Bonus

N/A

Regulation

CySEC

Mobile

Yes

Instruments

Forex, Stocks, Indices, Cryptos, Commodities

Website

www.etoro.com
Open Account

eToro Review

The eToro brand is already extremely well known to the online forex trading industry, despite the fact that the broker only made its debut in 2007. The firm is regarded by many in the industry as the pioneering broker that helped change the way online traders would trade in the forex market.

eToro managed this with the introduction of their OpenBook social trading platform in 2010. OpenBook was the first of its kind in the industry, and it allowed traders to harness the collective wisdom of the online trading community in identifying profitable trading opportunities.

Since then, the concept of social trading has gained tremendous popularity among retail traders around the world. One of the key reasons is the fact that social trading helps to remove the hurdles or barriers to the online financial markets. Inexperienced traders leveraging on the skills and knowledge of their more experienced peers are now able to achieve higher profitability without having to go through a long and expensive learning curve.

BROKER LOCATIONS & ETORO REGULATION

The eToro brokering brand is managed by a subsidiary of the eToro group of companies. UK trading accounts fall within the ambit of eToro (UK) Ltd, while the trading needs of those based in Australia are serviced by a different subsidiary company called eToro AUS Capital Pty Ltd.

The needs of traders based in Europe and the rest of the world are catered to by eToro (Europe) Ltd. Meanwhile, USA traders are serviced by yet another different subsidiary called eToro USA LLC. eToro also recently launched eToroX, which is a digital cryptoasset exchange and wallet.

Each of the above-mentioned companies is regulated by the respective regulatory agency in charge of the oversight of the financial industry in its area of jurisdiction. eToro (UK) Ltd comes under the regulatory oversight of the UK’s Financial Conduct Authority (FCA). The company is authorized and licensed by the FCA under the firm reference number 583263.

eToro AUS Capital Pty Ltd is regulated and authorized by the Australian Securities & Investments Commission (ASIC), under the Australian Financial Services License (AFSL) 491139. eToro USA LLC is an entity registered under FinCEN within the scope of a Money Services Business, while eToro (Europe) Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC). The broker is authorized under the CIF license number 109/10.

Traders under eToro (UK) Ltd and eToro (Europe) Ltd receive the added benefit of having their funds covered under an investor compensation scheme. In the UK, investments are protected under the Financial Services Compensation Scheme (FSCS). The investments of traders who are trading under eToro (Europe) Ltd are protected under the Investor Compensation Scheme (ICS) managed by CySEC.

In the event of eToro becoming insolvent, traders can claim compensation up to a maximum amount of £50,000 under the FSCS and €20,000 under the ICS.

Having regulated entities of the FCA and CySEC within its structure renders eToro compliant with the framework established by the Markets in Financial Instruments Derivatives (MiFID). Under this framework, brokers such as eToro have to meet certain regulatory standards, such as having sufficient operating capital, being transparent with their operations, and providing adequate security with respect to the money invested by their clients.

In addition, these brokers are also required to submit regular audited reports to ensure adherence to the regulatory requirements.

ETORO FINANCIAL INSTRUMENTS

eToro offers 6 key types of financial instruments. These are currency pairs, commodities, cryptocurrencies, market indices, stocks, and ETFs. These financial instruments are all available for trading as CFDs on eToro. Below is the list of assets that are listed on eToro’s website:

Commodities

  • Copper 2 Pips
  • GOLD 45 Pips
  • Natural Gas 10 Pips
  • OIL 5 Pips
  • Platinum 15 Pips
  • Silver 5 Pips

Cryptocurrencies

  • ADA 2.90 %
  • BCH 1.90 %
  • BNB 2.45 %
  • BTC 0.75 %
  • BTCEOS 2.90 %
  • BTCXLM 2.45 %
  • DASH 2.90 %
  • EOS 2.90 %
  • EOSXLM 2.90 %
  • ETC 1.90 %
  • ETHBTC 1.90 %
  • ETHEOS 2.90 %
  • ETHEREUM 1.90 %
  • ETHXLM 2.45 %
  • LTC 1.90 %
  • NEO 1.90 %
  • XLM 2.45 %
  • XRP 2.45 %
  • XRPJPY 2.45 %
  • ZEC 3.45 %

Forex

  • AUDCAD 4 Pips
  • AUDCHF 4 Pips
  • AUDJPY 5 Pips
  • AUDNZD 4 Pips
  • AUDUSD 1 Pips
  • CADCHF 4 Pips
  • CADJPY 6 Pips
  • CHFHUF 30 Pips
  • CHFJPY 6 Pips
  • EURAUD 7 Pips
  • EURCAD 7 Pips
  • EURCHF 5 Pips
  • EURGBP 4 Pips
  • EURHUF 20 Pips
  • EURJPY 4 Pips
  • EURNOK 20 Pips
  • EURNZD 4 Pips
  • EURPLN 30 Pips
  • EURSEK 30 Pips
  • EURUSD 3 Pips
  • GBPAUD 4 Pips
  • GBPCAD 4 Pips
  • GBPCHF 4 Pips
  • GBPHUF 30 Pips
  • GBPJPY 6 Pips
  • GBPNZD 4 Pips
  • GBPUSD 4 Pips
  • NOKSEK 20 Pips
  • NZDCAD 4 Pips
  • NZDCHF 4 Pips
  • NZDJPY 4 Pips
  • NZDUSD 5 Pips
  • USDCAD 3 Pips
  • USDCHF 3 Pips
  • USDCNH 10 Pips
  • USDHKD 5 Pips
  • USDHUF 20 Pips
  • USDJPY 2 Pips
  • USDMXN 20 Pips
  • USDNOK 20 Pips
  • USDPLN 20 Pips
  • USDRUB 3 Pips
  • USDSEK 20 Pips
  • USDSGD 3 Pips
  • USDTRY 50 Pips
  • USDZAR 50 Pips
  • ZARJPY 8 Pips

