eToro is a regulated broker, offering trading on currencies, commodities, indices, stocks, ETFs, and cryptocurrencies. It is overseen by CySEC, the FCA, and ASIC. In this comprehensive guide, we will explore the various aspects of eToro, including its regulations, account types, trading platform, financial products, fees, and customer support.
eToro reviews
Founded in 2007. eToro operates under the supervision of multiple financial regulators. It has multiple account types that are suitable for all levels of traders. For beginners, eToro provides a free demo account with $10,000 in virtual funds to practice trading without risking real money.
eToro users praise its social trading features, user-friendly interface, and diverse range of assets, while others criticize its high fees, limited selection of stocks and ETFs, and customer support issues.
It has vast methods of deposit and withdrawals available. eToro provides educational resources, such as webinars and articles, to help users learn about trading and investing. eToro’s platform is generally considered easy to use, making it accessible to both beginners and experienced traders.
eToro regulations
Is eToro legit? Yes, eToro is regulated by multiple financial authorities. eToro regulations are given below.
| Abbreviation | Regulatory bodies | Jurisdiction |
|---|---|---|
| FCA | Financial Conduct Authority | UK |
| CySEC | Cyprus Securities Exchange Commission | Europe |
| MFSA | Malta Financial Services Authority | Malta |
| ADGM- FSRA | Abu Dhabi Global Market Financial Services Regulatory Authority | Middle East |
| FSRA | Financial Services Regulatory Authority | Middle East |
| ASIC | Australian Securities & Investments Commission | Australia |
| FSAS | Financial Services Authority Seychelles | Seychelles |
| SEC | U.S. Securities and Exchange Commission | USA |
| FINRA | Financial Industry Regulatory Authority | USA |
Both the Financial Services Compensation Scheme (FSCS) in the UK and the Cyprus Investor Compensation Fund (ICF) in Europe offer investor protection for those who invest with eToro.
- In the event of eToro UK’s insolvency, investors may be eligible for compensation of up to £85,000 per person, while investors with eToro Europe may receive up to €20,000 per claim.
- These schemes provide a safety net for investors in case the investment firm encounters financial difficulties.
- Both eToro UK and eToro Europe are committed to complying with anti-money laundering (AML) and anti-terrorist financing (ATF) regulations in the UK and Cyprus, respectively.
- eToro maintains segregated accounts for client funds and assets. This means that your money is kept separate from the company’s funds.
How to open an account with eToro?
Steps to open an eToro account:
- Visit the eToro website.
- Create an account using your email or social media login.
- Verify your email address.
- Provide personal information and upload documents for verification.
- Deposit to fund your account.
Account types of eToro
eToro offers four types of accounts. They are listed below.
- Professional account
- Retail or personal account
- Corporate account
- Islamic account
Professional account
Professional eToro accounts offer higher leverage for trading. However, only qualified clients can apply for these accounts.
Retail or personal account
eToro’s standard account type. This account allows you to trade all your assets, copy other traders, and invest in Smart Portfolios. While leverage is limited, you have the highest level of consumer protection. The eToro leverage of retail clients is given below.
| Financial products | Europe | Seychelles | UK |
|---|---|---|---|
| Major currency pairs | 1:30 | 1:30 | 1:30 |
| Non-major currency pairs | 1:20 | 1:20 | 1:20 |
| Gold | 1:20 | 1:20 | 1:10 |
| Major indices | 1:20 | 1:20 | 1:20 |
| Commodities (excluding gold) | 1:10 | 1:10 | 1:20 |
| Non-major indices | 1:10 | 1:10 | 1:10 |
| CFD stocks and ETFs | 1:5 | 1:5 | 1:5 |
| CFD crypto assets | 1:2 | 1:1 | 1:2 |
Corporate account
Corporate accounts are designed for businesses and are used by legal entities. If you want to trade using your company’s funds, this is the account type you should open.
