eToro Review & Rating 2024
Have you searched for 'eToro review' to understand the real value of eToro? You did well if you have! Before starting an adventure it is always useful to rely on the opinions of others to form your own personal opinion. Is eToro safe and reliable or a scam? Maybe before starting you want to find answers to these questions.
With this eToro review, we will analyze the different facets of this broker so that you can see beyond our personal opinion.
On the net, you will find many eToro reviews from people who can confirm the reliability of eToro and you will also find many satisfied traders and investors. The history of this broker is deep and solid and this is a good index of reliability.
In this eToro review, you will find everything you need to remove any doubts and, as already anticipated, our opinions on eToro after carrying out our trading operators review.
Yes you got it right, we have known this broker for years and we know perfectly well what we are talking about, not like others who say random things.
What is eToro?
eToro is the world's leading social trading network launched in 2006 by brothers Ronen and Yoni Assia and their partner David Ring, under the name RetailFX. In 2010, eToro became the first company to introduce the concept of social trading, making a huge impact on what online trading in the financial markets is today. The idea of social trading is based on the “wisdom of the crowd,” a collective intelligence that helps traders and investors make trading decisions. Thanks to the eToro social trading platform, users can share ideas and experiences for better results.
Headquarters and offices
As for the regulations, you need to know that eToro is very well regulated, with licenses from several high-level financial regulators. In addition, the company is physically present in several countries around the world. With a staff of hundreds of employees, eToro has offices in the following locations: Limassol, London, New Jersey, Sydney, Shanghai.
Is eToro safe?
True, the forex broker industry is full of scams. For this, you must always be very careful when choosing a possible broker. Fortunately, eToro is not in the category, as it has high-quality security measures and regulations.
One of the most important aspects of forex trading is making sure your funds are protected. It is clear that, being a priority for all traders, eToro takes it very seriously.
For this the broker offers two levels of protection, which will help you to better protect your funds by trading with them.
First, your funds are deposited in segregated accounts at top tier banks , such as Barclays and Goldman Sachs. This is a regulatory requirement in many areas to ensure that forex traders' funds are protected. It is to ensure that your funds cannot be used by the broker for reasons other than your trading operations and that you will be protected in the event of financial problems or bankruptcy of the broker.
The second level of protection is negative balance protection . It means that you cannot lose more than your account balance. This usually translates into automatic closing of positions by the broker in case you no longer have the necessary funds to hold them. Hence, your account balance will never drop below $0.
When it comes to eToro trading features, this firm is considered an unconventional broker. Let's take an in-depth look at how it works:
eTrading trading features
Trades on most instruments take place as traditional CFDs, also offering the possibility of real 1: 1 trading on cryptocurrencies, stocks and ETFs.
Add to this the main trading feature of eToro: copy and social trading. It is these ways that make the forex broker very dynamic.
eToro is a Market Maker broker with STP/NDD features. There are many experienced traders who appreciate the Straight Through Processing and No Dealing Desk execution methods, being able to benefit from it in forex trading and other markets.
The minimum lot size allowed by eToro in CFD trading is 1 micro-lot. A micro-lot is equivalent to 0.01 of a standard lot or 1,000 currency units and makes trading more accessible, especially for novice forex traders who want to manage risk levels effectively.
This minimum lot size can affect the minimum investment required depending on the instrument in question. Here are some examples:
- Forex: $33 (leva 30:1)
- Indices: $200 (20: 1 leverage)
- Commodities: $ 200 (10: 1 leverage)
Experienced traders use many different trading techniques. Two of these, hedging and scalping, are not allowed on eToro.
Due to the regulations of eToro, the broker does not even allow spread betting, although it is possible to implement APIs on the platform. Being considered an algorithmic type of trading, they can help you identify trends and trends in the markets.
Another very important element for all forex traders is risk management. This can be implemented on eToro in several ways, to reduce risk levels to a minimum.
Some of these methods include order management, such as stop loss, take profit, limit order and trailing stop. The broker also uses margin calls to alert you when your net balance is at a certain level relative to your open positions. Overall, eToro offers several features to help you integrate effective risk management.
