eToro, a pioneer in social and copy trading, has debuted in the United States. In addition to providing investors with the opportunity to replicate the trades of professionals, the business now only provides bitcoin trading, which is notoriously volatile.
What is Etoro?
Because it is licensed in two tier-1 countries as well as one tier-2 country, eToro is considered a safe (low-risk) broker for forex and contract for difference (CFD) trading.
Our best choice for social copy trading and cryptocurrency trading in the year 2021 is eToro, which is also our top pick overall. Apart from that, the online platform and mobile app provided by eToro are very user-friendly, making them ideal for casual investors, especially novices.
Despite recent spread reductions and the introduction of zero-dollar fees for US stock trading, eToro remains somewhat more expensive than the majority of its rivals when it comes to FX and CFDs trading. In addition, eToro's selection of conventional research materials and tools is restricted when compared to its competitors in this category.
Our best choice for social copy trading and cryptocurrency trading in the year 2021 is eToro, which is also our top pick overall. Apart from that, the online platform and mobile app provided by eToro are very user-friendly, making them ideal for casual investors, especially novices.
Despite recent spread reductions and the introduction of zero-dollar fees for US stock trading, eToro remains somewhat more expensive than the majority of its rivals when it comes to FX and CFDs trading. In addition, eToro's selection of conventional research materials and tools is restricted when compared to its competitors in this category.
Etoro Pros and Cons
Pros
- Fee-free trading — Trade up to 15 cryptocurrencies with no per-trade fees or commissions to pay.
- Aspect social — Learn from other traders by using a variety of social elements.
- Straightforward and simple to use online and mobile systems are available.
Cons
- Offerings are limited — a list of 15 currencies may not be adequate for serious cryptocurrency investors.
- High sale fee — When you sell bitcoins, you may be charged a cost of up to 5 percent.
Is Etoro safe or a scam?
eToro is a secure broker with which to trade. It's absolutely not a scam.
eToro, founded in 2007 and based in Israel, is a global CFD broker with over 13 million customers. Many top-tier regulatory bodies oversee it, including the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) of the United Kingdom, and the Financial Services Authority (FSA) of the Seychelles.
Details are provided below:
eToro, founded in 2007 and based in Israel, is a global CFD broker with over 13 million customers. Many top-tier regulatory bodies oversee it, including the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) of the United Kingdom, and the Financial Services Authority (FSA) of the Seychelles.
Details are provided below:
eToro (Europe) Ltd., eToro's European affiliate, is a Financial Services Company licensed and regulated by the Cyprus Securities Exchange Commission (CySEC) under license number 109 / 10.
eToro (UK) Ltd is a Financial Services Company licensed and regulated by the Financial Conduct Authority (FCA) under FRN 583263.
Under AFSL 491139, eToro AUS Capital Pty Ltd. is authorized by the Australian Securities and Investments Commission (ASIC) to offer financial services in Australia.
The Financial Services Authority Seychelles ("FSAS") has licensed eToro (Seychelles) Ltd. to provide broker-dealer services under the Securities Act 2007 License #SD076.
Etoro demo account
When you sign up for an actual eToro account, you'll get a free $100,000 demo account to utilize to create a virtual portfolio and practice CFD trading or social copy trading. In real time, market prices are up to current and precise.
Because positions are created using 'fake' money, there is no danger while trading FX with an eToro sample account. It's a fantastic method for novice traders to hone their eToro trading review skills without risking their own money.
Because positions are created using 'fake' money, there is no danger while trading FX with an eToro sample account. It's a fantastic method for novice traders to hone their eToro trading review skills without risking their own money.
As a retail trader, you have full access to the online broker's eToro trading review assets. You may trade manually or replicate other people's deals. Despite their limited leverage, retail traders may benefit from negative balance protection and margin closeout restrictions.
Etoro account types
The low eToro minimum deposit and trading fees make eToro's account more suitable for new traders. Also, eToro's unique social trading platform is user-friendly and offers a variety of useful copy trade features for new traders. Other brokers, however, provide beginning accounts with smaller minimum deposits and occasionally enable trading in micro-lots. Moreover, more experienced traders may want a larger minimum deposit for tighter spreads, which eToro does not provide.
Standard Account: eToro provides a single live commission-free account with a minimum deposit of $50 USD, spreads beginning at 1 pip on the EUR/USD, and leverage of up to 400:1. Hedging and copy trading are permitted on eToro, however scalping is not.
