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CloseeToro Review
eToro stands out for its easy-to-use copy trading platform which allows you to copy the trades of proven professionals.
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Wouldn’t it be a nice if a professional trader could make your trades for you?
eToro’s social trading platform facilitates just that. As a pioneer of copy trading, users are able to not just follow — but actually copy — the trades of those with a proven track record.
You’ll be able to browse legitimate traders, learn about their strategy, view their previous success, and even interact with them. Then, after clicking “copy”, you can go about your business while they continue to monitor the markets. Any trade they make, you’ll automatically make as well.
The best part is that eToro comes with a number of additional features.
eToro USA LCC does not offer CFDs, only real Crypto assets are available.
Is eToro the platform for you? Let’s find out.
Fast Facts
- Account Minimum: starts from $50 (depending on the region)
- Regulation: Toro (UK) Ltd. (FCA), eToro (Europe) Ltd. (CySEC), eToro AUS Capital Limited (ASIC), full list.
- Demo account: Yes
- Asset coverage: Stock, Forex, and CFDs
- Best for: Highly experienced traders who want to share their ideas
Ratings
- Commissions & Fees: 8/10
- Investment Selection: 8.5/10
- Account Options & Features: 9/10
- Usability: 8/10
- Educational Resources: 6/10
- Customer Service: 7/10
- Overall: 8.5/10
Risk Warning: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Pros
- Social trading platform
- Great mobile experience
- Impressive amount of cryptocurrencies
Cons
- Luck of research offering
- A withdrawal fee of $5
- Relatively high stock CFD fees and an activity fee
Overview and Summary
Here are the most notable features of eToro:
- eToro was born in 2007 to disrupt the world of trading by offering accessible trading for all, and reduced reliance on traditional financial institutions.
- In 2019 eToro reached 12 million registered users in over 140 countries, including the U.S.
- eToro launched its own debit card in 2020.
- The platform is considered safe and is regulated by the Cyprus Securities and Exchange Commission CySEC, and complies with the European Securities and Markets Authority (ESMA).
- eToro research offering is standard and could be improved. The platform offers an economic calendar, news headlines but not much else in terms of analysis.
- Opening an eToro account will require a minimum deposit of $50 Australian traders, and also for traders in The Netherlands, Norway, and Austria, $100 for traders from US, Germany, Italy and the UK, and $200 for traders in other countries.
- eToro is a great option for highly experienced, successful retail traders who would be interested in sharing their ideas in lieu of rewards.
What is eToro? 📚
eToro is a social trading platform that offers users access to assets, including, stocks and commodities.
Launched in 2007, eToro has since proven to be a disruption to the world of trading; by offering accessible trading for all, and reduced reliance on traditional financial institutions.
The platform is a multi-asset trading platform that manages a network for copy-trading, which allows traders to see and copy other traders’ strategies, whether these are shares, indices, or digital currencies.
eToro’s describes itself as:
“a social trading network in which every trader can see in which assets other traders are trading, whether these are shares, indices, or digital currencies.”
This is eToro’s core business, according to its co-founder. “Most of our customers’ trade now is in shares, and the global stock market went on setting new records in the past years.”
2019 saw an influx of acquisitions, with eToro proving to be no exception to this with their acquisition of Firmo in March. Firmo, a Copenhagen based blockchain business offers a platform that allows traders to execute financial contracts across several assets.
CEO Assia described this acquisition as a “game-changer… that will help boost growth in the future tokenized economy.”
The firm also acquired Delta, a crypto portfolio tracker app, which aims to help traders make smarter decisions about their crypto assets by giving them access to tools, like pricing data and portfolio tracking.
In the United States of America, eToro has been limited to what it can offer.
eToro Compared
0.75
N/A
Variable fees
N/A
$50 - $200 (jurisdiction dependent)
For UK users is $100
$0
47
105
N/A
0.6
N/A
0.6
$0
$10,000
105
182
Average spread EUR/USD standard
0.75
N/A
0.6
All-in cost EUR/USD - active
Variable fees
N/A
0.6
Minimum initial deposit
$50 - $200 (jurisdiction dependent)
For UK users is $100
$0
$10,000
Total currency pairs
47
105
182
Demo account?
