75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Introduction or Skip Content and Read the Bottom Line!
eToro is a social investment network company that was founded in 2007. This multi-regulated company is widely known to be the pioneer in integrating online trading with social media and now they have more than 13 million users across the globe. Is this brokerage a good choice for trading? Let’s find out.
Want to know more about eToro?
Let’s continue exploring the vast potentials and the advantages we get to have with eToro in the succeeding sections of this review. They are all meant to keep you wondering and to keep you interested.
The simple plain truth is…
This CFD service is not perfect but any one of us can take the lead in learning from these advantages and disadvantages and how these will work FOR YOU and not against you.
Let’s look at the nitty-gritty details!
|Minimum account size||$200|
|Minimum lot size||0.01|
|Spread on EUR/USD||1 pip|
|Payment methods||Credit/Debit Cards, China Union Pay, Giropay, Neteller, PayPal, Skrill Limited UK, WebMoney, Wire Transfer, Wirecard, Yandex|
|Demo account||Unlimited time|
|Accepts US traders||No|
|Regulated||CySEC (Cyprus), FCA (UK)|
|Support||Phone, Email, Live Chat|
75% of retail CFD accounts lose money.
Registration 10/10 [usr 5]
Registration is done online via their website and you’ll only need to provide the following details:
- First and last name
- Preferred username
- Email address
- Preferred password
- Phone number
There are a few countries which eToro doesn’t support and this includes Singapore, Taiwan and Hong Kong.
And another thing…
If you have a Facebook or Google account, you may also sign-up and link them. Do take note that your details should be factual since eToro will need to verify your identity.
And speaking of verification, this is something that you need to complete in order to fully use eToro’s platform.
Such process is mandatory in accordance with regulatory requirements to keep their platform secure and prevent fraud.
How to verify your eToro account?
In order to verify your account with eToro, you will need to submit the following:
- Proof of identity (POI) – This document must have your full name, birth date, photo, date of issue and expiry date of the document (if applicable). Here’s a tip:If you have a passport, this would be the best POI to submit as this is the fastest document that they can process.You may also use any ID that has been issued by government such as a driver’s license. If the document is double-sided with relevant information on the back, be sure to include this detail.
- Proof of address (POA) – This document must have your complete name, address and date of issue which should be within 6 months. It also needs to have either issuer’s name or logo.You may use any of the following documents as proof of address:
- Credit card statement
- Bank statement
- Phone bill
- Internet bill
- Utility bill such as electricity, water or gas
- Council tax bill
- Tax letter or bill
- House rental official agreement that was issued by a rental agent
- Letter from your employer
- Letter from your local municipality
Here’s a tip:
If your POA was taken from a digital document, you can take a screenshot of it and submit this to eToro.
The verification may take a few days to process and once it’s complete or anything else, you will get a notification from their customer service team.
When your account is verified, you’ll be able to see a green tick beside your username when you access your profile.
If you want to sign-up with eToro now, you can click on the button below and we’ll take you straight to the registration page:
Account Types 10/10 [usr 5]
Instead of account types, eToro has a tiered membership system called the eToro Club and this will be based on your equity rather than your deposit.
As of this writing, these are the club membership tiers that they have:
Every membership tier will have exclusive features and perks and of course, the higher your tier is, the benefits you get to enjoy.
Here’s the deal:
You don’t have to apply or request to be a part of the eToro Club because you will be automatically assigned to the right club tier after the equity requirements have been met.
Demo Account 10/10 [usr 5]
If you have no idea on how to use eToro’s platform or would like to explore it first without risking real funds then utilizing the demo account is the best way to do that.
The demo account is practically the same as the Real account and the only difference is that it is in virtual mode so you can execute trades as much as you like and familiarize yourself with the platform.
This account will have an initial fund of $100,000 which is most likely more than enough for you to use for doing practice trades and try out different strategies.
If your virtual funds have been used up, you can get in touch with their customer service team and request to have it topped up with additional funds.
The only downside of course is that this is in practice mode so there are no real profits or losses here.
We strongly recommend that you take advantage of this feature especially if you’re a newbie. You might also want to read our beginner’s guide to forex trading in order to understand the basics prior to using the demo account.
How to access the eToro demo account?
You’ll be able to access eToro’s demo account right after you finished the registration process. Once you are taken to the main platform, there’s a dropdown menu on the left column where you can toggle between “Real” and “Virtual Portfolio”. Click on “Virtual Portfolio” to launch the demo account.
Payment Methods 10/10 [usr 5]
Funding your account is the next step to be able to access the platform in real money mode and start trading.
It’s easy to add funds to the account since eToro support a wide selection of banking methods. This includes the following:
- Credit and debit cards (Visa, Mastercard, Diner’s Club)
- China Union Pay, Giropay (Sofortüberweisung)
- Skrill Limited UK
- Wire Transfer
- Wirecard- Wire and Credit Card
Do take note that the time it takes for the funds to appear in your trading account will depend on the payment method that you selected.
