Tony Dines
🚀 eToro is renowned for its advanced social investing and copy trading platform, offering users innovative tools and features to maximize their trading potential. The platform’s Popular Investor Program allows traders to earn compensation levels ranging from Cadet to Elite (2% of Assets Under Copy annually), while passive investors can explore CopyPortfolios, which offer predefined bundles of assets aligned with predetermined strategies and subject to regular rebalancing.
⚙️ Unlike other platforms, eToro does not support automated trading and requires stop-loss and take-profit levels to be set with every trade, offering a unique approach to trading. However, users can engage with top traders and share insights through eToro’s proprietary social investing platform, fostering a collaborative trading environment.
🔒 With top-tier regulatory licenses from FCA (UK), SEC (US), and ASIC (Australia), eToro prioritizes regulatory compliance and investor protection, ensuring transparency and security for its users. The platform’s global presence enables users to access the financial markets from anywhere in the world, while its user-friendly interface makes trading easy and intuitive for traders of all levels.
📊 eToro emphasizes risk management, providing users with tools and resources to mitigate risks and protect their investment capital. Through innovative trading tools and features, users can make informed investment decisions and execute trades seamlessly, maximizing their potential returns while trading on the eToro platform.
| 🗺 Country of regulation | Top tiers: UK, USA, Cyprus, Australia. ASIC #491139, CySEC #109/10, FSA-S #SD076, FCA #FRN 583263, FINRA #CRD#: 298361, SEC #8-70212, SIPC |
|---|---|
| 🗺 Origin | UK, Israel – 2007 |
| 🛡️ ForexPeaceArmy rating | 1.738 • 229 REVIEWS |
| 💰 Minimum deposit | $50 |
| 🛡️ Protected funds | £85k to UK, €20k to EU, $500k (cash up to $250k) to US clients |
| 💵 Available base currencies | USD |
| 🛡️ Inactivity fee charged | Yes |
| 💰 Withdrawal fee | $5 |
| 🕖 Time to open an account | Immediate – 1 day |
| 🎮 Demo account provided | Yes |
| 🛍️ Assets available | Stock, ETF, Forex, CFD, Crypto, Indices |
| 💳 Deposit with | Bank Wire (BankTransfer/SWIFT), VISA, MasterCard, Giropay, Local Bank Deposits, Local Bank Transfers, Neteller, PayPal, Skrill, UnionPay, WebMoney, Yandex Money |
The platform offers to help users choose the right trader to copy.
📈 Performance Metrics: to review a trader’s Profit/Loss (PL) graph to see their historical performance over time. Look for consistent profitability and minimal drawdowns. Also to evaluate a trader’s success by analyzing their Return on Investment (ROI), Sharpe Ratio, and Maximum Drawdown. A higher ROI and Sharpe Ratio with a lower Maximum Drawdown indicate a more successful trader.
📊 Portfolio Pages: to explore a trader’s holdings and past trades to understand their investment strategy and the types of assets they trade. Look for diversification and consistency in their portfolio.
⚖️ Risk Score: to assess a trader’s risk appetite and risk management skills based on their risk score. A lower risk score indicates a more conservative trader, while a higher risk score may suggest a more aggressive approach.
💰 Min $$ Allocation: to allocate funds to different traders based on your risk appetite and investment goals. Popular investors usually suggest what is the min allocation to start copying them.
💼 Assets Under Management (AUM): to consider the total funds managed by a trader as an indication of their experience and credibility in the market.
👥 Number of Followers: to evaluate a trader’s popularity and reputation by looking at the number of followers they have. A higher number of followers may indicate a more trustworthy trader.
📊 Number of Copiers: to assess how many users are currently copying the trader to gauge their level of influence and success. Look for a growing trend in the number of copiers.
📈 Copier Trend: to monitor the trend of the number of copiers over time to see if the trader’s popularity and success are increasing or decreasing.
