Terms and Conditions supplied by eToro, and consent and agree to them. As a licensed broker, eToro respects the current regulations and invites their potential clients to pass through a KYC (Know Your Client) process.
This means that prospects have to prove their identity and provide a proof of residency. Full details can be found on their website. In short, the potential investor has to provide a copy of his national ID, passport or driving license and a copy of a utility bill or bank account statement.
The final step of the KYC process is a questionnaire that acts as a suitability test, which asks you about your trading and financial markets knowledge level, risk profile, investment goals, professional status, etc. The verification process may take up to several days and you will be notified by email once your account is approved. You can also follow the verification process status within the eToro platform.
Just like any other reputable Forex broker, eToro offers a demo/practice account to test their services. You can easily open one inside their web platform. eToro’s practice account comes loaded with $100,000 virtual funds. It’s highly recommended that you use the demo account of any broker you choose to trade with (prior to opening a live account), in order to test their services free of charge. You will not be required to deposit physical funds, rather the account will be pre-loaded with virtual funds. You’re able to trial and test this new broker, without committing (financially).
If you’re just starting your trading activity and lack the basics and minimal experience, the demo account is even more recommended. First, to trial and determine what it’s like to test the financial markets and secondly, learn the fundamentals and acquire the know-how needed to be successful in trading. Ultimately, it will help you decide whether trading, the broker’s platform and broker’s offering is a suitable fit for your trading needs.
The demo account is your chance to build up your trading skills for free. It’s important to remember that your losses may exceed your profits . When trading high risk products (leveraged trading products), you should only trade with amounts of money that you can afford to lose.
Please speak to a financial advisor for expert advice on your financial situation and to determine if leveraged CFD trading is suitable for your. Learn and practise on a demo account, before progressing onto a live account. And, trade with small amounts of money initially (especially if you’re a beginner).
Spreads, Fees and Commissions
Scoring: 4 out of 5 eToro complies with worldwide regulations and publishes detailed information on their site, relating to client fees and spreads that must be paid when using their services. To view their current fees, you must access the “Fees” section of the site. Spreads and fees are variable, but depend on the type of instrument traded, on market condition and price movements during any moment in time.
You can buy stocks through eToro by opening a non-leveraged position. You purchase the physical, underlying asset – You’re not trading on the price movements of this asset (as you do when you open a leveraged position). eToro will buy and hold the stock for you. When you purchase physical stocks through opening a non-leveraged position, you will pay zero commission. This means you will not pay any commission when opening and closing position, no ticket fee, no rollover fee, no markup fee and no management or administration fee.
For Australian clients, the zero commission offer only applies to stocks listed on the US exchanges. Other stocks on offer are available to trade only as derivative products and additional fees (such as those mentioned above) will apply. In addition to the inexpensive and cost-effective pricing for buying stocks, there are some cases where eToro proposes savings on Financial Transaction Tax and Stamp Duty, such as 1% in Ireland, 0.5% in the UK or 0.3% in France. Buying stocks with eToro has another interesting advantage, such as the possibility of buying fractional shares. You may trade any volume that you consider appropriate and receive free access to expert analysis delivered by TipRanks.
When trading stocks as CFDs with eToro, spreads apply and they start from 0.09%.
When trading CFDs with eToro, you are trading on a high-risk leverage product and you will be required to pay a spread each time you open a position. In comparison to other brokers, eToro is perceived to be a market maker and trading CFDs with is somewhat higher.
The spreads for commodities start at 2 pips. For example, copper’s spread is 2 pips, gold’s spread is 45 pips, the nickel futures contract has a spread of 3200 pips, etc.
The spreads for indices start at 100 pips. For example, DJ30’s spread is 600 pips, SPX500’s spread is 75 pips, China50’s spread is 1200 pips, etc.
Cryptocurrencies are traded as CFDs (using leverage) and their spreads are expressed as percentages. Cryptocurrency spreads often start from 0.75%. For example, the spread for Bitcoin is 0.75%, for XRP 2.45 %, for MIOTA 4.5%, etc. When selling or buying cryptocurrencies via the eToroX wallet, blockchain and wallet fees apply.
