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eToro Review

  • Regulated by: Financial Conduct Authority, CySEC, ASIC
  • Used by: 6,000,000+ traders
  • Trust Rating: AAA
Open eToro's Website

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview

eToro is a leading social trading platform for all the major markets including stocks, forex and cryptocurrencies. eToro created the CopyTrader™ system which allows individuals to easily copy the trades of other successful traders. With their addition of CopyFunds, individuals can easily set up a diversified portfolio with their CopyPortfolios™ service.

To open a live account, you’ll need a minimum deposit of at least $200. Alternatively, eToro offers a demo account that you can use to practice and familiarise yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 583263), CySEC (Licence: 109/10), and ASIC (AFSL #491139). eToro puts all client funds in a segregated bank account and uses tier-1 banks for this. eToro has been established since 2006, and have a head office in Cyprus, UK.

Before we dive into some of the more detailed aspects of eToro’s spreads, fees, platforms and trading features, you may want to open eToro’s website in a new tab by clicking the button below in order to see the latest information directly from eToro.

Open a demo account Visit eToro

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

eToro screenshot

PROS

  • Used by 6,000,000+ traders
  • Established in 2006
  • Regulated by Financial Conduct Authority, CySEC, ASIC
  • Min. deposit from $200

CONS

What are eToro's spreads & fees?

Like most brokers, eToro takes a fee from the spread, which is the difference between the buy and sell price of an instrument.

The spreads displayed below are based on the minimum fixed spreads listed on eToro’s website. The colour bars show how competitive eToro' spreads are in comparison to other popular brokers featured on BrokerNotes.

eToro variable spread is not available. If you believe this is incorrect please fill in our form

Spreads are dynamic and are for informational purposes only. Last updated: June 06, 2018.

As you can see, eToro's minimum spread for trading EUR/USD is 3.0 pips - which is relatively high compared to average EUR/USD spread of 0.82 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with eToro vs. similar brokers.

See all Spreads
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How much does eToro charge to trade 1 lot of EUR/USD?

If you were to buy one standard lot of EUR/USD (100k units) with eToro at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $N/A. Here’s a rough breakdown of the fees and how this compares against XTB & City Index.

eToro XTB City Index
Spread from: N/A $ 2.00 $ 5.00
Typical overnight fee: N/A $ 7.94 $ 20.60
Commission: N/A 0 0
Total cost of a 100k trade: N/A $ 9.94 $ 25.6
Visit eToro Visit XTB Visit City Index

All fees/prices are for informational purposes and are subject to change. Last updated: 09/03/2018. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

General Fees

  • eToro does charge inactivity fees
  • eToro withdrawal fees varies on payment method

Overnight fees & swap rates

When you hold a position overnight, it is usually subject to overnight interest which you must pay to your brokerage (sometimes called a rollover fee or swap rate).

  • The rollover fee for long positions on EUR/USD is -$6.00
  • The rollover fee for short positions on EUR/USD is $0

Commissions

  • eToro doesn’t charge commission on CFD shares

What can you trade with eToro?

eToro offers over 1,083 different instruments to trade, including over 47 currency pairs. We’ve summarised all of the different types of instruments offered by eToro below, along with the instruments offered by XTB and City Index for comparison.

FX / Currencies eToro XTB City Index
# of forex pairs offered 47 48 84
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes Yes
Exotic forex pairs Yes Yes Yes
Cryptocurrencies Yes Yes Yes
Commodity CFDs eToro XTB City Index
# of commodities offered 6 21 26
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural Yes Yes Yes
Index & Stock CFDs eToro XTB City Index
# of Stocks offered 957 1606 4500
UK Shares Yes Yes Yes
US Shares Yes Yes Yes
German Shares Yes Yes Yes
Japanese Shares Yes Yes Yes
See eToro's InstrumentsSee XTB's InstrumentsSee City Index's Instruments
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What’s the eToro trading experience like?

1) Platforms and apps

eToro offer a user-friendly custom trading platform, available as both a downloadable program or as a browser based WebTrader. If you are looking for a MetaTrader broker, see our comparison of MT4 brokers here

eToro Screenshot See eToro 's Platforms

eToro also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

See eToro 's platforms
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Trading Features:

  • Offers STP
  • Low min deposit

Accounts offered:

  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account

Still not sure?

Open a practice account & learn to trade

2) Executing Trades

eToro allows you to execute a minimum trade of $25. This may vary depending on the account you open. eToro allows you to execute a maximum trade of 20% of equity. As eToro offer STP execution, you can expect tighter spreads with more transparency over the price you‘re paying to execute your trades.

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments. You can see the latest margin requirements on their website.

Finally, we’ve listed some of the popular funding methods that eToro offers its traders on the right.

Funding methods:

  • Credit cards
  • Bank Transfer
  • PayPal
  • Skrill
  • Payoneer
  • Neteller

3) Client support

eToro support a wide range of languages including English, German, Spanish, French, and Italian.

eToro has a BrokerNotes triple AAA support rating because they offer a wide range of languages and support options.

4) What you’ll need to open an account with eToro

As eToro is regulated by Financial Conduct Authority, CySEC, ASIC, every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While you might be able to explore eToro’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with eToro you can visit their website here.

