eToro is known as an outstanding broker with an offering that is different from that of its main competitors. It is best known for its social trading, which includes the trading of stocks, cryptoassets, commodities, currencies, ETFs, and indices.
The broker is regulated by ASIC, FCA, and CySEC. These are stringent regulators and investors can rest assured they are working with a reputable broker when dealing with these bodies.
There is a very small minimum deposit to get started with eToro. The fact that this is copy trading means it appeals to traders of all experience levels. The educational tools further appeal to beginners while advanced traders may boost profits with eToro by becoming a Popular Investor that other traders can copy.
Continue exploring this eToro review 2020 to take a closer look at this broker, including fees, account opening and more.
- Best in its class for social trading
- Cryptocurrencies, ETFs, stocks, indices, forex, & commodities to trade
- Regulated by ASIC, FCA, and CySEC
- Simple account opening means you can start trading quickly
- USD is the only base currency accepted for trading
- Minimal customization of the platform
Our eToro broker review demonstrates that the broker has more than a decade of experience and is unarguably the world leader for social trading. The broker began in 2007 with three founders who had the goal of increasing the accessibility of trading to the everyman.
The project began as a downloadable FX trading platform before they launched the WebTrader in 2009. eToro then launched OpenBook, the first social trading platform in the world, in 2010 and its mobile app in 2012. Stocks were then added in 2013.
In 2015, eToro combined OpenBook with the WebTrader and it added CopyPortfolios the following year. eToro then added cryptocurrencies in 2017, bringing their services to the US market the following year, an unusual feat for a European broker.
eToro is based in Cyprus, with additional offices in London, England, Sydney, Australia, and New Jersey. The broker’s driving vision is to make the global markets accessible to everyone while offering transparent, simple investments.
eToro claims to strive to make transactions simple and straightforward and they include as many assets as possible, aiming to meet all financial needs of all investor profiles from one single account.
eToro regulation and licensing
As mentioned earlier in this eToro review 2020, eToro is regulated and authorized by the FCA, ASIC, and CySEC. The broker services come from eToro (Europe) Ltd., which is regulated by the Cyprus Securities & Exchange Commission and is a registered Cypriot Investment Firm (CIF). This includes a cross-border license for within and outside of the European Economic Area.
eToro (UK) Ltd. operates in the United Kingdom and the Financial Conduct Authority (FCA) regulates and authorizes it. This includes a cross-border license for operations in the European Economic Area.
eToro UK and eToro Europe comply with and operate under the MiFID, Markets in Financial Instruments Directive.
eToro AUS Capital Pty Ltd. operates in Australia under the regulation of the Corporations Act (Commonwealth) with an Australian Financial Services License (AFSL) provided by the Australian Securities and Investments Commission (ASIC).
In the United States, eToro USA is run by eToro USA LLC, a Money Services Business registered with FinCEN.
To fulfill compliance measures with regards to regulation, eToro must always have enough funds to meet the European Capital Requirements Regulation’s minimum capital adequacy ratios. Client funds are always stored in segregated accounts, with internal and external supervision.
Opening an account with eToro
In creating this eToro forex broker review, our experts confirmed that it is simple to open an account with eToro and the minimum deposit is highly accessible to all traders.
What is the minimum deposit at eToro?
Residents of the United States and Australia must meet a minimum first-time deposit of $50, which is highly accessible and competitive compared to the other brokers. Residents of other jurisdictions have a slightly higher but still accessible first-time minimum deposit of $200.
Israeli residents have a minimum deposit of $10,000, which is less accessible. Most investors, however, will want to deposit at least that much to get the most from the platform.
How to open an account at eToro
Opening an account is simple and can be done online. You will need to fill out a registration form and upload verification documents.
- Step 1: Click the Join Now button in the middle of the screen
- Step 2: Fill in your desired username and password along with your email address and phone number. Alternatively, you can register with Google or Facebook.
- Step 4: Select Create Account.
- Step 5: Verify your phone number by entering the code in the SMS from eToro.
- Step 6: Upload required documentation.
The following information is necessary to open an eToro online forex broker account.
- Personal information – eToro needs your full name, a photograph on a government-issued ID, your phone number, your home address, and email address.
- Regulatory information – eToro does not typically require any regulatory information to open an account.
- Documentation – You must upload a government-issued ID with a photograph and proof of address. The government-issued ID can serve as the proof of address if it has an accurate address listed. Otherwise, you will need a separate document, such as a bank statement or utility bill from the last six months.
There is only one main account type available from eToro for all users, although there is the option to choose from a retail or a professional account. Most people looking at this review of the eToro forex broker will open retail client accounts, and this is the default.
Professional clients waive certain protections, including the Financial Ombudsman Service and the Investor Compensation Fund. They also waive negative balance protection but can enjoy leverage of up to 1:400. Professional clients must meet criteria to show their experience in trading, given the higher risks associated with this account type.
