eToro Review 2024

Trust

eToro Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about eToro:

• eToro (Europe) Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10. We rank CySEC as a Tier-1 regulator.
• eToro (UK) Ltd is licensed and regulated by the Financial Conduct Authority (FCA) under license number FRN 583263. We rank the FCA as a Tier-1 regulator.
• eToro AUS Capital Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 491139. We rank ASIC as a Tier-1 regulator.
• eToro USA Securities Inc. is licensed and regulated by the Financial Industry Regulatory Authority (FINRA) in the United States under license number 298361/SEC#:8-70212. We rank FINRA as a Tier-1 regulator.
• eToro (Seychelles) Ltd is licensed and regulated by the Financial Services Authority (FSA) of Seychelles under license number SD076. We rank the FSA as a Tier-3 regulator.

We have summarized the most essential aspects of eToro in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All of eToro’s entities ensure this.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. All eToro’s subsidiaries provide negative balance protection, except for the U.S. entity.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Clients of eToro (UK) Ltd are protected under the Financial Services Compensation Scheme (FSCS) of the FCA by up to 85,000 GBP. Clients of the CySEC-regulated entity, eToro (Europe) Ltd, are protected by up to EUR 20,000 under the Investor Compensation Fund (ICF). Clients of the FINRA-regulated subsidiary, eToro USA Securities Inc., are protected by up to USD 500,000.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with eToro is 1:500, available with eToro (Seychelles) Ltd.

Is eToro Safe to Trade With?

The eToro (UK) Ltd entity, which I was reviewing, is authorized by one of the most trusted financial regulators in the industry – the FCA – and complies with the most stringent safety requirements and generally provides multilayered protection. Additionally, the subsidiary operates on a ‘best execution’ basis, meaning it is required to provide the most favorable price quotes under prevailing market conditions. Consequently, I concluded that this broker’s entity can be considered safe for trading.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

I reviewed eToro’s client agreement and multiple legal documents and found them quite transparent. Important information is easily accessible on the website and written in an easy-to-grasp manner.

An attestation to eToro’s high regulation transparency is its risk notice found at the bottom of the main page. It cautions traders against the risks of cryptocurrency trading and copy trading. This is particularly important given that eToro offers a fairly large amount of cryptocurrency assets structured in different ways.

In summary, my research indicates that eToro can be regarded as having a high level of trust and stability due to the following factors:

• Licensed by multiple top-tier regulators
• Adheres to all essential safety mechanisms
• Has a fairly transparent website
• Does not hide information about the risks of trading

Fees

eToro’s Trading Fees

eToro’s Spreads

I tested eToro’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 13 November 2023. The results are shown in the table below:

Broken down by asset class and compared to the industry average, eToro charges low-to-high spreads on FX pairs, average spreads on share CFDs, and average-to-high spreads on commodities and indices. I concluded that trading share CFDs with eToro is particularly advantageous, primarily because the broker does not impose any fixed commissions on these instruments.

eToro’s Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

I recorded average-to-high swap charges with eToro.

eToro’s Commissions

The broker offers commission-free trading across all major markets except for crypto assets (not CFDs). eToro charges a 1% commission in addition to the spread cost for buying and selling cryptos.

There is also a conversion fee liable when trading instruments denominated in a currency different from your account’s base currency.

Most importantly, the broker does not charge a commission for copying other traders’ strategies on the eToro platform.

eToro’s Non-Trading Fees

eToro does not charge a handling fee for deposits (conversion fee may apply), though withdrawals may be liable for a service fee; third-party banking fees may also apply. The broker also charges dormant accounts an inactivity fee of $10; the fee is charged monthly after the 12th month of inactivity until activity resumes or the account balance drops to zero.

Are eToro’s Fees Competitive?

The competitiveness of eToro’s fees varies depending on the instrument traded and across asset classes. They generally meet the industry average, though the spreads on some instruments are quite elevated. Because of its $0 commissions and generally average spreads, eToro’s most competitive conditions are for trading share CFDs.

eToro’s fees are also quite competitive for copy and social trading, primarily because the broker does not charge a service commission for subscribing to other traders’ strategies.

Accounts Comparison

Usually, we compare the fee competitiveness of a broker’s own trading accounts, but since eToro only provides a single CFDs Trading account type (whose underlying conditions vary depending on your membership status), I decided to compare its pricing mechanism to the industry average.

