eToro provides a wide variety of instruments that give you the opportunity to copy-trade the buy and sell orders of different traders. Founded in 2006 by Yoni Assia, Ronen Assia, and David Ring to provide innovative instruments and a social-based trading platform.
At first, the platform was founded as RetailFX in 2006, later in 2010 re-branded as eToro, while also rolling out its social investment platform and copy-trading. In return that gave the users the opportunity to have more exposure, diversification and ways to profit.
eToro Features Review
|Deposits||8 FIAT currencies, Credit/Debit cards, Paypal, Skrill, Neteller, Wire Transfers and more…|
|Max. Withdrawal Limit||Depends on the account verification level|
|Trading fee||0.09% or based on spreads|
|Support||live chat, ticket, email|
eToro Security Review
Considering that eToro is regulated by the FCA in the UK, CySEC in Europe. eToro Europe is registered as CIF (Cypriot Investment Firm) and is an NFS (National Futures Association) member in the USA. Therefore, you are guaranteed that eToro provides a high level of security. The exchange has KYC put in place to be compliant with the AML standard of the regulatory entities. This may be a turn off if you are searching to trade anonymously, that’s why there are trading platforms like Bybit, PrimeXBT, Bitmex where you have no KYC procedures. Besides industry-standard practices, eToro implies simple but yet effective methods of protection like 2FA authentication, email confirmation, etc… On top of everything, eToro holds the funds of their clients in Tier 1 banks assuring the safety of the capital.
Etoro Deposits and Withdrawals Review
On eToro you will find quite the options that you have for depositing. You can deposit 8 FIAT currencies through different methods like VISA, Master Card, Paypal, Skrill, Neteller, Wire transfer, Web Money, Yandex, and UnionPay. Unfortunately here you can’t deposit or withdraw cryptocurrencies, you can only trade them.
The accepted FIAT currencies are:
The minimum deposit is 200$, which is quite a high bar for many people. Residents of Australia and the USA have a better option as their minimum is set at 50$. Through Wire Transfer, the minimum that you can deposit is 500$. Keep in mind that if you are depositing in other FIAT currencies besides USD there is a small conversion fee applied. Depositing through Wire Transfer can take up to 4-7 business days to be completed.
The cost of withdrawing depends on the withdrawal method. Usually, you have a minimum requirement of 50$ for withdrawal while the platform charges a 25$ fee for withdrawal.
The only flaws in the deposit and withdrawal section of eToro is that it doesn’t accept cryptocurrencies and has considerably higher withdrawal fees than other major platforms. And even though you trade the underlying asset on the platform you cannot withdraw it.
eToro User Interface Review
On eToro you will not find a killer design of the UI or something unique, but you will definitely find a fully packed one. As this is a social trading platform you have a lot of information, complete researches, profiles to go through. All of this is in place so you can make a better choice of who to copy trade and in what to invest/trade. Let’s dive into all of those options so you can get familiar with the social trading platform!
On the first screenshot, you have your watchlist, on which you can directly follow select assets and have a shortcut to them for fast trading. On the page, you have an indication of how many people are buying or selling the same asset at the moment. Which can be good if you are a contrarian and want to go against the majority.
On eToro you will find a news feed where you will find informative posts for the relevant markets from the eToro community. This is a very nice addition as it gathers inspiration from likes of social platforms like Facebook, Twitter, etc… Thus giving more ways to engage with the community, however, be very careful with it since a lot of people use such kinds of 2 way communication to shill or fud for their own gain. Never trust anyone in open community forms before doing your own research.
This is the portfolio view on eToro where you can follow your history, current portfolio, and pending orders. This is a very useful tab as you can follow all of the activities and performance in one place.
The copy-trading page is well put as it gives you an immediate selection from the best traders on the platform. No matter who the platform algorithm suggest to you, always do your own research on the trader strategy and risk/reward ratio. On the top of the page UI, you have a menu where you can select the desired requirements according to the performance in a certain period of time. Giving even more flexibility in filtering when searching the desired trader whom you want to copy-trade.
To top it off, eToro also provides Copy-Portfolios adding one unique way to invest. This is a fund management product where you will automatically copy multiple markets or traders. This will depend on which investment strategy you choose. This instrument should NOT be considered as an ETF (Exchange Traded Fund) or as a Hedge Fund. Therefore before using the Copy-Portfolio option do your own research on the markets that you are planning to get involved through the instrument.
eToro Trading View and Chart
This is the trading tab on eToro where you have fast access to markets and trading instruments. The tab is placed in a very clever way as on the top menu you will find the markets for selection. Giving you an effective access to a wide selection of instruments, eToro features an easy to understand design, which some other platforms deny to put in place purposefully so newbie traders and investors can have a higher chance of discoordinative errors and lose capital.
When you click on an asset you will be forwarded to its personal page where you have a feed dedicated to the asset itself with relevant information.
You will find a well-put stream of community news and post with information about the assets. On top of the page, you have Feed, Stats, Chart and Research.
The main chart on the platform applies a standard design. It has very smooth control overall when you compare it to other trading platforms. It is not the best for effective charting as the design is a little bit outdated. Of course, this doesn’t change the fact of how responsive the chart menu is. eToro has one more thing that you don’t find quite often – Pro Charts.
