eToro is now one of the largest brokerage sites in the online investment scene – with over 20 million clients using the platform. Not only is the broker commission-free across thousands of assets and super easy to use, but you can even invest passively via the Copy Trading feature.
But, is eToro the right online broker for you?
In this eToro review 2021 – we cover everything there is to know about this popular brokerage site.
In This Guide
eToro is an online broker that was first launched in 2007. The platform – which calls itself the “world’s leading social trading network” – is now home to over 20 million traders and investors. eToro’s rise to fame in such a modest amount of time is attributed to several stand-out features.
Perhaps, at the forefront of this is its social trading offering – which is essentially the Facebook of the online investment world. That is to say, eToro allows you to communicate with other users of the platform, post and reply to threads, and even ‘Like’ comments. This ultimately allows you and your fellow investors to discuss trading ideas.
You then have the innovative Copy Trading tool, which allows you to select a seasoned eToro investor and copy their portfolio and ongoing positions like-for-like. With that said, eToro is also popular as the broker is a 100% commission-free trading site.
Whether you are interested in buying stocks or trading forex – each and every position can be entered without paying a cent in commission. Unlike many of its industry counterparts, the eToro platform is really simple to use – making it ideal for newbies. And of course – eToro is heavily regulated across several jurisdictions – so your capital is safe.
Before we delve into the ins and outs of our comprehensive eToro review – allow us to break down the key pros and cons that we discovered.
67% 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.
In the first part of our in-depth eToro review, we took a close look at the markets and asset classes that eToro supports.
Note: As we cover in more detail below, some assets (stocks, ETFs, cryptocurrencies) can be purchased and owned in the traditional sense, while others (forex, commodities, indices) are traded as leveraged CFDs.
Let's start with the eToro stock trading department. In a nutshell─ this brokerage site gives you access to thousands of stocks. Not only does this include the two leading US exchanges - the NYSE and NASDAQ, but 15 other international markets.
As you can see from the above, you'll have access to stock markets in North America, Europe, Asia, the Middle East, and more. There are a number of key points to note about the stock trading department at eToro.
Firstly, when you buy stocks you own them outright. This means that you are officially a stockholder and thus - you will be entitled to dividend payments as and when the respective company makes a distribution. Secondly, eToro supports fractional ownership - which paves the way for small investments.
Fractional ownership is a crucial aspect of the modern stock trading scene - especially if you wish to invest in US-listed companies that can be deemed 'expensive'. For example, Amazon stocks trade at over $3,300 and Tesla in excess of $700.
At eToro, the minimum stock investment is just $50 - irrespective of how much the shares are priced at.
If you're new to fractional stock investments - here's how it works at eToro.
Now, not only is the fractional stock investment tool at eToro great for those on a low budget - but it's also ideal for diversification purposes. For example, if you were to deposit $1,000 on eToro - you could purchase 20 different stocks at $50 each. This allows you to create a risk-inverse portfolio with ease. And of course - eToro is a 100% commission-free broker!
We mentioned above that when you buy stocks on eToro you own them outright. With that said, the popular online broker also allows you to trade stocks via CFDs. This will of interest to those of you that wish to trade on a short-term basis. This is because stock CFDs allow you to benefit from additional perks - such as leverage and short-selling.
All of the same stocks and exchanges that can be purchased in the traditional sense can also be traded via CFD instruments.
So now that we have covered stocks, in this section of our eToro review will are going to look at the cryptocurrency department. This is split into various digital currency markets and pair types, so we will break each segment down one by one.
If you are a long-term cryptocurrency investor - you will be pleased to know that eToro allows you to buy and own 19 different digital coins.
eToro is constantly adding new digital currencies to its list of supported coins - in line with market demand. For example, in the few days prior to writing this eToro review, the broker added Dogecoin.
In terms of ownership, you will be buying your chosen cryptocurrency outright - meaning that you can keep hold of your investment for as long as you wish. You will, of course, also need to consider how you intend storing your newly purchased digital coins on eToro.
Once you have made a commission-free cryptocurrency purchase on the eToro website - you have two options when it comes to storage.
Furthermore, by taking this option, you can sell your coins at the click of a button without needing to perform a transfer.
The second option you have is to download the native eToro wallet - which is available via an Android and iOS mobile app. This option will give you more control over your cryptocurrency investments - as you have the option to transfer coins in and out of the wallet.
The eToro wallet supports over 120 digital currencies and you can instantly convert one coin to another without leaving the app.
In addition to being able to buy digital coins on the eToro website - you can also engage in cryptocurrency trading. Once again, this will appeal to those of you that wish to adopt a crypto day trading strategy. Now, most digital currency trading on eToro is done via CFD instruments.
