eToro is one of the well-established brokerage firms that are authorised and licensed by regulatory bodies within several jurisdictions. As such, traders from different countries across the globe can trade with eToro without worrying about the safety of their funds. eToro’s popularity in the global market is further founded on the fact that it offers numerous financial instruments, has competitive spreads, does not charge a commission per trade, and has a proprietary trading platform that beginners will find easy to use. Nonetheless, the firm has certain drawbacks that may be a concern to some traders. To start with, its support channels do not include hotlines. It also lacks free VPS, spread betting, and popular trading platforms like MT4 and MT5. To learn more keep on reading our eToro Review.
eToro Review
Pros
- Has a trading platform that novice traders can use with ease
- Has competitive spread
- No commission per trade
Cons
- No spread betting accounts
- Doesn’t have a customer care hotline
- Does not offer MT4 or MT5
- Have no free VPS
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Who is eToro Recommended For?
eToro is a viable option for traders who do not mind using a proprietary trading platform instead of the usual platforms like MT4 and MT5. Besides, if you are not interested in additional features such as spread betting, free VPS, or customer care hotlines, you can consider this brokerage firm. eToro also has certain components that may attract you as a trader. For instance, it has competitive spreads, no commission per trade, and offers copy trading. Even with its drawbacks, it is one of the popular brokers in the market, as you will find out in our eToro review.
Top eToro Features
Easy to Use Trading Platform
Unlike some of its competitors that offer popular trading platforms such as MT4 and MT5, eToro has its proprietary trading platform. The platform, which is just as effective as the usual trading platforms, allows individuals to trade over 2,000 financial instruments across classes such as shares, cryptocurrencies, indices, ETFs, currencies, and commodities.
eToro’s trading platform is mobile compatible and one can access it by downloading it either on App Store or Google Play. Subsequently, you will be able to trade on your mobile phone, tablet, laptop, or PC. It has numerous beneficial features including one-click trading, procharts, the Tipranks Research Lab, and stop loss & take profit.
Copy-trading
eToro allows its clients to copy the trading of top traders. In fact, CopyTrader is one of the broker’s most popular features. With this technology, you can view the doings of traders in real time and copy their moves automatically. What’s more, the broker will not charge you for copy-trading.
Education
One of the educational resources that are availed by eToro to both the novice and experienced traders is a blog. The firm regularly posts content on crucial topics such as effective trading strategies, global markets, and on various financial instruments. Video tutorials, guides, and podcasts are also part of eToro’s educational resources. Traders can acquire detailed information by coupling these resources with the company’s daily market reviews and FAQ section.
Top Negative eToro Features
Spread Betting Accounts
eToro offers an array of forex trading services. However, spread betting is not part of these services.
Support Channels
On the one hand, eToro does not have customer care hotlines like some of its competitors. However, you can still reach its representatives via email or live chat. Alternatively, one can contact them via their social media accounts.
VPS
The VPS is a useful trading tool since it enables traders to utilize automatic algorithmic trading strategies. Unlike some of the brokerage firms that offer free VPS, eToro does not have this feature. As such, it may be difficult for a trader to benefit from the fast latency needed for easy execution of a trade.
eToro Overview
| Regulation & Licensing | eToro (Europe) Ltd (registration no. HE20058): regulated by the Cyprus Securities & Exchange Commission (CySEC) (License no. 109/10).
eToro UK (registration no. 7973792): regulated and authorised by the Financial Conduct Authority under reference no. 583263. eToro Australia (registration no. ABN 66612791803): AFS license no. 491139 issued by ASIC and regulated under the Commonwealth Corporations Act.
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| Accepted jurisdictions | Worldwide except for Afghanistan, Japan, Jamaica,Iran, Iraq, and other countries listed here |
| Assets offered | Commodities, currencies, cryptocurrencies, ETFs, indices, and stocks |
| Platforms available | eToro trading platform |
| Mobile compatibility | Yes, it is mobile compatible. Through the trading app that is available on the App Store and Google Play, you can access the trading platform on your mobile phone, tablet, laptop, or PC. |
| Payment types accepted | Wire transfer, credit card (MasterCard, Visa, Maestro, Diners Club), and e-payments (Skrill, Neteller, PayPal) |
| Languages | About 20 languages including English, Spanish, Italian, French, Portuguese, and Deutsch |
eToro Review: Account Types
eToro offers two types of accounts; the retail account and the professional account. The retail account, which is the standard account, does not have numerous requirements compared to the professional one.
| Features | Retail Account | Professional Account |
| Account Currencies | USD, EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP | USD, EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP |
| Available leverage | 1:30 | 1:400 |
| Minimum deposit | $200 | $200 |
| Starting Spreads | From 1 pip (currencies) | From 1 pip (currencies) |
| Commission per trade | No | No |
| Decimal pricing | 5 decimal places | 5 decimal places |
| Swaps/rollovers | Yes | Yes |
| Trading instruments | Commodities, currencies, cryptocurrencies, ETFs, indices, and stocks | Commodities, currencies, cryptocurrencies, ETFs, indices, and stocks |
| Minimum lot size per trade | 0.01 | 0.01 |
| Demo account | Yes | No |
| Swap/rollover free | No | No |
| Copy trading support | Yes | Yes |
eToro Review: Regulation
eToro (Europe) Ltd (registration no. HE20058) is registered as a Cypriot Investment Firm. It is regulated by the Cyprus Securities & Exchange Commission (CySEC) (License no. 109/10). eToro UK (registration no. 7973792) is regulated and authorised by the Financial Conduct Authority under reference no. 583263. Both eToro UK and eToro Europe comply with MiFID. Likewise, eToro Australia (registration no. ABN 66612791803) has an AFS license (no. 491139) which is issued by ASIC. The latter subsidiary is regulated under the Commonwealth Corporations Act.
eToro Review: Spreads and Costs
The spreads charged by eToro depend on the financial instrument. The screenshot below shows the usual spreads for different instruments. However, these figures may change depending on the prevailing market conditions.
