eToro Review and honest user rating

eToro user-ratings: $200
9.1/10
9.1 of 10 points 1 reviews
  • Asset varierity - 10/10
    10/10
  • Trading platform - 10/10
    10/10
  • Support - 8.5/10
    8.5/10
  • Fees - 8.5/10
    8.5/10
  • Deposit/Withdrawal - 8.5/10
    8.5/10

Facts about the company:

  • Type: Currency, CFD, Stock Broker and social trading platform
  • Regulation: CySEC (Cyprus), FCA (UK), ASIC (AU) 
  • Minimum deposit: $200
  • Demo account: Free
  • Markets: 2,000 Assets: ETFs, Forex, Currencies, Cryptocurrencies, Shares, Indices, Commodities 
9.1/10
Comments Rating 9.1/10 (1 review)

Pros

  • Zero Commission 
  • World-leading Social Trading Platform 
  • Low and transparent fees
  • 2000+ assets 
  • Offline trading is possible 
  • Spreads from 1.0 pips

Cons

about eToro

The online broker eToro was founded in January 2007. The original vision of the founders was essential to enable investors to trade completely independent of location and also to promote independence from traditional financial institutions.

Screenshot of the eToro landing page

In 2009 the trading platform WebTrader was launched, which already provided investors with helpful tools for trading. In mid-2010 eToro launched OpenBook, the first social trading platform worldwide. With the help of this platform, traders could now “copy” other successful investors and adapt their strategies with the “CopyTrader” tool. In the course of this, the company also received the “Best of Show 2011” award at Finovate Europe the following year. Since April 2011 the platforms “WebTrader” and “OpenBook” were also available in the mobile version.

In 2013, the online broker then added shares to its portfolio, thus allowing its customers greater diversification. Three years later, “CopyPortfolios” was launched, which bundles the portfolios and strategies of top traders and makes them accessible to all traders.

In the wake of the crypto hype, eToro finally added cryptocurrencies to its product range in early 2017. In 2018, the online broker expanded into the states with a US trading platform for cryptocurrencies.

Facts about the history:

  • founded in 2007
  • WebTrader was launched in 2009
  • in 2010, eToro launched the first social trading platform worldwide
  • Awarded Broker
  • Since 2011, there is a mobile trading version available
  • In 2013, shares were added to the portfolio
  • In 2017, eToro added cryptocurrencies in its portfolio
  • Expansion into the states in 2018

Social Trading

A special feature that distinguishes eToro from other online trading platforms is the so-called social trading. The online platform eToro is already used by investors from more than 140 countries who share their know-how and experience in eToro’s social trading network. This way traders with successful strategies can be found and copied on the platform at any time.

If you are looking for specific traders you can easily find them using the search function. This search allows you to filter many different characteristics (e.g. by profit, risk rate, location, etc.) In this way, traders are supported in creating their individual optimal portfolio.

An additional special feature of the Online Broker is the individually adaptable social news feed. Here you can post social media articles as well as posts about online trading to enable interaction and mutual exchange with other traders in the eToro community. Apart from that, as a trader, you can also share your own tools or strategies and comment on other posts.

Regulation and deposit insurance of the Online Broker

The head office of the company bearing the name is located in Cyprus. For this reason, the Online Broker is also regulated by the relevant tax authorities in Cyprus. This is the CySEC. Another branch of eToro is also located in the UK. Accordingly, the British Financial Authority FCA is responsible for regulating the broker there.

For customers from Germany only the regulation by the CySEC is relevant. Since Cyprus is a member of the EU, customer deposits up to EUR 100,000 are also secured.

Which markets can be traded at eToro?

eToro offers its customers a variety of different trading instruments with which they can trade on the financial market. For each category individual strategies can be developed and used. The tradable markets at eToro are therefore briefly introduced below.

Stocks


Shares can be traded with or without leverage with the online broker eToro. They are generally particularly suitable for medium to long-term strategies. When opening a long position without leverage there is no commission or other premium for customers.

