eToro Review 2021 – What You Need to Know

BrokereToro
Web addresshttps://www.etoro.com/
Founded in2006
Head officeCyprus
Type of supportEmail
LanguagesVI, FR, EN, IT, ES, PL, AR, DE, PT, TK, IN, GR, CN, TV, CT
Minimum deposit$200
Leverage1:30
Demo accountYes
Deposit methodsBank transfer, credit card, PayPal, Skrill, Neteller, Webmoney, Giropay
RegulatedYes
Mobile appYes
Tablet appYes
General rating4.5/5

Summary

eToro is a very popular Forex and CFD broker, with more than 4 million users worldwide in more than 130 countries. On their platform, you can invest in Forex currency pairs, as well as CFDs indices, stocks, commodities, ETFs and cryptocurrencies.

eToro is also a social network specializing in trading. You can follow the economic news, as well as other traders and investors, or copy their trading methods. Being regulated by CySec, eToro can offer its services in Europe, even providing some protection of the funds of its European customers.

We tested the eToro platform and its services. Our tests covered several aspects of the broker, such as its trading platform, social network, copy trading features, security, and customer support. You may be wondering if eToro is a reliable broker or not. We would like to reassure you, eToro is a safe broker. It’s an innovative broker. Indeed, eToro has the distinction of having popularized social trading.

If you are interested in social trading, eToro is the perfect platform for you.

Account opening

The account opening at eToro is simplified and the minimum deposit is only $200.

eToro Account opening

eToro offers its services all over the world. However, residents of the following countries are not allowed to open an account at eToro: United States, Brazil, Syria, Turkey, Cuba, Sudan, Canada, North Korea, Japan and Iran.

eToro requires a minimum deposit of $200 to start trading. After depositing this amount, you will benefit from all the features of eToro, because there is only one type of account at eToro.

How do I open an account?

eToro has implemented a simplified account opening system. This is a form with about 10 questions, including the procedure for verifying your account. You start by providing your personal data and then complete a multiple-choice questionnaire about your online trading experience.

To verify your account, you must submit two documents: a photo of your ID card or passport and a photo of one of your recent invoices. You can upload them to eToro’s platform at the end of the account opening process.

eToro offers only one option for the base currency of your trading account, which can only be the dollar. This means that a conversion fee will apply to your deposits and withdrawals on  eToro. To avoid conversion fees, several online banks now offer multi-currency current accounts.

Demo account

By only giving your email, eToro offers you an unlimited demo account. This account allows you to discover the basic features of the platform. You have virtual funds with which you can trade on live courses of financial instruments listed on eToro. This allows you to get an idea of the commissions related to trading. 

The demo account allows you to copy other traders without taking any risks, so you can get an overview of the results you would get by following a particular trader.

Deposit and withdrawal

More deposit methods compared to other brokers, but high withdrawal fees.

eToro is one of the platforms that offer the most options for deposits and withdrawals. In addition to card and bank transfer deposits, you can choose from PayPal, Skrill, Neteller, Webmoney and Giropay. It should be taken into account that some countries may restrict the use of certain electronic wallets.

When depositing by bank transfer, it will take 3 to 5 days before your funds are available for trading on the platform. Card or electronic wallet deposits, on the other hand, are instantaneous. It is important to note that you can only credit your eToro account with accounts that are in your name. This also applies to withdrawals.

Regarding withdrawals, you can withdraw your funds by the same method you used for the deposit. For withdrawals by bank transfer and card, the waiting time is a maximum of 8 days while withdrawals by electronic wallet are processed in less than 2 days. If, however, your funds do not reach you after these deadlines, you should contact eToro’s assistance.

Trading Fees

Commissions and fees and eToro are uncompetitive.

When it comes to fees and commissions, eToro is not one of the most competitive brokers. The spreads are also quite wide.

eToro does not charge European residents a trading commission on CFDs. On the other hand, the spread on financial instruments is rather wide. On the EUR/USD, for example, the spread can rise up to 3  pips  in active market hours. Below we have put the typical spreads of some of the most traded instruments.

InstrumentsSpreads
EUR/USD3
Apple8
Bitcoin34

You will also have to consider the other costs related to the positions that you will maintain for several days: rollovers and overnight fees.

On the platform, you can view a report on your trading activity with all the fees your positions have generated. The report is presented as a graph. You can download it in PDF format.

Non-trading fees

eToro charges a withdrawal fee of $25, and the minimum amount you can claim is $50. We find that withdrawal fees are very high, especially since withdrawals are free at some other Forex and CFD brokers.

Trading platform

A user-friendly social trading platform suitable for beginners.

eToro’s trading platform is designed for beginners. It is very simple, intuitive and translated into several languages: French, English, German, Polish, Greek, Chinese, Arabic, Russian and Spanish.

eToro has focused on the user experience and made it as easy as possible to trade CFDs on its platform. The design of the platform is adequate and the sections are the right size. However, the platform is not configurable, unlike some other more advanced platforms such as Metatrader for example. You won’t be able to change the layout of the menus or put multiple graphics in the main window.