The table below illustrates the spreads and commissions I have recorded on the EUR/USD pair on eToro’s CFD Trading account and the usual values I record on classic STP and ECN accounts in other brokers. It shows how much you have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that eToro’s fees are only marginally better than what you can expect on your typical STP trading account and comparable to the typical ECN trading account.

Platforms and Tools

eToro stands out as a leading social trading broker, a fact reflected in its platform design. Primarily structured to facilitate copy trading, it does not, however, support algorithmic trading. Access to eToro’s CopyTrader feature is straightforward – simply click the ‘Discover’ button on the platform. Moreover, the platform allows you to search for strategies aligning with your criteria, such as average risk, duration, and traded assets, making it easier to find a match that suits your trading style.

What impressed me about the platform is its user-friendly design, where all features are just a few clicks away. As depicted in the image above, traders can instantly access the latest financial news, current market sentiment, and key information about the instruments they intend to trade, ensuring a streamlined and informative trading experience.

Another advantage of eToro’s platform is that it incorporates its charts from TradingView, which, in my opinion, offers the most versatile charting tools in the industry. It thus caters to the needs of experienced chart artists seeking to conduct probing technical analyses.

Then there is eToro’s intuitive ‘Delta Tool,’ designed to simplify performance tracking of one or more portfolios and accounts with eToro. I assess this feature to be very useful as it allows you to trade and invest in multiple ways.

eToro’s Proprietary Web Trader Platform

General Ease of Use

eToro’s platform is very easy to use, and even beginners can quickly get used to it. Its watchlists of selected instruments are light and easy to scroll through; its charts are detailed and suitable for conducting probing technical analyses. Account info is easily accessible and exhaustive. Finally, the platform is also integrated with a sophisticated news screener, allowing you to stay on top of current market developments.

Charts

I consider the chart screen of a platform its most important feature. It aids technical analysis by providing an overview of price action behavior and allows traders access to a number of analytical tools and chart configuration possibilities. A good chart should afford easy scaling up and down of price action.

eToro’s platforms are powered by TradingView, which is why they are so detailed and intuitive. As shown in the above image, price action is illustrated clearly; it is remarkably easy to scroll price action up and down.

I particularly liked that you can implement multiple technical indicators and drawing tools without obscuring price action. This makes it very easy to spot potential breakouts/breakdowns from established trends, which is why I determined that the platform is quite useful for conducting comprehensive technical analyses.

I have broken down the available analytical tools and chart configurations below:

• 105 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. Thanks to TradingView, eToro’s platform has access to one of the biggest collections of technical indicators in the industry.
• 55+ drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. I particularly liked the wide variety of available Elliott Waves and Fibonacci retracement level configurations.
• 9 timeframes. The platform affords multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 9 chart types. eToro’s platform has one of the best offerings for chart type configurations. This diversity makes it possible to examine potential trading opportunities from multiple angles.

Orders

One of the biggest advantages of eToro’s platform is that you can configure your preferred leverage before executing a trade. This gives you greater flexibility to manage your risk depending on the performance of past trades, changing market volatility levels, parameters of underlying strategy, and more.

I also quite liked that the order screen provides you with ample information pertaining to the trade you wish to execute before placing an order. This includes information related to the trade’s estimated margin, percent of equity, market exposure, and rollover charges.

I have broken down the available order types on eToro’s platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing eToro’s Proprietary Platform

My experience with eToro’s platform was exceptionally positive. The platform, abundant in features, facilitates smooth order execution. As an experienced chart analyst, I found its charts particularly effective for examining price action behavior. This makes the platform suitable for implementing in-depth technical analysis. Furthermore, it supports robust risk management strategies, allowing traders to adjust leverage for each trade, thereby enhancing control over their trading risks.

eToro’s Mobile App

eToro’s mobile app retains most of the features that are available with its web trader version. It affords traders easy access to the market and to their accounts. Order execution is simplified, which is an essential requirement for a practical app. The charts are still powered by TradingView, though it is comparatively more difficult to conduct sophisticated technical analysis on low-resolution devices such as smartphones.

