eToro is one of the leading digital trading brokers in the world with its social trading platform. This post is a comprehensive eToro broker review.
The key difference between eToro and most other trading platforms is that eToro is a Social Trading platform that allows you to discuss your trades, follow traders or even copy other traders automatically.
Shortly about eToro
eToro is one of the leading CFDs and Cryptocurrencies broker in the world. Founded in 2007 in Cyprus, this broker currently offers almost all trading instruments in a single platform.
It offers Forex, Indices, Precious metals, Cryptocurrencies and Physical stocks with a click of a mouse without installing any software – both on desktop and mobile. Physical stocks without leverage can be bought with 0% commisions.
eToro supports more than 140 countries and has already more than 5,000,000 eToro clients worldwide.
Most financial instruments this broker offers to trade are CFDs on various assets and not the assets themselves (except physical stocks and cryptocurrencies).
eToro allows day trading, but not scalping.
Social Trading with eToro
eToro is unique because it is a Social Trading platform. In other words, traders can trade various assets while at the same time they can communicate with other traders on the same platform.
Traders can also follow various discussions or discuss their own trade ideas. In my opinion, it is always advantageous to hear other people’s opinions about one or another trade. It is especially important for beginners in the trading world.
Furthermore, eToro even allows Copy Trading – to copy trades of other traders in real-time. It can be done either manually or automatically. Shortly saying the trader can simply choose the amount of his investment that will be used for copying and choose a trader to copy.
The system will automatically copy all trades of that trader and it will continue so in the future. Learn more about Copy Trading with eToro.
This can be very helpful for traders and investors who want to invest their money but do not know where to. However, it must be understood that Copy Trading does not guarantee any gains or losses.
Review - Financial Assets To Trade With eToro
eToro offers to trade hundreds of different financial assets. While most of these assets have small trading fees (because they are CFDs), traders can trade physical stocks without any fees or any overnight costs – they are totally free.
Assets to trade with eToro
- Physical stocks and CFDs of them
- Forex (EUR/USD, others)
- Indices (DAX, Dow Jones, others)
- Commodities (Oil, gold, others)
- ETFs
- Cryptocurrencies (Bitcoin, Ethereum, others)
eToro supports more than 140 countries and has already more than 5,000,000 eToro clients worldwide.
A few months ago, eToro started to offer their services in the US. At the moment, only in cryptocurrencies.
Unfortunately, Canada, Japan, Iran, Turkey, and some other countries are not supported because of the trading laws. A full list of unsupported countries can be found here.
The leverage available at eToro is limited by regulations of the European Securities and Markets Authority (ESMA). Below are leverage levels that can be applied to various assets.
While it can be seen as a limitation, mostly it helps traders by reducing risk levels and loses. eToro clients with Professional Client status can use higher leverages.
Leverages available with eToro
- 30:1 for major currency pairs (such as EUR/USD)
- 20:1 for non-major currency pairs (such as EUR/NZD), gold and major indices
- 10:1 for commodities with the exception of gold and non-major equity indices
- 5:1 for CFD stocks
- 2:1 for Cryptocurrencies
eToro Cryptocurrencies Review
eToro offers 17 Cryptocurrencies and Cryptocurrency Crosses to trade. Your Crypto can be either purchased and held by eToro on your behalf (unleveraged trades, only LONG position) or traded as CFDs (max leverage 1:2 and both LONG and SHORT positions are available).
To clarify – maximum leverage of 1:2 is available in both long and short positions on Cryptocurrencies. More information you can find here.
Available Cryptocurrencies on eToro
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- XRP
- Litecoin (LTC)
- Dash
- +10 more available
It can be clearly seen that eToro extensively works on trading of Cryptocurrencies. Firstly, they launched eToroX – a fully regulated Cryptocurrency exchange.
Secondly, they offer CryptoPortfolio which allows investing in almost all Cryptocurrencies while keeping your portfolio diversified.
Thirdly, they offer Cryptocurrency Wallet for iOS and Android. Moreover, it also allows the user to trade and transfer Cryptocurrencies with their mobile. However, it seems that eToro wallet is not a good way to store large amounts of Cryptocurrencies because eToro broker does not give you full control of the wallet that belongs to you.
You can find more information about the trading of Cryptocurrencies on eToro here.
Facts at a glance
- More than 140 countries supported (unfortunately, some big countries like the US, Canada, and Japan are not supported)
- Hundreds of assets to trade including Physical Stocks, Forex, CFDs, ETFs, and Cryptocurrencies
- Leverage can be freely chosen for each trade (up to maximum)
- Trading platform has social trading (discussions, trader following, and copy trading is possible)
eToro Trading Platform Review
eToro supports only its own web-based trading platform which allows you to see movements of the market and manage your trades. You can also see market sentiments – how many traders go SHORT or go LONG on one or another asset.
Besides trading, eToro trading platform has social features. You can read, create and participate in various discussions with other traders about one or another asset. Moreover, you can see the performance of other traders and you can choose to copy their trades. eToro does it automatically for you.
