eToro In-Depth Review – Is It The Right Broker For You? Pros, Cons & Tips

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eToro Review

Back in January 2007, three entrepreneurs set out to transform the arena of trading. Their mission was to grant access to this arena to anyone from anywhere. Their efforts have been remarkable since then as they have reduced the dependency of traders and investors on traditional financial institutions. Yes, we are talking about eToro – the world’s leading social trading and investing platform. Follow for an in-depth eToro review!

Now in 2021, eToro has established itself as one of the most revolutionary platforms in the world of trading. For more than 14 years, the platform has been a leader in the global Fintech revolution. eToro’s innovation and revolutionary developments attracted millions of users in a very short period of time. 

eToro’s journey started as general trading and investing platform. They introduced various other services like cryptocurrency trading and several other services along the way. eToro has always remained proactive to keep up with the ever-changing markets and the ever-growing needs of the traders. Moreover, the innovation of the company has been phenomenal. For example, eToro is among the pioneers in introducing features like copy-trading and copy portfolios. 

eToro’s ever-growing popularity, with more than fifteen million users across the globe, indicates the efficiency of services. It has a lot to offer for you no matter what you trade. eToro offers stock, crypto, commodities, ETFs, and forex trading. Furthermore, eToro is one of the safest and secure trading platforms on the planet as it is regulated by Financial Conduct Authority, UK. 

eToro Broker: Pros and Cons

eToro Pros

  • Unlimited commission-free trades
  • Option to buy fractional shares
  • The lowest minimum deposit threshold
  • Copy trades of top investors
  • Demo account
  • Eighteen cryptocurrencies for trading
  • Social trading: Learn and copy trades of the eToro community’s gurus 
  • Less expensive and transparent fee structure
  • Mobile apps for both, iOS and android

eToro Cons

  • Covers only forty-one states of the US
  • Crypto-to-crypto trading pairs are not available for the US users
  • Only email and chat support is available
  • Not accessible from across the globe

Full eToro Review

Our eToro review is based on an in-depth analysis of the eToro broker platform. Our full eToro review covers different aspects of the platform that you need to know about. Therefore, if you are thinking about using the platform for trading or investing, our eToro review is definitely going to enlighten you.

eToro Regulations and License

eToro broker is a highly regulated platform that provides transparent regulations and licensing information. You can read all the relevant information on “Regulations and License” in the footer section on the official website. eToro is regulated and licensed by the following regulatory and licensing authorities.

  • The Financial Conduct Authority (FCA) regulates eToro brokers in the United Kingdom. The company also has a cross-border license from the FCA to provide brokerage services in the European Economic Area’s member states.
  • Cyprus Securities and Exchange Commission (CySEC) regulates eToro in Cyprus. The company also has a cross-border license from the CySEC to provide brokerage services in the European Economic Area’s member states and outside of it.
  • As a crypto services provider, the company is also registered with De Nederlandsche Bank N.V. (DNB). 
  • eToro is also registered with FinCEN in the USA as a Money Services Business. eToro USA Securities Inc is also part of the SIPC and FINRA in the US.
  • The Australian Securities and Investment Commission (ASIC) regulates eToro in Australia.
  • eToro has also secured a license from the Seychelles Financial Securities Authority to offer its services.

All eToro features – you should know about

eToro trade markets

You can trade on more than two thousand financial instruments on eToro across several trade markets. You can trade on stocks, crypto, commodities, ETFs, indices, and forex markets. Each financial instrument has unique characteristics and you can trade anyone of your choice by using various investment strategies. 