Professional Account: Retail customers who pass a test to assess their eligibility may choose to become professional traders. This gives customers access to greater leverage, but it comes with a bigger risk of trading. Professional clients may renounce some ESMA safeguards, such as the Investor Compensation Funds and access to the Financial Ombudsman Service.
eToro Club and Tiers: Despite the fact that there is only one account type, traders with larger minimum deposits get membership to the eToro Club, which works on a tier system: The higher your tier, the more prizes and benefits you will get. These benefits include free market analysis, access to the Trading Signals platform, free withdrawals, access to a dedicated Customer Success Agent, analyst consultations, and other perks.
Standard Account: eToro provides a single live commission-free account with a minimum deposit of $50 USD, spreads beginning at 1 pip on the EUR/USD, and leverage of up to 400:1. Hedging and copy trading are permitted on eToro, however scalping is not.
Professional Account: Retail customers who pass a test to assess their eligibility may choose to become professional traders. This gives customers access to greater leverage, but it comes with a bigger risk of trading. Professional clients may renounce some ESMA safeguards, such as the Investor Compensation Funds and access to the Financial Ombudsman Service.
eToro Club and Tiers: Despite the fact that there is only one account type, traders with larger minimum deposits get membership to the eToro Club, which works on a tier system: The higher your tier, the more prizes and benefits you will get. These benefits include free market analysis, access to the Trading Signals platform, free withdrawals, access to a dedicated Customer Success Agent, analyst consultations, and other perks.
Professional Account: Retail customers who pass a test to assess their eligibility may choose to become professional traders. This gives customers access to greater leverage, but it comes with a bigger risk of trading. Professional clients may renounce some ESMA safeguards, such as the Investor Compensation Funds and access to the Financial Ombudsman Service.
eToro Club and Tiers: Despite the fact that there is only one account type, traders with larger minimum deposits get membership to the eToro Club, which works on a tier system: The higher your tier, the more prizes and benefits you will get. These benefits include free market analysis, access to the Trading Signals platform, free withdrawals, access to a dedicated Customer Success Agent, analyst consultations, and other perks.
The following is the minimum equity required to reach each tier:
- 5,000 AUD for silver
- 10,000 AUD for gold
- 25,000 AUD for platinum
- 50,000 AUD for Platinum+
- 250,000 AUD for adiamond
Leverage
The highest amount of leverage available to retail customers is 1:30, although each asset has its own requirements. Professional traders may earn up to 1:400 on their trades.
Account opening
Opening an account is very simple and can be done online; however, you may have to wait a day or two for them to validate your papers, which is typically dependent on the volume of requests at the time of your application. Customers may begin with a minimum deposit of $50. Similarly, the minimum wage in other nations varies based on demand; the maximum rate is $1000, while the lowest is approximately $200 during non-peak periods.
Fees and spreads
The bulk of eToro's trading costs are made up of spreads (no commissions are paid) on over 2,000 assets. The EUR/USD spread is stated as 3.0 pips, while the AUD/USD spread is as low as 1.0 pips. These costs are regarded expensive in the business, but given that eToro provides social trading features that other brokers do not, the cost may be acceptable, if not comprehensible. The cost structure for equities CFD trading has increased, which we found needless and, to be honest, unexpected throughout our assessment. The spread is fixed at 0.09 percent of the price, but the expenses of financing make this asset class less than optimal for trading on eToro.
eToro is classified as a market maker. Swap pricing on leveraged overnight positions provide this broker with a consistent income stream. The trading platform will provide you with the exact costs for each item. Dividends and mergers, for example, will be credited or debited from eToro accounts, based on the direction of the affected holdings. There is a $ 5 withdrawal charge, which is often waived by other brokers.
eToro also charges a $ 10 monthly inactivity fee on inactive accounts.
eToro is classified as a market maker. Swap pricing on leveraged overnight positions provide this broker with a consistent income stream. The trading platform will provide you with the exact costs for each item. Dividends and mergers, for example, will be credited or debited from eToro accounts, based on the direction of the affected holdings. There is a $ 5 withdrawal charge, which is often waived by other brokers.
eToro also charges a $ 10 monthly inactivity fee on inactive accounts.
Instruments
When compared to other comparable brokers, eToro's financial instrument selection is mediocre, but it shines in its cryptocurrency offering.
Forex, ETFs, equities, indices, and commodities are among the financial assets available for CFD trading at eToro. eToro provides a comparable variety of products to other brokers, however it shines in crypto.
Forex, ETFs, equities, indices, and commodities are among the financial assets available for CFD trading at eToro. eToro provides a comparable variety of products to other brokers, however it shines in crypto.
Forex
eToro allows you to trade 47 currency pairs, including majors (EUR/USD, GBP/USD, and USD/JPY) and minors (NZD/CAD, EUR/JPY, and USD/ZAR), but no exotics. While this is about typical, many foreign brokers may provide 60 or more trading pairs, including a variety of unusual pairings. Leverage on Forex pairings may reach 400:1.
