Editor’s Verdict

eToro established itself among the top 5 social trading and cryptocurrency brokers. With more than 17 million registered users, eToro provides one of the largest and most active trading communities. It also announced plans to become a publicly traded company via a merger with an SPAC. I reviewed this company to determine if the trading conditions offered are truly as beneficial as claimed. Is the eToro commission-free stock trading offer as good as it sounds?

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Overall
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Fees
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Deposit and withdrawal
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Asset selection
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Ease of account opening
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Regulation and security
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Pros
  • Active investment community ideal for social trading

  • Dedicated tools for social trading

  • Broad cryptocurrency selection

  • Expanding educational offering for beginner traders

Cons
  • Internal withdrawal fees

  • Low retail leverage and higher minimum deposits, but within a reasonable range

Overview

eToro Markets Overview - A Leading Social and Cryptocurrency Broker

HeadquartersCyprus
RegulatedCySEC, FCA, FSA, ASIC
Year Established2007
Execution TypeMarket Maker
Minimum Deposit$50 - $10,000
Trading Platforms(s)Proprietary platform
Signals
US Persons Accepted?
Islamic Account
Segregated Account
Managed Accounts
Support Hours24/5
Customer Supportemail-support chat-support
Demo Account

One of the things I like most about eToro is that it started to work on an educational section for beginner traders. I also appreciate its active push into the cryptocurrency sector with the acquisitions of Dutch blockchain company Firmo and Belgian crypto portfolio tracker developer Delta in 2019.

eToro Main Features

Retail Loss Rate
68.00%
Regulation
Yes
Minimum Raw Spreads
Not applicable
Minimum Standard Spreads
1.0 pips
Minimum Commission for Forex
Commission-free
Commission for CFDs
0.09%
Commission Rebates
No
Minimum Deposit
$50 - $10,000 (dependent on location)
Demo Account
Yes
Managed Account
No
Islamic Account
Yes
Inactivity Fee
$10 monthly after 12 months of inactivity
Deposit Fee
No
Withdrawal Fee
$5 per withdrawal + Third-party
Funding Methods
9

Regulation and Security

Trading with a regulated broker will limit the potential for fraud and malpractice. I always recommend traders to check for regulation and verify it with the regulator by checking the provided license with their database. eToro presents clients with four regulated entities.

Country of the Regulator
Name of the Regulator
Regulatory License Number
UK  
Financial Conduct Authority
FCA Reference Number 583263
Cyprus  
Cyprus Securities and Exchange Commission
License Number 109/10
Australia
Australian Securities & Investments Commission
AFSL Number 491139
Seychelles  
Financial Services Authority
FSA License Number SD076

eToro segregates client deposits from corporate funds and offers negative balance protection. After becoming a publicly-traded company on the NASDAQ, it will comply with another layer of regulation and financial standards, strengthening its overall security environment.

eToro Regulators

Fees

Commissions/Spreadsboth
Withdrawal options
  • :
  • Deposit options
  • :
  • eToro shows Forex spreads as low as 0.8 pips or $8.00 per round lot, but the average is above 1.3 pips or $13.00.

    Spread
    Commission per Round Lot
    Cost per 1.0 Standard Lot
    0.8 pips (minimum)
    $0.00
    $8.00
    1.3 pips (average)
    $0.00
    $13.00

    Here is a screenshot of the eToro proprietary trading platform during the London-New York overlap session, the most liquid one, where traders usually get the lowest spreads.

    eToro Forex Spreads

    The tightest spread for the EUR/USD that I uncovered in this review was 0.9 pips or $9.00 per 1.0 standard lot. While eToro advertised commission-free stock trading, I urge traders not to confuse it with CFD trading, where a 0.09% commission applies. Only unleveraged buy positions in shares remain commission-free. The absence of trading commissions at eToro results in higher spreads, and each trader must evaluate the cost structure based on their trading and investing requirements.

    One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. I always recommend that traders check them before evaluating the total trading costs.

    eToro Swap Rates

    Below is a list of trading cost examples for buying and selling the EUR/USD, holding the trade for one night and seven nights, in the eToro account.

