eToro ReviewOpen Demo Account
eToro made its first steps towards becoming a CFD and Forex broker in 2007. From the start, the goal was to make trading accessible to everyone regardless of location while reducing dependency on traditional financial institutions. The company began with the Visual FX trading platform, launched in September of that year, before launching a WebTrader just under two years later.
We also have to mention its social trading, which began in 2010 via OpenBook. This was the world’s very first social trading platform. Over the years, the firm continued to grow, adding a mobile platform, stocks, and CopyPortfolios. Today, it offers access to stocks, cryptocurrencies, commodities, currency pairs, ETFs, and indices, some of which are traded as CFDs.
- The first social trading platform ever.
- Offers access to a variety of assets.
- Regulated and authorised by the FCA.
- Limited educational tools are available.
- There have been some outages on the trading platform in the past.
What can you trade?
eToro Forex Review
Our team discovered that Forex trading is not the company’s primary focus, which revolves around social trading, yet there are still extensive offerings. If this is your primary market, then you may want to consider a different broker. However, if you want to trade it along with other assets, including the social trading option, then you are at the right place.
There is a choice of 47 currency pairs for clients to trade, including majors, minors, and exotics. The spreads for all pairs are clearly listed on the hours and fees page, with the example of EURGBP having a spread of 4 pips.
eToro CFD Review
We discovered a wide range of assets on offer as CFD products across all types of assets including indices. They also allow traders to trade very small fractions of the respective assets and to use leverage.
CFDs are available for commodities, cryptocurrencies, currency pairs, ETFs, and indices at very affordable fees. For example, the fees at the time of writing as reflected in the spread offered on the NSDQ100 CFDs was 240 pips.
eToro Stocks Reviews
In addition to the assets offered as CFDs discussed above, you also get access to multiple stocks for those who are interested in trading these assets. It is possible to trade stocks in the traditional manner or as CFDs, depending on your preference.
Our analysts appreciated the lack of commissions on stock trades at eToro. There are also no rollover, ticket, or management fees. This unique offer is only available under the UK and Europe subsidiaries but it excludes leveraged or short trades. There are spreads of 0.09% for trading stock CFDs, in addition to overnight and rollover fees. Clients have access to at least 20 stock exchanges.
eToro ETF Review
Additionally, you also get access to ETFs which we hinted at under the CFDs section, but we’ll cover them in more detail here.
Traders in the UK have access to 145 different ETFs, including many from the US and some from other parts of the world. All ETFs now have unified charges, with no management fees, no rollover fees, and no ticket fees, for buy trades that are non-leveraged. The fee is just 0.09%, however, short and leveraged positions have transparent overnight fees since they are processes as CFD trades on ETFs.
eToro Social Trading Review
The social trading feature is where the firm stands out as it was the very first broker to offer social trading. This comes via its CopyTrader system, which lets you copy the trades made by its top-performing traders.
To use this aspect, simply open an account as you normally would. Once logged in, you can see the top investors and choose which one to copy and how much of your funds to allocate to their trades. For additional control, you can be checking the leaderboards for the top-performing traders, stop following one and choose a different one, or take over your own trading.
There are two key aspects of social trading on the platform. CopyTrader lets you copy the actions of other traders in real-time, while those who want to be copied can join the Popular Investor program. There are also CopyPortfolios, which are investment strategies already made with thematic investments that you can easily join.
eToro Crypto Review
Our cryptocurrency analysis showed that the firm offers a selection of cryptocurrencies in the form of CFDs. This method of trading cryptocurrencies allows you to make a profit without having to actually own any cryptocurrency.
While cryptocurrencies are now being offered by many firms you will find that eToro is way ahead of its peers when it comes to cryptos. Most platforms typically offer up to six cryptocurrency pairs, but we found seventeen at this firm. The fees are also highly transparent and come in the form of spreads. For example, BTC has a daily break spread of 0.75 per cent, while Litecoin is at 1.90 per cent.
What did our traders think after reviewing the key criteria?
A major positive attribute of eToro is that they are highly transparent about their fees. It is important to note that they charge a withdrawal fee of $5 with the minimum withdrawal being $50.
To pull ahead of the competition, the firm does not charge any fees for Long (BUY), stock, ETF, and non-leveraged cryptocurrency positions, as these are not completed as CFDs. However, there are fees for short (SELL) orders, as well as overnight and weekend fees on CFDs.
At any point, you can check CFD, FX and other fees for yourself in our site or via the Market Hours and Fees page of their website. This page displays the current prices, the daily spread break, and the market hours for each asset, divided by class. As an example, at the time of writing, EURGBP has a daily break spread of 4 pips.
We also delved into the account types offered by the firm, which are divided into two main categories.