📱 Social Feed: to engage with other traders on the platform to discuss trading strategies, share insights, and learn from the experiences of others.
🛑 Stop Loss / Take Profit: to set stop-loss orders to limit potential losses and manage risk when copying trades and to set profit targets for copied trades to lock in gains and manage risk effectively.
🔍 Copy Open Trades: to have an oportunity to copy open trades of your trader.
📰 News Feed: to enagge with your Popular investor and to stay informed about market news and events that may impact trading decisions and the performance of traders.
Extra feature:
💼 Portfolios: eToro offers a feature called CopyPortfolios, which allows users to invest in a diversified portfolio of top traders. CopyPortfolios are managed by eToro’s investment team and are designed to provide users with exposure to a range of different trading strategies. By investing in a CopyPortfolio, users can spread their risk across multiple traders and potentially achieve more stable returns.
When copying you may not directly look into these fees, however it’s essential when you deciding who you are copying if they trade “expensive” assets. Stock and ETF trading is free, while forex fees are low and CFD fees are average. On the negative side, there are non-trading fees, such as inactivity fee (vary for regions) and a $5 withdrawal fee.
Fees when depositing
eToro will charge a currency conversion fee for deposits and withdrawals in currencies other than the currency of your account. The fee depends on the deposit/withdrawal method and the currency of the transaction. For major currencies such as GBP, EUR, CHF or AUD, the currency conversion fee is 50-150 pips.
Fees when withdrawing
$5 standard fee applied when withdrawing to any payment method except, eToro card. Also, the minimum amount to withdraw is $30.
Trading fees compared
| Asset | Fee level | Fee terms |
|---|---|---|
| S&P 500 CFD | Average to High | The fees are built into the spread, 0.75 points is the average spread cost during peak trading hours. |
| Europe 50 CFD | Average to High | The fees are built into the spread, 3 points is the average spread cost during peak trading hours. |
| EURUSD | Low | The fees are built into the spread, 1 pip is the average spread cost during peak trading hours. |
| Stocks | 0 | Commission-free real stock trading for all stocks with exception, for Australian clients, only US stocks can be traded as commission-free real stocks. If you trade stocks in currencies other than USD (e.g. UK or European stocks), eToro will make the currency conversion at the current market rate with no additional cost. |
| Crypto | Low | 1% fee per trade |
eToro offers a user-friendly and well-designed web trading platform for social trading. The downside is that platform is not customizable.
Languages available:
| English | Spanish | Malaysian | Italian | German |
| Russian | Chinese (traditional) | Chinese (simplified) | French | Polish |
| Dutch | Norwegian | Portuguese | Swedish | Czech |
| Danish | Romanian | Vietnamese | Finnish | Arabic |
| Thai |
Web platform
🌐 The web trading platform boasts a sleek design and impressive functionalities, offering users an intuitive trading experience.
🚀 Navigation is seamless, with menus and buttons conveniently placed for easy access.
However, customization options are limited, as the panels remain fixed. 🛠️ An exception to this is the watchlist feature, which users can easily configure to suit their preferences.
Placing Copy orders
You can use the following order types:
- Stop-loss
- Trailing stop-loss
Alerts and notifications
🔔 You have the option to set price alerts and receive notifications directly on the eToro web trading platform.
⚡ eToro’s alert function allows you to stay informed when an asset reaches a specific price target. Additionally, you’ll receive a notification once your order is executed.
🖥️ On the web platform, these alerts are indicated by an icon update or browser notification. 📱 On mobile devices, you’ll receive push notifications for timely updates.
Portfolio and fee reports
💼 eToro provides transparent fee reports to help you keep track of your investments.
📊 When assessing your portfolio performance and fee breakdown, eToro offers flexibility in how you view your reports. You can opt for a detailed list of assets or visualize your portfolio through a pie chart.
