eToro

eToro was founded in 2006 by Yoni Assia, Ronen Assia, and David Ring. eToro offers innovative instruments and a social-based trading platform while giving you the ability to copy-trade different traders.

BONUS

85%
TOTAL SCORE
SUMMARY

eToro is a trading platform that has a Unicorn status and comes with different investment instruments besides the option to actively trade forex, crypto, commodities, and stocks.

INFO
  • Headquarters Cyprus
  • Foundation Year 2006
  • Deposit Options 8 fiat currencies, Credit, Debit cards, Paypal, Skrill, Neteller, Wire Transfers and more…
  • Min Deposit 200$
  • Max Leverage 10x
  • Options Crypto, Forex, Commodities, Stocks
POSITIVES
  • Different Investment Options
  • Multiple Markets for trading
NEGATIVES
  • Outdated UI
  • High entry limit
  • Tedious KYC process

Initially, the platform was founded in 2006 under the name RetailFX and later renamed eToro in 2010, while the social investment platform and trading platform were launched at the same time. In return, this gave users the opportunity to have more exposure through a variety of instruments.

eToro Features Review

Markets Crypto, Commodities, Stock Indices, Forex
Supported countries Worldwide
KYC Yes
Leverage 10x
Deposits 8 fiat currencies, Credit, Debit cards, Paypal, Skrill, Neteller, Wire Transfers and more…
Min. Deposit 200$
Max. Withdrawal Limit Depends on the account verification level
Trading fee 0.09% or based on spreads
Support live chat, ticket, email
Mobile app iOS/Android

eToro Security Review

Considering that eToro is regulated by the FCA in the UK and CySEC in Europe and eToro Europe is registered as a CIF (Cyprus Investment Firm) while being an NFS (National Futures Association) member in the USA you are guaranteed that eToro provides a high level of security according to these regulators. The exchange has established KYC to be compliant with the AML laws of the regulators. This can be shutdown if you want to trade anonymously, solutions about this are trading platforms like Bybit, Bitmex where you don’t have KYC procedures.

In addition to industry-standard practices, eToro includes simple yet effective account protection methods like 2FA authentication, email confirmation, etc. To top it all off, eToro keeps its customers’ funds in Tier 1 banks, which ensures a high level of security for deposited funds.

Etoro Deposits and Withdrawals Review

On eToro you’ll find quite a few options 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, you cannot deposit or withdraw cryptocurrencies here, you can only trade them.

The accepted FIAT currencies are:

  • USD
  • EUR
  • GBP
  • JPY
  • AUD
  • RUB
  • CNH
  • CAD

The minimum deposit is $200, which is a pretty high bar for many people. Residents of Australia and the USA have a better option as their minimum deposit is set at $50. You can deposit at least $500 by bank transfer. Remember that there is a small conversion fee for deposits in fiat currencies other than USD, and deposits by bank transfer can take up to 4-7 business days.

The costs for the withdrawal depend on the withdrawal method. Typically, a minimum of $50 is required for withdrawal, unfortunately, the platform charges a $25 withdrawal fee.

The only flaw in eToro’s deposit and withdrawal area is that it does not accept cryptocurrencies and has much higher withdrawal fees than other major trading platforms.

eToro User Interface Review

etoro-watchlist

You won’t find a stunning user interface design or something unique on eToro, but you’ll definitely find a user interface that gives you all the tools you need. Since it’s a social trading platform, you’ll have to go through a lot of information, research, and profiles. All of this is available so that you can make a better choice of who to copy-trade and in what to invest or trade. 

On the first screenshot, you have your watchlist, on which you can directly track selected assets. On the page, you also have an indication of how many people are currently buying or selling the assets.

news-feed

On eToro you will find a news feed where you can find informative articles for the relevant markets from the eToro community. This is a very nice addition as it gathers inspiration from social platforms like Facebook, Twitter, etc… However, to provide more opportunities to connect with the community you should be very careful with this, as many people use these kinds of 2-way communication to joke or fake for their own benefit. Never trust anyone in open forms of the community before doing your own research.

etoro-portfolio

This is the portfolio view on eToro where you can track your history, current portfolio, and pending orders. This is a very useful tab as you can track all activities and performance in one place.

Copy-Trading View

copy-people

The copy trade page is well structured as it offers you an instant selection from the best traders on the platform. Regardless of whom the platform algorithm suggests to you, always do your own research on the trader strategy and risk, reward ratio. 

At the top of the UI page, you have a menu where you can select the desired requirements according to the performance in a given period. This gives you even more flexibility when filtering to find the traders you want to copy-trade.

