Are you searching for eToro Review? If yes then we are going to review the eToro forex broker.
In this guide, we are going to know about:
- eToro Fees
- Trading Platforms
- eToro Products
- Deposit and Withdrawal process
- Safety and Security for Traders
Let’s get started…
eToro Review – Introduction
Founded in 2007 by Yoni Assia, Ronen Assia, and David Ring, eToro established themselves as a social trading and multi-asset brokerage firm. Its innovative trading platform allows traders to copy trades from market professionals and discuss trading issues with experienced traders within the eToro virtual community.
This feature helped eToro to unite over 11,000,000+ traders around the world who take part in the forex & crypto markets through eToro social trading platforms on a regular basis.
Since they’ve started as a brokerage firm, eToro had a vision of making the financial markets more accessible to the traders from anywhere around the globe. For this reason, they launched their first eToro WebTrader in 2009.
This feature helped traders to get access to the financial markets without downloading any trading platform.
After they had launched the WebTrader, eToro planned to introduce something new for the traders which will tie them into a trading family by allowing them to share their trading experience themselves.
As part of the plan, in 2011, they launched OpenBook, known as the first social trading platform in the history of financial tradings. It allowed traders to discuss trading strategies, plans, and experiences with each other.
The most attractive feature of this trading platform is the “Copy-Trading” option. It lets you follow the trades from profitable traders on an automatic basis. This feature made a revolutionary impact on the progress of the broker by a dramatic rise of the eToro subscribers.
In 2012, eToro included stocks like CFDs and commodities to its asset list which are traded in the same manner as forex currency pairs.
As part of their revolutionary progress as a broker, they launched the eToro mobile trading app in 2013 for both Android and Mac devices. This app introduced eToro as a broker with the facility of an extraordinary level of trading flexibility.
eToro updates its trading platform on a regular basis. In 2015 it installed a modern interface on its trading platform in order to offer a fast and intuitive trading experience for its traders. In early 2017, eToro extended the area of its financial assets by introducing Cryptocurrency, tradable through its own trading platform.
Moreover, it also added ‘Support for trading Crypto’ feature to its trading platform as an aid for the Cryptocurrency traders. eToro has recently launched its ‘CopyTrader’ feature for US cryptocurrency traders.
This means from now on, traders with any level of experience from the US can take part in Crypto trading. We’ll have a brief discussion about it later in this review.
eToro Fees Review
eToro offers very competitive trading commission and transaction fee packages for its clients compared to other financial brokers at the same level of standards.
It doesn’t apply any hidden charge or extra free to its traders and commits for a 100% transparency on daily financial transactions.
- Trading fees: eToro doesn’t charge any extra fee on trading, the fee is included with the spreads applied with every trade execution. If you’re trading from Europe, you’ll enjoy free stock and ETF trading with eToro, for non-EU clients the fee is as low as 0.09% spread per trade. For forex currency pairs, the trading fee starts from 3 pips which are included only as spreads with the respected pairs. Trading fees for Cryptocurrencies are also lower compared to other sites which stand from 0.75% to 5% depending on the nature of the Crypto assets. In addition, eToro doesn’t charge any overnight and weekend fees against opened CFD positions. However, the broker charges a #10 inactivity fee for each month when you’re not active in trading for 12 consecutive months.
- Deposit and withdrawal fees: eToro doesn’t apply any charge on deposits. It means you can deposit funds to your account as many times as you want without paying a single penny as transaction fees. However, a $5 fee is applied for each withdrawal made from your eToro account.