Also, CFD orders maintained open overnight will incur swaps.This is the cost of the leverage and you can find it listed for all instruments in the Fees section. Swaps are calculated based on LIBOR. To better understand how fees apply, you can check the examples listed on the Fees section. There are no fees of any types for CopyTrader and CopyPortfolios. eToro charges an inactivity fee of $10 a month, if you have not logged in into your account for a year. As a general rule of thumb, eToro is more expensive than the majority of their competitors and this is not the main reason why traders choose eToro.
Deposits and Withdrawals
Score: 2.5 out of 5 eToro offers multiple payment options that you can choose from. To deposit/withdraw funds you have to login into your Account, click the green button on the top right corner “Log In”, input your credentials and choose the action you want to make. You should be made aware that you can only make deposits/withdrawals through accounts that are in your name (as per your bank statement), as eToro does not process third party payments. eToro does not charge any fee for deposits, but they do charge a $5 fee for withdrawals and there is a $30 minimum withdrawal amount. The following payment options are offered:
- Credit/Debit cards – Accepts Visa, MasterCard, Diners, Visa Electron, Maestro, with the following currencies USD, EUR, GBP, AUD and maximum deposit of $40,000
- Wire transfer – transfers in the following currencies USD, EUR, GBP
- Neteller – transfers in the following currencies USD, EUR, GBP
- PayPal – transfers in the following currencies USD, EUR, GBP and AUD
- Skrill – transfers in the following currencies USD, EUR, GBP
- Rapid Transfer – transfers in the following currencies USD, EUR, GBP
- China UnionPay – transfers in CHY from/to China
- Klarna / Sofort Banking – transfers in the following currencies USD, EUR, GBP and from/to the following countries Switzerland, Germany, Italy, Austria, Spain, Netherlands, Belgium, Poland
- Online Banking – transfers in the following currencies IDR, MYR, PHP, THB, VND and from/to the following countries Indonesia, Malaysia, Philippines, Thailand, Vietnam
All deposits are instant, except for those made via wire transfer and withdrawals may take up to 8 days depending on the method chosen. Subsequent deposits after the first one should be of at least $50 and if you use the wire transfer, the minimum is $500.
It’s worth noting that eToro only has USD trading accounts. Consequently, if you make a transfer in another currency like EUR or AUD, a conversion fee of 50 pips applies. Conversion fees apply for deposits and withdrawals alike. The conversion fee varies depending on your bank account currency, so check the Fees section before making a deposit.
Score 5 out of 5 The minimum deposit varies upon regions, but the minimum first time deposit is of $50 for retail customers and $10,000 for corporate accounts. The minimum deposit amount required is very affordable, which makes it possible for anyone to start trading.
Desktop Trading Platforms
Score 3 out of 5 eToro only offers their proprietary platform built in-house, which has a web version and a mobile version. eToro doesn’t offer a desktop platform.
eToro Web Trading Platform
To access the web platform, just click on the tab “Trading Platform” of the site and you will be instantly redirected to the platform. The eToro trading platform is award-winning, with an intuitive and user-friendly interface. It distinguishes itself with a minimalist, modern design and strong functionality. The trading platform is available in 21 languages. Traders highly appreciate the smooth and easy trading experience offered by this platform.
The eToro web trading platform has a clean and aesthetically pleasing design, with a good combination of colours, great functionality, legible buttons and menus are logically placed, easy to identify and correctly labelled. Search functions are very easy to use. You can instantly identify the instrument you are interested in. The platform covers the basic operations and executes them fast, it allows for the creation of personalised watchlists and placing orders directly from the watch list. The types of orders available are the following: market order, limit order, stop-loss and trailing stop-loss.
The most prominent eToro platform features are the following:
- ProCharts – A primary foundation for the technical analysis, it displays charts with historical prices on various time frames and for all financial instruments
- One-Click Trading – Simplifies the trading activity enabling traders to place new orders with the parameters used previously in one click.
