This eToro Review
is about a trading broker that offers different instruments to trade. eToro was founded in 2007 and at the beginning years it was known as a broker with limited trading instruments. After 2009, eToro began to offer more alternatives in trading.
First, eToro launched WebTrader, a platform that allows you to trade through web browsers. Then, OpenBook was launched, which is a social trading platform. In 2020, eToro launched te mobile app that allowed clients to trade and copy signal through the mobile app.
In the later years, stocks were added as trading products and eToro started to offer more changes. During 2015, eToro integrated WebTrader and OpenBook into one interface. Later, CopyPortfolio was launched and other changes were being made still.
eToro it’s known mostly for their social trading platform and copy trading feature. Copy trading is one of the key reasons why eToro is different than other brokers. With the CopyTrader system, you can copy signals from other traders. The minimum amount to invest with the CopyTrader system is $200.
With Toro, you can trade Forex, Stocks, Indices, Cryptocurrencies, and Commodities. Fees are very competitive and you can use various payment methods to fund your account. eToro provides an advanced trading platform that you can use it to trade from your web browser and your smartphone.
eToro is regulated in the United States, the United Kingdom, Australia, and Europe.
- eToro (UK) Ltd. is regulated by the Financial Conduct Authority (FCA) and retains a cross border license from the FCA to offer its services in member states of the European Economic Area.
- eToro (Europe) Ltd. is regulated by the Cyprus Securities and Exchange Commission (CySEC) and retains a cross border license from the CySEC to offer its services in member states of the European Economic Area, and outside of it.
- eToro USA is operated by eToro USA LLC, which is registered with FinCEN as a Money Services Business.
- eToro Australia Pty Ltd is regulated by the Australian Securities & Investments Commission (ASIC) and a Corporate Authorised Representative (CAR) of Gleneagle Asset Management Limited.
eToro offers a variety of trading products to trade. Hundreds of instruments are available to trade with competitive fees and spreads. eToro broker offers the following instruments to trade:
- Forex – 47 Forex pairs in total available
- Stocks – More than 700 stocks are available
- Indices – 13 Popular indices assets are supported
- Commodities – 19 Commodities assets in total are supported
- Crypto – 16 major cryptocurrencies supported
eToro offers very competitive spreads on trading products. You can trade with low spreads that start from 1 pip on Forex products.
Spreads on Forex pairs start from 1 pip
You can trade Commoddites with spreads that start from 2 pips
Indices have higher spreads that start from 100 pips
Spreads on stocks start from 0.09%
You can trade cryptocurrencies with spreads that start from 0.75%
eToro does do not apply fees only when you trade stocks.
eToro charges swap fee known as overnight fees. So, when you hold trades overnight then the fees will apply.
Here’s an example of overnight fees:
$1,000 investment in a US stock
USD LIBOR 1 month = 1.55%
Daily fee for BUY position =
(6.4%+1.55%)/365 * $1,000 = $0.22
Daily fee for SELL position =
(2.9%+1.55%)/365 * $1,000 = $0.12
The overnight fee when you trade US stocks is 22 cents per day on Buy and 12 cents per day on SELL.
Weekend fees are charged either on Wednesday or Friday, depending on the asset.
If you don’t trade in a period of 10 months a $10 monthly inactivity fee will be charged on any remaining available balance. No open positions will be closed to cover the fee.
CopyTrader is one of the most popular features and that makes the difference between eToro and other brokers. CopyTrader allows you to view trades of other traders and copy their trades. The process to copy traders is very simple and easy.
First, you need to choose the trader that you want to copy the trades. Traders can be filtered by performance, assets, risk score, and other filter options. Then, you need to choose the amount that you wish to invest by copying with the trades.
In the end, to complete the copy trading process just hit the “Copy” button. When you copy trades, you still have control of your trades. The CopyTrader allows you to stop the trades that you’re copying from other traders. You can also pause, add, and remove the funds at any time.
eToro offers a free practice account that you can use to try the CopyTrader system. The maximum balance that you can use with a practice account known as the demo account is up to $100,000. You can invest a minimum amount of $100 to copy trades.
The amount of traders that you can copy is limited to 100. The maximum amount that you can invest in one trade is up to $2,000,000. You can set a stop loss and take profit on all trades that you copy.
If your order is executed, then you can still update your stop loss and take profit price. Other traders can copy trades from you if your profile is set to public. However, to become a copy trader, you need to be approved first by the eToro.