Stock Trading CFDs
Avatrade provides 2,000 stock CFDs, which is somewhat more than the industry average. Some of the biggest US corporations are represented, including Apple, Amazon, Facebook, Microsoft, and Google, among others. Leverage on share CFDs may go up to 5:1.
Commodities
eToro provides 31 commodities, which is exceptional given that most brokers only offer 5 – 10 commodities for trading. Gold, silver, platinum, petroleum, oil, and softs such as cocoa, wheat, sugar, and cotton are examples. With the exception of gold and non-major stock indexes, the maximum leverage on commodities is 10:1.
Indices
eToro provides 13 stock indices for trading, which is average when compared to other comparable brokers, and includes the UK 100, SPX 500, NSDQ 100, and USDOLAR. On indices, leverage may go up to 20:1.
Cryptocurrencies
With 96 crypto pairings accessible for trading, eToro provides a broader variety than most other brokers, including crypto/crypto and crypto/fiat combinations (USD, EUR, JPY, and more). Among the crypto assets are Ethereum, Bitcoin, Litecoin, and Ripple. Leverage on bitcoin trading may reach a maximum of 2:1. eToro also provides cryptocurrency trading assistance 24 hours a day, seven days a week.
ETFs
eToro provides 254 ETFs for trading, which is a larger selection than most other brokers, including the iShares JP Morgan and iShares NASDAQ 100. ETFs provide leverage of up to 20:1.
It is important to note that the margin closeout will be set at 50%, which means that the Stop Loss setting on eToro will be restricted to a maximum of 50% per transaction.
It is important to note that the margin closeout will be set at 50%, which means that the Stop Loss setting on eToro will be restricted to a maximum of 50% per transaction.
Forex
eToro allows you to trade 47 currency pairs, including majors (EUR/USD, GBP/USD, and USD/JPY) and minors (NZD/CAD, EUR/JPY, and USD/ZAR), but no exotics. While this is about typical, many foreign brokers may provide 60 or more trading pairs, including a variety of unusual pairings. Leverage on Forex pairings may reach 400:1.
Stock Trading CFDs
Avatrade provides 2,000 stock CFDs, which is somewhat more than the industry average. Some of the biggest US corporations are represented, including Apple, Amazon, Facebook, Microsoft, and Google, among others. Leverage on share CFDs may go up to 5:1.
Commodities
eToro provides 31 commodities, which is exceptional given that most brokers only offer 5 – 10 commodities for trading. Gold, silver, platinum, petroleum, oil, and softs such as cocoa, wheat, sugar, and cotton are examples. With the exception of gold and non-major stock indexes, the maximum leverage on commodities is 10:1.
Indices
eToro provides 13 stock indices for trading, which is average when compared to other comparable brokers, and includes the UK 100, SPX 500, NSDQ 100, and USDOLAR. On indices, leverage may go up to 20:1.
Cryptocurrencies
With 96 crypto pairings accessible for trading, eToro provides a broader variety than most other brokers, including crypto/crypto and crypto/fiat combinations (USD, EUR, JPY, and more). Among the crypto assets are Ethereum, Bitcoin, Litecoin, and Ripple. Leverage on bitcoin trading may reach a maximum of 2:1. eToro also provides cryptocurrency trading assistance 24 hours a day, seven days a week.
ETFs
eToro provides 254 ETFs for trading, which is a larger selection than most other brokers, including the iShares JP Morgan and iShares NASDAQ 100. ETFs provide leverage of up to 20:1.
It is important to note that the margin closeout will be set at 50%, which means that the Stop Loss setting on eToro will be restricted to a maximum of 50% per transaction.
It is important to note that the margin closeout will be set at 50%, which means that the Stop Loss setting on eToro will be restricted to a maximum of 50% per transaction.
Overall, eToro provides a diverse variety of financial instruments, but it's cryptocurrencies, commodities, and ETFs stand out.
Trading Platform
eToro is quite proud of its unique webtrader platform, which it provides to traders. The trading platform completely supports eToro's CopyTrader and CopyPortfolios, which are the primary emphasis of eToro's services. TipRanks enhances the platform by providing traders with insights from over 15,000 equity experts. Manual traders may perform technical analysis using ProCharts. Basic trading capabilities are comparable to those found on other platforms, and we were pleased to see throughout our eToro review that the broker's unique platform has a cleaner UI than MT4.
The absence of support for autotrading systems is a significant disadvantage of the eToro platform. Social trading, on the other hand, is carried out extensively at eToro and may offer a good alternative to autotrading; nevertheless, it should be noted that each of these trading methods has benefits and drawbacks and is not always interchangeable. eToro is one of the few Forex brokers we've evaluated that has abandoned the MT4 platform completely, thus foregoing all of the advantages that this popular platform provides. However, since the eToro interface is so user-friendly, novice traders may overlook this oversight.