Usually, funds are instantly deposited via credit/debit cards and online banking while Wire Transfer may take 3 to 5 business days depending on the value.
Put it this way:
The more ways you can deposit, the better. Such variety of ways for funding adds more convenience and lessens the hassles. No doubt, this deserves a perfect score.
Minimum Deposit 8/10 [usr 4]
Opening an account at eToro necessitates an initial deposit of $200 and this amount is considered to be average.
Such matter may be of a concern if you’re a newbie but think of it this way: if you’re serious in trading, then such amount won’t matter that much because you are most likely to make another deposit anyway in the future.
Now consider it this way:
You already have just the right amount of funds which you can use for investing on a couple of instruments or copying traders in the platform.
Please note that the minimum first-time deposit may still vary depending on your region and country regulations.
A corporate account also has a minimum first-time deposit requirement so if you’re planning to open this type of account, you need to check this with their customer support department.
Platforms 9.6/10 [usr 4.8]
They now have an all-in-one platform which integrates all the features of their previous platforms with all the tools you could possibly need to manage your trading portfolio.
If you’re going to use a PC or a laptop, you won’t need to download or install anything since this is purely web-based and can be accessed directly from a web browser.
Whatever platform you choose, the thing is eToro has a very flexible social trading system so you can easily set the amount that you want to automatically copy.
You’ll have the option to either copy all the open trades or only the new trades of your selected investor.
There are no limits on the number of users that you can copy so you have the liberty to browse thousands of profiles and copy their trades to increase your chances of generating profitable yields.
Unfortunately, they don’t offer the MetaTrader platform but with such amazing features from their in-house platform, this minor downside for us is acceptable.
This complete set of online investment solutions deserves a perfect grade on our scoring table.
Design 10/10 [usr 5]
Regardless if you’re accessing the platform on a web browser or via their mobile apps, the user interface is very much the same so even if you switch between platforms, you won’t get confused since the theme is uniform.
How can you actually use this?
It’s definitely an advantage since other brokers tend to have different designs for every platform but with eToro, the layout is pretty much identical.
Here’s a preview of their platforms:
They have done a fantastic job in making their page very visually attractive and what’s even better is that they always make constant updates and improvements.
So how do you trade on eToro’s platform? Let’s say Apple stocks.
Want to see it in action? Watch this short animation to find out:
Tradable Assets 9.5/10 [usr 4.75]
With more than 1000 choices, it’s very easy to find an instrument that has promising returns and profit opportunities and such variety warrants an excellent score.
eToro’s selection of trading instruments is grouped according to the following categories:
There’s around 50 currency pairs that you can trade on the platform. You can invest not just on the majors but other pairs as well including the EUR/USD, GBP/USD, NZD/USD, USD/CAD, USD/JPY, USD/CHF, AUD/USD, USD/HKD, USD/ZAR, USD/RUB, USD/CNH, EUR/NOK and GBP/CAD among many others.
As of this writing, they only have 6 commodities but the good news is that they offer the most commonly traded ones including oil, gold, silver, copper, natural gas and platinum.
The number of instruments in this category is also limited although they have the common indices such as AUS200, China50, DJ30, ESP35, EUSTX50, FRA40, GER30, HKG50, JPN225, NSDQ100, SPX500, UK100 and USDOLLAR.
If you’re into trading shares CFDs then eToro is definitely one of the best brokers out there as they offer plenty of options.
And with so many choices, their platform will allow you to explore the stocks by industry or exchange. And just to give you a preview on how they intuitively categorized this instrument type, we’re giving you a preview on how the assets are grouped by industry:
- London – These are companies listed in the London Stock Exchange such as Ryanair, Metro Bank PLC, On the Beach, Lloyd’s, Next and Sports Direct.
- Technology – Popular brands include Nokia, Twitter, Shopify, Facebook, Snapchat Inc., Oracle Corporation and Samsung Electronics.
- Consumer Goods – Among the known names in this sector are Harley-Davidson Inc., Tata Motors, Novartis, Xiaomi Corp, Heineken and Danone.
- Services – You’ll have the choice of over 250 companies such as JC Penney, William Hill, Tesco, easyJet, Etsy Inc., Alibaba and eBay.
- Financial – With 300+ stock brands in the financial sector, there are plenty of choices like Royal Bank of Scotland, AXA Group, Berkely Group Holdings, FinecoBank and DNB.
- Healthcare – You can invest on known brands in the healthcare industry including Sartorius AG, Akorn, Sanofi, Pfizer, AstraZeneca, GlaxoSmithKline, Abbott Laboratories and Johnson & Johnson
- Basic Materials – Names like Nordex, Total S.A., BP, Royal Dutch ADR and Rio Tinto are listed in this industry.