The company also charges an overnight fee for positions held overnight. These charges depend on the value of the position. If the position is held over the weekend, you will incur triple the overnight fee. As for commissions, eToro does not charge its clients any amount.
Non-trading fees
One of the non-trading fees that eToro charges its clients is the inactivity fee. If no trading activity has been conducted on your account for 12 consecutive months, you will incur a monthly fee of $10. It also has rollover fees (overnight/weekend) fees that vary depending on the market conditions. You can see your rollover fees at the bottom of the trade window as you open a new trade.
While it does not charge its clients a deposit fee, eToro charges a constant fee of $5 for withdrawals. You will also incur a conversion fee if you withdraw in a currency other than USD. For more information about the firm’s conversion fees, head on here.
eToro Review: Customer Service
The primary means of contacting eToro is by heading on to their Customer Service page and opening a ticket containing your name, email address, and query. It may take up to 7 days for you to get a response.
You can also contact eToro on their social media accounts as follows;
Facebook: eToro
Twitter: eToro
Instagram: eToro_official
LinkedIn: eToro
eToro Review: Account Opening Process
eToro offers two types of accounts; retail and professional accounts. The retail account is the basic account and is relatively easy to open. The steps of opening this account are:
- Go to the firm’s website and click on ‘Trade Now’ or ‘Join Now’.
- Fill in the required personal details.
- Ensure that you have read and understood the firm’s Terms & Conditions before agreeing to them.
- Click on ‘Create Account’.
In line with the Know Your Customer (KYC) laws, you will be required to show Proof of Identity (valid passport or photo ID) as well as a Confirmation of Residence (utility bill that is not more than 6 months old).
Fill in a questionnaire meant to help the company customize its services to suit your profile. The required information includes your professional status, financial liquidity, level of knowledge regarding the capital markets, investment goals, and the acceptable risk levels.
The other available account for eToro clients is the professional account. It is somewhat of any upgrade from the retail account. To apply for one, complete the following steps:
- On the website, go to ‘Trading’ and then ‘Professional Account’.
- Scroll down and click on ‘Apply Now’.
- Fill in the needed personal details
- Submit the application. If you meet the firm’s criteria for the professional account, one of its representatives will get in touch with you.
Minimum Deposit
In general, eToro requires its clients to have a minimum deposit of $200 in order to start trading. However, this requirement is subject to certain exceptions. For instance, the residents of the United States and Australia need a first-time deposit of at least $50. The figure required for the residents of the Maldives, Venezuela, Lebanon, and Algeria is $5,000 while that of Israel’s residents is $10,000.
Other than the first-time deposit, eToro clients should have a deposit of at least $50 to trade. As for the professional account, the minimum first-time deposit is $10,000.
Deposit and Withdrawal Fees
eToro does not charge its clients a deposit fee. However, it charges a standard fee of $5 for withdrawals. You may further be charged by your receiving bank, credit card provider, or intermediary bank. Additionally, withdrawals made in a currency other than USD are subject to a conversion fee.
eToro Education Offering
Just like the other brokerage firms in the market, eToro is keen on enhancing the skills and knowledge of its clients. It does so by availing several educational resources that are beneficial to beginners and experienced traders alike. To begin with, the company has a blog where it constantly posts content on effective trading strategies, global markets, as well as comprehensive information on various financial instruments. Video tutorials, guides, and podcasts are also part of eToro’s educational resources. What’s more, traders of all levels of experience can benefit from the company’s daily market reviews.
Conclusions
eToro is licensed to operate in different countries across the globe. Its operations are regulated by various authorities in the accepted jurisdictions; an aspect that makes it a credible broker that one can trade with without worrying about the safety of their funds. The additional benefits of trading with this firm include its competitive spreads, lack of commissions, and a beginner-friendly trading platform that enables individuals to trade different financial instruments.
Nonetheless, it has certain drawbacks including the lack of customer care hotlines, spread betting, and free VPS. In addition to lacking these features, it also does not offer common trading platforms like MT4 and MT5. However, the absence of these popular trading platforms does not necessarily mean that its proprietary platform is not efficient.
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eToro Review FAQs
Q: Does eToro provide leverage on cryptocurrencies?
A: Yes. eToro avails *2 leverage on all cryptocurrency trades.
Q: Why is there a loss as soon as I open a trade?
A: When you open a trade, the current rate that is shown is the one that the position would close. For instance, if you open a BUY trade, it will open and close at the BUY price and SELL price respectively. The difference between these two rates is the reason for an immediate loss at the start of a trade.
Q: What are the market hours?
A: At eToro, different financial instruments have different market hours. For detailed information on the market hours for specific instruments, click here.