Social / copy trading?
Risk Warning: Your capital is at risk. 51% of retail CFD accounts lose money.
12 Million Users & A Disrupted Financial Space 🌎
Although the brokerage’s platform has its downsides, it is well-designed for traders with a basic understanding of forex trading.
eToro Debit Card & U.S Activity Expansion 💳
CEO Assia confirmed rumours that it would soon launch its own debit card, which would be offered to customers, in addition to expanding activities in the U.S.
Is eToro Safe? 🛡
eToro is considered safe and is regulated by the Cyprus Securities and Exchange Commission (CySEC), and complies with the European Securities and Markets Authority (ESMA) rules that ensure thorough risk disclosures.
The broker does state that it may hold client funds in banks outside of the EU economic area, which increases the risk in the case of a bank default, but EU and U.K broker default protection is provided up to $20,000 (£50,000).
A guaranteed stop-loss protection is not provided, nor is additional coverage through private insurers. The order entry interface does not have any risk management features apart from stops and trailing stops.
That said, the ESMA enforced new rules in 2018 that state negative balance protection must be in place that ensures clients cannot lose more than 100% of their account value.
The company offers transparent pricing so you don’t need to worry about getting caught out with any hidden fees. There is also no daily limit on withdrawals.
Fees, Spreads & The eToro Club 📃
Even with its commission cuts in 2019, eToro’s fees remain higher than competitors when you take into account its spreads on forex, commodity and indexes that start at around 3.0 pips and S&P 500 at 75.00 pips for the EUR/USD pair.
Spreads are subject to drastic change depending on market conditions. Overnight and weekend holding costs are higher than competitors which can really hit profits hard. Weekday overnight holds cost 24 cents per $1,000 of leveraged exposure that is tripled for weekend overnight holds, but you won’t be charged an overnight fee for non-leveraged exposure.
Withdrawal fees at eToro were recently reduced, and customers are now able to withdrawal as little as $5, excluding bank fees. There is also a minimum withdrawal of $30.
The broker charges an inactivity fee of $10 per month after 1 year of no trading, which is pretty average.
The eToro Club offers a customized trading experience where some clients can receive benefits such as discounts and a dedicated account manager. The account has five tiers which are dependent on clients maintaining a balance between $5k-250k.
But fees and spreads aren’t a key factor for traders choosing eToro, typically it’s more for their trading platform and social trading capabilities.
📝 Side note: If you decide to start trading forex but have never heard of a pip, this guide will help you understand what pip is.
What eToro Does Best 🏆
Traders can earn some extra income with eToro’s Popular Trader Program. This program rewards successful traders for sharing their knowledge. By engaging users through the the CopyTrader feature, traders can grow a following and earn special perks that can help increase your earnings.
eToro focuses on how clients can benefit from helping others in the community. By creating interactive news feeds and encouraging clients to communicate with each other, eToro has lead an impactful social media platform for traders.
CopyTrader 👥
Built under the premise and understanding that not everyone has the time or expertise to trade actively, CopyTrader enables clients to simply copy other successful trader strategies and portfolios.
You simply allocate whatever amount you decide to another trader of your choice. Their trades are then automatically copied until you decide to stop.
Traders can see other trader’s portfolio, performance history, and risk score, allowing you to make a fully informed decision.
Web-trading Platform 🖥️
eToro’s web-trading is easy to use and great for those with less experience. However, everyone will appreciate its ease-of-use, including more advanced traders.
The platform offers over 2,000 tradable assets and includes features that will suit both novices and more advanced traders, too. Traders can access full-featured charting, with 66 indicators and multiple drawing tools.
Traders can join the eToro community and feel a part of a group through the platforms social trading, access ready-made portfolios through CopyPortfolios, along with accessing data from CopyTraders. However, there are no third-party alternatives offered, such as MetaTrader which can be a big disappointment for many.
eToro Mobile 📱
eToro offers traders an excellent trading experience through their mobile app, and brings with it a similar design to the web-trading platform.
The app gives you access to the market, community, data and 24/7 updates, and all your information will be completely synced with other devices.
Although there are only 5 charts available on mobile, in comparison to 67 on the web platform, they are responsive. The app is missing drawing tools though, which is a disadvantage.