- Conversion fees: If you’re using other currencies except for the US dollar for the fund transfers, you’ll require to pay a conversion fee in pips. For example, the broker charges 50 pips for wire transfer in Australian Dollar or Canadian Dollar. eToro also accepts Euro, Great Britain Pound, Japanese Yen, Chinese Yuan, and Russian Ruble for wire transfer. Conversion fees on other payment methods such as debit or credit cards are a bit higher compared to wire transfer fees which range from 50 pips to 250 pips depending on the currency and currency conversion rate. Here is the list:
- GBP: 50 Pips
- RMB: 50 Pips
- RUB: 50 Pips
- AUD: 100 Pips
- CAD: 250 Pips
- EUR: 250 Pips
- JPY: 250 Pips
eToro also allows transactions through Cryptos and the fee stands as follows:
- Bitcoin Cash: 0.0001 units
- Ethereum: 0.006 units
- Ripple: 0.25 units
Opening trading accounts with eToro is pretty simple. It takes only a 3-step process to open an account and start trading with eToro. Let’s have a look:
- Open the register and fill up the application form: Visit eToro official website. Click on the ‘Join Now’ button and find the registration form. Fill the form with all the necessary information including your name, contact information with a valid mailing address.
- Set your username & password and get verified: Once you’re done with the application form, you’ll be asked to set a username and password for your account. Don’t forget to combine the password with both capital and small letters including at least one numeric character for security reasons. When you set them successfully, a confirmation mail will be sent to you mentioning your account login information. Before you get full access to the eToro features you must have to verify your identity and physical address. For identity verification, you can submit a scanned copy of your national ID, driving license or passport. For address verification, send a valid scan copy of your utility bill (not older more than 3 months) mentioning the same physical address you used in your application form. Once you’re done with the account verification, you’re free to enjoy the full access to the eToro features along with a faster deposit/withdrawal process to your trading account.
- Fund your account and start trading: Login to your account, click on the deposit button, choose your favorite deposit option and follow the funding process to activate your trading account. You’ll be notified through your registered email for every successful transaction you do with your eToro account. After you’re done with the account funding, you’ll get direct access to the global financial market and may start trading immediately.
eToro offers demo account facilities for newbie traders or anyone interested to experience the broker service. It allows you to practice the live market and learn about eToro at the same time.
Opening a demo account with eToro is pretty simpler than opening a live trading account. It doesn’t require any account verification and fee.
Deposit and Withdrawal
eToro offers a variety of deposit and withdrawal methods to its clients. You’re free to choose your favorite method of the transaction from the list below:
- Wire Transfer
- China Union Pay
- Credit/Debit Card (Including Visa and Mastercard)
- Local Online Banking
The method of deposit and withdrawal should always be the same. The minimum deposit limit is $200 and the maximum deposit limit is up to $400,000 depending on the method of payments.
The minimum withdrawal limit is set to $50 but the maximum withdrawal limit varies depending on the type of trading accounts. If you’re using an electronic payment method, it takes up to 2 days for processing the payment and for other methods like debit/credit card the processing time extends for up to 8 days for each transaction.
eToro Trading Platforms Review
eToro offers multiple trading platforms ensuring the maximum trading flexibility for its traders. Besides its world-class social trading platform, the broker had also developed its WebTrader and mobile trading apps.
All the platforms are regularly updated. You can make sure of using an up to date platform by choosing an “automatic update” option. Let’s have more details on eToro trading platforms:
- eToro OpenBook: It is a social trading platform developed by eToro that enables traders to connect with each other through the eToro network. As a result, besides trading, this platform helped traders to share the trading knowledge and experience with each other. It also made eToro clients less dependent on outer trading forums or signal service agencies. Thus, it made eToro traders more united and strong as a trading family. This platform is ideal for those who love to work as a team and grow together by helping each other.
- WebTrader: The launch of WebTrader was a big milestone for eToro. This platform made eToro trading more accessible to global traders. If you have an existing eToro account, you’ll easily be able to log in at the WebTrader using your trading ID and password. The best part of this platform is, you are not required to download any software for this.
- Mobile Trading App: The most convenient trading app for those who like to trade on the go. It enables you to connect with the eToro trading server from any smartphone or tab. eToro has also developed apps for Mac users thus, includes iPhone or Macbook users under the same platform. This app best suits for part-time or occasional traders who hardly have time to sit on the computer for trading purposes.