High-volume traders can also join the eToro Club, which offers additional services. The Silver Tier has access to the market webcasts and the Gold Tier adds market analysis updates, a dedicated account manager, and an eToro credit line. The Platinum Tier removes withdrawal fees and adds an eToro debit card and a private trading signals platform.
The Platinum+ Tier adds a Financial Times subscription, exclusive access, and an on-demand personal analyst. The Diamond Tier removes exchange fees and provides access to the eToro Diamond Gala Event.
Islamic accounts are available. To open an Islamic account, you must first open a real account and deposit at least $1,000. After verifying your account, you can contact eToro customer service to switch to an Islamic account.
There is also an eToro free demo trading account. This is immediately accessible after registration, even before you submit your verification documents. The eToro demo account is a perfect way to see if this online forex broker is the right fit for your trading needs.
eToro trading costs
You can easily review eToro online broker fees and trading costs as the broker is highly transparent in this respect.
Trading Fees* Type of Fee Cost Minimum Order Size (lots per trade) $25 Average Spread USDEUR (pips) 3 pips Commission (%) 0% Commission on Islamic Accounts (%) 0% Non-Trading Fees Type of Fee Yes or No Inactivity Fees Yes Deposit Fees No Withdrawal Fees Yes
*Based on standard account type.
The minimum trade size is based on exposure (leverage times the invested amount). For those who have registered accounts after April 2, 2017, or later and are not residents of South East Asia, China, India, or Russia, these minimums are $5 for commission-free stocks, $25 for cryptocurrencies, $500 for stocks and ETFs, $2,000 for commodities and indices, and $4,000 for cryptocurrencies.
Trading fees at eToro come in the form of spreads, as the broker does not charge commissions. The spreads are slightly higher when compared to some other brokers, but this comes with peace of mind and the availability of copy trading.
There are overnight fees, as is the industry standard. eToro does not charge overnight or weekend fees for CFD positions, including leveraged positions and short orders.
There are no fees for deposits at eToro. However, there are conversion fees for funding to and from accounts in a currency other than USD. eToro charges $25 for a withdrawal, with a minimum withdrawal amount of $50. Conversion fees may also apply.
This eToro broker review cautions readers that eToro does charge inactivity fees, but you can avoid them simply by logging into your account at least once every 12 months. The inactivity fee is $10 per month and it is automatically deducted from your available balance. eToro does not charge the inactivity fee if you do not have available funds and it does not close open positions to cover the fee. The fee stops as soon as you log in.
eToro payment methods
With multiple deposit and withdrawal methods, this review of the eToro forex broker finds that most clients should have no problem depositing funds. Wire transfers are supported and take four to seven business days to process. eToro supports deposits via PayPal, Neteller, Skrill, and WebMoney as the available e-wallets. These deposits are completed within minutes.
Deposits via credit or debit cards should appear within minutes. You can deposit via Visa, MasterCard, Maestro, or Diners Club. GiroPay allows for near-instant funding.
Unverified accounts have a maximum deposit of $2,250. Maximum deposits for verified accounts depend on the method and range from $10,000 to $100,000,000.
eToro processes withdrawal requests within one business day. Withdrawals via WebMoney, Skrill Limited UK, PayPal, Neteller, and China Union Pay take one to two working days. Withdrawals via wire transfers or credit/debit cards take three to eight working days.
eToro trading bonuses
A review of the eToro forex broker’s bonus policy showed that it does not offer any trading bonuses. This is due to a key requirement of the regulatory bodies that eToro is a member of.
There is a straightforward referral bonus that rewards both you and the person you referred to. eToro also has a partner program for affiliates who receive commissions for introducing clients. There is also the ability to create a CopyPortfolio or Top Trader Portfolio to gain commissions for all the followers that copy your trades.
eToro trading platforms
Instead of relying on a familiar external platform, eToro offers its proprietary platform, which allows for the seamless integration of copy trading. This eToro forex broker review has found the platform to be intuitive to use and easily accessible, as it is available as a WebTrader or as a mobile application download for iOS and Android. This is easily among the best forex trading platforms for social trading.
The platform includes low, transparent fees and more than 2,000 assets for trading. There are features for both novices and experts, along with social trading to allow for the wisdom of the crowd. Novices will appreciate the ready-made CopyPortfolios, while advanced traders will appreciate the ability to create their portfolios.
Scalping is not allowed.
What is the execution policy at eToro?
Buy and sell orders on eToro are executed in real-time. The company aims to obtain the best possible execution, but slippage may occur. eToro does act as a counterparty and market maker, but offers extensive documentation on policies, including detailed PDFs about “Order Execution and Order Handling Policy” and “Best Execution and Order Handling Policy.”
Traders can have a maximum of 2,000 trades open in their eToro account at a time.
eToro markets and products
This eToro review outlines that the broker offers access to currency pairs, cryptocurrencies, indices, stocks, ETFs, and commodities.
eToro Markets and Products Instrument Number Currency Pairs 47 Indices 13 Cryptocurrencies 17 Stocks More than 1,500 ETFs 145 Commodities 13
eToro uses CFDs on its trading platform, as this allows for short trades and leveraged orders. Some asset classes also offer direct asset ownership, including cryptoassets and stocks.
eToro offers 47 currency pairs, including majors, minors, and exotics. Currencies are always traded as CFDs on eToro, so there is no need to buy the underlying asset.
