eToro
eToro
Rating: 91%
Min Deposit
$ 200
Open a DEMO Account Open a REAL Account
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eToro FX - Fully Regulated Broker with Its Famous CopyTrader

eToro forex launched in early 2007 and quickly became well-known for its social trading features and constant improvements to its FX offering. CFD trading was launched in 2013, and in recent years, the eToro broker has also become popular for cryptocurrency trading.

eToro has a few other unique characteristics, such as CopyPortfolios (managed portfolios, often driven by machine-learning engines), 0% commission stock trading, and a comprehensive education section. Keep reading this eToro review for honest ratings and a full list of features. See why this is one of the best social trading forex broker websites.

  • The #1 social trading platform
  • $10 crypto bonus
  • Great for long-term stock and Low withdrawal fees
  • Tons of tradable assets
  • Licensed and regulated
  • fee of only 1% for buying or selling crypto

Our Approach for the eToro Broker Analysis

In this eToro broker review, we will cover all the important aspects of dealing with a broker, such as regulation, which is one of the first things you should consider when choosing your Forex broker, along with trading platforms and their functionality, privacy, and protection, spreads/fees, mobile apps offering, and, last but not least, customer care.

Review Summary

eToro is a fully regulated forex and CFD broker focused on social trading. It’s a market maker that does not allow scalping.

Licenses
Licenses

The eToro broker is regulated by many top regulatory bodies in Europe, Australia, and the United States, including the FCA, CySEC, and ASIC.

Platforms
Platforms

A web-based proprietary platform and mobile versions for Android and iOS. eToro forex trading is armed primarily with copy/social features and might be underwhelming for experienced manual traders.

Privacy and Protection
Privacy and Protection

Segregated client accounts (funds kept in Tier 1 banks). AML and KYC verification process required.

Spreads/Fees
Spreads/Fees

Low fixed spreads for most major currency pairs. One can also invest in stocks with a 0% commission. However, other fees can add up if you’re not careful.

Mobile
Mobile

Native apps are available for both Android and iOS. They have a streamlined interface that’s easy to use, making it suitable for beginners.

Customer Care
Customer Care

Responsive live chat and support ticket system. Email contact available only to Australian clients. Live chat is disabled in certain regions.

eToro Broker Regulation and Investor Protection

eToro’s FX and CFD activities are provided by three distinct entities, each regulated in its relevant jurisdiction, as follows. eToro (Europe) Ltd. is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 109/10. eToro (UK) Ltd. is regulated by the British Financial Conduct Authority (FCA) under reference number 583263. eToro AUS Capital Pty. Ltd. is authorized by the Australian Securities and Investments Commission (ASIC) under Australian Financial Services license 491139.

Being a fully regulated broker, eToro is required to employ strict protection measures regarding the client’s funds and to keep said funds in segregated accounts (separate from eToro’s own funds), which adds an extra layer of investor protection.

Pros

  • Licensed by top regulators
  • Compensation coverage up to €20,000 for EU traders

Cons

  • Ongoing U.S. rollout translates to limited functionality for stateside traders
eToro
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Markets, Tradable Products, and Trading Types

  • Forex: The selection of 47 currency pairs isn’t the largest we’ve seen, but it should suffice for the majority of traders. It contains the most popular majors, crosses, and exotics such as USD/TRY, USD/MXN, CHF/HUF, etc. Clicking on a pair’s name opens up a menu that displays statistics, charts, and a social feed showing posts from eToro users who have mentioned the asset. eToro forex trading is done exclusively with CFDs.
  • Stocks: What’s interesting is that one can trade stocks as both CFDs with leveraged trading and medium-/long-term investments through non-leveraged long positions (the asset is held in your name). One can pick between 720+ stocks from 17 exchanges such as NYSE, NASDAQ, LSE, STO, and so on.
  • Commodities: Popular choices include oil, gold, silver, cotton, platinum, and natural gas. Several crude oil futures are also available. All commodities are traded as CFDs.
  • ETFs: Much like with stocks, you can do long-term investments in ETFs through non-leveraged “buy” orders or rely on CFDs for shorting and leveraged trading. Our eToro review team counted 150+ funds, including HMMJ, SPY, QQQ, and TLT.
  • Indices: DAX30, SPX500, NSDQ100, DJ30, and UK100 are some of the popular indices that you can trade as CFDs.
  • Crypto: A wide range of cryptocurrencies, including crosses with other coins, gold, and fiat money.