If you want to ride the wave of the cryptocurrency craze, then eToro is also a good choice because they offer CFD trading on a selection of digital coins including Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin, Ethereum Classic, Cardano, IOTA, Stellar, EOS, NEO, TRON, ZCASH, Binance Coin and Tezos.
But remember this:
Trading cryptocurrencies via CFDs is not the same as buying/selling cryptocurrencies from an exchange.
This gives you 140+ thematic investment options for various industries like biotechnology, wheat and natural gas futures contracts.
Minimum Lot Size 10/10 [usr 5]
With a low lot size, the risks are lowered and you can even do some experimenting on your trades.
It’s a good thing that eToro allows a minimum lot size of 0.01 which is why they earned the highest score.
Trading with 0.01 lot is the ideal size although this would still depend on your risk management strategy.
Spreads 9/10 [usr 4.5]
eToro’s spreads are still well within the competitive range as compared with the spreads of other popular brokers.
Most of the assets have around 1 to 3 pip spreads which are standard for most platforms. It may not be the tightest in this industry but it is still considered to be very competitive compared with its peers.
And the good news is that they have scaled down the spreads for the top 10 actively-traded pairs on their platform.
The spread for the EUR/USD currency pair has been lowered from 3 pips on average to just 1 pip now.
These numbers definitely warrant a high score.
Quotes Accuracy 10/10 [usr 5]
It’s highly essential to know if the quotes or market prices that you are receiving from your broker are accurate because this is where you will base your trading decisions.
In addition to that…
This is also a good way to test if they are indeed giving you the correct market prices or if they are controlling the values in their favor.
Allow us to explain:
In order to determine the accuracy of the quotes on eToro’s platforms, we’ve done a series of stringent tests and after a thorough investigation, we were able to conclude the prices that they show were never manipulated or delayed.
eToro’s platform quotes are synchronized with the actual market prices.
Withdrawal Time 10/10 [usr 5]
Now how about the withdrawals?
While most traders complain about the delays in the processing time of their withdrawal requests with their brokers, our experience with eToro in this part of the test was very smooth and didn’t take too long to accomplish.
As long they have all the necessary information, the withdrawal processing time only take 1 business day while the time it takes to receive the payment may vary depending on your payment provider.
Customer Support 10/10 [usr 5]
There are plenty of ways to contact the support department but is recommended that you first refer to their Help Center and enter your queries because you are most likely going to find the answers there.
And if you can’t find the answers, you can easily get in touch with one of their agents via the most common methods of communication: phone, email or live chat.
The choice is actually yours.
Calling the phone support was a no-brainer and there was no waiting time as we were easily answered by an agent in just a few seconds.
Via the email support, we got a reply from them within an hour and their responses were pretty detailed so we got the answers that we were looking for.
There’s also the live chat which is a very convenient way to contact them with just a few clicks. This is a great option if you want to talk to a real person and need fast answers.
Overall, we were very satisfied with our experience with eToro’s customer support across all the available channels and most notably because of the fast and detailed answers.
The excellent customer service warrants an excellent score and we never hesitated to give them a perfect rating.
Credibility 10/10 [usr 5]
After doing an extensive research about this brokerage, we’ve learned that their reputation remains untarnished in many countries.
Since they started their operations in 2007, they easily managed to become world’s most popular trading platforms.
eToro is widely known to be the pioneer in the social trading industry and that is proven by their massive 13 million global users. Such number is no doubt an indication that they are a credible brand.
To top it off…
eToro is the biggest sponsor for the Premier League’s 2019/20 season having partnerships with 6 clubs. Having such sponsorship means that this is a real big and financially stable company.
It all boils down to this:
A brokerage like eToro that has built a solid reputation and integrity in this market deserves a notable score.
Regulation and License 10/10 [usr 5]
eToro operates in various countries and has been able to get a license from the following international financial regulators:
- Cyprus Securities & Exchange Commission (CySEC) – eToro (Europe) Ltd. is licensed with company registration # HE20058.
- Financial Conduct Authority (FCA) – eToro (UK) Ltd. is authorised and regulated with company registration # 7973792.
- Markets in Financial Instruments Directive (MiFID) – eToro Europe and eToro UK both operate in compliance with this directive.
- Australian Securities and Investments Commission (ASIC) – eToro AUS Capital Pty Ltd. is the holder of an Australian Financial Services Licence (AFSL) 491139 issued by this regulator.
Conclusion 9.6/10 [usr 4.8]
eToro provides a suite of online investment solutions where the turnover opportunities are very promising thanks to their innovative combination of online trading and social media.
Not only will you be able to trade and invest on financial assets across several categories but you will also be able to copy leading investors on their expansive social investment network of over 13 million+ users.
But that’s not all…
The credibility of eToro is not questionable as it has proven to be one of the most regulated brokers worldwide and among the most well-known names for social trading.
Regardless if you’re a newbie that is looking for a safe entry into the trading scene or an advanced trader that is looking for higher rewards, eToro’s global multi asset investment platform is your best choice.
So don’t get left behind!
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.