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Review eToro

Founded in 2007 in Israel, eToro is a fintech company offering a multi-asset platform with stocks, cryptocurrencies, and CFD trading. Known for its resilience in financial markets, eToro isn’t stock exchange-listed, doesn’t release its annual report publicly, and isn’t bank-owned. It provides quick account setup and commission-free stock trades, along with unique features like social trading. However, it has high non-trading fees, slow cash withdrawals, and supports only USD cash holdings. Customer support accessibility is another noted drawback.

Recommended to:

eToro is best suited for innovative traders interested in social trading and commission-free stock trading.

Pros

  • Free stock and ETF trading
  • Smooth set up process
  • Social trading experience available

Cons

  • High non-trading fees
  • Only one account base currency
  • Weak customer support

Review’s Keypoints

Country of regulation

UK, Cyprus, Australia

Minimum deposit

$50

Time to open an account

1 day

Trading fees class

Low

Deposit with bank card

Yes

Number of base currencies supported

1

Products offered

Stocks

ETF's

Forex

CFD

Crypto

Depositing with electronic wallet

Yes

Demo account provided

Yes

Fees

Pros

  • Trading fees are low
  • Free stock and ETF trading
  • Low Forex trading rates

Cons

  • High non-trading fees

eToro Costs

Assets
Costs Level
Fee Costs
Assets
US Stocks
Costs Level
Low
Fee Costs
0
Assets
EU Stocks
Costs Level
Low
Fee Costs
0
Assets
US Options
Costs Level
-
Fee Costs
Not Availible
Assets
EU Options
Costs Level
-
Fee Costs
Not Availible
Assets
US Futures
Costs Level
-
Fee Costs
Not Availible
  • *** 1000 in EUR or USD for the Stocks transaction
  • *** Price per contract for Options & Futures

Transfers

EToro only uses USD, so all non-USD deposits are converted with applicable fees, which are higher for some methods like credit cards. Broker also has a withdrawal fee and a minimum withdrawal amount, offering methods like bank transfer, credit/debit cards, and e-wallets.

Pros

  • Credit/debit card transfers available

Cons

  • Conversion fees for deposit (except USD)
  • Withdrawal Fee

Trading Platforms

Web Trading Platform

The trading platform offers an aesthetically pleasing and functional design with well-labeled menus and buttons in a pleasing color scheme, enhancing user experience. Customization is limited due to fixed panels, though setting up a watchlist is straightforward. It features an optional two-step login for added security and a predictive, user-friendly built-in search function for easy ticker access.

Mobile Trading Platform

The mobile platform is intuitive and user-friendly, designed for both iOS and Android. It mirrors the web platform's functionality, supports the same 21 languages, and incorporates mobile-specific features like push alerts and smooth touch interactions, including swiping for portfolio access and trade execution.

Desktop Trading Platform

Offering

eToro in numbers:

0
Currency Pairs
0
Countries
0
Instruments

CopyTrader

eToro's CopyTrader feature enables you to imitate other traders, with a 100-trader copy limit and full trade closure requirement.

CopyPortfolio

eToro's CopyPortfolio lets you invest in themed CFD portfolios, like banking or major cryptos, or in a group of top traders, different from the single-trader focus of CopyTrader.

Stocks and ETFs

On eToro, purchasing stocks or ETFs involves real ownership rather than CFD trading. They offer access to various stock markets, but with a more limited range than some larger brokers. Short selling on the platform is conducted through CFDs, mainly centered around well-known stocks.

Cryptocurrency

Cryptocurrency trading on eToro is very volatile and doesn't have EU investor protection like MiFID. In the U.S., eToro only offers crypto trading.

Regulation

eToro operates under three entities, offering client protection based on residency. UK clients are protected by the FCA, Australian clients by ASIC (without a set protection amount), and other clients under CySEC regulation with some investment protection. Additionally, eToro offers private insurance, covering various assets, though it’s discretionary. The lack of stock exchange listing and financial statement disclosure makes assessing eToro’s financial health difficult, but regulation by top-tier authorities indicates reliability. There’s no bank parent for backup support.

Bottom Line

eToro stands out for its zero-commission stock trading and innovative social trading feature. The account opening process is quick and efficient. However, it has drawbacks like high non-trading fees and mandatory USD accounts, leading to potential conversion costs. Also, accessing live chat support can be difficult, and its educational materials could be better.

Overall, eToro is particularly appealing for users interested in its unique social trading aspect and commission-free stock options.

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