The asset basket is very wide, and although eToro was a forex broker at its inception, it has developed into so much more over the years. Now its offering contains 47 currency pairs (forex), hundreds of stocks (which can be not only traded as CFDs, leveraged buy/sell positions, but also invested in, non-leveraged buy, which means the stock is purchased and held in the client’s name), 93 crypto-assets (coins and crosses), 6 commodities, 145 ETFs, and 13 indices (traded as CFDs).

Clients have to make the distinction between buying the underlying, in which case eToro will hold the asset in their name, and trading CFDs on a certain product. For example, stocks can be traded (as CFDs) or bought (so the client gains ownership), while indices can be only traded as contracts for difference (CFDs).

Cryptocurrencies, on the other hand, can be bought (and the client receives ownership), but cryptocurrency sells are treated as leveraged CFDs. It’s also important to note that all crypto trades performed under ASIC jurisdiction are considered CFDs (buys and sells). This distinction is made clear by the eToro broker (right on the trading ticket itself), but you must do your due diligence when investing/trading.

Other investment types are CopyTrader, Popular Investor, and CopyPortfolios.

  • CopyTrader is basically social trading, where you can copy the trades of others, within certain parameters set by you and several protection features such as maximum investment per copied trader, “Copy Stop Loss” (copying will be automatically stopped when the copy value has reduced by a certain percentage), “Pause Copy,” and many others.
  • Popular Investor allows you to become a copied trader and to earn passive income by being followed by others.
  • CopyPortfolios are investment opportunities that group together a collection of assets and are professionally managed by eToro’s investment committee.

The asset basket is huge, and all asset classes are well-represented. The fact that clients can get ownership over some of the purchased assets adds flexibility and opens up new investment possibilities.

Pros

  • A huge selection of assets
  • Various copy and social trading features

Cons

  • Fewer currency pairs compared to other leading forex brokers
eToro
eToro makes it easier to start trading cryptocurrencies. You can discuss trading ideas, copy successful traders, and learn how to make informed trading decisions.
eToro – Invest in Crypto, Stocks and Beyond
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eToro Spreads, Fees, and Commissions

While overall, eToro’s FX and CFD offerings are above average, the spreads are somewhat disappointing, at 3 pips for EUR/USD (which is by far the most popular and most traded pair). Considering that the industry average is around 1.5 pips for this pair, I am sure you can see the downside of having a 3 pip spread. The overnight rollover fee is subject to change, but at the time of writing, it was 0.000049 for sell and −0.000111 for buy, which is average. Make sure you check these fees for the asset you are trading before opening a position.

eToro’s offerings

Cryptocurrency spreads are a bit high as well, with 0.75% for Bitcoin (which amounts to just under 100 USD for 1 BTC at the time of writing) and a rollover fee of −3.858994 for sells and −3.858994 for buys per unit. Keep in mind that the daily fee (or credit, according to each case) will be multiplied three times for positions carried over Wednesday nights, which is normal for the industry.

eToro’s cryptocurrency spreads

Apart from the charges specified above, the eToro broker will charge a withdrawal fee of 25 USD, a conversion fee for wire transfers (on deposits only) of 50 pips and a conversion fee (deposits and withdrawals) of 50 to 250 pips, depending on the currency used. Crypto transfers incur fees as well: 0.0005 BTC, which is roughly 5 USD at the time of writing (check individual fees for the cryptocurrency you are using). Last but not least, there’s a 10 USD monthly inactivity fee after 12 months without an eToro login. As you can see, it’s quite a handful of fees.

The spreads for the majors are too wide, and there are a ton of fees to keep track of. Just make sure you know what you are paying!

Pros

  • Tight fixed spreads for popular currency pairs
  • 0% commission when buying stocks and ETFs
  • No charges for CopyTrader and CopyPortfolios services

Cons

  • No escape from the market maker model
  • Conversion, withdrawal, and inactivity fees
  • High spreads for crypto

eToro Account Types

You can open two main types of accounts: an eToro forex demo account and an eToro real account. The latter requires a deposit ranging from as little as 200 USD for retail traders to 10,000 USD for corporations. Please note that some countries have special minimum deposit requirements.