The Pro-Chart design is fairly simple, straightforward and fully customizable as you can change the view from the top right corner. The Pro-Chart gives you the opportunity to follow several assets in one go. Here you have both white and black mode which is a plus. But the overall design can be worked on.
Trading Fees Breakdown
You will not find commission or trading fees on eToro as the platform applies only spreads varying heavily depending on the pair. In some cases, this may cost you more as the fee ends up higher than normal.
Example of spread on cryptocurrencies:
- GOLDBTC – 0.75%
- BTC – 0.75
- ETH – 1.90%
- XRP – 2.45%
- ZEC – 3.50%
- BTCEUR – 0.75%
Example of spread on commodities:
- Platinium – 35 Pips
- GOLD – 45 Pips
- Silver – 5 Pips
- Copper – 2 Pips
- OIL – 5 Pips
- NATGAS – 10 Pips
Example of spread on currencies/Forex:
- NZDCHF – 4 Pips
- CADCHF – 4 Pips
- CHFHUF – 30 Pips
- USDPLN – 20 Pips
- EURSEK – 30 Pips
- USDTRY – 50 Pips
- GBPCAD – 4 Pips
- USDJPY – 2 Pips
Example of spread on indices:
- UK100 – 150 Pips
- AUS200 – 200 Pips
- ESP35 – 700 Pips
- JPN225 – 1000 Pips
- China50 – 1200 Pips
- SPX500 – 75 Pips
ETFs spreads on eToro are unified and the fee is 0.09% with no hidden fees. No management fees, no ticket fees, no rollover fees (for non-leveraged buys).
For stocks, you have commission-free investing – when you buy non-leveraged positions you have a 0% fee and zero hidden fees. This feature is only available for people that are from Europe.
Not a strong side
Trading on eToro can be expensive thanks to its high spreads which can be discouraging if you are into high-frequency day trading. Some of the trading pairs have quite the high spread as much as 1200 Pips. On top of that, there is a withdrawal fee on eToro of 25$ with a minimum withdrawal requirement of 50$. When trading on eToro keep in mind that there are overnight and weekend fees – On Wednesday or Friday you are charge with 3x the regular fee for positions over the weekend on currencies and commodities.
With all of this taken into account, we can say that this is not a strong side of eToro.
Options and Order Types
On eToro as you can see from the review until this moment – there is a lot offered here. From trading with small leverage to social trading (copy) and researches. With over 1500 instruments for trading you will find no shortage on eToro while also providing you with the instruments to make a profit while you sleep. Of course, there are certain risks to be considered here.
For trading, you have stock indices, commodities, cryptos, Forex and more at your disposal. You can go long/short and invest indirectly in some of the assets as on eToro you trade CFDs (Contract for difference).
You have all of the necessary instruments for trading effectively as you have all of the main trading order types.
- Take Profit
- Stop Loss
- Trailing Stop Loss
Of course, as I said earlier in the review if you are a high-frequency trader the platforms may not be exactly suited especially if you are used to platforms like Bybit/PrimeXBT/Bitmex or Deribit on the crypto front.
Social Trading/Copying is one other full aspect of the platform. As you can just deposit, research the traders, and copy their trades, make money while you sleep literally. Of course, you have to be aware that you can lose all of your capital when you copy-trade, trade by yourself or invest. Every trader on eToro has a profile page, statistics, etc… which you should check before initiating copy trading.
Another way you can profit is to invest in copy-portfolios where you have exposure to a basket of assets chosen by you. For your choice you have a market, trader and partner portfolio types that you can choose from.
For Market Portfolios example:
- Renewable Energy Portfolio,
- 5GRevolution Portfolio
- DroneTech Portfolio
For Trader Portfolios example:
- Active Traders
For Partner Portfolios example:
You have quite the choice for “easy” investing as I would like to call it because it is basically clicking one button and you start investing like the best.
eToro offers a partner program giving you the opportunity to profit while referring people to the website, to promote a trusted platform. With a dedicated page, eToro gives you all of the materials and statistics to promote the trading platform in the most effective way possible. You have dedicated managers at your disposal, and you have multiple options in which to get payed.
Is eToro a scam?
Being on the market since 2006 and regulated by multiple entities eToro is not a scam as it continues to improve and developing further and furthermore through the years. In the beginning years of the existence of eToro many people thought that it may be a scam but usually, this pretext was from people who do not understand the broker scene. For now, eToro is one of the reputable trading platforms in the industry.
eToro is one of the more mature trading platforms in the industry. It is an innovative platform offering more than one way to profit, this is what I would like to see from more platforms. Adding a new type of innovative investment instruments, building up to more opportunities. The UI of eToro is good but it can definitely use a refreshing in 2020. The interface is good but limited on some points. Due to this, I would say that the platform is better suited for newcomers than veterans. If you are into high-frequency day trading you may want to find another platform due to the high fees. This is not a platform if you are looking to trade with high leverage of up to 100x. On bitcoinbuyersguide you will find quite that are designed with day trading in mind.
Every platform has its charm and on eToro, this charm is from its social features/instruments like Copy-trading, Copy-Portfolio, the news feed, and the researches that can be found on the platform. Considering that eToro is regulated and still keeps adding more and more instruments shows us the opportunities on the market.
Pros / Cons
- Multiple Types of Deposits
- Over 1500+ Instruments
- High Fees
- No Crypto deposits and withdrawals