My Key Takeaways After Testing eToro’s Mobile App

While I’m usually wary of trading apps due to the challenge of displaying complex information on small screens, eToro’s app impressively stands out for its versatility. It adeptly handles copy trading and enables traders to make prompt adjustments to their open positions, a feature I consider to be its most significant advantage. This functionality makes it a strong contender, even among those who prefer desktop trading.

Tradable Instruments

Despite eToro’s wide range of available instruments, it is quite easy to look for a particular instrument on the broker’s platform. As shown below, you can explore eToro’s offering by choosing a particular market and a set of available asset types.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying asset without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With eToro?

I have broken down the available instruments with eToro below:

• 55 Currency Pairs
  Major, Minor, Exotic
• 35 Commodities
  Agriculture (9), Metals (5), Energy (8), Precious Metals (4), Other (6)
• 5078 Stocks
  Tech, Retail, Entertainment, Transportation, Manufacturing, Other.
• 21 Indices
  Europe, US, UK, Asia, Treasury Futures.
• 671 ETFs
  Retail, Commodities, Tech, Other.
• 170 Crypto
  Coins (106), Currency Crosses (63), Commodity Crosses (1)

Compared to the broader industry, eToro offers an average amount of currency pairs and a high amount of commodities, share CFDs, and indices.

My Key Takeaways After Exploring eToro’s Tradable Instruments

I discovered that eToro has one of the highest assortments of commodities and crypto assets in the industry. The broker features an ample amount of lower-risk securities like ETFs, which can be used to hedge trading risk. Additionally, there is a wide choice of high-yield/risk assets like share CFDs, cryptocurrencies, and indices, which can be used to speculate on changing volatility levels. Consequently, I assessed that eToro’s instruments offering is very well-balanced and versatile.

Customer Support

The broker’s ticketing form is available from its Customer Service Center. Before submitting your question, you have to choose the type of your query. You can also submit supporting images. It may take up to 2 business days to receive a reply.

Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I submitted a ticket to eToro, requesting additional information about the broker’s execution model and its average execution speed. As promised, I received a detailed answer within two days after submitting my ticket. The explanation was comprehensive and well-structured.

Deposit and Withdrawal

eToro’s Deposit Methods

eToro’s Withdrawal Methods

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does eToro Offer?

I have broken down the features of eToro’s single CFD account type below:

The eToro CFD Trading account is a classic retail account featuring commission-free trading and floating spreads from 1.0 pips. Its greatest advantage is that it is quite accessible with a minimum deposit requirement of only $50.

The eToro Club’s Membership Tiers

To access eToro’s live chat, weekly market analyses, and live webinars, you must deposit a minimum of $3000, qualifying you for a silver account membership. With a gold membership, you earn interest on your balance, generating passive income even without active trading. The higher-tier memberships (platinum, platinum+, and diamond) offer even more benefits, including higher interest rates, commission-free withdrawals, and exclusive access to advanced insights from TradingCentral.

eToro’s Execution Model

eToro operates as a market maker, which means that it acts as a counterparty to its clients’ orders. The benefit of this model is its superior execution standards. Market makers support fast and precise order execution, mitigating the risk of negative slippage.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

eToro’s Account Opening Process

The account creation process with eToro is straightforward and quick. You can go at your own pace, though realistically, you will be done with everything within an hour. I have summarized the process step-by-step below:

• Step 1. Click ‘Sign Up’ in green at the top-right corner.
• Step 2. Enter a chosen username, a password, and an email address.
• Step 3. Copy the activation code you’ve been sent to your email address.
• Step 4. Fill in your personal information.
• Step 5. State your trading experience and personal wealth information.
• Step 6. Upload proof of address and ID to verify your account.

Why is a Demo Account Important?

eToro offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

eToro’s Available Countries

Argentina, Australia, Austria, Bahrain, Bangladesh, Belgium, Bolivia, Brazil, Bulgaria, Cayman Islands, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Estonia, Finland, France, French Guiana, French Polynesia, Germany, Gibraltar, Greece, Guadeloupe, Guernsey, Hong Kong, Hungary, Iceland, Ireland, Isle Of Man, Israel, Italy, Jersey Island, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Malaysia, Malta, Martinique, Mayotte, Mexico, Monaco, Netherlands, New Zealand, Norway, Oman, Peru, Philippines, Poland, Portugal, Qatar, Reunion Island, Romania, Seychelles, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States, Uruguay, Vietnam.