Stocks & ETFs (Stocks and ETFs traded on the listed exchanges below)

  • Bolsa de Madrid
  • Borsa Italiana
  • Chicago Board Options Exchange
  • Copenhagen
  • Euronext Paris
  • Frankfurt
  • Helsinki
  • Hong Kong Stock Exchange
  • LSE
  • LSE – Russian GDRs
  • NASDAQ
  • NYSE
  • Oslo
  • SIX
  • Stockholm
  • Toronto Stock Exchange
  • US STOCKS

Indices

  • AUS200 100 Pips
  • China A50 Index 1200 Pips
  • DJ30 600 Pips
  • ESP35 700 Pips
  • EUSTX50 300 Pips
  • FRA40 100 Pips
  • GER30 200 Pips
  • HKG50 700 Pips
  • JPN225 1000 Pips
  • NSDQ100 240 Pips
  • SPX500 75 Pips
  • UK100 150 Pips
  • US Dollar Index 4 Pips

ETORO SPREADS, LEVERAGE, & ACCOUNT CONDITIONS

At eToro, there is no commission charged on trades executed. Instead, the broker imposes a small spread on the BID/ASK price that traders receive on their trading platform. Still, it should be noted that the spreads which eToro charges are higher than the average spreads charged by other leading brokers. For example, for the benchmark EUR/USD currency spread, eToro charges a spread of 3 pips.

For trading accounts, eToro only offers 2 types of trading accounts, these being a standard account and a professional trading account. eToro requires a minimum deposit of $200 to $500 to open a live trading account. The actual amount depends on the locality of the account holder.

The main difference between the standard account and the professional trading account is the leverage ratio. For the standard trading account, the default leverage ratio is 1:30. The leverage ratio is as high as 1:400 for the professional trading account.

While the standard trading account allows traders to conduct copy trading or independent trading, it lacks some of the extra benefits which professional traders will get to enjoy with their trading account.

For starters, the professional trading account comes with a credit line which the account holder can utilize in times of need. In addition, the professional trader will get enhanced customer support and a personal manager assigned to them. Finally, eToro does not charge any withdrawal fee on withdrawals made through the professional trading account.

ETORO Deposits & withdrawals

The deposit methods supported by eToro are listed below:

  • Bank Wire Transfer
  • Credit Card (Visa, MasterCard, Diners Club, Maestro*)
  • E-wallet (PayPal, Skrill, Neteller, Webmoney)
  • Giropay
  • Yandex Money

The same methods listed for deposits are also available to traders when they make a withdrawal request. Please note that the minimum withdrawal amount is $50. In addition, eToro imposes a withdrawal fee of $25 for each withdrawal.

ETORO BONUS

Due to regulatory requirements imposed by CySEC, eToro does not offer any kind of bonuses or promotional offers to its clients.

ETORO PLATFORM

The CopyTrader™ trading platform offered by eToro is one of a kind in the online forex trading industry. This is due to the fact that it was developed in-house by eToro and is a proprietary platform.

CopyTrader is web based and, like its predecessor OpenBook, it allows users to copy the trades of other traders. However, the CopyTrader™ platform has one additional feature over OpenBook. It allows for independent trading on the same trading screen without traders having to log on to another separate platform.

ETORO MOBILE APPS

A mobile-optimized version of the famous eToro CopyTrader™ trading platform is also available free of charge for download from the Google Play Store and the Apple App Store. These mobile apps enable traders to have more control over their trading activities, as they can literally trade from anywhere in the world.

ETORO CUSTOMER SERVICE DEPARTMENT

To support its global clientele well, eToro has made its website available in 20 different languages. Traders at eToro can also access several methods to contact the support team. While live chat is not available among the communication channels offered by eToro, customers can get in touch via email, fax, and telephone.

ETORO EDUCATION & MARKET INFORMATION

In terms of educational resources, eToro has materials in 3 different formats: live webinars, eCourses, and trading videos. In addition, traders are provided with a free daily market analysis compiled by eToro’s in-house analysts. There is also an economic calendar which eToro’s traders can access to help them plan their trades accordingly.

ETORO REVIEW VERDICT

Pros

  • Regulated broker
  • Intuitive and user-friendly trading platform
  • Innovative products
  • Social trading supported

Cons

  • No live chat support
  • Uncompetitive spreads 

FAQ

Is eToro a scam?

No, eToro is a regulated broker that was established in 2007.

How does eToro protect my trading capital?

eToro protects its clients’ funds by being a member of the UK’s Financial Services Compensation Scheme and Cyprus’ Investors Compensation Scheme.

Does eToro provide an ECN account?

No, eToro does not any ECN trading facilities.

Was the information useful?
eToro Review
3.9 (77.5%) 8 votes

Do you have any experience with this broker? You can share it here:

Your email address will not be published. Required fields are marked *

Months