The leverage available with eToro depends on the regulation you are in and the country of origin.
The following restrictions are defined by the European Securities and Markets Authority (ESMA) and apply to retail traders of eToro (Europe) Ltd (regulated by CySEC) and eToro UK Ltd (regulated by FCA):
- 30: 1 for major currency pairs (such as EUR/USD)
- 20: 1 for non-major currency pairs (such as EUR/NZD), gold and major indices
- 10: 1 for commodities other than gold and non-major equity indices
- 5: 1 for CFDs and ETFs
- 2: 1 for cryptocurrencies
The following restrictions apply to professional traders and clients of eToro Australia Capital Ltd (regulated by ASIC):
- 400: 1 for currency pairs
- 100: 1 for commodities and indices
- 20: 1 for selected CFD stocks
- 10: 1 for other CFDs and ETFs
- 2: 1 for cryptocurrency CFDs
If you are a US based forex trader, the only leverage available is 1: 1. As CFDs are not available in the US and you can only trade cryptocurrencies.
Platforms and mobile
The next important aspect to look into is the trading platforms available and how it is possible to trade with devices, mobile or not, on eToro.
Graphic and operational tools
With eToro you have a good range of indicators and charting tools to help you with your trades. There are a total of 13 charting tools and over 60 other tools and indicators.
There is also a very useful feature to compare two or more tools.
Proprietary platform (desktop platform)
To trade with eToro, you will have only one type of platform available. This is their proprietary trading platform, which over the years has earned an excellent reputation as being extremely intuitive and easy to use. The platform is well organized and you will see that compared to the others, it takes much less time to get carried away.
On the platform itself, one of the most important areas is the "feed" section . From there, you can take advantage of the social side of eToro to interact with other traders. In fact, operators can share information, forecasts, news, images and more to help each other.
Mobile forex trading is essential nowadays. Also from this point of view, eToro's proprietary mobile trading platform does not disappoint: it can be used by mobile and smart Android and iOS devices, although it is not available for smartwatches.
It is available in several languages, such as English, German, Spanish, French and Italian and the design is similar to that of the desktop platform, also offering a section dedicated to favorite feeds and tools, a customizable favorites list and the ability to receive alerts via push notifications on the device according to your needs.
The two platforms are very similar, the main difference being the lesser availability of charting tools on mobile devices. However, with eToro mobile, you will still find enough to stay up to date and trade on the go.
Can you be one of the best forex brokers with no markets to trade on? Here are all the markets available with eToro:
eToro offers 47 Forex pairs, with major, minor and exotic currencies.
Spreads start at 1 pip for major forex pairs.
eToro offers 13 commodities:
- 7 metals (gold, silver, copper, platinum, palladium, nickel, aluminum)
- 4 soft commodities (wheat, cocoa, cotton, sugar)
- 2 energy (oil, natural gas)
13 major global indices are available for trading, including:
- Asia: China, Hong Kong, Japan
- EU: UK, France, Germany, Spain, Europe
- USA: US Dollar Index, DJ30, NASDAQ, S & P500
- Cryptocurrency eToro Wallet
- 17 stock indices with over 950 stocks
- 13 European stock indices
- 2 US stock indices
- Saudi stock index
- Hong Kong stock index
- Penny stock
With eToro you can filter these stocks by country or sector, so as to narrow down the specific areas and markets that interest you for trading.
eToro offers 145 ETF. ETFs on eToro are mainly provided by iShares, Vanguard and SPDR
eToro offers several specific products. Most are integrated into eToro's standard trading account, while others may be slightly derivative, but still available for use as an eToro trader.
Let's take a look at it:
EToro's CopyTrader forms an integral part of the brand's offering. From here you can start copying the trades of other traders with a minimum investment of $200 per trader.
If you want your trades to be copied by other users, you will need to contact eToro and then they will decide if your profile is eligible to become a signal provider. If successful, you will be entitled to a commission from your followers.