1. Stocks

eToro allows you to invest in the most popular stocks such as Apple, Google, Tesla, Amazon, Facebook, etc. You can also start investing with as little as $100 even in stocks that cost more than $500. However, eToro covers only seventeen stock markets including;

  1. Amsterdam
  2. Copenhagen
  3. Euronext Lisbon
  4. Euronext Brussels
  5. Frankfurt
  6. Helsinki
  7. Hong Kong
  8. London
  9. Madrid
  10. Milan
  11. NASDAQ
  12. NYSE
  13. Oslo
  14. Paris
  15. Saudi Arabia
  16. Stockholm
  17. Zurich

And eToro is only good for traders and investors looking for popular stocks only because it covers only the most popular stocks listed on a stock exchange. However, eToro has a tradition to introduce new stocks for trading from time to time. 

2. Cryptoassets

eToro is one of the best crypto trading platforms that present multiple options for crypto traders and investors. A unique CryptoPortfolio, managed by eToro’s top traders and investors, enables you to maximize the odds of profitable crypto trading. You can invest in eighteen cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash (BCH), Cardano (ADA), XRP, etc.

However, there are some specific rules such as some cryptocurrencies may not be available in a specific country. Another example of country-specific rules is you cannot go short on cryptocurrencies. Moreover, crypto trading is risky and that is why investor protection is not available 

3. Commodities

eToro allows commodity trading only as CFDs. That means you can sell short positions, trade on leverage, and own fractionally (even for the commodities not available for fractional ownership in traditional trading). This is the reason that you can invest as little as $100 in a commodity such as gold, even when the cost of gold’s one unit is $1500. Gold, silver, platinum, oil, natural gas, etc. are among the most popular commodities traded on eToro.

4. Forex

You can also trade currencies on eToro but only as CFDs. CFDs also allow selling positions and leverage trading. You can trade on the most popular currency pairs such as EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CAD, etc.

5. ETFs

eToro allows a buy position when investing in ETFs. Moreover, you can also trade ETFs using CFD trading. CFD trading allows you to open a sell position, trade on leverage, and also buy fractional shares. eToro also makes ETF trading easy as you can invest in ETFs with as little amount as $250. SPY, VXXB, TLT, HMMJ, QQQ, etc. are among the most popular ETFs traded on eToro.

6. Indices

You can trade indices on eToro as CFDs by opening buy long or sell short positions as well as trade on leverage. 

eToro trading platform

eToro trading platform aligns well with the company’s aim to make markets accessible to all. The company launched its cutting-edge WebTrader platform in May 2009. The platform is user-friendly, intuitive, and offers features for beginners and expert traders alike. Moreover, the platform is available in more than twenty languages. 

In short, the eToro platform has all the characteristics of a modern trading platform. Its clean and engaging design is a pleasure for the eyes. Not just that, the functionality of the platform partners well with its design. Menus, buttons, color schemes, labels, and all other things are absolutely perfect. However, the platform is non-customizable except Watchlist which is easy to customize. 

Its unique features are:

Virtual Portfolio

Each user gets upon opening an account a demo account with a free virtual balance of $100,000. You can build your Virtual Portfolio for practice and experimentation to learn and gain experience. 

TipRanks Research Tab

Enables you to access analysis of the leading analysts in one place. The Research Tab offers cumulative knowledge of trading and investing gurus from across the globe.

One-Click Trading

Allows the users to avoid repeating trade habits and open new positions with a single click by using readymade parameters. 

Stop-loss and Take Profit

eToro platform has a unique feature that enables users to set price points that are predetermined for closing an open position. Stop-loss closes the open position when it reaches a certain loss and Takes Profit does similar to secure profit.

Trailing Stop-loss

Empowers traders to keep their positions open for as long as the favorable trend continues. 

ProCharts

Users compare charts from different assets and different timeframes with this advanced technical analysis tool.

Offline Trading

Another unique feature of the eToro platform is that you can place trading and investing orders even when the platform is offline.

Login and Security

The two-step login system is complicated for logging in but it ensures optimum security.

Built-in Search Function

The predictive and easy-to-use search system makes searching seamlessly easy. 

