eToro offer two ways to trade: CFDs, Social Trading.
To open a live account, you’ll need a minimum deposit of at least $50. Alternatively, eToro offer a demo account that you can use to practice and familiarise yourself with their platform.
Regulated by the Financial Conduct Authority, UK (FRN: 583263), and CySEC (Licence: 109/10). eToro puts all client funds in a segregated bank account and uses tier-1 banks for this. eToro have 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.
Full disclosure: We may receive a commission if you sign up with a broker using one of our links.
What are eToro's spreads & fees?
Like most brokers, eToro take 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’s spreads are in comparison to other popular brokers featured on BrokerNotes.
EUR/USD3.0 PIPS $0 per lot
The average spread for EUR/USD across all brokers on BrokerNotes is 0.82 pips. See popular brokers for trading EUR/USD
USD/JPY2 PIPS $0 per lot
The average spread for USD/JPY across all brokers on BrokerNotes is 0.91 pips. See popular brokers for trading USD/JPY
GBP/USD3 PIPS $0 per lot
The average spread for GBP/USD across all brokers on BrokerNotes is 1.18 pips. See popular brokers for trading GBP/USD
The average spread for Bitcoin across all brokers on BrokerNotes is 41.15 pips. See popular brokers for trading Bitcoin
The average spread for gold across all brokers on BrokerNotes is 8.62 pips. See popular brokers for trading gold
The average spread for DAX30 across all brokers on BrokerNotes is 14.95 pips. See popular brokers for trading DAX30
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
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 $36. Here's a rough breakdown of the fees and how this compares against AvaTrade & Plus500.
|Typical overnight fee:||$6.00||$5.00||$9.40|
|Total cost of a 100k trade:||$36||$12||$15.4|
|$24 less||$20.6 less|
|Visit eToro||Visit AvaTrade||Visit Plus500|
All fees/prices are for informational purposes and are subject to change. Last updated: March 22, 2018.
What can you trade with eToro?
|FX / Currencies||eToro||AvaTrade||Plus500|
|# of forex pairs offered||47||59||61|
|Major forex pairs||Yes||Yes||Yes|
|Minor forex pairs||Yes||Yes||Yes|
|Exotic forex pairs||Yes||Yes||Yes|
|# of commodities offered||0||16||17|
|Indiced & Stock CFDs||eToro||AvaTrade||Plus500|
|# of Stocks offered||957||99||1816|
|See eToro's Instruments||See AvaTrade's Instruments||See Plus500's Instruments|
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 broswer based WebTrader. If you are looking for a MetaTrader broker, see our comparison of MT4 brokers here.
eToro also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you’re on the move.See eToro's platforms
2) Executing Trades
eToro allow you to execute a minimum of trade of $25. This may vary depending on the account you open. eToro allow you to execute a maxium 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, but as a guide, eToro offer margin up to 0.5% on currencies.
Finally, we’ve listed some of the popular funding methods that eToro offers its traders on the right.
3) Client support
eToro support a wide range of languages including English, German, Spanish, French, and Italian
eToro have a BrokerNotes triple AAA support rating because they offer a wide range of languages, live chat, phone and email support.
4) What you’ll need to open an account with eToro
As eToro is regulated by Financial Conduct Authority, CySEC, 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 WebTrader?
The eToro Webtrader is a combined social trading application and web trading platform. First developed in 2011, social trading on eToro was initially performed using the OpenBook and CopyTrader software. OpenBook was used to search for traders to follow, while the CopyTrader was used to automatically copy their trades into the followers’ accounts. Both OpenBook 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. OpenBook and CopyTrader were integrated into a single platform, the eToro WebTrader, 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 WebTrader 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 WebTrader is synchronised with eToro’s OpenBook social trading platform, enabling trader’s to copy trades from successful traders listed on the leaderboard.
Trading on the eToro WebTrader 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 the iOS devices as well as the Android phones and tablets. The app can be downloaded from the respective app stores (iTunes and Google Play store).
What is eToro CopyFunds?
The eToro CopyFunds program is a managed portfolio account system where traders can simply put funds in a PAMM account 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 CopyFund that fits their investment objectives and strategy, and click to join the desired portfolio.
Traders have the choice to trade in two types of CopyFunds:
- Top Trader CopyFunds, made up of eToro’s best performing and most sustainable traders.
- Market CopyFunds where assets comprising stocks, commodities or ETFs are bundled together under a chosen trading strategy.
With CopyFunds, traders can get a managed portfolio by simply copying a CopyFund 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?
No, trading on eToro is commission-free.
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?
eToro’s maximum leverage is 1:400 (1:100 for commodities and stock indices). The minimum is 1:2 for currencies, stock indices, and commodities.
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 OpenBook 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 20% and sets the default leverage to 1:100.
How to trade on eToro
eToro is based on a social trading model. Therefore, the interface of the eToro Webtrader is different to most other platforms where the trader is confronted with charts and indicators. Rather, the interface looks like this:
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.
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:
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:
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 March 22, 2018.