Copy-Portfolios View

copy-portfolios

To top it all off, eToro also offers Copy-Portfolios which provide a unique investment opportunity. This is a fund management product where you automatically copy multiple markets or traders depending 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

etoro-trade-markets

This is the trade tab on eToro where you have quick access to markets and trading instruments. The tab is placed in a very clever way as you can find markets to choose from in the top menu. 

When you click on an asset, you will be redirected to its personal page, where you will find a feed with relevant information about that asset. You will find a stream of community news and articles with information about the asset and at the top of the page, you have Feed, Stats, Chart, and Research..

feed

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.

etoro-chart-main

The main chart on the platform uses a standard design and it is not the best chart for effective charting, as the design is a bit outdated. Of course, this doesn’t change how responsive the chart menu is and on eToro, you will find Pro Charts for the more experienced traders.

etoro-pro-charts

pro-charts-dark

The Pro-Chart design is quite simple, straightforward and fully customizable, as you can change the view from the upper right corner. The Pro-Chart gives you the ability to track multiple assets at once. Here you have both white and black mode, which is a plus, as more work can be done to the chart design in order to become a more modern looking one.

Trading Fees Breakdown

You won’t find any commissions or trading fees on eToro as the platform only applies spreads which vary greatly depending on the pair. In some cases, this can cost you more as the fee ends up being 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

The spreads of the ETFs on eToro are unified and the fee is 0.09% with no hidden charges. There are no management fees, no ticket fees, no rollover fees (for non-leveraged buys).

You can invest commission-free in stocks – when you buy non-leveraged positions you have a 0% fee. This feature is only available for users from Europe.

Not a strong side

Trading on eToro can be expensive because of the high spreads, which can be discouraging if you’re into high-frequency day trading. Some of the trading pairs have quite high spreads of up to 1200 pips. In addition, eToro has a $25  withdrawal fee with a minimum payout requirement of $50. When you trade on eToro remember that there are overnight and weekend fees – Wednesdays and Fridays you’ll be charged 3 times the regular fee for weekend positions on currencies and commodities.

Options and Order Types

From low leverage trading to social trading (copy) and with over 1500 instruments for trading you won’t find a shortage on eToro. Stock indices, commodities, cryptocurrencies, forex, and much more are available for trading. You can go long, short, and invest indirectly in some of the assets as you trade on eToro CFDs (contract for difference).

research

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 the tools you need for effective trading, as all major types of trading orders are available:

  • Take Profit
  • Stop Loss
  • Trailing Stop Loss

etoro-trade

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.

Copy-Trading

Social trading or copy-trading is another comprehensive aspect of the platform. You can easily deposit, research, and copy traders’ trades. Of course, you must be aware that you can lose all your capital if you copy-trade a high-risk trader. Every trader on eToro has a profile page, statistics, etc… which you should check before you start following his daily trades.

Copy-Portfolio

Another way to benefit is to invest in copy portfolios where you have an exposure to a basket of assets of your choice. You can choose from a market portfolio, a trader portfolio, and a partner portfolio.

For Market Portfolios example:

  • Renewable Energy Portfolio,
  • 5GRevolution Portfolio
  • DroneTech Portfolio

For Trader Portfolios example:

  • GainerQtr
  • SharpTraders
  • AITrader50
  • Active Traders

For Partner Portfolios example:

  • Napoleon-X
  • Carlicahn-CF
  • WarrenBuffet-CF
  • YieldKing

Affiliate Program

eToro offers an affiliate program that gives you the opportunity to profit while referring people to the website. With a dedicated page, eToro provides you with all the materials and statistics to promote the trading platform in the most effective way. Dedicated managers are at your disposal and you have several options for processing payments.

Is eToro a scam?

As eToro has been on the market since 2006 and is regulated by multiple entities, it is not a scam as it is constantly improving and developing over the years. In the beginning, eToro was often thought to be a scam, but nowadays eToro is one of the most respected trading platforms in the industry.

Conclusion

eToro is one of the more mature trading platforms in the industry. It is an innovative platform that offers more than one way to make a profit. By adding a new type of innovative investment tools, more opportunities can be created. The eToro UI is good, but it definitely needs a redesign in 2020. Every platform has its charm, and at eToro, that charm lies in the social features, tools like copy trading, copy portfolio. 

If you are interested in high-frequency daily trading, you should look for another platform because of the high fees. This is not a platform if you want to trade with high leverage of up to 100x. On bitcoinbuyersguide you will find reviews of multiple trading platforms designed for day trading with high leverage.