As we covered earlier, not only does this allow you to apply leverage but you can also enter a short-selling position. Regarding the former, most traders are capped to leverage of 1:2. This means that you can trade cryptocurrencies with twice the amount you have in your eToro account.
In terms of supported markets - this comes in two forms.
First, you have crypto-to-fiat pairs. This means that you are trading the exchange rate between a fiat currency and a cryptocurrency. All of the 19 coins we listed earlier can be traded against the US dollar. Furthermore, many of the aforementioned coins can also be traded against another fiat currency - such as the British pound, euro, Japanese yen, and Australian dollar.
Secondly, you have crypto-to-crypto pairs. As the name suggests, this means you will be trading the exchange between two digital currencies - say Bitcoin and Ripple (BTC/XRP) or EOS and Ethereum (EOS/ETH).
Crucially - irrespective of whether you buy cryptocurrency or trade via CFDs - the minimum stake is just $25. Once again, this is through the eToro fractional ownership tool.
If you're preferred asset class is forex - eToro has you covered. At the time of writing the brokerage site offers 49 forex trading pairs - all of which can be traded around the clock. You will have access to all major and minor pairs - covering the likes of EUR/USD, GBP/USD, and EUR/GBP.
eToro is also a great option if you have a higher appetite for risk and thus - you wish to trade exotic currencies. Some of the exotic forex pairs hosted by eToro include USD/CZK, USD/RON, EUR/PLN, and ZAR/JPY.
In terms of leverage, most traders on eToro will be offered 1:30 on major pairs, and 1:20 on minors and exotics. This is ideal if you wish to trade forex but only have access to a small amount of capital.
If eToro currently offers in the region of 250+ ETFs - which is ideal if you wish to invest in a diversified portfolio of assets. This includes index funds such as the Dow Jones, FTSE 100, and S&P 500 - backed by providers like Vanguard, iShares, and SPDR.
You can also invest in ETFs that track commodities like gold and silver, as well as portfolios that track dividend stocks, growth stocks, blue-chip stocks, and more. Regardless of the ETF you wish to invest in, the minimum stake is just $50. You will, of course, be entitled to dividends as and when the ETF provider makes a payment.
If you wish to trade commodities from the comfort of your home - eToro offers 31 markets. These can also be traded via leveraged CFDs - with offering typically offering 1:20 on gold and 1:10 on other assets. Short-selling is also available should you believe a commodity is overvalued.
The commodity trading department on eToro consists of three core categories:
The minimum trade size when buying and selling commodity CFDs on eToro is just $50.
The final asset department that we came across during our eToro review process is that of indices. In total, you can speculate on the future value of 13 different indices - covering the likes of the FTSE 100, Dow Jones, S&P 500, Spain 35, Hong Kong 50, and more. Leverage of 1:20 and 1:10 will be offered on major and minor indices, respectively.
So now that we have covered what financial instruments the broker supports - in this section of our eToro review we will break down the main fees that you will need to pay.
Before we explain the pricing structure in more detail - check out the eToro fees table below.
As you can see from the above - it doesn't matter what asset class you are buying or selling at eToro - you won't pay a cent in commission.
As per the above, there is no ongoing platform charge at eToro - meaning you can keep hold of your investments for as long as you wish without needing to worry about monthly/quarterly fees.
The main headline at eToro is that you can buy, sell, and trade assets without paying any commission. Although this is something that more and more online brokers are beginning to implement - this is typically only reserved for US-listed stocks and ETFs. This is certainly the case with the likes of TD Ameritrade, Fidelity, and Charles Schwab.
In the case of crypto-assets in particular, the likes of Coinbase will charge you 3.99% to buy a digital currency with a debit card. But at eToro, you will pay a commission of just 0.5% to deposit with a debit card and 0% to buy your chosen cryptocurrency.
If you are looking to buy shares that are listed on the London Stock Exchange - a stamp duty tax of 0.5% is payable. This is ordinarily deducted by the brokerage site that you use to make the investment. However, eToro waivers this fee - meaning that you can buy UK stocks and save yourself a further 0.5%.
eToro uses the industry-wide system of variable spreads. For those unaware, this means that the spread - which is the difference between the buy and sell price of an asset, will vary throughout the day. This will generally be more competitive during busy market hours - such as when you trade EUR/USD during the US/European cross-over.
The spread will, of course, vary quite considerably depending on which market you wish to trade. For example, if you are trading major stocks listed on the NASDAQ or NYSE - you'll likely pay an average of 0.2%. If trading gold or a major index like the Dow Jones, this will be even lower.