Alerts and Notifications

Enables users to get price alerts when the price reaches a certain level and also get notifications upon order completion. You can alerts and notifications in the form of icon update or browser notifications when using the web platform. On the other hand, you get push notifications when using the mobile app.

Portfolio and Fee Reports

The platform also gives you options on how you want to see your Portfolio and Fee Reports. You can see them in a list or in the form of a pie chart. The platform provides reports in a well-structured pdf file. 

Social Trading on eToro

eToro is among the pioneers who introduced social trading. Back in 2010, the company improvised the platform and initiated social trading. The company’s focus on social trading is ever-growing because it wants to give its users an edge by harnessing the trading wisdom of the eToro community. Social Trading on eToro is so special because the platform offers various unique social features. eToro is also keen to maintain active social channels to make financial markets easily accessible. 

Copy Trading

Finding other expert traders to copy on eToro is one of the best features of this remarkable platform. You can find people watching your trading and investing requirements on the Copy People screen. There is also a separate section known as the Editor’s Choice. It suggests people trading recently that are worth watching for. 

Moreover, it is also very easy to search for traders using the search tools. There are multiple parameters to choose from that help in filtering results. The plus point is, users have fully transparent information about each trader they wish to copy. Thus, they can easily determine the best choice and create a copy-based portfolio. 

Investor Program

The eToro’s Investor Program helps the platform to encourage successful traders and investors to share their trading wisdom with the eToro community. The purpose of this program is to provide monetary rewards to traders being copied. The rewards are substantial, even are higher than profits made from trading and investing. 

The Social News Feed

Social trading on eToro is also unique because of the personalized Social News Feed. It incorporates words from social media and the world of trading. Thus, the information-rich News Feed enables users to follow expert traders and assets of their choice, interact and discuss with other eToro community members, and much more.

Furthermore, the Social News Feed is just like any other social media platform. Users can post their own updates, share posts, comment on other posts, and much more. That means you can customize the feed to make it suitable and perfect for your own trading and investing needs.

Users can also extend beyond the eToro platform. They can share their trading wisdom, decisions, and actions on other trading platforms like Facebook and Twitter. Moreover, users also have the option to create their own charts and share them both on and off the platform. That sums up the emphasis eToro places on sharing the trading wisdom. The democratization of financial knowledge ultimately leads to the success of other community members. Everyone in the community, who puts insufficient time and effort to study markets and other people’s decisions, has the chance of hitting success. Therefore, eToro’s Social Trading is what you need.

Click here to try copytrading on eToro now!

CopyTrader

eToro’s CopyTrader is another unique and most popular feature. Users can view the trades of other expert traders and automatically copy their trades. That means you can trade like a professional trader without any additional management fees. eToro CopyTrader brings the following key benefits. 

  • Whether you are an inexperienced trader or don’t have enough time to study markets, CopyTrader enables you to copy other top-performing traders. You can immediately replicate their decisions in your own portfolio. 
  • Expert traders and investors get paid through the Popular Investor Program. That means there is no fee burden on you. You can copy the most successful traders without incurring any management fees. Sp, you can change the complexion of the trading game just by signing up for free on eToro. 

CopyPortfolio

Copytrading isn’t the only way on eToro to copy trades of the successful traders and investors. With eToro’s CopyPortfolio feature, users can invest in a portfolio of the top traders. Several financial instruments like stocks, ETFs, cryptocurrencies, and even people are grouped together in investment portfolios. They are bundled together and invested in on the basis of a predetermined theme or strategy. Thus, users can also invest in a portfolio theme such as investing in portfolios of cryptocurrencies or financial institutions like big banks. Users can read the investment strategy as well as regularly check performance and asset distribution along the way. eToro’s CopyPortfolio is suitable for any plan – for individual investors and enterprises. 

