eToro Reviews 2022 - Is this broker safe?

Contents

⌛ Reading time: 12 minutes
4.3 / 5 - (44 votes)

 

 

Etoro is an online broker, known for its copy trading function, which was founded in 2007. This broker offers CFDs, cryptocurrencies, stocks and ETFs. eToro has a large customer base of 11 million investors. eToro is present in over 140 countries. The company is headquartered in Israel, and they are registered entities in many Tier 1 jurisdictions. These include the United States, Australia and the United Kingdom.

 
eToro is a safe broker, regulated by high level authorities. We recommend eToro to both advanced and novice traders who want to take advantage of commission-free stocks or copy the trades of professional traders.
 
 
 

Summary of the review

 
eToro is a leading broker for investors looking for commission-free stocks. Their platform offers competitive commissions, a mobile application, a wide range of investment options, and copy trading features. We recommend eToro as the best broker for copying, stocks and cryptocurrencies.
 
Warning: CFDs are complex leveraged derivatives that are available with a high risk of losing money quickly. 75% of retail investor accounts lose money when trading CFDs with this provider. Make sure you understand how Etoro works CFDs and if you can afford to take this high risk of losing your money.
 
Demo account: Yes
Minimum deposit: $ 50 to $ 200
Copy trading: Yes
Minimum trade: $ 50 - $ 1.000 (less with leverage)
Mobile App: iOS, Android
Desktop: N / A
Web platform: Owner
Unavailable countries: Canada, Japan, Cuba, Iran, North Korea, Sudan, Syria and Venezuela
Deposit methods: Bank transfer, Maestro, Visa, MasterCard, Diners Club, PayPal, Skrill, Neteller
Withdrawals: 3 to 8 days
Islamic account: Yes
Regulated by: FCA, CySec, FinCen, ASIC
Our score: 4.3 / 5
 
EToro's main offering is copy trading. This allows users who do not want to trade to copy the trades of successful traders. eToro enables this type of peer-to-peer engagement by providing a messaging feature, a feed for the social media platform, and other similar modules which we will explain in more detail.
eToro has registered over 300 million trades. The company is expanding its operations, focusing on entering Asian markets to provide brokerage services in China and Hong Kong.
 
 
 
 
The following is a list of the company's registered branches:
 
United Kingdom: eToro (UK) Ltd. regulated by the Financial Conduct Authority (FCA)
Australia: eToro AUS Capital Pty Ltd. regulated by the Australian Securities and Investments Commission (ASIC)
Cyprus: eToro (Europe) Ltd. regulated by the Cyprus Securities and Exchange Commission (CySEC)
United States: eToro USA LLC regulated by us FinCEN
 
Benefits
 
Counter
 
Easy account opening
 
commissions on forex and CFDs
 
Website and mobile application
 
Withdrawals may take longer than usual
 
Best social trading platform
 
Ideal for Cryptocurrency

 

Why should you read this review?

 
We researched and wrote this unbiased review. It will help you save time in examining what eToro has to offer before making a decision on this broker. You should use it to compare some of the key features and functionalities to choose which one you will use for trading.
 
There are many details to consider. It's vital that you understand which of these provide competitive commissions, the best customer support, a user-friendly interface, and of course you want to be sure your money is safe.
 
 
 
 
 

Overview

 
eToro is a multi-asset broker. It offers a variety of investment products, including stocks, fiat currencies, commodities, exchange traded funds, and popular cryptocurrencies, among others. Some trade as CFDs and others as real assets.
 
They were one of the first brokers to offer social trading features. They pioneered this trend. Nowadays, many rivals offer similar alternatives. eToro continues to be a leader in this sector.
 
Social trading is a combination of a social media environment where traders connect and chat. Other traders can follow them and check their performance and what instruments they are trading.
 
They have introduced two innovative products in this area - CopyTrader (en) ™ and CopyPortfolios CopyPortfolios ™.
 
eToro has earned its reputation as a safe and attractive broker for experienced and amateur day traders. This is due to its low fees and easy to use platform.
 
In 2019, they launched a cryptocurrency exchange called eToroX, which is regulated by the Gibraltar Financial Services Commission.
 

Web platform

 
eToro has a website and a mobile trading application. 
 
The interface of this broker has 26 different languages. It has a modern and attractive look for a young audience in contrast to traditional trading offered by other brokers.
 
One downside is that the workspace is not customizable. Traders should feel comfortable with the interface as it is.
 
 
 
 
 

application eToro

 
 
 
Both the web platform and the mobile app offer a two-step login, which increases their level of security for eToro users. The search functions are clear and simple. They allow the trader to browse the large number of stocks available on their mobile device.
 
Both versions include market price alerts and notifications and can be sent via push notifications.
 
Reports are available under the portfolio tab. Traders can find a summary of their trades, portfolio value and commissions paid. An account statement is available which summarizes the transactions made during a certain period.
 

Mugs

 
EToro's trading fees are on the low side of the industry. They do not charge fees for US-listed stocks and ETFs. CFD commissions are low and are built into the spread.
 