For Australia, Denmark, Estonia, France, Germany, Ireland, and the United Kingdom, the minimum deposit is US $10,000. Italy requires a US $25,000 deposit, while all other eligible countries have a US $50,000 minimum deposit.
Islamic account
This is a specialized account for Muslim clients. In compliance with Sharia law, we do not charge interest-based fees on Islamic accounts. You can trade over 5,000 instruments across various asset classes and access the eToro Academy for educational resources on smarter investing.
Advanced trading tools like TradingView charts, an Economic Calendar, and trailing stop-loss orders are available to help you make informed decisions.
eToro demo account
eToro’s free demo account now starts with $10,000 in virtual funds, giving you more flexibility to practice trading and experiment with different strategies. Set stop-loss orders to automatically close your position if the price reaches a specified level, helping to limit potential losses.
Trading platform of eToro
eToro trading platform review empowers you to trade across a user-friendly web platform or a dedicated mobile app. Whether you are using your laptop, tablet, or phone, eToro offers a seamless trading experience.
Mobile trading apps
eToro has designed user-friendly mobile apps for Android and iOS devices, making trading accessible anytime, anywhere. These apps provide real-time market data, intuitive navigation, and the ability to execute trades with a simple tap.
Web trading platform
For those who prefer the convenience of a web browser, eToro offers an intuitive web platform. Packed with advanced features like charting tools, technical indicators and customizable watchlists, this platform caters to traders of all levels.
Social trading and copy trading
One of the standout features of eToro’s web platform is its social trading capabilities. Users can easily see and copy the trades of successful traders, learning from their strategies and potentially benefiting from their expertise. To become a popular investor on eToro, you need to have a significant following of people who copy your trades.
Proprietary platform
eToro’s proprietary trading platform is designed to make trading more accessible and engaging. It combines a social trading platform, copy trading, and a user-friendly interface.
One of the standout features is the copy portfolios. These pre-built portfolios are managed by experienced traders, allowing users to invest in a diversified range of assets without the need for extensive market research. This visual approach simplifies the trading process and makes it suitable for traders of all levels.
Financial products of eToro
eToro offers a wide range of financial products that suit different investment strategies and risk appetites. Here are some of the key products available on the platform.
- Stocks – 5545
- ETFs – 680
- Currencies – 55 (Go long and short currencies)
- Commodities – 35
- Indices – 18
- Crypto – 98
eToro forex trading is not available in the USA. eToro options trading is currently unavailable, regardless of the user’s location.
Deposit and withdrawal methods of eToro
Many deposits and withdrawals are available depending on the user’s location. The most common deposit and withdrawal methods of eToro are given below:
- Debit card
- Online banking
- PayPal
- Wire transfer
To open an account, you will need to make an eToro minimum deposit between $50 and $10,000. In many countries, you can start investing with a minimum deposit of just US $50. The deposit and withdrawal methods, minimum first deposit, minimum redeposit and deposit and withdrawal processing times are given below.
| Payment / Withdrawal methods | Minimum first deposit | Minimum redeposit | Maximum transaction | Deposit processing time | eToro withdrawal processing times |
|---|---|---|---|---|---|
| Debit card | $100 | $1 | $40,000 | Instantly | Up to 2 business days |
| Online banking | $100 | $1 | $10,000 per day | Instantly | Up to 2 business days |
| PayPal (Bank account or PayPal balance only) | $100 | $1 | $10,000 per transaction | Instantly | Immediate |
| Wire transfer | $500 | $500 | $1,000,000 per transaction | 4-7 business days | Up to 2 business days |
Fees and commission of eToro
The eToro broker has the following eToro charges and commissions.
Account fees
- Account opening fee: Free
- Management fee: Free
- Inactivity fee: $10/month after 12 months of inactivity
eToro withdrawal fees
- GBP and EUR accounts: No withdrawals fee to external accounts
- USD investment accounts: $5 fee for withdrawals to external accounts. Minimum withdrawal amount: $30
Conversion fee
- GBP to EUR and vice versa: 0.75%
Club Discounts
- Gold and Silver: 20% (UK/Europe), 25% (Rest of world)
- Platinum and Platinum+: 40% (UK/Europe), 50% (Rest of world)
- Diamond: 80% (UK/Europe), 100% (Rest of world)
Trading fees
Stocks
- Australia, Hong Kong, Dubai: US$1 or US$2 commission fee for opening and closing stock positions (depending on the exchange).
