eToro Review 2024 - Investing.com (2024)

Pros

• Intuitive, user-friendly platform
• US users get $10 free crypto on first deposit
• Range of asset classes and global exchanges
• Over 6,000 instruments to trade
• Advanced trading and analysis tools
• Social features, including copy trading
• Smart Portfolios (ready-made thematic portfolios)
• Free $100,000 demo account
• Simple, transparent fee structure

Cons

• Smaller number of assets than some brokers
• Spreads are on the high end

Ensuring a Secure Trading Environment

eToro prioritises trust and safety in online trading, with a strong commitment to regulation, fraud prevention, and safeguarding clients’ funds.

Regulation: eToro operates as a regulated broker, adhering to the stringent industry standards set by various regulatory authorities. This commitment ensures that eToro conducts its operations with transparency and fairness, providing clients with a secure trading environment.

Fraud Prevention Measures: eToro employs advanced security measures aimed at preventing fraud and unauthorised access. These measures encompass robust encryption, two-factor authentication, and continuous monitoring of suspicious activities. eToro proactively safeguards its clients’ accounts and sensitive information.

Client’s Fund Security: eToro places paramount importance on the security of clients’ funds. The broker maintains segregated accounts with trusted financial institutions, assuring that clients’ funds remain entirely separate from the broker’s operational funds. This segregation adds an extra layer of protection for clients’ assets.

Regulatory Licenses: eToro holds licenses from reputable regulatory authorities, including ASIC, CySEC, EFSA, FCA, FSCA, and MiFID. These licenses underscore eToro’s adherence to rigorous regulatory standards, highlighting the broker’s unwavering commitment to clients’ safety.

eToro’s dedication to creating a safe and trustworthy trading environment is reflected in its robust regulatory compliance, stringent fraud prevention measures, and strong client fund security. These efforts assure clients of a secure trading experience, underscoring eToro’s commitment to their safety and trust.

Diverse Opportunities for Every Trader

eToro boasts an extensive range of tradable instruments that cater to a wide spectrum of trading interests and strategies. Traders can explore various asset classes, including exchange-traded funds (ETFs), commodities such as gold and oil, an extensive selection of currency pairs for forex enthusiasts, and a comprehensive array of popular cryptocurrencies such as Bitcoin and Ethereum.

This diverse selection of instruments showcases eToro’s commitment to providing its users with a rich and varied trading experience.

Versatile Account Options for All Traders

Account types play a pivotal role in catering to the diverse needs of traders. eToro offers a range of account options to accommodate traders of different experience levels and preferences.

Considering the variety of account types catering to different trader preferences and the availability of features such as demo accounts and Islamic accounts, eToro offers a comprehensive and well-rounded offering for traders of all levels, with features designed to enhance the trading experience. This demonstrates eToro’s commitment to providing a diverse and accommodating range of account options to suit the needs of its users.

Commission-Free and Competitive

eToro’s fee structure is a crucial consideration for traders as it impacts the overall cost of trading on the platform. Here’s an overview of the key fees and charges associated with eToro:

Account Minimum

eToro requires a minimum deposit of $100 to open an account, making it accessible to a wide range of traders.

Trading Fees

eToro offers commission-free trading on many stocks, ETFs, and cryptocurrencies. However, there may be spreads, which vary by asset.

CFD Fees

eToro’s CFD trading comes with spreads that vary based on the asset being traded.

Forex Fees: eToro’s forex trading involves spreads that are competitive within the industry.

Futures Fees

eToro does not offer futures trading.

Account Fee

eToro does not charge account maintenance or subscription fees.

Inactivity Fee

eToro imposes an inactivity fee of $10 per month after 12 months of no trading activity.

Deposit Fee

eToro does not charge deposit fees, but currency conversion fees may apply.

Withdrawal Fee

A withdrawal fee of $5 is charged for each withdrawal.

Overnight Funding Fee

eToro charges overnight funding fees for positions held overnight on leveraged trades.

Currency Conversion Fee

eToro charges a currency conversion fee of 50 pips for non-USD deposits.

Guaranteed Stop Order Fee

eToro charges a fee for using guaranteed stop orders to manage risk.

Taking into account eToro’s competitive fee structure, including commission-free trading for certain assets, and the transparency in its fee disclosure, eToro demonstrates a strong commitment to providing cost-effective trading options while being transparent about associated fees.

Diverse Options

eToro offers a variety of trading platforms designed to cater to different preferences and levels of expertise. Here’s an overview of their trading platforms and features:

Mobile Trading Apps

eToro provides user-friendly mobile apps for both Android and iOS devices, enabling traders to access the markets on the go. The apps offer real-time data, intuitive navigation, and the ability to execute trades from the palm of your hand.

Web Trading Apps

eToro’s web platform is accessible through a standard web browser and offers an intuitive interface. It includes advanced charting tools, technical indicators, and customisable watchlists. The platform is suitable for traders of all levels and provides social trading features, allowing users to see and copy the trades of successful traders.

Desktop Trading Apps

eToro does not offer a standalone desktop trading platform like MetaTrader (MT4/MT5) or cTrader. Instead, its focus is on web-based and mobile trading.

Proprietary Platform

eToro has developed a proprietary trading platform that combines social trading, copy trading, and a user-friendly interface. The platform emphasises visual trading through the use of “CopyPortfolios,” allowing users to invest in portfolios of assets managed by experienced traders.

Considering eToro’s innovative proprietary platform, user-friendly mobile and web apps, and its unique focus on social and copy trading, the broker demonstrates a strong commitment to providing diverse trading options that cater to both beginners and experienced traders.