Research

Research Tools

I have broken down eToro’s different types of research content below:

News and Analysis

eToro publishes periodic market analyses that are mostly investment-oriented. They offer a broad overview of prevailing market trends. This type of content is free and available from eToro’s website.

Earnings Calendar

The earnings calendar, as the name suggests, informs traders of upcoming releases by publicly traded companies. These events usually cause a significant market reaction, resulting in viable trading opportunities.

ESG

ESG stands for Environmental, Social, and Governance data. This third-party tool helps you understand the value of a company stock based on how ethical the company is e.g. how well it treats its employees, how clear its corporate structure is, and how eco-friendly it is. Companies with high corporate social responsibility (CSR) are likely to attract more socially responsible investors, which, in turn, attracts capital and helps the company grow in value.

eToro’s ESG tool thus allows traders to look for companies whose share value is likely to grow in the future, which can help them spot viable trading opportunities. Another thing I like about the tool is that it displays a risk factor for each company, helping traders and investors appreciate the underlying risk even better.

eToro Plus

eToro’s weekly and daily market breakdowns review the latest developments in different industries. There are also analyses of upcoming market events and economic releases, underpinning their likely impact on the market. Content is supported by multiple images and graphs, making it easier to understand. Notably, there are no price charts to illustrate direct trading opportunities. You can check out one such broad review here.

Video Breakdowns

eToro also published market breakdowns in video format, which are available from the broker’s YouTube channel. These are well-informed and have more direct trading implications.

News Screener

The news screener is available to active accounts directly from the platform. Its advantage is that it helps traders stay on top of the latest market developments and emerging trading opportunities without having to leave the platform, thereby saving precious time in the process.

My Key Takeaways From Exploring eToro’s Research Content

eToro’s research resources are comprehensive and varied, encompassing a broad spectrum of topics in various accessible formats. This diversity enhances usability, catering to different preferences and learning styles. I particularly appreciated video breakdowns tailored for traders, alongside content focused on broader investing themes, as they effectively address the needs of both traders and investors.

Education

eToro’s Educational Materials

I have broken down eToro’s educational materials by type below:

Educational Courses

eToro has 21 trading courses available from the ‘Academy’ section of the website; each one can be read/watched in less than 10 minutes. They cover mostly general investing topics. Others cover topics such as, ‘what is Bitcoin’ or ‘what is Forex’.

I assessed these courses to be good for beginners, but they are not enough to provide first-time traders with a solid basis. I, however, like that there are quizzes at the end, helping you memorize what you have read. The texts are supported by graphs, images, and sometimes by video content.

Educational Guides

The guides offer a basic introduction to fundamental trading and investing concepts, without delving too deep into the subject matter. Some of them are in video format, making them more easily accessible. I like that there are lots of images and supporting graphs to underscore the written text.

Tutorials

Step-by-step guides about eToro and its services, such as how to partner with eToro and how to become an eToro affiliate.

Digest and Invest Podcast

The Digest & Invest is a collection of lengthy conversations between market experts on multiple trading and investing topics. The content is developed in a podcast form, making it easy to listen to even when driving or doing other daily tasks.

Account Security

Quite unique to eToro, the broker has a dedicated page on how to protect themselves against forex scams. There you can read about the most common ploys used by scamers when trying to steal the money of their victims.

The Bottom Line

eToro ranks among the best-recognized brand names in the trading industry because of its extensive range of superior trading and investing services. The broker comprises one of the biggest social trading communities connecting over 20 million people worldwide, which makes it the perfect choice for those interested in copy trading.

eToro is regulated by several top-tier bodies, underscoring its trustworthiness. The broker is also in the process of getting listed on the Nasdaq, which is another indication of its reliability.

eToro operates as a market maker and offers its clients access to over 5,800 trading instruments across multiple asset classes. It strikes a fine balance between lower-risk securities and higher-yield/risk assets, thus allowing traders to better hedge their risks. The broker has also developed an excellent proprietary platform, which is ideal for copy trading and carrying out probing technical analysis.

Regarding its drawbacks, I would list its average-to-high trading costs on instruments from some asset classes and the lack of diversity of trading platforms.

Risk Warning

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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