Details about trading platform
This platform works on both desktop and mobile. You can follow your trades everywhere. Moreover, eToro platform can be customized as needed and has all the basic charting tools for technical market analysis.
However, the web-based platform has many limitations for experienced users who prefer to use more advanced trading indicators.
Sadly, well-known MT4 and MT5 trading platforms are not available on eToro. It basically means that only build-in indicators in the eToro platform can be used which limits technical analysis capabilities.
Also, you execute the trades through the pop-up box where you see only numbers rather than clear graphical representation on the chart.
On the other hand, to run eToro platform you do not any complex software to download or install. The platform itself is indeed smooth and functions without any lag or connection problems. It also does not overwhelm with many blinking numbers and buttons.
Therefore, this broker is especially good for beginners who do not know how to trade. Simply visit eToro and create a free demo account in 2 minutes and check yourself. Demo account uses virtual money but allows you to trade them on real market movements.
eToro Review - Fees
Because of the huge amount of available financial assets to trade on eToro, the commissions vary from asset to asset.
For example, crypto-dollar pairs come with about 1.5% fees, while CFDs on Stocks and ETFs are almost always smaller than 0.5%. Moreover, you can trade Stocks without leverage without any fees.
All fees and commissions can be found here.
Funds Deposit Methods
With eToro, you can start trading with as low as $200 or even less (country dependent). For example, for USA and Australia residents minimum first-time deposit is only $50, while for some countries minimum deposit can be as high as $500 (Russia, China, Hong Kong, Taiwan).
However, it must be understood that a bigger first deposit is advantageous for maintaining your trades open. Later deposits to eToro can be as small as $50. Moreover, eToro accepts almost all possible deposit methods: credit cards, PayPal and many others.
Unfortunately, all trading accounts on eToro are in USD. As a result, all your deposited funds to eToro (that are not in dollars) will be automatically converted at the current market rate which varies depending on the currency you use.
Moreover, there is a currency conversion fee that must be paid both depositing funds to your eToro account and while withdrawing your funds from the eToro account. Full details can be found at the bottom of this page.
Facts at a glance
- Only eToro web-based trading platform is available (no MT4 or MT5 support)
- Minimum deposit is $200 (country dependent)
- $25 fee per withdrawal, $10 inactivity fee after 12 months
- eToro account can be only in dollars (any transferred currency is converted at the current market rate + conversion fee both depositing and withdrawing funds)
- 24/5 support
- Officially regulated broker
- Simple to start and easy to use
eToro Is Officially Regulated Broker
eToro is regulated by Cyprus Securities & Exchange Commission (CySEC) and is compliant with the European Securities and Markets Authority (ESMA) rules. Moreover, it is also licensed by the UK’s Financial Conduct Authority (FCA) and Australian Securities and Investments Commission (ASIC).
These authorizations mean that trading with this broker is fully compliant with all regulations and eToro is safe to use. In fact, to comply with the laws eToro must maintain sufficient capital and use segregate accounts for its clients. Furthermore, your money at eToro (up to €20,000 or £50,000) is protected if the broker would go bankrupt.
Customer Support at eToro
eToro customer support is reachable 24 hours, 5 days per week by phone, fax or email. It must be mentioned that eToro does not offer live chat support, but in my opinion, it is not needed at all since the broker can be reached by phone or email.
eToro – Great Place to learn about Financial Markets
In my opinion, eToro broker is a great place to start trading. First of all, it is extremely simple and easy to use. You can open your trading account in less than 5 minutes. Secondly, it is a social trading platform. Therefore, you can discuss other traders trade ideas. Moreover, copy trading allows you to copy other, more experienced traders.
Thirdly, it allows adjusting leverage level and always requires stop-loss that allows beginners to learn important basics of trading fast. Moreover, it offers a trading calendar that is a must for every trader.
There is also eToro Blog which is very helpful because of tons of available information about markets. The blog covers News, Market Insights and Trading topics. Each day multiple new posts are posted.
eToro, just like other brokers, allows and even encourages to start trading with a free demo account. Demo account offers virtual money but real market movements. Therefore, the virtual demo account helps to understand how the financial assets work and what fees and overnight costs you have to pay for each active trade. Everyone knows that practice is the key to success in any field.
eToro Review Conclusions
On eToro you can trade hundreds of different financial instruments including 17 Cryptocurrencies. eToro platform is extremely easy to use and fast. The web-based trading platform does not require any downloads and is available on both desktop and mobile anywhere in the world.
While eToro allows trading with very low capital, withdrawal fees might be quite big. Moreover, commissions themselves are slightly bigger than average.
The biggest advantage of eToro is copy trading. Copy-trading makes this broker a perfect choice for investors who want to invest but don’t know where to or simply do not have time to do research. eToro allows you to copy other traders. On the other hand, various discussions are helpful for investors who prefer firstly to research assets and only then execute their trades.
Unfortunately, none of MT4 or MT5 platforms are available on eToro. It basically means that only build-in indicators in the eToro platform can be used which limits technical analysis capabilities. I wouldn’t recommend eToro for traders who would like to use a lot of trading indicators or planning to do hundreds of trades per day.