For equity indices, the S&P 500 CFD trading fee is 0,75 while the Europe 50 CFD fee is 3.
 
Cryptocurrency trading has a spread of 0,75% to 5%. Cryptocurrency investors take ownership of the asset, unless they are trading under ASIC.
 
Currency pairs are more expensive to trade as the EUR USD trade cost is 3 pips while many other brokers charge between 0,6 and 1 pip per trade. Traders looking for forex brokers will find better ones elsewhere.
 
 
 
 
 
 

Deposit fees

 
There are no deposit fees with eToro. Most brokers don't charge a fee for depositing money.
Withdrawal fees
 
eToro has a $ 5 withdrawal fee for bank transfers. This is in line with the norm compared to its competitors.
 

Inactivity fee

 
eToro charges a monthly inactivity fee of $ 10 if the user does not log into the account for 12 months. For night rates, this depends on the current market conditions.
 

Order types

 
eToro has four types of orders available:
 
Market: A market order is executed at the price indicated at the time of the order.
Limit: This order sets a maximum or minimum price at which the financial asset class must be bought or sold.
Stop-loss: This order is executed when the stock price reaches a certain level.
Trailing stop-loss: an order that allows the trader to block gains by selling the asset only if the price falls (or rises for a short position) up to a certain point, remaining inactive while the price continues to advance in favor of the trade.
 
 
 
 
 
 
 

Markets and products

 
There are hundreds of titles available. These include currencies, indices, ETFs and cryptocurrencies. Each asset class is traded with different investment strategies. EToro's portfolio of financial products available is not the largest in the market. It is diversified and can be considered satisfactory compared to its competitors.
 
With eToro, trade real stocks, ETFs and cryptocurrencies. It is possible to hold these assets directly and not through CFDs.
 
 
eToro is one of the best brokers for cryptocurrency traders, offering a large portfolio of cryptocurrencies available for traders who want to focus on this particular market.
 
* Commercial cryptocurrencies are not overseen by any EU regulatory framework.
 

Popular cryptocurrencies available:

 
Bitcoin (BTC)
Ethereum (ETH)
Bitcoin Cash (BCH)
Ripple (XRP)
Dash
LiteCoin (SLD)
Classic Ethereum (ETC)
Cardano (ADA)
Stellar lumens
over 85 others available ...
 
eToro has CFDs for other financial assets, including commodities and equity indices, as well as some wealth management solutions, such as the eToro Copy Portfolios ™ and copy traders ™ solution.
Copy trading with eToro
 
 
The copy portfolio ™ allows traders to copy other traders. It allows you to copy successful trading strategies. The platform supports the trading account and modifies the user's wallet based on the changes made by the copied wallet over time.
 
You can browse a list of traders within the platform to choose the most successful traders to copy their portfolios.
 
Both of these features are attractive to passive traders and inexperienced traders. Traders who are just starting out can get ideas from experienced traders.
 

Cryptographic wallet

 
the wallet eToro is a secure digital wallet with over 120 supported cryptocurrencies. The multi-crypto wallet offers the purchase, receipt and safe storage of cryptocurrencies.
 
eToro has technical analysis tools and some analyst recommendations, but it lacks fundamental data.
 
Each financial asset has its own market sentiment tracker. Shows the percentage of traders willing to buy and sell the stock. You can find analyst comments for some popular activities.
 
The charting tools are good, with over 70 technical and chart indicators. The longest time frame allowed by the chart tool is 6 months, which is disappointing.
 
The news feed is limited to tweets and comments from traders in the eToro ecosystem. Big media like Reuters or Bloomberg are not included.
 
The fundamental data provided for investing in stocks consists of basic financial ratios. It does not include historical financial statements, income statements, price targets or earnings estimates.
 
EToro's main strength is its trading and community sharing trading ideas. No relevant third party analysis is offered.
 
 
 

Education

 
Educational tools are not eToro's strongest offering. The educational material offered is limited to video tutorials and FAQs. These are intended to answer questions regarding characteristics, available financial assets, trading fees, and similar topics.
 
The demo account helps beginners in their learning process without having to invest real money.
 

Customer service

 
 
 
EToro's customer support is decent, but lacking in some areas. The help center has a live chat feature, but it's a bit hidden in the FAQ section. Traders reported that reps are busy and there is no help available on weekends. There is no email or phone support, as this broker relies on support tickets sent via the trading interface. The response to these tickets is sent to each user's email inbox. Response time is fast - 24 hours or less. Customer service isn't the best, but it's good enough to address the basic questions.
 

Withdrawals

 
 
 
Withdrawing money from eToro is easy. eToro charges a $ 5 withdrawal fee. A minimum amount of $ 30 is required for each withdrawal. Customers can withdraw to a bank card, e-wallet or bank account. Withdrawing money to an account with a base currency other than US dollar will incur additional conversion costs.
 
For cryptocurrencies, the eToro (eToroX) wallet is available, which is a multiple cryptocurrency wallet.
 