Real stocks and ETFs
As mentioned, in most countries eToro allows you to invest in CFDs, trading with financial levers. In some cases, however, it is also possible to trade without leverage , by actually buying the underlying instrument in the case of ETFs and shares.
There are a few key differences to be aware of here: when trading CFDs, you may incur overnight fees, which you won't have to pay by buying 1: 1 stocks and ETFs. It can be a great tool for long-term investing, even allowing you to earn a dividend, if provided by the company or the ETF (eToro takes a percentage).
eToro also offers the possibility of trading on fractions of shares. For example, if an Amazon stock costs $1800, you can still invest as little as $50, making or losing money depending on how the fraction you own is performing. The same applies to dividends - if you invest $100 in Amazon stocks that cost $1800, you'll earn 1/18 of the overall dividend.
It is truly a great way to lower your investment risk, while still diversifying your trading portfolios, especially for novice or less experienced traders.
Before you start trading with any broker, you should always carefully consider which account type is right for you.
The eToro demo account is the ideal way to get started. eToro offers an absolutely unlimited demo account to try out the platform. You can open it with essential personal information. All you need is a username, email address and phone number.
This way you will be able to access a trial account with a virtual balance of $100,000 completely free of charge, to trade with the same features available on real trading accounts, but without risk. Once you have mastered the platform, you can open a real eToro account.
The first step of many forex traders who choose eToro is to open a Standard Account. This type of account is the only one for real trading offered by the broker to non-professional traders.
To open a standard account, you will need some documents to go through the verification process, which is very quick. The documents required to verify both your identity and your address are as follows:
- Identity card/Passport
- Proof of residence (utility bill, bank statement)
To speed up the verification process, you should also make sure that your proof of residence shows your address as displayed on your account and that it has been issued within the last 3 months. You will usually also be contacted by an eToro operator by telephone, who will guide you through the steps following registration and answer any questions you may have.
The eToro minimum deposit on standard account is $200, with some exceptions:
- USA: $50
- Australia: $50
- Italy: $50
- Israel: $10,000
Also remember that until your account has been fully verified, you will not be able to deposit more than $2,250 or equivalent. Hence, we recommend that you make sure you complete the eToro verification process as soon as possible.
In case you are an Islamic trader, eToro offers Islamic trading accounts upon request. This type of account, like all Islamic accounts, does not charge swap fees, as according to the Sharia they are considered Haram.
If you ever need this type of account, you will need to contact the eToro customer support team. eToro minimum deposit for the Islamic account is $1,000.
eToro does not offer MAM/PAMM accounts. However, considering the nature of this social trading platform and the ability to copy the trades of other traders, it is possible to replicate some aspects of a PAMM account.
Professional Account (eToro PRO)
In accordance with ESMA regulations, eToro classifies its traders into two categories. Retail and professional traders. To qualify as a professional with eToro, you will need to meet at least two of the following requirements:
High volume of trades: You must have made at least 10 forex trades with a minimum total value of $500,000
Financial Portfolio: Must be greater than $ 500,000. Your assets do not count towards this value. Only your balance and your open positions.
Professional Experience: At least one year of work experience in the financial field is required.
As a professional trader on eToro, you will be entitled to some additional benefits, such as a dedicated account manager, higher operating leverage (up to 400: 1) and more competitive spreads and commissions on forex trading. Furthermore, as a professional eToro trader, you will still have negative balance protection available.
At the moment, the only base currency offered by eToro is the USD. This means that any deposits or withdrawals other than USD will be subject to a conversion fee.
Want to buy bitcoins with etoro? eToro offers traders 17 cryptocurrencies (including the most famous such as Bitcoin, Ethereum, Ripple, Dogecoin, etc.)
- 1 crypto-metal (GOLD/BTC)
- 16 Crypto-Crypto
- 64 crypto-fiat pairs
For cryptocurrency trading, eToro has also recently launched a dedicated wallet: eToroX. As an eToro trader you can transfer your cryptocurrencies to your eToro wallet in case you want to keep them.
If you are a US resident trader, this is currently the only market available for trading with eToro.