Markets and Products
eToro offers almost all kinds of financial assets for its traders. As a trader, you’ll get direct access to the global markets including thousands of products to trade through eToro platforms. Here is a quick summary of eToro markets:
- Currencies: eToro offers both major and minor currency pairs including exotic and cross-currencies as well. Currency pairs like EUR/USD, USD/JPY, GBP/USD, and AUD/USD are the top traded pairs through eToro platforms. If you’re looking for a tighter spread, we recommend you to stick to the major currency pairs.
- Commodities: Most traded commodities like Crude Oil, Heating Oil, Natural Gas, Sugar, RBOB Gasoline, Gold, Silver, Copper all can be traded with eToro accounts. Traders also get access to leveraged trades including fractional ownerships for commodities trading.
- ETFs: eToro has enlisted ETFs (Exchange-Traded Fund) to its platforms. It allows you to trade several assets into a single tradable fund. ETFs like USDU, UDN, UUP. FXY, FXF, and FXB can be traded through the broker. These items are traded as Commodities thus allows leverage facilities.
- Indices: Indices are quite popular as financial instruments because they are more stable in price volatility than individual stocks. Well-renowned Indices such as Euro Stoxx 50 (EU Stocks 50), DAX (Germany), S&P 500 (US 500), FTSE 100, NASDAQ, DJIA (Wall Street), ASX 200 (Australia 200), etc. can be traded with eToro.
- Stocks: eToro has direct access to global stocks including IBM, AT&T Inc., Apple Inc., General Electronics Co, Facebook, Microsoft Corp, and more. The broker allows traders to use leverage for stock trading which enables you to trade stocks even with smaller investments.
- Cryptocurrencies: Cryptocurrencies are now one of the fastest-growing financial assets of the global market. eToro has assessed its rising demand as a Cryptoassets among the traders and enlisted them to their own trading platforms. Both Bitcoin (BTC) and Bitcoin Cash (BCH) can be traded using eToro platforms while other popular items like Cardano (ADA) and Ethereum (ETH) are also enlisted along with many more Crypto products for regular tradings. On March 7, 2019, eToro launched its first blockchain wallet for both Android and iOS. It enables eToro to serve its Cryptocurrency trading service to 31 U.S. states. US citizens are allowed to trade at least 15 different cryptocurrencies using eToro live trading accounts.
There is a significant rise in part-time or occasional traders in the market in the last ten years. Most of such individuals can’t afford the time to analyze the market due to their engagement with other jobs.
For this reason, many brokers offer market research reports for their clients, helping them to make their own trade decisions.
eToro also offers the daily market analysis report for its traders. The broker has a research team of experienced market experts who does both technical and fundamental analysis of the market and sends them to the clients on a daily basis.
These reports are provided with a summary of the current market status and potential trade setups. However, they don’t make any direct trade recommendations or signals for the traders.
The analysis reports only help you to have a quick look at the overall market and generate a trading plan.
If you’re doing forex as a part-timer, such useful research work will save you extra time and assist you to handle your daily trading tasks.
As a client, you can easily subscribe to the daily market analysis which is sent you through your registered email address.
You can also access to eToro market research section directly by logging in to the broker website. This service is completely free for eToro clients.
eToro has its customer service department open 24/5 (Monday to Friday) for all sorts of queries about the broker. From existing clients to any individual interested to know about the broker can connect to the eToro Customer Service from any corner of the world.
All you need to do is, click at the online customer service tab and get the online contact form. Fill the contact form with the necessary information and your query.
You’ll be issued a ticket immediately after you submit the form and you’ll be contacted by an eToro customer service agent within 24 hours.
You can also use this ticket as a future reference for your query. Alternatively, you may also contact eToro directly by using its email, phone or fax numbers which may vary based on branches and locations.
eToro customer service is equipped with multiple language-speaking agents. Besides English, they also support communication in Spanish, Italian, German, French, Russian, Chinese, Arabic & Polish.
eToro manages to be excellent in their customer service by recruiting experienced agents who are well educated and dedicated to serving clients with all sorts of online support.
Market Education – eToro Review
The broker offers free-market education programs for its traders. These programs include lots of useful trading guides with basic and advanced trading tips.
eToro clients enjoy their direct access to the education programs provided with many training courses and video lessons.