🔍 Navigating to the fee report for the first time might seem a bit daunting. Start by clicking on the ‘Portfolio’ tab, then proceed to ‘History’. From there, access the settings icon located at the top right corner to download your account statement. This well-structured PDF document outlines all your cash flows, including fees. While following a trader, individual trades are displayed separately; however, fees are listed individually without a cumulative total.
Mobile platform
The mobile platform is available either on mobile site or iOS and Android app. All well-designed, intuitive and obviously gives you the two-step and biometric login functions.
Look and feel
The mobile trading platform is extremely user-friendly and well-designed.
Customer Service
Customer service falls below average, with limited accessibility and response times. They lack of 24/7 support, also live chat exclusive to Club members only.
📞 You can reach eToro customer service through various channels, including live chat and email. However, live chat is reserved for Club members only. The lowest tier, Silver Club membership, requires an account equity exceeding $5,000.
💬 While theoretically available in all 21 supported languages, our tests were conducted in English. Response times via the web-based ticketing system typically ranged within 48 hours for basic inquiries. However, feedback from users suggests that eToro’s response time can extend up to 14 days for more complex issues, highlighting significant service delays.
Is eToro regulated?
🛡️ eToro is regulated by leading financial authorities including the FCA, SEC, ASIC, and CySEC, ensuring compliance and investor protection.
🌐 It holds regulatory oversight from the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the US Securities and Exchange Commission (SEC), and the Australian Securities and Investment Commission (ASIC).
💼 eToro USA LLC is registered as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) in the United States.
Is eToro safe?
To ensure a brokerage is safe, consider two key aspects:
🔒 Investor Protection: eToro operates through different legal entities based on customer residency, which determines the level of protection.
- UK residents under eToro (UK) Limited are protected by the FCA, with compensation up to £85,000.
- US clients under eToro USA LLC are covered by SEC, FINRA, and SIPC protection, offering up to $500,000, including $250,000 for cash.
- Australian clients with eToro AUS Capital Ltd are regulated by ASIC but have no obligatory investor protection.
- Other investors with eToro (Europe) Limited, regulated by CySEC, receive a maximum investment protection coverage of €20,000.
| Country of clients | Protection amount | Regulator | Legal entity |
|---|---|---|---|
| United Kingdom | £85,000 | Financial Conduct Authority (FCA) | eToro (UK) Ltd. |
| United States | $500,000 ($250,000 cash limit) | Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA) | eToro USA LLC |
| Australia | $1,000,000 | Australian Securities and Investments Commission (ASIC) | eToro AUS Capital Ltd. |
| Other countries | €20,000 + €1,000,000 | Cyprus Securities and Exchange Commission (CySEC) | eToro (Europe) Ltd. |
eToro offers negative balance protection for CFD trading, available exclusively to retail clients in the European Union and Australia. However, professional clients do not benefit from this safeguard. No investor protection for cryptos.
🛡️ Private Insurance: Certain clients enjoy €/AUD 1 million insurance for cash, securities, and CFDs through Lloyd’s, applicable in the event of eToro’s insolvency. This additional insurance enhances security for clients.
🌀 Within the eToro community, there’s a widespread understanding that the platform suffers from significant instability. 📉 For instance, traders frequently encounter issues such as the inability to open or close trades during market opening sessions, which eToro attributes to limitations from liquidity providers. 🛑 Moreover, login failures are a common occurrence. 💻 Users often find that deposits may not reflect in their balances immediately, sometimes taking days to do so. 🕒 Consequently, it’s advisable to keep evidence of deposits as discrepancies may arise.
🚫 Complaints about unresolved customer service tickets are prevalent on ForexPeaceArmy, with cases where issues were marked as ‘resolved’ without actual resolution. ❌ Public complaints about eToro’s service can lead to permanent posting restrictions, with explanations citing technical difficulties under repair. 🛠️ Attempts to refer others to alternative platforms are met with censorship, as comments are flagged as spam and promptly removed. 🚷
