eToro is one of the larger brokers and one of the largest social trading networks out there. Having more than 10 million clients, its a leading force in the market.
eToro started out in 2007. The goal was to make trading accessible to everyone, no matter who or where you are. At the same time, they wanted to reduce dependency on banks and other financial institutions. eToro began as an online trading platform, having a very graphical and intuitive interface. In 2009 it launched its Web Trader. A trading platform with a range of professional tools for all types of traders. It is the backbone of all trading on eToro today. In 2011 eToro launched the OpenBook project. It was the first social trading network in the world. It also included the CopyTrader feature, allowing you to copy other traders.
In the next few years, eToro proceeded to add stocks and crypto to its inventory, launched a mobile trading app. After many additional improvements, eToro has recently begun its campaign to service the US market by entering the crypto space in the US.
You can use eToro as a casual broker and trade various asset classes. However, where eToro really excels is at offering you to copy other experienced traders and save time and effort. Or, additionally, you can become a “popular investor” and get paid for getting copied.
It really is a versatile platform, where simplicity and intuitiveness are at the core of eToro.
eToro is regulated by the FCA (Financial Conduct Authority – UK), CySEC (Cyprus Security and Exchange Commission – EU), and ASIC (Australian Securities and Investments Commission – AU).
In this eToro broker review:
- eToro at a glance
- Asset Coverage
- Account Types
- Opening an Account
- Deposit and Withdrawal
- Spreads, Commission, and Fees
- Trading Platform
- Mobile Trading
- Additional Tools
- Customer Support
- Benefits for Tradimo customers
eToro at a glance
|Regulation||FCA (UK), CySEC (Cyprus), ASIC (Australia)|
|Asset Coverage||Commodities, Crypto, Currencies, ETF’s, Indices, Stocks|
|Trading Platforms||Web Trader – eToro’s proprietary trading platform|
|Minimum Initial Deposit||$200|
|Leverage||Up to 30:1 for most EU countries, for retail trading accounts|
eToro Asset Coverage
eToro covers a wide range of assets, including CDF’s on Commodities, Cryptocurrencies, ETF’s, Indices, Stocks and Currencies. Currently, you can trade 16 Cryptocurrencies, 47 currency pairs, 6 commodities, 13 Indices, 145 ETF’s and over 1500 stocks worldwide. Additionally, eToro offers 63 more Currency Crosses on Cryptocurrencies. For instance, BTCEUR, ETHGBP, XRPJPY, etc. Moreover, 14 Crypto Crosses are available (e.g. ETHBTC, ZECETH, XRPDASH, etc.). This makes up for a good value proposition for Crypto lovers.
eToro Account Types
As we have already mentioned, simplicity is the key word when it comes to eToro. Hence, eToro generally offers 1 standard account for retail traders. Leverage is up to 30:1. The minimum deposit is $200. For those who want to earn additional money, becoming a “popular investor” is a viable option. It basically allows you to earn money as more people copy your portfolio. Currently, a 2% annual fee is offered for the amount of funds invested in copying your portfolio. As eToro puts it, “If 1,000 people copy you with a total of $10 million, you will earn an additional $200,000 a year”. Also, professional accounts are available. For professional accounts, much higher leverage is allowed (up to 400:1).
Let’s explore what it actually means to open a standard account with eToro, and also what it means to be a popular investor.
eToro is mainly a social trading network. While standard accounts do give you the opportunity to trade a variety of instruments, eToro’s main selling point is the opportunity to copy other people’ portfolios. What that means is that simply put, you would be mimicking other trader’s positions and trades. The execution is pretty straightforward and can be done with just a few clicks of a button. eToro standard accounts are available for many developed/developing countries, with a few exceptions. Those are the United States, Canada, Cuba, Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania, and Sudan.
Becoming a “Popular Investor”
There is another interesting opportunity available for established traders. That is, becoming a “popular investor”. As mentioned, eToro offers an annual fee of 2% over the total amount invested by other people in copying your portfolio. If you are able to attract a lot of attention by substantial returns and a low-risk profile, you will earn a great deal of extra income.
There are 4 levels in the popular investor program: Cadet, Rising Star, Champion, and Elite. In order to qualify for Cadet you will need to meet the following requirements:
- You must not have open positions exceeding the leverages outlined in the Responsible Trading requirements
- Must not have had a risk score higher than 6 in the 2 calendar months prior to joining the program
- You have at least 2 months of trading history in your Stats page
- Have your own unique trading strategy and you are not copying an individual trader or CopyPortfolio with more than 25% of your equity
- Your deposits total at least $500
- The account has a minimum average equity of $500
- You have at least 1 verified copier with a minimum Assets Under Management of $200
The benefits and requirements of other levels are summarized below:
As one of the requirements, you do need to stay at a level for 2 months before you can proceed to the next one.
Opening an Account at eToro
Opening a real account with eToro is all digital and pretty straightforward. You will need to provide information such as:
- Basic information: name, address, phone, nationality, etc.
- Your TIN (Tax Identification number)
- Your income and savings information
- Experience in trading
- Answer a few qualifying questions regarding your knowledge of trading in CFD’s
- Upload a digital version of your passport or driving license
- Upload a digital version of your utility bill or bank statement
After you provide all the necessary information, you will go through a verification process. In my personal experience, it took less than 3 hours. So, I was able to deposit funds into my account within the same day of opening the account.