In the case of cryptocurrencies like Bitcoin - we found the spread to average 0.75% - and slightly more on other digital assets. Ultimately, while listing each and every spread is beyond the remit of this eToro review - we found that across the board the broker is generally very competitive.
First and foremost, if you are a US resident depositing in US dollars - you can fund your account without paying any fees. Everyone else will pay a foreign conversion fee of 0.5% - which is multiplied against the size of your deposit.
Although this isn't ideal - don't forget that you will be using eToro without paying any commission or ongoing fees. You will also avoid paying an FX fee when buying or selling assets listed on an international market.
In terms of withdrawals, eToro charges a flat fee of just $5 - which is payable irrespective of how much you wish to cash out or the payment method you are using.
Like most brokers in the online space, eToro charges an inactivity fee. This will cost you $10 per month after 12 months of inactivity. Of course, if you have assets in your portfolio - then the inactivity fee will not come into play. Furthermore, if your account balance is empty anyway - you don't need to worry about this fee.
If, however, you have funds in your account and no assets in your portfolio - the clock will start ticking towards your inactivity period of 12 months. Simply place a trade and the clock will reset
If you decide to buy an asset like stocks or cryptocurrencies in the traditional sense - you don't need to worry about overnight financing. This fee only comes into force if you are:
If you're a seasoned trader then you will know that all CFD trading platforms charge overnight financing fees. After all, CFDs are leveraged financial instruments.
As always, the amount you pay on eToro will depend on several variables, such as:
The good news is that you can view your daily overnight financing fee in dollars and cents when setting up an order on eToro. As you make changes to your order - for example in terms of stake size or leverage, the overnight financing fee will update. This ensures you have a full understanding of your trading costs before you enter the position.
We mentioned earlier in our eToro review that the broker is particularly popular with inexperienced traders. This is because the eToro website is as simple as it gets in the world of online investing. You can see for yourself as soon as you land on the eToro homepage how clean and crisp the layout is.
Initially, you are presented with a list of popular financial instruments - such as Facebook, Amazon, and Apple stocks, gold, and the S&P 500 index. You can, however, view the full asset library by clicking on the 'Trade Markets' button. You can then choose the specific asset - such as stocks, for a further breakdown of what is on offer.
You can also find your preferred market by using the search box at the top of the page. Either way, once you have found the asset you want to buy or trade, the process of setting up an order is also simple. In fact, it's just a case of entering your stake and confirming the positions.
This is in stark contrast to other online trading platforms that are jam-packed with overly complex tools and features. For example, if you're a newbie that simply wants to buy a few stocks - you likely aren't interested in technical indicators and in-depth order books. If this sounds like you - eToro is likely to be of great interest.
Our eToro trading platform review was particularly keen to explore the platform's claim as the "world’s leading social trading network". For those new to the phenomenon, this works in a similar way to social media platforms like Facebook. For example, you have the option of uploading a photo to your profile and choosing a username.
You can publish your thoughts via a post - which other eToro traders can then see. Some traders might decide to 'Like' or reply to your post. You can also add traders to your 'watchlist' - meaning that you will be notified if and when they comment or 'Like' post on the eToro website.
All in all, we really like the eToro social trading side of things - as it allows you to communicate with like-minded people. It also allows you to learn and grow while you trade - as you get to see what the most successful investors are doing. You can also use the social trading tools to gauge what the wider market sentiment is at any given time.
A direct offshoot of the social trading phenomenon is that of copy trading. In our view, this is arguably the 'Flagship' product offered by eToro - as it paves the way for a 100% passive way of trading.
The main concept is as follows:
When you invest in a copy trading pro - your mirrored positions will be proportionate to the amount you invest. The minimum per trader is just $500 - and there are no additional eToro fees that come into play.
Past performance is not an indication of future results
Here's a more detailed example of how the eToro copy trading tool works:
As you can see from the above, the automated trading aspect of this feature is heavily suited to newbies. After all, you do not need to spend any time at all researching the financial markets. Instead, it's just a case of choosing a trader to copy and allowing them to trade on your behalf.
You still retain full control over your eToro portfolio at all times - so you can add or remove assets as you please. You can also elect to stop copying a trader at any time. When you do, all of the open positions you are mirroring will be closed.
Once you click on the 'Copy People' button on the left-hand side of your eToro account - you will have access to thousands of verified traders. As you can imagine, reviewing the credentials of each trader is beyond the realms of possibility, so you will need to use the filter buttons.
This is great, as you can find a trader that specifically meets your needs, financial goals, and appetite for risk.