The broker also offers an Islamic account, which is basically the normal real account but with some added characteristics to make it compliant with Sharia law. Islamic accounts require a minimum deposit of 1,000 USD and full account verification. The main benefits of this type of account are as follows:

  • Zero rollover interest and no interest on settlement for more than 24 hours
  • No extra commission on rollover for more than 24 hours
  • The only revenue comes only from spreads, and there are no additional charges, fees, or commissions
Step 1: Choose a username, enter your email address, and set a password

The account opening procedure at eToro is straightforward and without any hassle. Simply provide a few details such as your name, username, email, phone, etc. and then accept their relevant policies, and you are all done—at least for the first part.

eToro signup procedure step 1
Step 2: Personal details

You will then have to verify your email address by clicking a link that they will send you, and you will get access to the trading platform and client cabinet. To deposit and withdraw without limitations, you will then have to verify your account by providing a set of documents, which have become almost the norm nowadays: proof of identity, proof of address, phone verification, and a few other documents needed to comply with anti–money laundering (AML) and know-your-client (KYC) requirements. This part can be a bit of a hassle, but it’s not as difficult as it may seem at first.

eToro signup procedure step 2
eToro
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eToro Deposit and Withdrawal Options

Depositing into your eToro broker account is relatively easy. All you have to do is sign in and choose the desired method from a multitude of options: debit card, PayPal, Skrill, NETELLER, WebMoney, UnionPay, and wire transfer. Please note that some deposit methods may differ depending on your location.

Most e-wallet methods will credit your funds instantly, and wire transfers usually take between 3 and 5 business days. The minimum deposit is 200 USD, but residents of some jurisdictions can start with just 50 USD.

Deposit Method Deposit Processing Times Min Deposit Withdrawal Procesing Times Min Withdrawal
Credit / Debit cards Instant $200 Up to 8 business days $50
eWallets Instant $200 1-2 business days $50
Bank Wire 3-5 business days $500 Up to 8 business days $500
*18+ T&Cs apply to each offer.

Withdrawals must be made via the same method used for deposit, and the time it takes differs depending on the method. E-wallets (NETELLER, PayPal, Skrill, WebMoney, etc.) take up to 2 business days, while credit/debit cards and wire transfer withdrawals take up to 8 business days. All this takes place after the time needed to process the request, which is up to 1 business day. The minimum withdrawal is low, at just 50 USD (wire transfer minimums are 500 USD).

For cryptocurrency withdrawals, eToro has made available a crypto wallet where users can send and store their coins. The minimum amounts differ for each cryptocurrency but are not very high: 0.0086 BTC, 0.3 ETH, etc. Minimums for the other coins can be viewed in eToro’s Fee page, under “Crypto Transfer Fee.”

There are lots of ways that clients can deposit and withdraw, which makes it convenient and accessible. The time it takes for payments to complete is average for the industry.

Pros

  • Support for many popular banking methods

Cons

  • Mediocre withdrawal time frames

eToro Funds Protection, Privacy, and Data Protection

One of the main advantages of dealing with a regulated forex broker is that the client’s accounts are segregated, which means they are kept separate from the broker’s funds; thus, in case of bankruptcy of the owning company, your funds will not be affected.

All transactions use Secure Sockets Layer (SSL) technology, and the eToro Wallet is secured by multi-sig technology. So far, there haven’t been any reports of hacking incidents or other types of cyberattacks on eToro, but the British FCA reported that eToro’s website was recently cloned, meaning that a bad actor posed as the real eToro broker to steal the client’s money. Always make sure you are visiting the real eToro forex broker website!