- TipRanks Research Tab – Gathers and displays insights and know-how from investors, experts and leading analysts from reputable financial entities
- Stop Loss and Take Profit – Predetermined levels to get out from a trading position for better risk management
- Trailing Stop Loss – Keep profitable positions running and protected with this type of stop loss
- Offline Trading – The possibility to execute orders 24/7 even if the platform encounters technical issues
- Alerts and Notifications – The platform allows you to set notifications for certain price levels or when orders are executed. It is a browser notification or a push notification on the mobile app.
- Reports and Statistics – You can choose how your reports are displayed as lists or charts and you can download them
- Virtual portfolio – Free demo account to practice, experiment and test trading with eToro.
The eToro platform is a secure trading platform and has two factor verification protocols in place. The web trading platform includes the highly sought after social trading facility, which is the most recognizable element of eToro’s services. CopyTrader allows traders to profit on the “wisdom of the crowds” and copy high performing traders and investors that work with eToro. Profitable traders have their own benefits, while having a following and other traders mirroring their trades via the Popular Investor Program.
The newest feature of eToro’s platform is CopyPortfolios – This offers the client the possibility of mirroring entire trading portfolios for purposes of diversification. CopyPortfolios includes established investment strategies with proven track records. You can easily identify a strategy that fits your needs and interests, such as themed investments: medical cannabis, gaming industry, Chinese tech leaders, Crypto takeover or trader based portfolios.
There are some areas of the platform that can be improved for a better trading experience. For example:
- Order management with enhanced capabilities and options
- Guaranteed stop loss protection for better risk management in volatile markets
- Limited customisability for charts and workspace
- API interface – currently unavailable
- VPS hosting – currently unavailable
Mobile Trading Platforms
Score: 4.9 out of 5 Trading on mobile with the eToro platform is a breeze and a very pleasant experience. The mobile version conserves the great design and functionalities of the web platform. There are slight differences regarding the number of indicators (there are fewer on mobile) and the drawing tools. The mobile versions are synchronised with the web version for an integrated trading experience. And they are also available in 21 languages. You can download the mobile version of the eToro platform for Android and iOS via Google Play and App store, respectively, or via the “Trading Platform” section from the site.
Configure Trading Accounts
Configuring your account and starting to trading with eToro is a simple process. Just click on the “Trading Platform” tab and you will be automatically redirected to the web platform. Input the username and the password selected when opening your account and you’re ready to go. Select the instruments that interest you and create your watch lists. Configure the charts as per your strategy. You can find some helpful videos that explain the basics in the eToro Learning Lab or you can access the “Guide” section of the platform (on the left menu), which will offer you a walkthrough of the main features in the app.
Training, Education and Resources
Score: 3.5 out of 5 eToro’s education and research section is decent, but improvements can be made. In terms of research and analytics resources, eToro offers the following:
- A News and Analytics section is updated at least once a day, which presents market analysis written by eToro experts, market overviews, fundamental analysis of current events. Each article contains recommendations for “What to watch” and crypto related news in the “Crypto corner”. Some examples of such articles are “Stocks stage comeback after Fed extends bond buying”, “Fed chairman Powell warns stimulus withdrawal could jeopardise economic gains”, “Carvana: The car industry disruptor we’ve been waiting for”, etc.
- An eToro Daily Market Update which reviews market activity and the highlights of the day
- An Economic calendar is accessible from the site and also from the platform
- A Trading Hours and Market Events section
- An Earning Reports Calendar
- The “Research” tab embedded in the web platform. It presents data from TipRanks and has the purpose of providing valuable information on various types of assets, recommendations, hedge fund sentiment, price targets, etc.
- Social News Feed – presents comments from the eToro traders’ community
The Education section of the site includes some valuable resources:
- “The Complete Guide to Fintech” is a valuable resource for beginners, a collection of written articles organised in 18 chapters that covers the basics of financial markets trading. The chapters approach subjects like The Fintech Revolution, Investment Basics, Fundamentals of Research, Building an Investment Portfolio, Understanding Stocks, Understanding Contract for Difference (CFD), Day Trading and Swing Trading, How to Trade Currencies, How to Trade Cryptocurrencies, Investing with Copy Trading, Investing with CopyPortfolios™ etc.