To give you an idea of some of the filters you can use to find a trader, this includes:
Once you have narrowed down your filters, you can click on a trader to take a closer look at their statistics. For example, you can see how much the trader has made each month since joining the eToro website.
You can also explore what trades they currently have in play and the total amount of risk associated with the individual. Additionally, you can view how many eToro customers are copying the specific trader and what this relates to in dollars and cents.
If the thought of vetting thousands of investors seems like a daunting task - below we have listed three of the best eToro copy traders currently active on the site.
This trader is based in the UK and has been using eToro since 2013. As such, we have over 8 years' worth of trading data to work with. In a nutshell, Jeppe Kirk Bonde has generated average annual returns of 30% since joining in 2013 - meaning that he has outperformed the wider financial markets.
Apart from a very small holding in Bitcoin - Jeppe Kirk Bonde focuses exclusively on stocks. In 2019 and 2020 the trader grew his portfolio by 45% and 36% respectively. In the first four months of 2021 - Jeppe Kirk Bonde is up 10%.
Much like Jeppe Kirk Bonde - this eToro copy trader has an excellent track return on the brokerage site. Put simply, Wesley Warren Nolte has generated returns of over 650% in the past five years for his strong following. At the time of writing, almost 20,000 eToro customers are copying the trader.
This amounts to millions of dollars worth of capital under management. All of the assets held by Wesley Warren Nolte come in the form of stocks - most of which are US-based. The trader aims to outperform the S&P 500 by at least 20% this year.
Victor Pedersen - who goes under the username Miyoshi - is a swing trader based in Denmark. Although the individual joined eToro as recently as January 2018 - it's been up, up, and away ever since. In fact, in his first year of trading - Victor Pedersen made financial returns of over 103%.
In the following year, the trade made 68% and the first four months of 2021 - is almost 8% in the green. Victor Pedersen is super active on eToro - with an average of 48.45 trades placed each and every week. The average trade duration is just 1.5 weeks and Victor Pedersen aims to 'radically' outperform the S&P 500.
Note: If you want more information on one of the above traders - search for their username on the eToro website.
eToro is a super user-friendly trading platform that's typically preferred by inexperienced investors that don't have any knowledge of financial analysis. With this in mind, it will come as no surprise to learn that the number of research and analysis tools is a bit thin on the ground.
Sure, you can view real-time pricing charts of all supported eToro markets, but this is going to be too basic for an experienced technical trader. As such, those with experience in analyzing charts will likely use a third-party platform for this purpose - such as trading view.
On the other hand, eToro does offer a fairly comprehensive fundamental research facility on major stocks. For example, you can view key metrics surrounding market sentiment with a breakdown of whether analysts believe the stock is a buy, sell, or hold. You can also view price targets and hedge fund ratings.
When you register on the eToro website - by default you will be given a standard account. This gives you access to all of the markets, tools, and features discussed so far in this eToro review.
If, however, you are a follower of the Islamic faith, eToro can offer you a specialist account. You will need to contact eToro to get this opened and you will be required to deposit at least $1,000 to be eligible.
Additionally, eToro also offers corporate accounts. The minimum deposit on this account type is $10,000.
More and more investors are turning to the eToro trading app - which is available on iOS and Android devices. The app is connected with your main eToro account - meaning you can switch between the two as you see fit.
More importantly, the eToro app comes with all of the same features as found on the main website. This means you can buy, sell, and trade your preferred financial market no matter where you are located.
The app - much like the main website, is really user-friendly. It has been built from the ground up and thus - has been designed specifically for your operating system - whether that's iOS or Android.
You can easily deposit funds via the app to - as well as make a withdrawal request. If you want to find an asset or place an order - you won't be hindered by a smaller screen.
Another standout feature with eToro - both online or via its mobile app, is the ease in which you can find your account. Unlike a number of brokers active in this space - eToro allows you to deposit funds instantly via a debit/credit card or e-wallet.
Supported payment types include:
Perhaps the main draw here is the fact that you can deposit and withdraw funds with Paypal. This isn't something that many online brokers offer - so it's notable that eToro supports it. All withdrawals - apart from a bank transfer, are instantly processed by eToro. This means that you can start trading straight away.
When it comes to withdrawals, you can cash out your funds back to the same payment method that you used to deposit.
The minimum deposit at eToro will depend on where you live.
Bonuses are rarely offered by online brokerage firms these days. Instead, top-rated platforms prefer to focus on long-term value as opposed to short-term bonus hunters.
With that said, at the time of writing, eToro is offering a cryptocurrency deposit bonus to traders from the US. In a nutshell, you can earn a $50 bonus when you trade at least $1,000 worth of digital currencies. This is a limited offer that is available at the time of writing this eToro review.