Pros

  • Segregated client accounts
  • Two-factor authentication (2FA) available

Cons

  • Your data will be shared with affiliates

eToro’s Forex Trading Platform

eToro offers a proprietary web trading platform that is only available in your browser, without any possibility to download and install to use as a desktop client. This can be a letdown for some people because usually, web-based platforms are bare-bones and lack the necessary tools needed for proper technical analysis. However, the upside is that such platforms can be accessed from anywhere you have an internet connection, so if you are constantly traveling, this may be a good thing—unless you don’t own a laptop. There are certainly advantages and disadvantages for both types of platforms (web-based and downloadable).

eToro user-friendly interface

The main drawback of the eToro forex trading platform is the total lack of technical analysis tools. Even the most basic instruments and functions, such as drawing a trend line or plotting a simple moving average, are missing, and it seems as if all that eToro wants the clients to do is copy one another or invest in their portfolios.

Surely, a seasoned trader will find their charting package subpar, but there’s a workaround, which will not give you anything in the same class as MetaTrader but at least something better than “regular” charts. This feature is called “eToro ProCharts” and can be accessed if you click on the card of an asset from the “Watchlist” window (the one in the pic above). As far as we know, there’s no other way to access these ProCharts, which look something like this:

It's not impressive at all, but at least you can change time frames, add a limited number of technical indicators, and employ a few other features. Overall, the charting side of the platform is lackluster, but at least the orders are transmitted in a timely manner, and the process of opening a trading ticket is intuitive. The ease of use makes it appealing to new traders and to people who login eToro just to copy others. Advanced traders will need more.

The trading platform lacks advanced technical features. The upside is that it’s easy to use and intuitive, with satisfactory speed and without noticeable lag.

Pros

  • Intuitive and suitable for new traders and those who intend to copy

Cons

  • ProCharts isn’t as advanced as MT4/5 or cTrader

eToro Mobile Trading for the Fidgeting Trader

For increased mobility and for traders who need to keep in constant touch with the markets, eToro offers a proprietary mobile trading app, with versions for both Android and iOS. We’ve tested out the iOS version, and it performed without any obvious glitches. It was fast and responsive but focused on the social aspect more than on charting capabilities, which, to be honest, is normal for mobile apps given the size limitations of our smartphones’ screens.

  • Android
  • iOS

Pros

  • iOS and Android applications supported

Cons

  • Not the best software for manual trading

Some users have complained that they have to type in their eToro login details every time they open the app, which can be a nuisance. On the other hand, maybe that’s only a temporary bug. The mobile app is available in 20 languages.

eToro mobile trading platform eToro mobile platform

eToro FX Trading Features

The trading platform allows risk management tools such as “Stop Loss” and “Take Profit,” but these are different from what we would call the “normal” way of using such orders. Instead of choosing a price where your position will close, whether in profit or in loss, you will have to choose an amount of money that you want to make in case of a successful trade or lose in case the price moves against you. It’s not necessarily bad, but it seems geared toward the beginner-to-medium class of traders.

In the same category of risk management tools, we mention that eToro allows hedging, meaning that you can take both sides of the market at the same time (i.e., buys and sells on the same pair). However, scalping is not allowed, and expert advisors (EAs) cannot be used, so make sure you take that into consideration.

Apart from market orders (such as opening the trade at the closest available price), eToro offers the possibility to set a pending order, simply called an “order.” There’s nothing wrong with that term, but these are usually called limit orders or pending orders.

As for technical trading tools, such as indicators and drawing tools, eToro falls short on the main platform, but you will get increased charting capabilities if you open their ProCharts using the procedure we’ve outlined above.

Pros

  • Intuitive, beginner-friendly platform interface
  • Copy and social trading are an easy (but risky) way to invest

Cons

  • Scalping is forbidden
  • The trading platform’s wording and format might seem strange to seasoned traders

eToro Copy Trader Feature

We must also note that their CopyPortfolios, a special trading feature, allows your capital to be managed by a team of professional traders.

You can find these buttons under “Discover” in the gray main menu on the left side (under your profile). As the names suggest, the first allows you to copy an individual trader, while the second gives you the option to invest in a professionally managed portfolio.

If you’d like to copy a trader, you can use the search filters to find a suitable match. eToro will also recommend successful users based on their returns over the last 12 months and display their “risk score,” ranging from 1 to 10, with 10 being the highest. Our eToro review team notes that you’ll need a minimum of 200 USD to start copying a trader.