Innovative Tools Empowering Traders

eToro stands out for its innovative tools and features that empower traders and enrich their decision-making capabilities. Among these offerings are Smart Portfolios, allowing traders to mirror thematic asset baskets, whether centred around a topic, geography, or asset category such as ETFs. Curated by eToro analysts, Smart Portfolios are a convenient way to diversify without paying portfolio management fees.

The platform also introduces Popular Investors, experienced eToro users, compensated by the platform for sharing their insights and skills. They earn a percentage of their assets under copy and are organised into four tiers, each with specific requirements. Advanced charts enhance analytical capabilities, allowing users to view multiple instruments simultaneously and customise charts to align with complex strategies.

Furthermore, eToro’s Trading Academy provides extensive educational resources, including live/on-demand courses, webinars, articles, and eBooks. These resources are readily available to users from the moment they join, facilitating a deeper understanding of various markets, trading strategies, and assets.

While eToro doesn’t charge management or rollover fees, it does apply overnight and weekend fees for CFDs. In addition, there’s a spread markup, varying according to asset. In recognition of eToro’s robust set of features that empower traders and foster a learning community, the broker merits a commendable ranking. These tools not only enhance decision-making but also encourage collaboration, earning eToro high regard among traders seeking more than just basic trading tools.

Comprehensive with Potential for Improvement

eToro offers a comprehensive learning centre called the eToro Academy — designed to equip traders with educational resources.

Learning Centre Overview: eToro’s learning centre covers a wide range of topics, including trading strategies, technical analysis, and market trends. It includes courses, guides, webinars, articles, podcasts, and video tutorials to cater to diverse learning styles.

Content Sources: eToro’s educational content is curated by its in-house team of analysts and experienced traders. This proprietary content provides unique insights into trading strategies and market analysis.

Video Focus: eToro has invested in video tutorials, making it easier for traders to grasp concepts visually.

eToro’s commitment to education is evident, and could enhance its appeal to a wide range of traders from beginners to those who seek in-depth knowledge and advanced strategies.

Multi-Channel Support

eToro offers comprehensive customer support to assist traders both during standard and extended hours. Their live chat support operates during standard trading hours (9 AM–6 PM EST), addressing immediate inquiries. For traders outside these hours, eToro provides email support, ensuring assistance around the clock. This multi-channel approach caters to diverse communication preferences. In addition, eToro’s website boasts an extensive FAQ section and a comprehensive Help Center, offering valuable information on various trading topics and technical queries. eToro’s customer support is commendable, reflecting its commitment to assisting traders effectively, and continuously improving their services.

Simple and Quick

Opening an account on eToro is a straightforward process designed to get traders started quickly. Here’s an overview of the application process:

Registration: Begin by signing up on eToro’s platform. You’ll need to provide your name, email, and password.

Personal Information: Fill in your personal details, including your date of birth and contact information.

Verification: Verify your identity by uploading a copy of your government-issued ID and a proof of address, such as a utility bill.

Trading Experience: eToro assesses your trading experience and knowledge to tailor your trading environment. Answer questions about your trading background.

Funding Your Account: Before you start trading, you need to fund your account. eToro offers multiple deposit options, including credit/debit cards, bank transfers, and e-wallets.

Verification of Documents: eToro reviews your uploaded documents for verification purposes, ensuring compliance with regulatory requirements.

Start Trading: Once your account is verified and funded, you can access the trading platform and start executing trades across various assets.

eToro’s verification process usually takes between a few hours to a day, with deposit processing times varying according to method. The platform offers a competitive and user-friendly account opening experience, accommodating both beginners and experienced traders.

While eToro’s process is generally efficient, there’s room for streamlining the verification process for quicker account activation.

Convenient and Secure

eToro offers a range of convenient and secure deposit and withdrawal options to cater to traders’ preferences. Here’s an overview of its deposit and withdrawal process:

Deposits: eToro supports various payment methods, including credit/debit cards, bank transfers, PayPal, Neteller, and Skrill. The minimum deposit amount varies by region, but is generally affordable, making it accessible for traders with different budgets. Deposits are processed quickly, and funds are typically available for trading almost instantly.

Withdrawals: Withdrawals can be made using the same methods as deposits, ensuring convenience for traders. Withdrawal processing times vary depending on the method chosen, with e-wallets usually offering faster processing compared to bank transfers. eToro charges a fixed fee of $5 for withdrawals. If withdrawals are made in a currency other than USD, conversion fees apply. Please note that there is the possibility of incurring charges from your funding provider (intermediary banks, receiving banks, or your credit card provider).

Furthermore, eToro employs strict security measures to protect clients’ funds and personal information, including SSL encryption and segregated accounts.

In summary, eToro offers a diverse set of deposit and withdrawal options to accommodate traders’ preferences. Although the withdrawal fee may discourage some users, the overall convenience and security of the available methods contribute to a positive experience. Further improvements could involve considering reduced or waived withdrawal fees for specific methods.

In conclusion, eToro is a user-friendly and innovative platform that caters to traders of all levels. With its social trading features, diverse asset offerings, and easy-to-use interface, it stands out as an excellent choice for both beginners and experienced traders. The platform’s focus on educational resources and unique tools provides valuable insights and enhances decision-making. While eToro’s fees and spreads may not be the lowest in the market, the overall trading experience, along with regulatory compliance, offers a sense of security for traders.

As with any financial decision, it’s important to conduct thorough research and assess your trading goals and preferences. eToro’s unique features may be well-suited to those looking for a user-friendly trading experience and social trading opportunities. However, individuals with specific trading strategies or those seeking lower fees may want to consider other options.