- What is social trading – This is a section that explains in detail one of eToro’s core strengths; social trading and how traders can profit on it
- Podcast – It covers a variety of topics, ranging from the basics of trading to advanced market analysis, recommendations and insights. Expert economists, professors and experienced traders and investors are invited to depict actual subjects and financial themes
- Video tutorials – The video section of eToro’s Learning Lab is quite thin, it has under ten videos covering beginner topics on how to use the trading platform. Videos covering more advanced subjects are expected to complete the library. eToro’s YouTube channel has a large collection of videos and is updated regularly.
Score: 3.6 out of 5 While trading financial markets, fast and reliable access to your broker’s customer support department is important. eToro’s customer service department is available 5/7 and in 21 languages. You may reach their customer service team via:
- Live chat from the customer service section of the site
- Ticketing system and you will receive your answer via email
There is a well organised and structured “Help Center” that answers the most common questions and various technical issues. eToro is active on multiple social media channels where they may be reached:
Bonus and Promotions
Taking into consideration that eToro is regulated by several authorities, they are not allowed to offer promotional schemes.
eToro is one of the main players in the online trading industry and along the way they have collected various prominent awards, among which are nominated below:
- “Best Social Trading Platform” awarded by ADVFN International Financial Awards in 2019
- “Best Platform for Trading Cryptocurrencies” awarded by ADVFN International Financial Awards in 2019
- “Best Trading Platform” awarded by Star Awards in 2013
- “Best Use of Social Media” awarded by The Share Awards in 2012
- “Best mobile trading platform” and “Best software provider” awarded by World Finance Foreign Exchange Awards in 2011
- “Best Active Trading Platform” awarded by Money AM Online Finance Awards in 2010
eToro has an easy-to-use and intuitive platform, which is a good option for beginners. If you don’t have enough time to trade or don’t want to do research, you can rely on the social trading opportunities provided by this broker. If you’re an advanced trader with proven profitability, you can build a new stream of income via CopyTrader and the Popular Investment Program. If cryptocurrency is one of your core interests, eToro offers you one of the most extended collections of crypto based financial instruments. If buying underlying assets like stocks, cryptocurrencies or ETFs is your goal and you’re looking to find this option plus a large collection of tradable assets under the same roof, eToro is, again, an option to consider.
Is This Broker a Good Option for Me?
eToro is not your average broker, but has some points of differentiation that you might find appealing or not. If you’re a beginner trader who is seeking the lowest costs possible for their trading activity, then eToro is not an ideal option for you. If cost is very important for you, eToro is most often not the best in class. If you’re interested in having a large variety of crypto based instruments at your disposal, eToro is one of your best options.
If you’re a sophisticated trader interested in holding physical assets, such as stocks and cryptocurrency, and trading a large variety of financial derivatives in the same one account, then this is a good option for you. If you’re a profitable trader and want a supplementary stream of income, then you can build this via the Popular Investor Program and social trading. If you want to rely on copy trading and the pre-made managed portfolios, then eToro is a reliable option for you. If you’re a volume trader or a scalper, eToro’s fees are discouraging and not suitable for such trading strategies.
Our broker review considers eToro to be an outstanding player in the trading industry. They offer a series of unique features and benefits that a large number of traders and investors find very interesting, such as CopyTrader and CopyPortfolios. In addition to this, the possibility to trade a large variety of crypto assets and physical stocks with zero commissions is all possible from the one account.
|Broker Review Category||Score|
|Safety and Regulation||4.9|
|Offer of Financial Instruments||4.8|
|Differentiation Elements and Unique Features||4.8|
|International Presence – Covered Countries||4.6|
|Spreads, Fees and Commissions||4|
|Deposits and Withdrawals||2.5|
|Desktop and Web Trading Platforms||3|
|Mobile Trading Platforms||4.9|
|Training, Education, Resources and Research||3.5|
A 2020 Must Read: Detailed eToro Review
eToro is making trading accessible to anyone, anywhere, with the goal of reducing dependency on traditional financial institutions.
Price Currency: USD
Operating System: Windows 7", "Windows 10", "OSX 10.6", "Android 1.6", "iOS"
Application Category: Trading Platform