    Taking a 1 standard lot buy/sell position, in the EUR/USD at the tightest spread and holding it for one night will cost the following:

    Minimum Spread
    Commission per Round Lot
    Swap Long
    Swap Short
    Total Trading Costs
    0.9 pips  
    $0.00
    $5.80
    X
    $14.80
    0.9 pips  
    $0.00
    X
    $0.90
    $9.90

    Taking a 1 standard lot buy/sell position, in the EUR/USD at the tightest spread and holding it for seven nights will cost the following:

    Minimum Spread
    Commission per Round Lot
    Swap Long
    Swap Short
    Total Trading Costs
    0.9 pips  
    $0.00
    $40.60
    X
    $49.60
    0.9 pips  
    $0.00
    X
    $6.30
    $15.30

    Cryptocurrency traders pay mark-ups between 0.75% and 4.9% plus a 0.5% crypto transfer fee with a minimum of $1 and a maximum of $50. A minimum currency conversion cost of 0.50% applies, and eToro levies a monthly inactivity fee of $10 after twelve months of inactivity.

    What Can I Trade

    eToro offers Forex traders a below-average 49 currency pairs but shines with its 93 cryptocurrency pairs. Other assets include 31 commodity CFDs, 13 index CFDs, 2,000+ equity CFDs, and 258 ETFs. The overall asset selection at eToro is excellent, especially for cryptocurrency and equity CFD traders.

    Asset List and Leverage Overview

    Commodities
    Metals:
    Indices
    Stocks
    CFDs
    Oil
    Gold
    ETFs

    eToro Leverage

    eToro offers retail traders maximum leverage on Forex of 1:30 through all its entities, as per regulations, except for Seychelles, which allows for higher leverage. However, it seems that eToro is only willing to open a Seychelles account for residents of certain restricted geographical areas.

    eToro Trading Hours (GMT)

    Asset Class
    From
    To
    Cryptocurrencies
    Sunday 00:00
    Saturday 24:00
    Forex
    Sunday 21:05
    Friday 20:30
    Commodities
    Sunday 22:00
    Friday 20:30
    European CFDs
    Monday 07:00
    Friday 15:30
    US CFDs
    Monday 13:30
    Friday 20:00

    Please note that equity and index CFDs do not trade continuously but open and close each day at the above specified times.

    Account Types

    I like that eToro treats all retail traders to the same account type. The main difference is the regulatory environment, its restrictions, and its protections. I am curious about its newly acquired Seychelles license, from where eToro can provide more competitive trading conditions. Regrettably, little information is yet forthcoming about eToro’s Seychelles offering, but we hope to offer an update on this soon.

    Professional traders may request an account upgrade if they qualify. eToro also provides an Islamic account where the minimum deposit is $1,000, while most traders can open it between $50 and $200. Depending on the geographic location, eToro offers its eToro Money Account, which comes with a debit card for swift financial transactions.

    eToro Demo Account

    eToro offers a $100,000 demo account, and I could not find a time limit. There is nothing inherently wrong with offering any nominal amount in a demo account, but I feel it would be more considerate to newer traders to use a lower figure as a starting balance.

    eToro Demo Account

    Trading Platforms

     
    The pride of eToro is its proprietary trading platform, with its clean user interface and social trading tools CopyTrader and CopyPortfolios.

     The web-based trading platform supports social trading well, and ProCharts allows manual traders to analyze markets. It does lack advanced features, and algorithmic and API trading are not available. I want to stress the difference between social and algorithmic trading, which are not interchangeable, where the absence of the MT4 trading platform is notable.

    eToro offers third-party analytics from TipRanks, a valuable tool for equity traders. Beginner traders, particularly millennials and GenZ who desire social trading, have a platform catering to their needs. eToro focuses on social trading, but I do find a minor inconvenience in how clicking on an asset opens the feed section instead of the chart. Also, ProCharts requires a separate login and is unavailable from the trading platform, where traders have no analytics tools.

    Overview of Trading Platforms

    Platform Languages
      • English
      • Swedish
      • Thai
      • Dutch
      • Portuguese
      • Russian
      • Chinese
      • German
      • French
      • Italian
      • Arabic
      • Spanish
      • Polish
  • OS Compatibility
      • Mac
      • Windows
      • Linux
      • Mobile
      • Web
      • iPhone
      • iPad
  • Charting Package
    Scalping
    Hedging
    Mobile Alerts
    E-mail Alerts
    Guaranteed Limit Orders
    Guaranteed Execution
    One-click Execution
    OCO Orders
    Interest on Margin
    Web-based Trading
    Mobile Trading
    MT4
    MT5
    cTrader
    Proprietary Platform
    Automated Trading
    Guaranteed Stop Loss

    Unique Features

    The three unique features I found are CopyTrader, CopyPortfolios, and the missing MT4 trading platform. The first two offer social traders the tools they require and using them requires just a few clicks. Some of the thematic CopyPortfolios are from third-party financial firms, and others remain managed by eToro. Portfolios from traders in the popular investor program are equally available. As an algorithmic trader, I cannot ignore the absence of the MT4 trading platform.