Millions of users use the trading platform and mobile app according to eToro stats. The trading platform and the mobile app supports all the financial instruments.
The CopyTrader it’s available to use and copy signals from other traders. Mobile app it’s available on Apple Store and Google Play.
Some of the main features of the mobile app and trading platform include:
- Virtual Portfolio
- Top Ranks Research Tab
- One-Click Trading
- Stop Loss & Take Profit
- Trailing Stop Loss
- Offline Trading
Deposit & Withdrawal
You can deposit a minimum amount of $50. If you deposit with an unverified account, then your deposit amount is limited to $2,250. To increase your deposit limit, you need to upgrade your account status by verifying your account.
Deposits can take less time to be processed in your account. Withdrawal can take from 3 to 5 business days and even more days to be processed. eToro does not charge fees for deposits, the fees apply only when you withdraw funds, and a fee of $5 will be charged.
The table below, shows the available payments to deposit and withdraw funds:
|Method||Currencies||MAX Deposit*||Withdraw Available?||More info|
|Credit/Debit Cards||USD, GBP, EUR and AUD||$40,000||Y||Supported cards: Visa, MasterCard, Diners, Visa Electron, and Maestro.|
|PAYPAL||USD, GBP, EUR and AUD||$10,000||Y||Must have an active PayPal account with funds available on the account balance or a credit/debit card linked to it.|
|NETELLER||USD, GBP, EUR||$10,000||Y||If you don’t have a Neteller account you can create one on www.Neteller.com|
|SKRILL||USD, GBP, EUR||$10,000||Y||If you don’t have a Skrill account you can create one on www.Skrill.com|
|RAPID TRANSFER||USD, GBP, EUR||$5,500||N||You will need to have access to your online banking to complete the transaction.|
|iDEAL||EUR||$50,000||Y||You will need to have access to your online banking system to complete the transaction.|
|Klarna / Sofort Banking||USD, GBP, EUR||$30,000||Y||You will need to have access to your online banking to complete the transaction.|
|WIRE TRANSFER||USD, GBP, EUR||Unlimited||Y||Make sure you transfer funds to the bank account in the same currency as your own bank account (USD, EUR or GBP), so to avoid unnecessary bank charges|
|ONLINE BANKING||MYR, IDR THB, PHP and VND||$10,000||Y||You can make instant deposits directly from your bank account. You will need to have access to your online banking to complete the transaction.|
Verification is mandatory to trade with eToro broker. Besides the requirements by the regulatory, you will increase your limit and features. Unverified accounts are limited to a total amount of $2,250 to deposit funds.
To increase your limit of the maximum deposit amount, you need to verify your account. The verification requires 2 documents that you need to provide. Proof of identity document is required to confirm your identity.
You can use the following documents to verify your identity:
- Driver’s License
- State ID
Your full name, date of birth, clear photography, issue date, and expiry date should be visible.
To verify your address, the following documents are accepted:
- Bank Statement
- Credit Card Statement
- Electricity, Internet, Phone, Water or Gas bill
- Council tax bill
- Tax letter or bill house
- Rental official agreement – Issued from a rental agent
- Letter from employer
- Letter from your local municipality
With the education program, you can improve and increase your trading knowledge. Many tutorials, articles analysis, podcasts, videos, and other educational resources are available.
You can learn and improve trading with the following educational resources:
- News and Market Analysis
- Trading Guides
- Social Trading Guide
- Daily Marker Review
- Video Tutorials
- Trading School
You can address any issues, suggestions, questions you have to the contact team. The support team it’s available 24 hours a day from Monday to Friday. You can contact the support team via phone, live chat, or email.
Many languages are supported so the support besides the English language, offers support in other languages too. To get more information about the eToro broker, you can access the FAQ.
eToro is a trusted broker and regulated in many countries such as the US, UK, Europe, Australia, and more. You have a variety of products to trade such as Forex, Crypto, Stocks, Indice, and Commodities. Spreads and fees are competitive and also you can deposit with zero fees.
The mobile app and trading platform are easy to use for a beginner without much experience in trading. Social trading is a copy of social platforms like Facebook, Twitter. And with Social Trading, you can read, share, and analyze ideas published by other traders.
CopyTrading is one of the main advanced features of eToro. You can copy trades from other traders with an amount of $200 and choose from the top traders. We can highly recommend you to trade with eToro as it’s a regulated and trusted broker. If you enjoyed this eToro review we would also recommend our Kraken vs eToro review.
eToro Disclaimer – Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk.
Images via shutterstock, Writer Behar H.