The absence of support for autotrading systems is a significant disadvantage of the eToro platform. Social trading, on the other hand, is carried out extensively at eToro and may offer a good alternative to autotrading; nevertheless, it should be noted that each of these trading methods has benefits and drawbacks and is not always interchangeable. eToro is one of the few Forex brokers we've evaluated that has abandoned the MT4 platform completely, thus foregoing all of the advantages that this popular platform provides. However, since the eToro interface is so user-friendly, novice traders may overlook this oversight.
eToro Mobile Application
While the majority of investors choose to use eToro via their normal web browser, others prefer to trade while on the move, and this is how they earn money with eToro. If this describes you, you'll be pleased to know that eToro offers a fully functioning trading app. The mobile apps are free to download and work on both Android and iOS devices.
Almost all of the platform features available on the main desktop website are accessible through the eToro app. This includes the ability to buy, sell, and exchange assets by the user.
- You may make deposits and withdrawals.
- Make a market and restrict your orders.
- Examine the value of your assets.
- Make more money while being unaffected by distractions
You may still use your phone to access eToro if you don't have a compatible device. However, you will need to utilize your mobile web browser to do so.
Customer Support
eToro's customer assistance is accessible 24 hours a day, five days a week, however it is often unresponsive.
Available 24 / 5 Customer service at eToro is offered in a total of 21 languages. Client support inquiries are now handled via a ticketing system, which was implemented in 2017. Always keep in mind, however, that there is no phone or chat assistance accessible, and that response times are notoriously slow, often surpassing 48 hours and sometimes even up to 14 days. Customers who make deposits in excess of 5,000 USD, on the other hand, will benefit from the services of a dedicated Customer Success Agent.
Customers find eToro's customer support to be poor, although the company does offer a thorough FAQ area.
Available 24 / 5 Customer service at eToro is offered in a total of 21 languages. Client support inquiries are now handled via a ticketing system, which was implemented in 2017. Always keep in mind, however, that there is no phone or chat assistance accessible, and that response times are notoriously slow, often surpassing 48 hours and sometimes even up to 14 days. Customers who make deposits in excess of 5,000 USD, on the other hand, will benefit from the services of a dedicated Customer Success Agent.
Customers find eToro's customer support to be poor, although the company does offer a thorough FAQ area.
FAQ
1
Is eToro legit?
In 2007, eToro was established in Cyprus, UK. For almost 14 years, eToro has been enabling trading on the financial markets. eToro customers may trade stocks, commodities, forex, CFDs, social trading, indices, cryptocurrencies, index-based funds, and exchange-traded funds (ETFs). To ensure security, all investment deposited to eToro are kept in separate tier 1 bank accounts. eToro is regulated by the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Markets in Financial Instruments Directive (MiFID), and the Australian Securities and Investments Commission (ASIC), and therefore may be deemed legitimate.
2
Is eToro safe to use?
eToro is a secure and dependable platform. eToro complies with the rules and regulations of tier-1 financial authorities, including as the FCA, ASIC, CySEC, and FinCen. When using eToro, customers' money are held in trust with reputable financial institutions, and their personal information is secured by an SSL certificate. Thus, eToro is safe to invest in.
3
Can I use eToro in Malaysia?
According to the Securities Commission Malaysia, after their offer of zero-commission stocks for clients in Asia-Pacific, eToro Malaysia has been deemed illegal by the regulator. The brokerage is still operational and open in other locations, and it is well-known for its famous copy trading function.
4
What is eToro CFD?
eToro offers 2,000 stock CFDs, which is somewhat more than the industry average. Apple, Amazon, Facebook, Microsoft, and Google, among others, are among the largest US companies represented. Leverage on share CFDs may reach a maximum of 5:1.
Conclusion
For ordinary traders who wish to crowdsource investing ideas utilizing the power of copy trading, or for highly experienced active traders who want to be paid for sharing their ideas with other traders, eToro is a fantastic platform to use.
It is possible that less experienced traders who need guidance may find the user-friendly interface to be an additional advantage. In spite of these considerations, I do not suggest eToro for active or high-volume traders since the large spreads and limited maximum transaction sizes will prove to be a limiting problem.
When it comes to social copy trading and cryptocurrency trading, eToro continues to be our top pick in 2021.
It is possible that less experienced traders who need guidance may find the user-friendly interface to be an additional advantage. In spite of these considerations, I do not suggest eToro for active or high-volume traders since the large spreads and limited maximum transaction sizes will prove to be a limiting problem.
When it comes to social copy trading and cryptocurrency trading, eToro continues to be our top pick in 2021.
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