    Research and Education

    While eToro does not offer in-house research, it provides analytics from third-party TipRanks, which I find an excellent choice. There is so much quality research online that the absence of an in-house team is not a negative.

    One of the developments I value most at eToro is its new eToro Academy. Until recently, eToro did not offer beginner traders any assistance, relying solely on its community. It now provides a well-structured platform consisting of videos, webinars, and guides. I rate eToro Academy as one of the best educational tools and recommend beginner traders take full advantage of it.

    eToro Demo Account

    Customer Support

    Support Hours24/5
    Customer Supportemail-support chat-support
    Website Languages
      • English
      • Norwegian
      • Finnish
      • Other
      • Polish
      • Swedish
      • Thai
      • Malay
      • Dutch
      • Portuguese
      • Russian
      • Chinese
      • German
      • Turkish
      • French
      • Italian
      • Arabic
      • Spanish
      • Danish
  • Customer service is available 24/5, but live chat is only available for existing users. Visitors with questions for eToro may open a support ticket via the website. An e-mail and phone number are available for clients for the eToro Australian subsidiary. The Help Center attempts to answer most questions. I think most clients may not require customer support, but eToro remains readily available for existing clients.

    eToro Customer Support

    eToro Customer Support

     

    Bonuses and Promotions

    There is no deposit bonus or volume-based cash rebate program at eToro, but a Popular Investor Program exists. It rewards traders for having followers, assets under management, and minimum average monthly equity. Most traders will qualify for payouts between $400 and $800. Terms and conditions apply, and I urge all interested traders to read and understand them carefully before getting involved.

    The five-tier eToro club offers additional benefits, including the absence of currency conversion fees and free withdrawals. The lowest tier requires an account balance of $5,000, while the most beneficial rewards are available above $25,000.

    eToro Popular Investor Program

    Opening an Account

    Opening an account at eToro only requires a username, valid e-mail, and password. Traders may use their Facebook or Google ID to register. Account verification remains a mandatory step, satisfied by ending a copy of an ID and one proof of residency document. I find the process very efficient and hassle-free, ranking it among the best industry wide.

    Minimum Deposit

    The minimum deposit at eToro ranges between $50 and $10,000, depending on the geographic location. Most follow-on deposits can be as low as $50.

    Payment Methods

    eToro offers bank wires, credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort, Trustly. Please note that not all options are available to all traders.

    Accepted Countries

    eToro accepts traders from the UK, Australia, Malaysia, the Philippines, and the Netherlands. It also caters to US traders from its US-based subsidiary, which presently only offers cryptocurrency trading.

    eToro Account Opening Form

    Deposits and Withdrawals

    I like the range of deposit and withdrawal methods at eToro but dislike the unnecessary internal $5 withdrawal cost. Traders will also pay third-party processor costs and potential currency conversion fees. The withdrawal process follows well-established industry practices.

    eToro Internal Withdrawal Fee

     

    Bottom Line

    I like the trading experience at eToro for social trading, where it delivers a competitive toolset and an active community, ranking it among the leaders in this category. I think eToro is best for millennial and GenZ traders, who prefer using their mobile phones to copy other traders. The proprietary trading platform features a clean interface, and analyzing assets is simplified. eToro delivers an exceptionable educational platform I recommend for beginner traders.

    eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs.

    Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.

    Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
    Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

    Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

    eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

    eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. OTC Derivatives are leveraged financial products and considered speculative. OTC Derivatives may not be suitable for all investors. You don't own the underlying assets. You risk losing all of your investment. This information is general only and has been prepared without taking your objectives, financial situation or needs into account. Consider our Product Disclosure Statement

     

    eToro Broker Alternatives & Comparisons

    FAQs

    Is eToro trustworthy?

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    eToro ranks among the most trusted brokers and will become a publicly traded company.

    Can you make money with eToro?

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    While traders can make money on eToro, 68% of traders lose money. Despite the high percentage, it ranks among the best industry wide.

    Is eToro really free?

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    eToro does not charge administration fees, but traders will pay a range of costs, which are a little on the high side but may be a worthwhile cost given the several benefits offered by eToro in other areas.

    About the Author

    DailyForex.com Team
    The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.