Indices are available on eToro in the form of CFDs, allowing investors to go long or short and use leverage.
This eToro review 2020 highlights that investments in cryptocurrencies are not leveraged. With crypto investments, eToro purchases and holds the underlying asset on your behalf.
There more than 1,500 stocks available to trade on eToro, including 0 percent commission stocks. Stocks can include dividend payouts. There is access to 17 exchanges, including Amsterdam, Brussels, Copenhagen, Frankfurt, Helsinki, Hong Kong, Lisbon, London, Madrid, Milan, New York, New York Tech, Oslo, Paris, Saudi Arabia, Stockholm, and Zurich.
Exchange-traded funds are created by financial experts and allow you to invest in the underlying asset, with the ETF purchased and held in your name. Alternatively, eToro grants access to trading through CFDs of ETFs, allowing for the use of leverage, going short, and fractional shares.
Commodities have physical representations in the real world, making them a unique investment. On eToro, commodities are only available as CFDs, preventing the need to buy the underlying asset and allowing you to use leverage, fractional ownership, and go short.
Social trading is an important part of eToro and forms a key component for any eToro forex broker review. The CopyTrader program lets investors copy the trades of Popular Investors. Popular Investors receive commissions for successful trades.
There are also CopyPortfolios, both Market Portfolios or Top Trader Portfolios. These follow the same social trading principles but are portfolios instead of individual assets.
A review of the eToro forex broker’s mobile compatibility shows that it easily appeals to those who trade on the go, especially those who plan on using the social trading features. The trading site loads nicely on mobile devices and there are downloadable applications for both Android and iOS devices.
After using the mobile applications, investors have positively reviewed eToro, pointing out that the simplicity of the platform makes it even more appealing for use on small mobile devices.
Traders who use charts as part of their trading strategy will still find the mobile applications useful, although charts and graphs are always harder to view on small devices.
eToro Forex broker offers fewer research tools than some other brokers, but most clients will not find the need for more as they will mostly use the broker for social trading.
eToro has an earnings report calendar, letting traders know when they should pay attention to certain assets due to important announcements regarding earnings.
Clients who are part of the eToro Club also receive access to in-depth market webcasts that provide useful trading insights. eToro Club members also receive other resources, including market analysis updates and access to live webcasts.
Although you will not find a streaming market news section, there are market news stories uploaded on the eToro blog, providing a source of news. These include daily updates with details about various movements in the market and explanations.
Additionally, eToro Club Platinum Tier or higher members can access a private platform for trading signals. Platinum+ and higher tiers additionally receive access to a personal analyst on demand for professional advice whenever they may require it.
Education and training
Our eToro review team found there to be a somewhat limited educational section, but there is enough for most traders.
The Complete Guide to Fintech includes an introduction and 18 chapters, spanning topics for all skill levels of traders. It includes a glossary and covers topics such as copy trading, trading specific assets, allocating assets, and the fundamentals of research.
The eToro Learning Lab is a very useful resource worth mentioning in any review of the eToro forex broker. This section of eToro provides educational videos for clients. In the future, eToro will be adding sections dedicated to beginners and professionals, which should further extend the usefulness of these educational videos.
The live webcasts available to eToro Club members also provide additional education on a range of varying topics. Beginners, in particular, will find sufficient educational information to begin their trading journey. Both the Complete Guide to Fintech and many of the videos are appropriate for beginners. The Help Center also includes information that beginners may appreciate.
eToro customer support
eToro does not have a readily accessible number for phone support, but you can contact support via live chat or filling out a ticket. The live chat provides a strong service. Those who prefer in-person attention can visit the offices in Hoboken, New Jersey, USA; London, England; Limassol, Cyprus; and Sydney.
The Help Center has the answers to most questions regarding eToro and trading in general. It also features a convenient search bar and is divided by topics.
The live chat has a fast response time and provides relevant answers. It is hidden somewhat on the website, but you can find it by scrolling down inside the Help Center. The web-based ticketing system is equally fast and provides additional opportunities to share details about your issue.
eToro – Our verdict
After gathering information for this eToro review 2020, we can confidently recommend this broker. eToro offers intuitive forex trading platforms and is the industry leader in social trading. Novice traders will find the educational information they need and appreciate the hands-off approach to social trading. Experienced traders will appreciate the ability to become a Popular Investor and further supplement their trading income.
With licenses from three regulatory bodies across three regions, eToro is trustworthy in terms of protection and transparency. Signing up is quick and easy, particularly when using the option of linking your Google or Facebook account.
It is incredibly intuitive to begin using eToro and with a demo account available, there is nothing to lose from opening an account. If you want to try copy trading then open an account with eToro!