Withdrawals by debit card and e-wallet are instant, bank transfers take up to 2 business days.
 

How can I open an account?

 
Opening a new account is quick and easy and is 100% online. It will take a few minutes to go through the registration process. You can take a look at the web platform if you haven't registered yet.
 
EToro's trading services are available in most countries. There is a long list of countries that have banned you from opening an account with them. These countries include Albania, Canada, Cuba, Iran, Iraq, Jamaica, Japan, Nicaragua, Pakistan, Syria, and Serbia. American citizens outside the United States cannot open an account with eToro.
 

Account types

 
There are two types available. EToro traders can open a professional retail account.
 

Retail

 
Retail clients have access to all assets in copy or manual exchange. Leverage is limited, but investor compensation fund coverage and negative balance protection are available.
Professional clients
 
For a professional trader they have to pass a test to determine their qualification. ESMA investor protection, such as the Investor Compensation Fund and the Financial Ombudsman Service, is not available. As a professional client you have access to leverage.
 

Book demo

 
A demo account with a balance of $ 100.000 is available. Traders start virtual trading with virtual funds to learn about the platform.
 
Popular investor
 
For successful traders eToro offers a program called popular investor. You are paid a management fee when people copy your trades.
 

Verification process

 
Before depositing money, you will need to go through an identity verification process. You will need proof of identity and proof of residence. The process takes less than a day to complete when they receive all the required documents. You will need to quickly complete a survey to assess your trading knowledge and experience.
 
Sending money
 
Depositing money is easy and there are no deposit fees.
 

Deposit methods

 
 
 
You can deposit money using credit or debit cards or an e-wallet such as PayPal or Skrill and it is credited in real time. Bank transfers take up to 7 days to arrive. They will add other financing options in the near future.

 

Minimum deposit

 
The minimum deposit to open a retail account is $ 200. Except the following:
 
The minimum for customers in Israel is $ 10.000.
The minimum for customers in the United States and Australia is $ 50.
The minimum for customers in Russia, China, Hong Kong, Taiwan and Macau is $ 500.
For bank transfers, the minimum is $ 500.
 
The trading account requires the same minimum investment. It allows the user to assume greater leverage for transactions. The trader must meet certain criteria to be considered a professional client. eToro may request that the first deposit be made by credit or debit card. Subsequent deposits made by other methods are accepted. A downside to this broker is that eToro only offers one base currency for its accounts, the US dollar. Other online brokers offer five or more base currencies.
 
Traders have to pay a conversion fee if they deposit funds using a payment method that has a currency other than the US dollar. Conversion costs start at 50 pips, or approximately 0,46% of the deposited amount. You can only deposit money into accounts in your name.
ETorus it's safe?
 
 
 
eToro is safe and regulated by the main financial authorities. eToro is overseen by tier 1 financial regulators. These include the UK Financial Conduct Authority, the Cyprus Securities and Exchange Commission (CySEC), the US FINCEN and the Australian Securities and Investments Commission (ASIC).
 
UK investors are protected by the Financial Services Compensation Scheme (FSCS). European investors are protected by the Investor Compensation Fund for clients of Cypriot investment companies.
 
eToro it is not a publicly traded company.
 
There are many good things to say about eToro. Put this broker at the top of the list of best brokers to consider if you want to start trading.
 
Etoro offers zero-tax shares and ETF trading for US-listed stocks. This is a big plus and is better than many of its rivals.
 
Their CFD fees are lower than the market average, even though their forex broker fees are higher than other brokers.
 
Their social interface has a striking design and is an exciting alternative for those just starting out. Merchants can connect with more experienced peers or look for potential ideas to get started using the social feed.
 
You must be aware that CFDs are complex instruments and are available with a high risk of losing money due to leverage. Please note that 75% of retail investor accounts lose money when trading CFDs. You need to understand how CFDs work and if you can afford to take the high risk of losing your money.
 

Conclusion

 
eToro is a safe and regulated broker with zero commissions. It has a simple and easy to use trading platform and an excellent mobile trading application. eToro allows you to invest in stocks, CFDs, forex pairs and ETFs. It is best for copy trading and cryptocurrency trading. Opening an account is easy and customer support is good.
 
This broker is present in more than 140 countries and has more than 11 million customers.
 
There are 30 banned countries. The minimum deposit is $ 200. This amount varies for residents of Israel, Russia, China, Hong Kong, Taiwan, Macau, Australia, and the United States. For bank transfers, the minimum is $ 500. There are no deposit fees.
 
The demo with a balance of $ 100.000. Identity verification must be completed before depositing any money.
 
eToro is a multi-asset online broker offering a decent selection of US listed stocks, etfs, currency pairs, cryptocurrencies and CFDs. They offer 26 different languages. Charting tools include over 70 technical indicators.
 
To sum it up, we recommend eToro as the best social trading broker and their zero commission trading.
Our score: 4.3 / 5
 
Best for social trading
Zero commission stock trading
Regulated by high level authorities
Easy to use
Wide variety of investments
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