  • Innovative Thematic – Innovative Thematic investment portfolios ensure exposure to the biggest disruptions in the history of trading and investing. 
  • Top Trader – Investment portfolios employ a multitude of metrics by using advanced algorithms to develop investment strategies. These strategies are always the next level and data-driven that maximize the overall gain of investors. 
  • Partner Portfolios – eToro broker also partners with newly established investment companies in the world and enables them to develop their own strategies. 

eToro broker is the platform that always intends to make trading and investing easy and straightforward for its users. Its CopyPortfolio features also make investing easy and effortless. CopyPortfolio brings the following key benefits. 

  • Extensive research backs investment portfolios.
  • An experienced team of professionals with superb knowledge of the market creates each portfolio.
  • The platform uses the latest cutting-edge technology and advanced algorithms to develop investment portfolios.
  • Each portfolio is generated with risk management.
  • Some specific and distinct methods are used to create each portfolio.
  • eToro charges no extra fees for the CopyPortfolio feature. 

Research on eToro

eToro offers the following research features. 

  • Research tools – eToro offers various valuable research tools like daily market analysis series, a news feed, standard economic calendar, etc. However, the company fails to integrate a few of those features into the eToro platform. 
  • Fundamental analysis tools – eToro integrates well the fundamental analysis tools into the eToro platform. Still, the platform lacks in this regard when compared to some of its competitors. 
  • Market sentiment – eToro uses trades of the top traders to calculate sentiment data. It doesn’t consider the sentiment of all the participants in the market. 
  • Wall newsfeed – eToro provides collective commentary about a particular financial instrument using a wall feed just like Twitter. It is one of the most exciting and useful features that keep you updated on what other traders are sharing on the eToro platform. All these updates appear in the form of a stream. However, the quality of the content may vary. You may find poor-quality or average quality content posted by users or fine quality content posted by eToro staff.

Education on eToro

eToro’s educational tools and content are not satisfactory. The platform has only some videos for basic trading knowledge. However, blogs and articles on a variety of topics help you keep updated with what is happening in the trading world across the globe.

You can also subscribe to webinars to learn about the latest developments in the trading world. Overall, the platform lacks in providing educational content as compared to most of its competitors. 

eToro’s Customer Support Services

eToro’s customer support services are available via live chat. You can also get customer service by a ticketing system on a web platform. You get the eToro’s team response via email. Moreover, customer support is available in twenty languages that is a plus point for non-native English speakers. 

Overall, the customer support services are satisfactory as you get a quick response from the team. However, customer support is only available 24/5 as you can reach the support team on weekends. Furthermore, the live chat option is difficult to locate for some users. You can find it in the FAQ section just below the “Help Center” link.

eToro Accounts and Opening an Account

eToro offers two types of accounts, a live account, and a demo account. If you don’t want to invest real money, you can open a demo account. A demo account gives you the opportunity to practice and gain experience. 

eToro offers its services in almost 140 countries with a minimum deposit of just $200. However, the minimum deposit amount can be different for some countries. The minimum deposit for Israel is $10,000. Australia and the US nationals have a minimum deposit requirement of just $50. A minimum deposit of $1,000 is required from the residents of the following countries. 

  • Argentina 
  • Azerbaijan
  • Bahrain
  • Bolivia
  • Bulgaria
  • Cayman Islands
  • Colombia
  • Costa Rica
  • Croatia
  • Dominican Republic
  • Egypt
  • Estonia
  • Ecuador
  • French Polynesia
  • Greece
  • Gibraltar
  • Georgia
  • Guernsey
  • Hungary
  • Iceland
  • Isle of Man
  • Jersey
  • Jordan
  • Kenya 
  • Kazakhstan
  • Kuwait 
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • New Zealand 
  • Oman
  • Peru
  • Qatar
  • Reunion Island 
  • Senegal
  • South Korea 
  • Slovakia
  • Slovenia 
  • Taiwan
  • Ukraine
  • Uruguay

The eToro account opening process is also very easy, straightforward, and fully digital. The platform ensures a quick but hassle-free process. You just have to open your account by providing an email address. You can also open your account with Google or Facebook. That’s is it? You are good to go. You can start using the demo account with an initial virtual balance of $100,000. However, you have to provide the following documents in order to open a live account. 