EToro's deposit methods vary by country, but in general it is possible to add funds via bank transfer, major credit / debit cards (Visa, MasterCard, Maestro) and with different eWallets, such as Neteller and PayPal.
eToro accepts EUR, USD, GBP, AUD and RUB from virtually all over the world, but there may be some exceptions depending on where you live. For example, in China, RMB deposits are accepted via UnionPay.
As already mentioned, the first eToro minimum deposit must be at least $200. Thereafter, the eToro minimum deposit is at least $50.
eToro fees when making deposit are quite low. Particularly if they take place in USD. If you deposit in another currency, you may incur a conversion fee. This charge also depends on the deposit method used.
For wire transfer deposits in another currency, the fee is 50 pips, regardless of the currency. For credit and debit cards and eWallets, the conversion fees are as follows:
EUR – 250 pip
GBP – 50 pip
AUD – 100 pip
RUB – 50 pip
Note that your bank may also charge a fee. To be sure, contact them and ask for more information about their policy in this regard.
Withdrawals from eToro can be made with the same deposit methods which, as mentioned, are: bank transfer, credit/debit cards and eWallet.
Remember that due to anti-money laundering legislation, the withdrawal method must be the same as the one you made the deposit with.
etoro withdrawal fees
eToro charges a fixed withdrawal fee of $5 or the equivalent amount in your currency and you can only withdraw amounts over $25.
Spreads and commissions
Spreads on eToro are offered as variables only. The broker therefore does not offer fixed spread options. EToro's spreads may seem a little higher than the competition. This is due to the strong copy trading infrastructure, which you, as a trader, can also benefit from.
The forex spread usually starts at around 1 pip on major currency pairs. That said, spreads between 2-4 pips are also quite common. eToro does not charge any commission on trades.
To give you a more complete picture, here are some examples of spreads on eToro's most traded markets:
- EUR/USD – 1 pip
- Gold - 45 pips
- S&P500 – 75 pip
- Bitcoin - 0.75% of the value of the cryptocurrency
- US equities - 0.08% of the value of the instrument
If you don't have enough funds in your account to pay the inactivity fee, it may be closed.
The eToro website and support are available in 19 languages. The options available include English, Italian, Spanish, French, Russian, Arabic and Chinese. There are many more and it is likely that no matter where you are from, eToro will speak your language.
The eToro team works constantly to offer you comprehensive market research and daily updates. This information is offered by the internal analyst team and you can download it for free. In addition, eToro also has a blog, which is updated daily, and provides an extensive financial calendar to keep you informed of all current events that may affect the markets.
EToro's customer support is complete and available through three channels: support via e-mail , telephone , call-back service , and real-time web chat . The first two methods are available in almost all 19 languages, while live chat offers a few less languages, including English, German and Chinese.
To help you better, once you have created an account you will be assigned an account manager, who will contact you and who you can contact in case of need.
Like many of the best forex brokers, eToro also offers a wide range of training materials. These include a series of live webinars, trading videos, and even a detailed fintech guide.
This guide includes a series of blog articles, covering all levels of trading, from beginner to expert.
This kind of material can be very useful in improving your skills as a forex trader at any level and is another reason why eToro is often recommended as the best broker for novice traders.
eToro comprises four major companies operating around the world. That is to say:
eToro (Europe) Ltd , an investment firm based in Cyprus, registration number HE20058. eToro Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC) with license number 109/10.
eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA), company reference number 583263.
eToro AUS Capital Pty Ltd is licensed by the Australian Securities and Investments Commission (ASIC) to provide financial services under the Australian Financial Services License, license number 491139.
eToro USA is operated by eToro USA LLC, registered with FinCEN.
Should you start trading with eToro?
The platform will be interesting for both beginners and experienced traders.
The platform's simplicity and transparency, allowing beginners to copy the strategies of the most experienced and successful users, has made eToro's concept of social trading very popular with novice traders.
If you are just starting out on your journey of exploring the market and do not yet have tangible experience, eToro is definitely for you.