Where eToro Could Do Better 👨🔧
eToro’s research offering is standard and could be improved. The platform offers an economic calendar, news headlines but not much else in terms of analysis.
There is research based on the platforms social trading elements, for example the platform extracts data from top traders, which is a unique aspect in its own right.
As the platform is built around a social trading theme, traders are encouraged to get their information from the collective commentary of users in the eToro network, which can offer a limited amount of information, and is a downside if you’re looking for more.
Customer Support ☎
There is a clear divide between the customer service that is offered to current clients and visitors. Apart from a Help Center that offers a list of FAQs and articles on certain topics, anyone that is not a client cannot easily contact a customer support agent.
Current clients can use the brokers live chat but anything else is a bit of a mystery. Any customer service links found link back to other pages.
eToro is active on social media including Facebook and Twitter, but they are mainly used for marketing purposes.
Tradable Assets 📝
In comparison to other brokers, eToro’s list of tradable assets isn’t very varied, and includes 47 currency pairs and 19 commodity/index CFDs. You can access a good amount of over 1,500 shares, which is its prime focus. Something to note: Forex, stocks, and CFDs will be available to traders outside the U.S.
Education: An Intentional Downfall? 🤔
eToro’s education, like other things, seems to be mainly focused on social trading. Apart a section on social trading, traders can read eToro’s regularly updated blog, a Guide to Fintech, and a daily market review.
The education portal contains a meager 11 programs that are standard enough, and in basic presentation styles. There appears to be no educational material apart from some articles on the FAQs page that describe the platform and its instruments.
This may be an intentional strategy for the broker given that its aim is to encourage successful traders to share their strategies with other traders; a selling-point that is particularly appealing for passive traders who are not interested in learning.
How to Open an Account with Etoro 🏗
Opening an eToro account will require a minimum deposit of $50 Australian traders, and also for traders in The Netherlands, Norway, and Austria. For traders in US, Germany, Italy and the UK, the minimum first deposit is now $100, while it remains $200 for traders in other countries. The maximum deposit limit is $10,000 per day.
eToro’s demo account, offers unlimited access to users along with a possible $100,000 of virtual money to practice with.
The Bottom Line 🚩
eToro is all about social trading and seems to have gained much of its success in a similar way to Robinhood; where Robinhood focuses on offering millennial traders accessible trading through low-costs, eToro focuses on offering accessible trading through copy-trading.
This strategy seems to have earned eToro the right passive audience who want to be apart of share trading ideas, and join the broker in spite of its high-fees or lack of other offerings, such as customer service.
eToro is also a great option for highly experienced, successful retail traders who would be interested in sharing their ideas in lieu of rewards.
Although the platform is easy to use, beginners who would like to be more active, learn more about trading, or have access to a good support team will not suit eToro.
Active or high volume traders will be more suited to Forex .com.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
eToro: FAQs
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Does Etoro Support MT4?
No, eToro does not support MetaTrader 4, but they do have their award-winning trading platform which is easy to use and suits both beginner and more experienced traders. The platform offers more than 2o00 tradable assets as well as many tools to help you ensure that your investments are put to good use.
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What is eToro's CopyTrader ?
eToro's CopyTrader system helps you to find new and better ways to build your portfolio by copying other successful traders' strategies and portfolios.
The system itself is easy to use. Find an investor that you'd wish to copy, decide how much money would you like to allocate to the trader of your choice, and simply click on "copy". From that point forward their trades are copied until you decide to stop. Have in mind that you can START or STOP copying at any time.
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What’s eToro’s Minimum Initial Deposit?
The minimum initial deposit for eToro's account will be $100 for the U.S. and $50 for Australian citizens, traders from anywhere else in the world will be required a sum of $200. The brokerage also has the maximum deposit amount of $10,000 per day but you won't be charged any fees when depositing money since there is no deposit fee at eToro.
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Is eToro Safe?
Yes, eToro is considered to be safe since it is regulated by top-tier regulators like CySEC, FCA, AFSL, and ASIC.
eToro and the Competition
See how eToro compares to the leading Forex brokers by reading one of the reviews below.
All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.
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