Deposit and Withdrawal at eToro
eToro offers a single base currency, that is USD. That means you will only be able to open accounts in USD. If you deposit Euros into your account, a fee of 0.025% will be applied. The same fee will be applied at withdrawal in a similar case. Other than that, deposits on eToro are free. The options for deposits are numerous, including:
- Bank transfer
- Credit/Debit card
As far as withdrawals go, a fee of $25 is charged per withdrawal. The minimum withdrawal amount is $50. The same options for withdrawal are available as for deposits. As far as withdrawal times go, it usually takes 3-8 working days for a withdrawal by card and bank to be processed. For e-wallets, the processing usually takes 1-2 working days.
Spreads, Commission, and Fees at eToro
The main way that eToro makes a living is by charging traders a spread. Most eToro spreads are variable. That means, they change based on market circumstances. The average spread on EURUSD on eToro is 3 pips.
It’s worth mentioning that eToro charges Zero commission* on non-leveraged Stock trades. For Stock CFD’s, however, the fee is a spread of 0.09% for either side (buy or sell).
* Zero commission is only available to clients of eToro Europe Ltd. and eToro UK Ltd., and does not apply to short or leveraged trades. Zero commission means that no broker fee has been charged when opening or closing the position.
eToro Trading Platform
eToro offers a single web-based trading platform. Everything looks pretty simple and very intuitive. Within the platform, you are able to trade, view charts, copy portfolios and more.
Since eToro is a social trading platform, you have your own news feed and are able to write your own posts. You can also easily see your current portfolio.
Trading on your own
Exploring different markets is made extremely easy by eToro. Just press Trade Markets, choose the asset class and instrument you are interested in. Additionally, you can type your instrument in the search field.
Once you’ve selected what you are interested in, choose to either make a new trade or view instrument in a graph. Making a trade is pretty straightforward. Select whether you wish to buy or sell, the amount, stop loss/take profit levels, leverage, and place your trade.
Additionally, you can view your instrument in a graph and explore the various technical options available.
There are a total of 9 different timeframes available. In addition, you can choose between 70 different studies and even compare multiple graphs by adding more than 1 graph to the chart.
Copying other people
As mentioned, eToro offers the possibility to copy other traders’ portfolios. This can be easily done by navigating to the “Copy People” Section.
You will be able to see different picks based on category: Editor’s picks, Top investors, Trending, Most copied, Lower risk score, Medium risk score. Once you’ve selected the trader of your liking, press on the trader’s name and you will be able to see plenty of statistics surrounding the trader’s performance and trading activities.
Other than the monthly performance breakdown, you will also be able to see things such as risk score, max drawdown, number of copiers, average loss, average profit, % of profitable trades, portfolio structure, average trade duration. Additionally, once you start copying someone, you will be able to see all of his/her trades, opening times, P/L, etc.
Finally, as part of your trading, you will be able to invest in CopyPortfolios. These are automatically made, based on a certain requirement or quality. For instance, you can invest in a Drone Tech portfolio, a Top Traders’ portfolio and many more.
It is out of the scope of this article to review all of eToro’s features, however, these are the main features you will be using on eToro as a trader or an investor.
Mobile Trading with eToro
eToro also offers mobile trading as part of your experience. The mobile trading platform is pretty straightforward and is suited for both Android and iPhone. You will have most of the menu options available as in the desktop version.
Placing a trade is easy and intuitive. The mobile platform is extremely similar to the desktop version in many ways.
Viewing graphs is also very similar to the desktop version, however, only a handful of studies are available, such as MACD, RSI, Moving Average, and a few more.
Copying other people is extremely simple and can be done with a few mouse clicks.
eToro also offers its Blog, which is open to everyone. You will find various posts, such as Daily Market Update by eToro and various other posts made by other users. It’s a good way to keep in touch with the most important themes in the markets and stay on top of the news.
Additionally, eToro offers a useful earnings report calendar. You will find the most useful information, such as Release date, expected EPS (earnings per share), and more.
Finally, eToro offers a wide range of educational articles on topics ranging from investing in currencies to asset allocation and cryptocurrencies. There are a total of 18 lessons available. All of those are in text format. eToro does not offer any video content as of today.
Customer support is available in 2 forms: via email (ticket system) or live chat. You need to log in in order to chat live. eToro does not offer phone support as of yet. In general, the ticket system is dependent on the overall workload eToro has at a particular moment. The response times vary from a few minutes to a few hours. For urgent requests its best to use the live chat, while for more extensive requests, the ticket system is more appropriate.
eToro does not list their awards on their website, however, eToro has been named as the best Social Trading Platform, and the Best Cryptocurrency Platform in the last 2 years, by the ADVFN International Financial Awards.
eToro is an increasingly growing social trading network, popular amongst both, those who do not have enough time to trade by themselves and prefer to copy successful traders, and those who dedicate their careers to trading. It should be most valued for its simplicity and the intuitiveness of its trading platform. And best of all, it offers both, experienced and novice traders the opportunity to earn a lot of money.
Benefits for Tradimo customers
If you open an account with eToro and make a deposit, we’ll invite you to a 30-minute one-on-one Q&A Skype session with our expert trader, who has 14 years of experience in real money trading and who is managing our corporate trading account. You’ll be able to ask any questions about trading and the financial market to get a good start in your trading career. Click here to find out more.
Risk Disclaimer. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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. eToro also offers the ability to buy stocks and ETFs. Only 33% of clients who invest in equities lose money with this provider.