Cryptocurrencies


The cryptocurrencies Bitcoin and Co. have experienced a considerable increase in popularity in recent years. That’s why eToro also wants to enable its customers to benefit from this upswing. Digital currencies are particularly characterized by a high degree of volatility, which can often exceed ten percent within a day. The following digital currencies are currently available in the offered range:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Ripple (XRP)
  • Dash (DASH)
  • Litecoin (LTC)
  • MIOTA (IOTA)
  • Stellar (XLM)
  • EOS (EOS)
  • NEO (NEO)
  • TRON (TRX)
  • ZCASH (ZEC)
  • Binance Coin (BNB)
  • Tezos (XTZ)

It should be noted, however, that there is no investor protection for “buy positions” of cryptocurrencies. “Sell positions” on the other hand are executed with CFDs and are therefore regulated according to the CySEC or FCA.

Commodities


Commodities are traded exclusively as CFDs with eToro – there’s no need to buy an underlying asset. The most popular commodities traded at this online broker are Gold, oil, silver, platinum, natural gas.

Foreign exchange


The Forex market has the highest liquidity with a daily transaction volume of more than five trillion US dollars. Apart from this, the Forex market is also characterized by high volatility, which makes it all the more interesting for traders. Forex is also traded as CFDs with this online broker. With 47 different currency pairs, eToro is relatively well-positioned in terms of selection.

ETFs


ETFs describe trading instruments that combine various assets into tradable funds. eToro offers its clients over 145 different ETFs, some of the most popular ones: SPY, VXXB, TLT, HMMJ, QQQ.

Indices


As an eToro customer, you trade indices as CFDs as well. The online broker offers 13 different indices, the most popular of which are GER30, NSDQ100, DJ30, SPX500, FRA40.

What trading platform can customers use with eToro?

Let’s now move on to another aspect which plays an important role in choosing a broker: The trading platform. eToro offers its clients only one option and that is their own eToro trading platform. Unlike many other brokers, eToro does not offer any third-party platforms – such as the popular MetaTrader 4 platform, which is partly due to its strong focus on social trading.

Having previously developed the concept of social trading, eToro merged the previous trading platforms Webtrader and OpenBook into the new eToro trading platform in 2015. This platform includes a number of modern technologies such as the “CopyTrader system”, the “Popular Investor Program” and the “CopyPortfolio Investment Strategies”. These tools will be briefly explained below.

CopyTrader System

The general idea of the CopyTrader tool is basically very simple: As a customer, you select a trader you want to copy. In the next step, the customer can decide which amount of money should be invested. The whole “CopyTrading” process happens in real-time and on just one button with just one click.

Popular Investor Program

This program is particularly useful for advanced traders to build up an additional income. Traders with successful investment strategies can publish them as a Popular Investor and receive money in return when other investors copy these strategies.

USPs of the platform

CopyPortfolio Investment Strategies

These strategies are designed to offer customers long-term investment alternatives. CopyPortfolio investment strategies are portfolios that have already been created with a corresponding financial strategy. This strategy can then be adopted directly by the customer in this form.

The mobile platform – eToro App

Even before the merger of OpenBook and WebTrader, there was a separate app for each of these two platforms. With the current eToro platform, there is only one mobile app that combines all the features and tools. The app is available from both Android and Apple and ensures that traders can stay in touch with other investors at all times and that they don’t miss any investment opportunity. Clients are notified in real-time if there is a relevant change in the financial market.

eToro minimum deposit

The minimum deposit at eToro is in principle 200 US dollars. However, there are a few exceptions that depend on your residence. While the minimum deposit for investors from Australia and the USA is only 50 US dollars, the minimum deposit for investors from Russia, China, Hong Kong, Taiwan, and Macau is 500 US dollars.

Apart from the first minimum deposit, all other deposits must always be at least 50 US dollars. For a bank transfer, the minimum deposit amount is 500 US dollars. If you want to register with a corporate account, the minimum deposit is $10,000. It should also be noted that unverified accounts only allow deposits of up to US $2,250.

Deposits and withdrawals at eToro

Let’s then take a closer look at the deposit and withdrawal options that the online broker offers its customers. In the following graphic all deposit methods are listed in table form. Deposits are not charged with any fee and are generally free of charge.

On the other hand, a fee of 25 US dollars is charged for payouts. The amount to be withdrawn is sent to the customer via the same route as the deposit. However, in the event of a technical problem, an alternative payment method can be specified here.

eToro fees


Of course, the fees are also a decisive factor in the selection of the broker. For this reason, the fees for the respective trading instruments will be discussed in more detail below.