This education department also holds for live webinars in order to raise the awareness of online trading and promotes traders to learn their steps to be successful as a trader in the long run.
You’ll also find numerous ebooks on trading strategy and market insights upon subscribing to market education.
Safety and Security
eToro is committed to maintaining the ultimate safety and security of customer privacy and investments. All the transactions made between the broker and the clients are monitored and governed by the renowned regulatory bodies.
eToro is authorized by the Financial Conduct Authority (FCA), reference no. 583263. They are also regulated by Cyprus Securities and Exchange Commission (CySEC), license number 109/10.
The broker is also operated under and comply with the Markets in Financial Instruments Directive (MiFID).
The broker has also appointed a team of internal audit who are closely monitoring the internal transactions of the broker and looking for mistakes or irregularities continuously.
eToro has been watchful over its Managed Portfolio and CopyTrading programs to ensure its legitimateness as a financial broker.
The broker has also set some rules and regulations to be followed by its clients on opening trading accounts, trade executions, making deposits and withdrawals.
We strongly suggest you to carefully read the terms and conditions of the broker and be confirmed that you’re comfortable with such regulations before you decide to be an eToro client.
eToro (UK) Ltd. 24th floor, One Canada Square Canary Wharf London, E14 5AB United Kingdom Phone: +44 02038687213
eToro (Europe) Ltd. 4 Profiti Ilia Street Kanika International Business Center (KIBC) 7th Floor Germasogeia 4046 Limassol Cyprus Phone:+357 25030234
eToro AUS Capital Pty Ltd. Level 33, Australia Square, 264 George Street Sydney NSW 2000 Australia Phone: +6102080169335
eToro USA LLC. 221 River St., 9th Floor Hoboken, NJ 07030 USA
FAQs – eToro Review
Is eToro good for beginners?
In terms of trading facilities, eToro is good for beginners. As a newbie, you can check its social trading platform so that you can connect with other experienced traders.
In the beginning, if you wish to both trade and learn at the same time then you may have a look at its CopyTrading service.
Besides, there is an option of “Demo Trading” so that you can experience its live trading atmosphere without making any investment. On the other hand, you also need to pay attention to its fees and charges just to make sure if you are comfortable with it.
Does eToro allow Cryptocurrency trading for US traders?
Cryptocurrency trading by eToro is allowed in 31 US states since March 7, 2019. Traders from the below state can directly access to Cryptocurrency trading by using eToro platforms: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin, and Wyoming. Please note that for regulatory issues, eToro cannot provide its services to the US citizens who reside outside the U.S.A.
Is eToro copy trading worth it?
Copy-trading doesn’t guarantee success but it gives you a chance to be benefited from online trading even if you’re not an experienced trader or don’t wish to trade on your own. It is worth it only when you find the right trader for the job.
You may check the profiles of trading individuals and see if they’re experienced enough to handle your investment, trading history, success curve, and their duration in the market as a trader.
If you wish to go-ahead with eToro copy trading, we suggest you start with smaller capital, see the progress and increase your investment based on the trading success.
How much does eToro charge per trade?
eToro applies trading fees through market spreads. If you’re trading currency pairs, the fee starts from 3 pips. ETF trading costs 0.09% spread per side for non-EU clients.
Cryptocurrency trading fee ranges from 0.75% to 5% per trade. Furthermore, the broker also includes a $10 inactivity charge per month only when you are not active in trading for 1 year.
Why are eToro prices are different?
eToro prices are usually different than other brokers because the broker applies its trading charges only through spreads.
They don’t apply any extra commissions on trades, all the fees are included with market spreads.
This is the reason why eToro spreads are a bit higher and reflect different prices compared to other brokers.
Can I trade forex on eToro?
Yes, you can. eToro offers thousands of financial instruments including foreign currencies, Cryptocurrencies, CFDs, Stocks, and ETFs for online trading.
A trader with a live eToro trading account gets access to all the areas of the financial assets to trade on.
How long does it take to withdraw money from eToro?
It mostly depends on the method you’re using to withdraw money from eToro. If takes 1-2 business days to process the payment for electronic payment methods.