Navigating between the different financial instruments available on eToro is not very convenient. But once you choose a financial instrument, you’ll have no trouble finding the trading button (“Invest”) and all the instruments information. In addition, you have a search bar from which you can directly access the instrument of your choice. The ability to set up a list of your favorite instrument also allows you to open the trading window with one click.

Notification

eToro gives you the ability to set price alerts. The platform sends you a notification when the instrument you’re interested in reaches a certain pre-defined price. You also receive a notification when your orders are executed at market price or when they are closed. The alert system is very convenient when you’re on mobile, because the app sends you push notifications.

Social trading

Social trading is offered today by many online brokers. But most are in the form of Multi Account  Manager (MAM) and require a number of parameters that can take a long time to set up. eToro stands out for the simplicity of its social trading platform. Like social networks like Facebook or Twitter, you can follow other traders or investors on eToro. This will give you their views on the market or the financial instruments they are interested in.

In the same way, you can track a given instrument, so you’ll have updates from all other traders on eToro regarding the financial instrument in question. As a result, you will be able to get an idea of market sentiment from a social perspective for each instrument.

eToro ranks signal providers based on their trading performance and reliability. You then have several options.

eToro Social trading

You can see traders’ positions and comments without copying their trades to your eToro account. It is possible to subscribe to a trader, so you will be notified every time he publishes a comment or opens a position in the market.

You can also copy the trader’s positions directly on your eToro account if you have enough confidence in their performance. In this case, eToro has put in place a risk management tool. Like a position you take yourself, you set a stop loss beforehand, as well as the size of the positions that will be copied. These settings will apply every time the trader opens a position, so you won’t have to redefine them for each position.

Mobile platform

eToro has developed a mobile platform. The app is available for Android and iOS systems and has the same features as the web platform. Browsing on eToro mobile is easy enough, by swiping sideways, you have access to the different sections of the application: the list of favorites, the graph or the trading terminal that allows you to place orders.

Markets and financial products

eToro offers trading of more than 1500 CFDs as well as the ability to purchase cryptocurrencies.

On eToro’s platform, you can trade a multitude of deals through CFDs. The advantage of CFDs is that you can buy or sell any instrument without constraints. You will find CFD stocks, ETFs, commodities, indices, as well as Forex and cryptocurrency currency pairs.

  • CFD shares: eToro offers you to trade on more than 1000 shares by CFDs. You will have live access to the most traded stock prices in the major stock exchanges. More than 600 U.S. instruments are listed as well as more than 300 stocks listed on the London Stock Exchange.
  • CFD indices: You can trade indexes up and down. There are the most well-known indices: SP500, DAX, CAC 40, Eurostock, etc.
  • CFD commodities: You can diversify your portfolio with commodities. You will find 6 raw materials, including gold, silver, platinum or oil.
  • FOREX CFD: More than 40 currency pairs are available and allow you to speculate on their prices.
  • CDF cryptocurrencies: eToro has not missed the revolution of the cryptocurrency market. The platform offers you to trade crypto currency pairs in the form of CFDs. Alternatively, you can buy cryptocurrencies on eToroX.

Cryptocurrency exchange platform, eToroX

eToro Cryptocurrency exchange platform eToroX

In case you choose the latter option and would like to buy the cryptocurrencies available on eToro, the broker has developed a dedicated trading platform called eToroX. To buy cryptocurrencies on eToroX, you must first have an eToro account. The Gibraltar Financial Services Commission (GFSC) regulates eToro through this platform. As a regulated broker, eToro offers you more security than some exchange platforms that aren’t.

eToroX incorporates a graph, order book and market depth. This platform is more advanced than eToro’s main platform, yet ergonomic and well designed.

eToro offers you an electronic wallet for the storage of your cryptocurrencies: the eToro Wallet. The latter is currently compatible with 6 cryptocurrencies: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Stellar (XLM) and Ripple (XRP).

The eToro Wallet works like any other cryptocurrency portfolio. You can send, receive, or store corners on eToro Wallet. Note, however, that to buy cryptocurrencies, you will be redirected to eToro’s main platform.

Buying cryptocurrencies directly on eToroX would suit investors who want to hold them for a long period of time, but also cryptocurrency traders. The advantage is that the acquisition of your corners is simplified, eToro managing the Blockchain part that could be complicated for a beginner in the world of cryptocurrencies.

Furthermore, eToro also manages your private keys, so you don’t have to generate or store them yourself. However, some crypto users will not be enthusiastic about not managing their own private keys.

Research

A platform rich in financial information and an improved graphics tool.

eToro’s various market analysis tools are available in multiple languages. On this point, our opinion is rather favourable, because most brokers do not translate all their resources from English.

Fundamental analysis

For the most popular financial instruments available on eToro, you will find several economic indicators and market sentiment, such as analyst consensus and their reports, or hedge fund sentiment.

When you open the action statistics tab, you can see some company-related data as their latest published results. The News Feed dedicated to the same company allows you to see the publications of other traders and investors regarding the company’s stock or their activities.

Technical analysis

eToro Technical analysis

The eToro platform has a charting window in which you can analyze in detail the price history of the financial instrument of your choice. The graph built into the platform was previously basic, offering few options.

