eToro made its first steps towards becoming a CFD and forex broker in 2007. From the start, the goal was to offer trading that is 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.
No review is complete without mention of its social trading, which began in 2010 via OpenBook. This was the world’s very first social trading platform. Over the years, broker continued to grow, adding a mobile platform, stocks, and CopyPortfolios. Today, eToro offers access to stocks, cryptoassets, commodities, currencies, ETFs, and indices, including via 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
This forex review points out that forex trading is not the primary focus of eToro, which revolves around social trading, yet there are still extensive offerings. If you primarily plan on trading forex, you may want to consider a different broker. However, if you want forex along with other assets, including the option of social trading, broker is a strong choice.
Broker offers 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
Any CFD review will mention the range of assets that this broker offers via CFDs. CFDs offer access to some unique assets, including indices. They also allow traders to trade very small quantities of assets and to use leverage.
CFDs are available for commodities, cryptocurrencies, forex, ETFs, and indices. As an example of fees, at the time of writing, the spread for NSDQ100 CFDs was 240 pips.
eToro Stocks Reviews
In addition to the offerings found in an CFD review, the broker also offers stocks for those who want to trade these assets. It is possible to trade stocks in the traditional manner or via CFDs, depending on preference.
This UK review appreciates the lack of commission for trading stocks on eToro. There are no rollover, ticket, or management fees. This unique offering is only available for eToro UK Ltd. and eToro Europe Ltd. and excludes leveraged or short trades. There are spreads of 0.09 per cent for trading stock CFDs, in addition to overnight and rollover fees. Clients have access to 20 stock exchanges on broker.
eToro ETF Review
Additionally, eToro offers ETFs for traders to take advantage of, which is also part of the offerings you will find in an CFD review.
Traders in the UK have access to 145 different ETFs, including those from around 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 fees are always 0.09 per cent. Short and leveraged positions additionally have transparent overnight fees for CFD trades on ETFs.
eToro Social Trading Review
Even a quick UK review will mention that this was the very first broker to offer social trading. This comes via its CopyTrader system, which lets you copy top-performing traders.
To use this aspect of eToro, simply open an account as you normally would. From there, you can examine the top investors and choose which one to copy and how much of your funds to allocate to this copying. For additional control, you can constantly review eToro top-performing traders and take over trades or stop following someone at any point.
There are two key aspects of social trading on eToro. CopyTrader lets you copy the actions of other traders in real-time. 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.
eToro Crypto Review
Reading an cryptocurrency review will show you that the broker offers a range 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 many brokers are beginning to offer cryptocurrency CFDs, if you review cryptocurrency offerings, you will see that this broker is miles ahead of the crowd. Most brokers will offer up to six cryptocurrency pairs, but eToro offers 17. 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, and Litecoin is at 1.90 per cent.
What did our traders think after reviewing the key criteria?
Another positive point in this review is that the broker is highly transparent about its fees. It is important to note that there is a fee for withdrawals of $5, with minimum withdrawals of $50.
To pull ahead of the competition, eToro 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 weekends on CFDs.
At any point, you can review CFD, forex, or other fees yourself via the Market Hours and Fees page of the 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.
An UK review should also always include an overview of the account types, of which broker offers two main categories.
Retail clients can use Copy Trading or trade manually. They have restrictions on leverage according to the FCA and other regulations, but they also receive protection via negative balance protection, margin closeout restrictions, and the Investor Compensation Fund. Retail clients must follow the EMSA restrictions that went into place on 1 August 2018. These include a 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 CFD stocks; and 2:1 for cryptocurrency CFDs.
Professional Clients waive certain of these protections, including negative balance protection, Financial Ombudsman Service, and the Investor Compensation Fund. In return, a professional CFD review will show leverage for certain instruments of up to 1:400. Professional clients must meet strict criteria and complete an application.
For clients who want additional service, there is also the eToro Club. The Silver tier gets a dedicated account manager, while Gold adds access to market analysis, eToro credit lines, and live webinars. Platinum adds private trading signals, an eToro debit card, and no withdrawal fees. Platinum+ 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 strong and feature-filled, but those who review forex platforms in hopes of access to MetaTrader 4 or another familiar platform will be disappointed. eToro only offers its proprietary platform, which was designed to work seamlessly with all of its features, including social trading. The lack of third-party platform is likely due to the need for social trading support, which is still uncommon.
Even with the limited selection of platforms, broker offers 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 all skill levels, and intuitive use. The setup of the platforms is similar to the major ones, like 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 expect to find. The only caveat is that those who need extensive analytics tools may wish for more as they review.
Broker offers a highly usable website with a professional layout and intuitive navigation, another positive point in this review. 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 review eToro before signing up will also appreciate the ability to view the WebTrader before doing so. This allows potential clients to make an informed decision even before signing up for the demo account.
As you review cryptocurrency, forex, or CFD support, you will likely be pleased with the results. The broker has a vast Help Centre, which serves as an FAQ section. There is a convenient search option, as well as topics divided into 10 categories.
Additionally, eToro has a Customer Service page that allows you to contact its team. This page diverts 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 in Canary Wharf in London, with a local UK phone number.
Although in this a UK review the broker 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, eToro has a conversion calculator in its Help Centre. Keep in mind that eToro does not charge any fees for deposits, other than conversions, but your funding provider might.
This review suggests depositing via credit 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 for processing.
Our reviewers appreciate 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.
Most who review broker’s educational materials will find themselves wishing that more information was available. eToro does offer the bare minimum, but traders will have to find most 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
This review praises the broker’s regulation and deposit protection. eToro (UK) Ltd 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.
Since beginning operations in 2007, many organisations have conducted their own eToro UK reviews and honoured it with 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 eToro 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.