For debit/credit cards, the processing time can be extended up to 8 business days.
What is the minimum deposit for eToro?
The minimum deposit for all countries for eToro live accounts is $200 except for Australia ($50), US ($50) and Israel ($10,000). All the deposits are instantly credited to the trader’s account once the transaction is processed.
Besides, the broker doesn’t charge any fee on deposits.
How secure is eToro?
eToro is authorized and regulated by the Financial Conduct Authority (FCA), reference no. 583263. They’re also regulated by the Cyprus Securities and Exchange Commission (CySEC). License no. 109/10.
Moreover, the broker is operated under and comply with the Markets in Financial Instruments Directive (MiFID).
They also engage their internal audit department to detect unusual activities on transactions made between the broker and clients.
The investments from the clients are secured as per law applied by the regulatory bodies.
How do I withdraw money from eToro?
The money withdrawal process from eToro is pretty simple and easy. Just click on the withdraw Funds tab, enter the amount (in USD) you want to withdraw, complete the required electronic withdrawal form and submit.
You’ll be notified through email for every withdrawal request accepted by the broker. Please remember that the funds can only be withdrawn from your available account balance.
Can you make money with eToro?
eToro operates its trading services following specific terms and conditions set by international regulatory bodies.
They offer quality trading services with updated trading platforms like other top brokers.
So, it is possible to make money with eToro but the success depends on your experience as a trader, the market volatility, and the way you operate your trading account.
What happens if eToro gets busted?
If eToro ever gets busted, you’ll be refunded your available account balance on the basis of the broker’s policy following the terms and conditions of the Financial Conduct Authority.
eToro practices Segregation of clients’ accounts. Meaning all of the clients’ deposits aren’t used to pay for eToro’s operating expenses. Meaning if the company ever goes bust, that allows us to return all available balance to customers.
How much can you earn on eToro?
eToro does not apply any earning limit to its clients. It means you can earn as much as you can by trading through eToro platforms.
Is eToro a good broker?
As per the trading facilities provided by the broker, eToro looks like a good broker. However, you should also take into account its trading fees and transaction charges which are a bit higher than other top-ranked brokers.
Other than that, the broker is well regulated and continuously works to maintain its legitimateness.
Can eToro be trusted?
eToro is regulated by FCA, CySEC, ASIC, and MiFID. From that perspective, the broker can be considered as a legitimate organization.
Is eToro a market maker?
Absolutely not. There is no market maker in the forex industry. Even the New York Stock Exchange – the world’s biggest stock market can not change the dimension of the global financial market.
eToro is a financial broker who works on connecting traders to the financial markets.
How much does it cost to withdraw money from eToro?
eToro applies a $5 fee for each withdrawal made from the broker which is pretty comparable to other brokers with similar standards.
Does eToro accept debit/credit cards?
Yes, they do. eToro accepts debit or credit card payments from Visa, Mastercards, Diners Club, and Maestro cards.
Please note that only debit cards that can receive funds with 3 digit CVV code at the back are accepted by the broker.
Do I need to pay taxes on eToro?
eToro doesn’t collect taxes on behalf of any government authority. It is completely the client’s responsibility to calculate and pay the applicable taxes based on the requirements set by the government of the trader’s country of residence.
How does eToro make money?
The broker earns money from spreads, currency fluctuations, and exchange rates. They also make money from their leveraged trading service. Leverage means borrowing money from the broker to trade in the market.
Since eToro started as a financial broker, they have always been working to establish themselves as a true competitor to other top brokers of the world. In terms of social trading, they’ve already secured their place as one of the most popular brokers in the financial markets.
As a part of their constant progress, they’ve been continuously developing their trading platforms, company infrastructure, customer service, and most importantly the trading environments. We recommend you to go through the eToro ‘Terms and Conditions’ closely before you enroll for their service.
You may also contact their customer service in case if you have any further queries or questions about the broker. You may also try its demo trading service so that you can figure out if eToro ticks all the marks to your personal requirements.
I hope you loved our eToro review and if you have any feedback then please feel free to comment us below.