CopyPortfolios are managed by the “eToro investment committee” and are automatically allocated and rebalanced on a monthly/yearly basis. They can be broken down into 3 types: portfolios that contain multiple successful eToro traders; market portfolios with CFD products, stocks, ETFs, or commodities that trade under a specific strategy; and “partner portfolios,” which are created by big associated companies such as Berkshire Hathaway Inc. and ALTIA Investment. You’ll need at least 2,000 USD to invest in a CopyPortfolio.

eToro Customer Support

Client support is available through live chat and a ticket system without the apparent possibility to contact them through email or phone. The little details they offer are provided in the table below. There’s also a help center that contains several topics, short articles, and answers to frequently asked questions, so that’s the first place to check if you need information.

We’ve contacted live chat several times for this eToro review, and each time, they were fast to join, were polite, and answered all our queries in a professional manner. eToro is also active on the social media scene and can be contacted via Instagram, Facebook, Twitter, YouTube, and LinkedIn.

The lack of email and phone support is a con for certain clients who want to quickly have their problem solved by speaking directly to a broker representative. However, the available types of support are efficient.

Live Chat
Yes
Phone
+1-800 778 439

eToro is available in the following languages:

Arabic
Czech
Danish
English
Finnish
French
German
Italian
Norwegian
Polish
Portuguese
Romanian
Russian
Spanish
Swedish
Vietnamese

Additional Benefits: Get Education and Updates with an eToro Forex Demo Account

This broker offers a collection of blog posts, but the post frequency is rather low (the latest post was more than 2 weeks old, and the one before that was older than a month and a half). However, they do offer daily market updates, which are actually on schedule, posted every morning.

As part of their education section, eToro offers the “Complete Guide to Fintech,” which is, as you would expect, a guide to trading and investing. Just don’t expect to be an expert after reading it. Probably the biggest “extra” is eToro’s social trading package, which includes copying other people’s trades and the ability to be copied by others and to earn additional income.

Other available free resources include podcast episodes, video guides, and webinars.

Visit “FOREX BROKERS ACADEMY” for more information.

Go To ACADEMY

Awards and Additional Information

This eToro forex broker review has shown that the said platform has kept innovating and expanding its offering, along with winning several awards. Their most recent endeavor is eToroX, a cryptocurrency exchange and crypto wallet regulated in Gibraltar. Considering that very few crypto exchanges are regulated these days, eToroX could be a solid choice for traders of digital assets. However, their regulation is provided by the Gibraltar Financial Services Commission, which is not a prominent financial watchdog and is certainly not in the same league as FCA or CySEC.

In mid-2018, they began Phase 1 of servicing the U.S. market, which they may continue to develop in the future, but there’s not a lot of info at the moment.

FAQ

Is eToro a Scam?

Not likely. All of the company’s branches are regulated in the jurisdictions where they operate. The financial regulators overseeing eToro’s FX activities are top-tier and trustworthy.

How Do I Withdraw My Money from eToro?

Key in your eToro login credentials; On the left-hand side menu, click on “Withdraw Funds”; Enter the amount; Complete the withdrawal form; Submit the request.

Can I Trade on an eToro Forex Demo Account?

Yes. There is a demo account. To use it, you will have to log into the eToro real account and then switch to the eToro demo account login from the top left corner of the Trader’s Cabinet.

Is eToro Income Taxable?

eToro is not a tax agent and doesn’t collect taxes for any government. It is the client’s responsibility to report his/her taxes.

Does eToro Have Offices in My Country?

Although they serve clients from around the world, at the time of writing, they only list offices in the United Kingdom, Cyprus, and Australia.

Conclusion

There’s no shortage of good, reliable brokers, so you have plenty of choices. However, this eToro forex review shows that most brokers are not geared as much toward social trading as the mentioned platform is, so you will be the final judge because you know what you are looking for. If copy trading is your thing, then eToro is a broker that serves this purpose well.

On the other hand, if you are a technical day trader, we believe there are much better alternatives out there because paying a 3 pip spread on EUR/USD several times a day (there are many brokers with <1 pip for this pair) and not having a proper charting package gets really annoying really quickly.

On the flip side, you could make money with the “Popular Investor” program. eToro is in vogue for a good reason, and we recommend it wholeheartedly, especially if you can circumvent its weaknesses and utilize its advantages.

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