But eToro has recently upgraded this tool, and there are now more than 60 technical indicators as well as drawing tools to highlight the chart figures. You can also change the type of graph (japanese candlestick, online, etc.). In addition, the chart backs up your settings, so you won’t have to redefine your preferences.

Customer support

eToro has little customer support, but a detailed FAQ is available on the site.

You’ll find plenty of resources on eToro’s platform. There is a detailed FAQ where you will find answers to most of your platform-related questions or deposits and withdrawals. On the other hand, if you want to talk to the audience for more specific questions, be aware that eToro offers few means of communication. There is no online telephone helpline or chat. However, we believe that setting up an online chat is a minimum for customer support from an online broker.

To reach customer support, the broker has set up a ticket support system. You send a message through this and they will reply to you by email. They can take several hours to respond, which makes this method of assistance impractical when you have a problem with one of the platform’s features.

The support, however, is professional. When we tested the system by ticket for specific platform and trading issues, the answers were concise and the agent at the same time gave us a link to the corresponding FAQs for more information.

Customer support also responds to customer feedback in the Review section on Play Store.

Training

Very basic trading training and few educational resources.

eToro offers trading training, but it is not very detailed. These are videos that define the basics of trading and financial markets. There are no quality tutorials on specific aspects such as supports and resistances.

In fact, eToro has not updated this part of its website for a long time and the educational fund is not very rich. Webinars can also be organized from time to time. To be informed of upcoming webinars, you will need to think about going from time to time to monitor the dedicated page.

eToro’s demo account is unlimited, so you can practice it and develop your investment strategies.

Security

A broker regulated by several regulators and a guarantee of the capital offered.

The first question a trader asks when he is interested in an online broker is whether they are safe or not. eToro is a well-known player in the world of trading. It is a broker registered with the CySec and as a result, brought in line with European financial regulation standards.

The funds of their European clients are segregated, and the broker guarantees their capital to the tune of 20,000 euros. This means that even if the broker goes bankrupt, your funds will still be available. Indeed, eToro is a member of the Investor Compensation Fund (ICF), a compensation fund established in 2007 by CySec, which promotes the protection of accounts linked to financial institutions subject to the regulator.

For traders residing in the UK, eToro guarantees the funds to the tune of 85,000 euros through the Financial Services Compensation Scheme (FSCS) set up by the Financial Conduct Authority (FCA). The latter regulates the broker from its eToro UK limited branch.The Australian branch of eToro, eToro AUS Capital Pty Ltd, is regulated by the Australian Securities and Investments Commission (ASIC) in Australia. Below, we summarize this protection from eToro based on geographic area.

Geographical areasAmount of protectionRegulatorsBranches
United Kingdom£85,000Financial Conduct  Authority  (FCA)eToro UK Ltd.
Europe€20,000Cyprus Securities and Exchange Commission (CySec)eToro Europe Ltd.
AustraliaN/AAustralian Securities and Investments Commission (ASIC)eToro AUS Capital  Pty  Ltd.

The broker is also authorised to offer his services in France by the Financial Markets Authority (AMF). eToro has the green light from several market authorities across Europe.

Note that eToro does not offer protection for cryptocurrencies purchased on its platform.

Negative balance protection

eToro complied with the rules established by ESMA. Maximum leverage is limited to 1:30 for CFDs on major currency pairs (such as EUR/USD, GBP/USD, or USD/JPY). For other Forex currency pairs, gold from the most traded indices, the leverage is reduced to 1:20. We then move to 1:10 for the other CFD on commodities, as well as the other CFD indices. The leverage of CFD shares and ETFs must not exceed 1:5. Cryptocurrency CFDs, on the other hand, have only a 1:2 lever.

Note that these limitations only apply to eToro’s European branches (eToro UK Ltd, eToro Europe Ltd). The broker also offers protection of accounts receivable against negative balance. In other words, even if you use leverage, you won’t be able to lose more than the amount you deposited on eToro.

Protection linked to the social trading platform

When it comes to social trading, the eToro platform lets you see the past performance of other traders to help you make the best decision. Each trader has a profile on which there is information related to his trading. So, you can measure the risk and exposure to which your account will be subjected if you decide to track the positions of a trader.

The risk calculation is automated and eToro has created an index to measure it. This ranges from 1 to 10, with 10 being the highest risk measure. The higher the risk, the greater the change in your trading capital and therefore the higher your losses and gains will be. This risk measurement is very practical and allows you to get an idea of the aggressiveness of the trader’s strategy you want to follow.

Conclusion

Our various tests on the eToro platform and the broker’s services lead us to the conclusion that this broker is reliable. Regarding your trading capital, you will have no worries, because the broker is regulated by several financial market regulators.

eToro offers a variety of types of investment that makes it easy to diversify. And this broker is distinguished by its social trading features that not only allow to follow the positions of other experienced investors, but also to offer its own trading signals on the platform.

FAQs

Is eToro regulated?

eToro is regulated by several regulatory bodies, including the FCA.

Can I buy Bitcoin on eToro?

You can buy Bitcoin on eToroX. It is also possible to trade cryptocurrencies in the form of CFDs.

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