  • A copy of your personal identity card or passport as proof of identity
  • A copy of bank statement or utility bill as proof of residency

eToro Fund Deposits

Depositing funds in eToro is extremely easy as the platform facilitates deposits with a variety of easy options such as credit cards. There is no deposit fee either. However, eToro only accepts USDs and your funds from other currencies are automatically converted into USD. For example, if you deposit AUDs, a 50 pip fee is charged by eToro, and funds are converted into USD. Moreover, the fee may also vary upon deposits in different currencies. You also have the option to deposit your funds in US dollars. In that case, your bank will charge the applicable conversion charges. eToro accepts the following deposit options.

  • Bank transfers
  • Credit/debit cards
  • China UnionPay
  • PayPal
  • Skrill
  • Neteller
  • Klarna/Sofort Banking

However, some of the deposit options may not be available for certain countries. Moreover, eToro also requires users from certain countries to deposit the first amount by bank transfer or credit/debit card. Any subsequent funds can be deposited from any electronic accounts.

eToro Funds Withdrawal

eToro funds withdrawal options are the same as deposit options. However, eToro charges a $5 withdrawal fee, and the platform also places a withdrawal limit of $30. Withdrawal fees are higher as compared to industry standards. 

eToro Trading Costs

eToro trading costs significantly depend on your territory and the class of asset being traded. The costs are;

  • Stock traders, except US stock traders, don’t have to pay commission on long positions. However, traders have to bear a commission of 0.18% of the value of the trade on selling short positions. 
  • The cryptocurrency trading fees for US traders range from 0.75% to as high as 5%. The fee depends on the cryptocurrency being traded. 
  • The inactivity fee is $10 when users fail to use the account for 12 months.
  • Each type of cryptocurrency incurs a fee when transferred from eToro to a personal wallet.
  • eToro also charges currency conversion fees when deposited funds are in a currency other than USD. 
  • The withdrawal is free for US users while non-US users have to bear a $5 withdrawal fee. 

Is eToro safe for you?

Yes, eToro is one of the safest and secure trading and investing platforms. It has millions of users from across the world who testify eToro is safe for all. eToro is regulated by FCA-UK, CySEC-Cyprus, and ASIC-Australia. The platform also values client’s privacy above all. That makes it safer for its users. However, eToro is not listed on any stock exchange but that’s hardly a point of someone’s reservation. 

The Wrap-up of eToro Review

We thoroughly examined and analyzed the eToro broker to provide a comprehensive and honest eToro review. Our personal experience has been very good although eToro has certain advantages as well. We are going to wrap up our eToro review with the following key takes on the platform. 

  • The history – eToro has been in the business for 14 years now. It has gained the trust of millions of users from around the world. These facts indicate the reliability of the platform. 
  • Regulations – The FCA, ASIC, and CySEC regulate eToro. That means eToro is a highly regulated platform that is safe and secure for traders across the globe.
  • Trading platform – eToro’s web-based trading platform is user-friendly and easy to use. It also offers various key features that make trading and investing seamlessly easy.
  • Mobile app – eToro has also done great in developing a mobile app that completely follows the web platform. It is equally good and easy to use.
  • Funds deposit and withdrawals – eToro is also among the best when it comes to funds deposits and withdrawals. However, non-US users have to incur a $5 withdrawal fee that is higher than the industry standards. 
  • Customer support – eToro’s customer support is also satisfactory as you get instant responses. However, customer support is only available on working days only.
  • Education – eToro lacks in providing valuable educational content for its users. There is huge room for improvement in this aspect.

We hope that this eToro review will help you analyze whether the platform is right for you or not. Our verdict is that eToro is valuable trading and investing platform, especially for non-US users. 

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