Retail clients can use Copy Trading or trade manually. There are restrictions on leverage based on FCA regulations and UK clients also benefit from negative balance protection, margin closeout restrictions, and the Investor Compensation Fund. Retail clients must follow the EMSA restrictions that came into effect on 1 August 2018. These include maximum leverage of 30:1 for Forex majors; 20:1 for non-major currency pairs, major indices, and gold; 10:1 for other commodities; 5:1 for stock CFDs; and 2:1 for cryptocurrency CFDs.
Professional Clients waive some of these protections, including negative balance protection, the Financial Ombudsman Service, and the Investor Compensation Fund. In return, a professional trader can access high leverage levels of up to 1:400 for certain instruments. However, to qualify as a professional trader, you must meet strict criteria and complete a special application process.
Clients who want additional services can join the eToro Club. The Silver tier gets a dedicated account manager, while Gold level members get access to market analysis, credit lines, and live webinars. Platinum clients get private trading signals, a debit card, and no withdrawal fees. Platinum+ level adds exclusive access and personal analysts. Finally, Diamond members are exempt from exchange fees and receive exclusive event invitations. A demo account is also available.
The trading platform is robust and full of features, but those who are looking to trade currency pairs via MetaTrader 4 or another popular platform will be disappointed. The firm only offers its proprietary platform, which was designed to work seamlessly with all of its features, including social trading. The lack of a third-party platform is likely due to the need for social trading support, which is still uncommon.
Even with the limited selection of platforms, there are solutions for all devices in the form of a WebTrader and a mobile application. Both offer access to more than 2,000 assets, transparent and low fees, social trading support, features for traders at all skill levels, and are intuitive to use. The setup of the platforms is similar to the popular ones such as MT4, including the expected charts and graphs.
Overall, the platform should be simple and intuitive enough for beginners while offering advanced traders the features they would expect to find. The only caveat is that those who need extensive analytics tools may wish for more as they trade.
The company offers a highly usable website with a professional layout and intuitive navigation, which is a major advantage. Between the main navigation bar with its drop-down menus at the top and the bottom navigation bar, it is simple to navigate the website. The search bar also helps.
Potential users who want to try out the firm before signing up will also appreciate the ability to access the WebTrader before doing so. This allows potential clients to make an informed decision even before signing up for the demo account.
We were pleasantly surprised by the results of our analysis of the support offered to cryptocurrency, FX, or CFD traders. The broker has a detailed Help Centre, which serves as an FAQ section. There is a convenient search option, as well as topics divided into 10 categories.
Additionally, they have a Customer Service page that allows you to contact its team. This page directs you based on whether you are a visitor or an existing user. From there, you can open a new ticket. It is also possible to contact them via social media including on LinkedIn, Facebook, Twitter, Instagram, and YouTube. Additionally, they have an office on Canary Wharf in London with a local UK phone number.
Although our team was based in the UK, the firm has its headquarters in the United States, and its platform functions in USD. As such, any GBP funds that are deposited will be automatically converted to USD, with a conversion fee charged. For clarity, there is a conversion calculator in its Help Centre. Keep in mind that they do not charge any fees for deposits, other than conversions, but your funding provider might.
We recommend depositing via credit or debit card for those who want their funds accessible as quickly as possible.
Bank Wire Transfer
Bank wire transfers are also accepted and may take between four and seven days to be processed.
Our team was moved by the number of e-wallets supported, including PayPal, Neteller, WebMoney, and Skrill.
Giropay or Sofortüberweisung is also supported, with real-time direct payments from banks.
The educational materials offered by the company are more than enough as there is a huge library of information available. However, the content covers the bare minimum and traders will have to find more educational materials elsewhere. There are daily market updates, a detailed guide to fintech and investments, and an introduction to social trading. Beginners can also find some basic information in the FAQ section.
Regulation & Deposit Protection
We were impressed by the broker’s regulation and deposit protection since the UK entity is authorised and regulated by the Financial Conduct Authority. As such, retail clients are entitled to compensation of up to £85,000 via the Financial Services Compensation Scheme.
The Cyprus Securities and Exchange Commission (CySEC) regulates and authorises the European subsidiary, while the Australian Securities and Investments Commission (ASIC) does the same for the Australian division.
Since beginning operations in 2007, many organisations have conducted their own reviews and honoured it with multiple awards. Oddly enough, eToro does not readily list these honours on its website. In 2010, it earned a World Finance Award for “Most Innovative Trading Platform.” In 2016, it was one of CNBC’s “10 Fintech Startups Worth Watching.” FINOVATE honoured it with “Best of Show” in 2015 and 2017. In 2019, ADVFN honoured it with “Best Social Trading Platform” and “Best Platform for Trading Cryptocurrencies.”
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.