eToro claims to have 11 million users in over 100 countries, and has recently been valued at over $800 million. If you're trying to decide whether eToro is the right brokerage platform for you, read this in-depth review to find out more.
75% of retail investor accounts lose money when trading CFDs with this provider.
eToro is a sleek, tech-centred trading platform that has a strong reputation for innovation and disruption. Originally founded in Israel in 2007, the company that began life as a forex trader has made a name for itself as one of the strongest cryptocurrency brokers in the game right now, offering currencies and pairs that few other platforms offer, as well as an in-house crypto wallet that has won praise from users and industry pundits alike.
eToro has experienced a surge in popularity in recent years, thanks partly to a flashy marketing blitz that has included commercials starring the Oscar-winning actor Alec Baldwin.
Given eToro's size, reach, and revenues, this is a platform that is well-designed and has a lot to offer traders of all stripes. Here are the main key takeaways about eToro:
eToro cares a lot about its reputation and has gone to considerable lengths to demonstrate that it is a transparent and trustworthy company. eToro has offices all around the world and is thus regulated by some of the most stringent and trusted regulatory authorities on the planet, including the UK's Financial Conduct Authority (FCA), the Australian Securities and Investment Commission (ASIC), and CySEC.
All client funds are kept completely separate from company funds, as stipulated by the regulatory authorities that audit the company. In addition, its regulation by the FCA means that all users of eToro are entitled to protection under the UK's Financial Services Compensation Scheme, which covers losses of up to £85,000 in the event of a default. eToro also deploys comprehensive security measures across its platform, included SSL encryption and two-factor authentication for users.
eToro markets itself as a company that offers more choices and more variety than its competitors, with over 2000 assets available for trading. As such, there is an impressive range of assets and pairs available for trading and speculation on eToro. Here is what eToro users can expect if they sign up for a trading account:
eToro offers an extensive range of forex pairs for trading, including some of the more exotic pairs that many similar platforms don't offer. Note that the spread for forex trading on eToro is generally high, with more competitive spreads being found in eToro's CFD and cryptocurrency offerings. Among the forex pairs available for trading on eToro are:
However, US eToro users can only trade cryptocurrency, meaning that forex trading is not available to them.
As mentioned, eToro prides itself on its cryptocurrency offerings, with 15 different cryptocurrencies available for instant buying, selling, and trading. The cryptocurrencies available to eToro customers in 2020 are:
In addition, eToro also allows customers to trade cryptocurrency CFDs, including:
eToro offers trading on 1933 CFDs, more than virtually any other platform on the market right now. A full 93 of these are cryptocurrency CFDs, while the rest is made up of stock index CFDs, commodity CFDs, and equity CFDs.
Again, it is important to note that US-based users of eToro cannot trade CFDs on the platform and can only trade actual cryptocurrency for the time being.
By some estimates, eToro has customers in 170 countries worldwide, which would make it far more geographically widespread than its competitors. There are, however, some countries and regions in which eToro is not permitted to operate. These are:
|Belgium||Bosnia and Herzegovina||Botswana||Brunei|
|Chagos Islands||Congo||Congo Republic||Cote d'Ivoire|
|Dominica||El Salvador||Equatorial Guinea||Ethiopia|
|North Korea||Northern Marianas||Pakistan||Palau|
|Panama||Papua New Guinea||Paraguay||Pitcairn Islands|
|Portugal||Puerto Rico||Rwanda||Saint Kitts and Nevis|
|Saint Lucia||Saint Vincent||Samoa||San Marino|
|Sao Tome||Serbia||Sierra Leone||Singapore|
|Suriname||Svalbard and Jan Mayen||Swaziland||Syria|
|Trinidad and Tobago||Tunisia||Turkey||Turkmenistan|
|Turks and Caicos Islands||Uganda||Venezuela||Yemen|
Unlike other platforms, eToro does not offer different types of accounts for different traders. However, it does offer perks and rewards for its users that can save them time and money:
VIP Accounts: For users with regular accounts that maintain a balance of between £5k-£20k, there are five tiers of VIP membership available, ranging from 'silver' to 'diamond'. Perks include a dedicated account manager, reduced spreads, a credit line from eToro, and invites to corporate events around the world.
Investor Program: The popular Investor Program rewards traders with a certain level of success a special status ranging from 'Cadet' to 'Elite'. Perks include spread rebates, credit, and free subscriptions to services such as the Financial Times.
Opening an account with eToro is a simple and straightforward process that should not take more than a few minutes. Simply click on the link below, click on 'Join Now', and enter your email address and password. Once you have done this, you will need to upload some personal ID documents in order to satisfy regulatory requirements. This should only include a personal ID and a document that provides proof of residency. Once you have done this, you will likely have to wait 1-4 days for your account to be verified, which is longer than we would expect from such a large, well-financed platform. Once you are verified, you're good to go.
And now let's have a look at any fees and commissions that you have to take into account before you decide to trade with eToro.
eToro does not impose commission on most trades. However, unfortunately, it does impose trading fees across a number of areas, which is something its competitors do not do. Trading fees at eToro include:
Transfer fees any time a cryptocurrency is transferred out of eToro's wallet into an e-wallet of your choosing
eToro unfortunately also charges a number of non-trading fees that we would have expected them to have waived. These are:
Overall, eToro's fees are on the steep side and are definitely less competitive than those charged by other platforms.
eToro allows users to make deposits and withdrawals in a wide range of currencies and across a wide range of methods and platforms:
eToro allows traders to make deposits and withdrawals in a number of base currencies. These are:
These offerings are more extensive than the base currencies that are accepted by many competitor platforms. However, it's important to note that a conversion fee is applied for currencies other than USD.
The minimum first-time deposit at eToro is equivalent to USD 200, whereas all other deposits are limited at a minimum of $50. You can also request to open an Islamic account, but for this, a $1000 or more minimum deposit is required.
There are no deposit fees charged by eToro. There is also a wide range of options for making deposits. These are:
Unfortunately, non-US customers face a withdrawal fee of £/$/€5 every time they withdraw cash. All of the same methods used for deposits can also be used for withdrawals.
Customer support is 24/5 with eToro and is available in over a dozen languages. Users can get in touch online, over the phone, and on social media.
eToro offers customer support in English, German, Mandarin, Greek, Russian, Spanish, Italian, Polish, Dutch, Norwegian, Romanian, and Finnish
If you're looking for a platform that is user-friendly, fun to use, and has more trading options than you can shake a stick at, then eToro is the one for you. Their crypto, CFD, and forex offerings are staggering, and there is very little you will not be able to find here. Furthermore, eToro offers a rich array of resources for traders, including news, analysis, and advice from expert traders. Low minimum deposits and low minimum trading amounts also make eToro stand out from competitors.
However, that's not to say that there aren't downsides. Many of the fees charged by eToro are difficult to stomach, and it is genuinely surprising that they continue to charge their users for withdrawals and certain types of trades. Apart from this, eToro is a solid, trustworthy, secure, and worthwhile platform for beginner and veteran traders alike.