What is eToro’s Platform?

The eToro platform is a combined social trading application and web trading platform. First developed in 2011, social trading on eToro was initially performed using the plaform and CopyTrader software. Plaform was used to search for traders to follow, while the CopyTrader was used to automatically copy their trades into the followers’ accounts. Both plaform and CopyTrader are proprietary software products of eToro.

In 2015, eToro made the process of searching for top traders to follow as well as copying their trades much easier. Plaform and CopyTrader were integrated into a single platform, the eToro Platform, which is the current platform offered by eToro today.

The web-based trading platform is built on JAVA technology and is accessible from any computer with an internet connection. It is a web-based application and no download is required. The platform allows the trader to access the platform from any of the popular web browsers like Chrome, Mozilla, Firefox and Internet Explorer.

The platform contains a complete suite of technical indicators and interactive charts, and can also be used to trade selected stock indices, crude oil, cryptocurrencies and gold. eToro’s platform is synchronised with eToro’s plaform social trading platform, enabling trader’s to copy trades from successful traders listed on the leaderboard.

Trading on the eToro platform is exclusively under market maker conditions, and trades are executed by a dealing desk.

What mobile apps do eToro offer?

eToro offers a mobile trading application for iOS devices as well as Android phones and tablets. The app can be downloaded from the respective app stores (iTunes and Google Play store).

etoro-apps

What is eToro CopyPortfolios?

The eToro CopyPortfolios program is a managed portfolio account system where traders can simply put funds in and have a top trader make all the trading decisions. All a trader needs to do to participate is to fund the trading account, find a CopyPortfolios that fits their investment objectives and strategy, and click to join the desired portfolio.

Traders have the choice to trade in two types of CopyPortfolios:

  1. Top Trader CopyPortfolios, made up of eToro’s best performing and most sustainable traders.
  2. Market CopyPortfolios where assets comprising stocks, commodities or ETFs are bundled together under a chosen trading strategy.

With CopyPortfolios, traders can get a managed portfolio by simply copying a CopyPortfolios that makes sense for them.

Frequently asked questions about eToro

The following section details some useful details about trading on eToro:

Do eToro charge a commission?

eToro do not have commission charges on trading, instead have a mark up on the spread. Example trading fees for popular instruments with eToro:

1.5% for Bitcoin
5% for Bitcoin cash
0.09% spread per side for Stocks and ETFs
2 pips for Copper
45 pips for gold
3 pips for EUR/USD
6 pips for GBP/JPY
150 pips for UK100
600 pips for DJ30

What are eToro’s trading hours?

The eToro platform is open for trading 24 hours a day, 5 days a week (Monday to Friday) from 9pm GMT on Sunday to 9pm GMT on Friday.

What leverage and margin do eToro offer?

The new leverage rate for retail investors are as follows:

  • 30:1 for major currency pairs (such as EUR/USD)
  • 20:1 for non-major currency pairs (such as NZD/USD), gold and major indices
  • 10:1 for commodities with the exception of gold and non-major equity indices
  • 5:1 for CFD stocks
  • 2:1 for cryptocurrency CFD

What’s the minimum and maximum I can trade on eToro?

The minimum trade contract size on eToro is 1,000 units of the base currency, which is equivalent to a lot size of 0.01 lots for currencies, 10 units for commodities and 1 unit for stock indices. There is no limit to the maximum contract size that can be traded.

What is the market depth offered by eToro?

The market dealing model provided by eToro is market making, so market depth is Level I. However, the eToro platform allows a trader to view what other traders on the eToro social medium are doing in the market, and trades of a successful trader can then be copied using eToro’s CopyTrader facility.

What risk control features do eToro offer?

Even though there is the ability to adjust leverage on the eToro platform, the company now has a responsible trading policy that limits the total exposure of a trader in the market to 50% and sets the below leverage limitations :
30:1 for major currency pairs (such as EUR/USD)
20:1 for non-major currency pairs (such as NZD/USD), gold and major indices
10:1 for commodities with the exception of gold and non-major equity indices
5:1 for CFD stocks
2:1 for cryptocurrency CFD

How to trade on eToro

eToro is based on a social trading model. Therefore, the interface of the eToro Platform is different to most other platforms where the trader is confronted with charts and indicators. Rather, the interface looks like this:

etoro-interface

The assets that the trader is interested in trading can be selected from the watchlist. The watchlist is part of the trader’s navigation bar and is shown below. This is where the trader can select the asset to be traded.

The bid and ask prices, the line graph of the asset’s recent price movement as well as the market sentiment (percentage of buying and selling interests) is shown on the watchlist.

Trading an Asset: What Does the Social Community Say?

Once an asset is clicked for trading, a new window opens. This showcases the views of members of the eToro social trading community in the FEED section. This allows a trader to access the views and sentiment of other eToro traders before making a trading decision.

etoro-feed

You can also see the chart for the selected asset by clicking on CHARTS. You can see the example for the Bitcoin asset (BTC) below:

etoro-chart

If you wanted to make the trade, you would click the ‘Trade’ button in the top right-hand corner of the screen. This will produce the trade selection interface shown below:

etoro-trade

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from www.etoro.com on December 5, 2018.

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.