- Denmark, Finland, Netherlands, Norway, Portugal, Spain, and Sweden: US$2 commission fee for opening and closing stock positions.
- Australia, New Zealand: US$2 commission fee for opening and closing stock positions.
- All other countries: No commission fee for opening and closing stock positions.
- eToro spread: Free
- Overnight fee: Free
- Custody fee: Free
- Stamp Duty Reserve Tax (SDRT):A 0.5% tax levied by the UK government on the electronic purchase of all UK-listed stocks.
ETFs
- Commission: Free
- eToro spread fee: Free
- Overnight fee: Free
- Custody fee: Free
Crypto
- Buy/sell free: 1%
- Overnight fee: Free
- Custody fee: Free
- Crypto asset transfer fee: 2%
- Coin transfer fees: 2% of the transaction size; Minimum: $1 to Maximum: $100 (in units)
CFD
- eToro spread fee: Stocks and ETFs: 0.15%; Crypto CFDs: 1%; Others: may vary
- Overnight fee: Varies.
Copy trading
- Copy trader: No extra fees or hidden cost
- Smart portfolios: No management fees or commission
eToro money crypto wallet
- Open/close eToro money crypto wallet: Free
- Send/receive transaction fees: Free
eToro EUR/GBP account
Green (Non-club & silver-platinum tiers)
- Account opening/closing: Free
- Account maintenance: Free
- SEPA transfers (in and out): Free
Black (platinum+ & diamond Tiers)
- Account opening/closing: Free
- Account maintenance: Free
- SEPA transfers (in and out): Free
eToro support
To start a chat or submit a ticket, please visit the eToro customer service center. eToro customer service number is not available to contact.
- Chatbot: Available 24/7, AI-powered, fast and easy to use.
- Live chat: Available Monday-Friday, 8 AM-8 PM EST.
- Ticket: Submit an inquiry through the Customer Service Center, response time within 48 business hours.
Please allow 4 business days before contacting customer support for recently submitted documents.
Disclaimer: CFDs are leveraged products that can result in significant losses. 51% of retail investors lose money when trading CFDs with this provider.
Pros of eToro broker
- You get a free demo account with $100,000 virtual cash to practice investing and explore the platform’s features risk-free. Additionally, new users may be eligible for a $10 welcome bonus.
- Buy and sell stocks, ETFs, and options at zero commission.
- Invest in a diversified portfolio of cryptocurrencies curated by experts.
- Social trading connects with other investors and learns from their strategies.
- eToro’s transparent fee structure ensures you have a clear understanding of the costs associated with using our platform.
Cons of eToro broker
- Social trading may encourage copying other investors without critical thinking.
- The number of available ETFs is limited.
- Joint or retirement accounts are not available.
- Limited customer support options are available.
- For USD investment accounts, there’s a $5 fee for withdrawing funds to external accounts.
Conclusion
eToro offers a comprehensive trading platform with social features, a wide range of assets and advanced tools. However, it is important to consider the fees and potential risks associated with CFD trading before opening an account.
While eToro’s social trading features and diverse assets might be appealing, remember CFD trading is complex and carries high risk. Before diving in, thoroughly research CFDs, assess your risk tolerance and financial goals, and consider alternative investments. Be aware of potential fees and past performance doesn’t guarantee future success. Always conduct your research before making any investment decisions.
Pro Tip
Stay informed about market news and use eToro’s educational resources. Manage your risk by setting stop-loss orders and diversifying your portfolio. Elevate your trading with our trusted forex brokers. Stay informed on the latest trends in stocks, CFDs, banking, forex, trading, investment and cryptocurrencies. Share your thoughts in the comments below.