Shares


In principle, investments in shares are not subject to fees. This 0% commission rule applies to the opening of “long (buy) positions” without leverage. There are no management fees, ticket fees, or rollover fees. However, this does not apply to “short (sell) positions” or trades with leverage. In CFD trading of shares, a spread of 0.09% is incurred in both directions. In addition, “overnight and weekend rollover fees” also apply in this case.

Foreign exchange


The spreads of the sometimes most important main currency pairs are shown below:

  • USD/JPY: 1 pips
  • USD/CHF: 1.5 pips
  • AUD/USD: 1 pip
  • EUR/GBP: 1.5 pips
  • EUR/CHF: 2 pips
  • EUR/JPY: 2 pips
  • GBP/JPY: 3 pips
  • GBP/USD: 2 pips
  • EUR/USD: 1 pips

The remaining minor currency pairs and exotics can also be viewed on eToro’s website. In addition, the foreign exchange also incurs overnight fees when buying and selling (these can also be viewed on the website).

ETFs


The spreads of ETFs are also subject to standardization. These are at 0.09% per page. However, there are no management fees, ticket fees, or rollover fees.

Cryptocurrencies


The fees charged for trading cryptocurrencies differ depending on the digital currency. For this reason, the individual spreads are presented in the following table:

CryptocurrencySpread
Bitcoin (BTC)0.75%
Ethereum (ETH)1.90%
Ripple (XRP)2.45%
Litecoin (LTC)1.90%
Bitcoin Cash (BCH)1.90%
EOS (EOS)2.90%
Binance Coin (BNB)2.45%
Stellar (XLM)2.45%
Cardano (ADA)2.90%
TRON (TRX)3.50%
Tezos (XTZ)5.00%
Dash (DASH)2.90%
MIOTA (IOTA)5.00%
NEO (NEO)1.90%
Ethereum Classic (ETC)1.90%
ZCASH (ZEC)3.45%

In addition, there are also overnight fees, which can also be read individually on the website depending on the currency.

Indices


Similar to the crypto-currencies, the fee for the indices also differs depending on the trading instrument. And for the indices, too, additional overnight fees apply.

Commodities


Finally, the spreads for the commodities offered by eToro will be shown.

Trading instrumentSpread
platinum35 pips
gold45 pips
silver5 pips
copper2 pips
natural gas10 pips
oil5 pips

Offers for further education at eToro

With the Trading Academy eToro offers its customers an opportunity to learn more about Trading & Co.

There is plenty of teaching material for both beginners and advanced investors. A useful tool in this context is the live webinars which are available at regular intervals. There, besides information about financial markets, interesting details about how to use the online platform itself are shared.

eToro Education

In addition, there are so-called e-courses – these are interactive courses that help investors to expand their knowledge of financial trading. These courses are also recommended for absolute beginners.

And last but not least, the Online Broker offers general trading videos and tutorials.

The eToro customer service

At this point, we will now go into the customer service at eToro. The customer service area on the website first differentiates between visitors and existing customers.

On the one hand, visitors have the opportunity to look up the answers to their questions in the Help Center. If you can’t find what you’re looking for here, you can always open an inquiry and submit your question using your email address. An answer from the eToro team will usually be sent out relatively quickly. As an existing customer, you can log in to eToro and request a live chat directly from your account.

Conclusion: Etoro is a reliable Online Broker

The transparency and authenticity of the Online Broker are also reflected in most of the experience reports from the Internet. Also, the trading conditions are kept fair at eToro. A special feature of the broker is of course social trading, which has never been available in this form before.


Most asked questions:

To which stocks does zero commission supply?

Zero Commission is available for almost every stock on the eToro website. However, there is a commission charged for CFD tradings.

Is a demo account available?

There is a free demo account available for eToro. Within the demo account, users can trade with virtual money and try out the benefits of the platform. However, you have to register as a user to try out the demo account.

Is EToro trustworthy?

eToro is a trustworthy and serious broker you can trust. It is regulated by CySec in Cyprus as well as the FCA in the UK. Moreover, the customer service of eToro is reliable and the protection of the deposits of the customers is a high priority for eToro.

Does Etoro offer educational material?

eToro is a great trading broker for beginners as well as professionals. With the educational materials, eToro offers a lot of information material for every user. News and Analyzes, Podcasts Video Tutorials, and even a trading school are available on the website.

One Response

  1. Andre Witzel September 13, 2020

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