There is also a referral program that is available to all eToro users. This enables you to earn a bonus of $50 for each new customer that joins eToro through your unique link. Certain conditions apply depending on where you live - such as minimum deposits and/or trading volume - so be sure to check this yourself.
We are huge fans of the eToro demo account for several reasons.
There is no requirement to deposit any funds or even upload any ID to use the demo account - which is great.
Customer support is offered on a 24/5 basis on the eToro platform - which mirrors the traditional financial markets. You can contact the support team in real-time via a live chat facility. This is accessible by logging into your account.
There is no telephone support team, albeit, eToro does accept queries via email. Additionally, eToro is heavily active on social media platforms like Twitter - which is another angle you can take if you need assistance on your account.
Wondering is eToro safe? If so, as great as it is to have access to commission-free trading, small stake sizes, Copy Trading tools, and heaps of supported payment types - safety is the most important metric when choosing an online broker. In the case of eToro - the platform is heavily regulated.
The three financial bodies that authorize and regulated eToro are:
For US-based traders, eToro is also registered with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
Having such a strong regulatory standing ensures that your capital is protected at all times. Client funds are kept in segregated bank accounts - meaning eToro cannot use them for its own operational purposes. All traders using eToro will also need to go through a Know Your Customer (KYC) process. This will require you to upload a copy of your government-issued ID.
This comprehensive eToro review has covered everything there is to know about the broker - from supported assets and fees to payment types and regulation. If you are planning to join more than 20 million traders by opening an eToro account right now - follow the steps outlined below.
Visit the eToro website and begin the account opening process. This will require you to enter some personal information - such as your name, home address, date of birth, national tax number, and contact details.
As per KYC regulations, you will need to upload a copy of your government-issued ID. This can be a valid driver's license, passport, and in some cases - a national ID card. You also need to provide a proof of residency document. This can be a recently issued bank statement or utility bill.
You can instantly deposit funds into your eToro account via the following payment methods:
Bank transfers are also accepted but this might delay the deposit process by a few days.
If you know which asset you want to buy or trade - use the search box at the top of the page. As you can see from the below, we are searching for 'Twitter' stocks.
Or, you can manually brose what instruments are supported by clicking on the 'Trade Markets' button.
You will now need to complete a simple order form to complete your investment or trade. Simply enter your stake into the 'Amount' box and click on 'Set Order' to complete the order.
Your position will remain open until you decide to cash out. When you are ready to sell on eToro, head over to your portfolio and find the respective asset. Then, once you click on the 'Sell' button and confirm the order - the position will be closed.
The funds - at the current market value of the asset you sold, will be placed into your eToro cash account. You can use the funds to invest in other assets or make a withdrawal.
This highly comprehensive eToro review has covered the nuts and bolts of what this hugely popular brokerage site offers. More than 20 million clients now take advantage of commission-free markets, low account minimums, and heaps of supported deposit methods.
Investors of all shapes and sizes are also attracted by the social and copy trading features offered by eToro - as well as the broker's strong regulatory standing. All in all, eToro ticks all of the right boxes that we would expect from a trading platform.
Launched in 2013, eToro is an online broker and trading platform. You can buy, sell, and trade thousands of assets without paying any commission. The broker is regulated by three tier-one bodies and allows you to copy other traders like-for-like.
eToro sits between you and your chosen asset. Like any broker, eToro requires you to set up a trading order - which it will then execute on your behalf. eToro gives you access to thousands of markets - covering stocks, ETFs, forex, commodities, digital currencies, indices, and more.
eToro doesn't make money from direct trading fees - as the broker offers commission-free investments. Instead, eToro makes money from the 'spread', which is the gap between the buy and sell price of an asset.
Yes, eToro is available in the US. However, at the time of writing, US citizens can only buy and sell cryptocurrencies. In the near future, US traders will also have access to other assets.
When you browse the copy trading department on eToro, you will see that every trader is assigned a 'risk level'. This goes from 1 (lowest risk) through to 6 (highest risk). The level assigned by eToro is based on the trading activity of the respective copy trader.
eToro supports 19 cryptocurrencies - which ranges from Bitcoin, Ethereum, and Ripple to Dogecoin, Uniswap, and Cardano. For a full list of supported coins - scroll up to the relevant section of this review.
You will make money on eToro when you correctly speculate on the future value of an asset. For example, if you buy Apple stocks and the share price increases - you will make a profit. Or, if you short-sell GBP/USD and the exchange rate decreases - you will also make money.
eToro does not charge any commissions, nor will you pay any ongoing platform fees. You will pay a fee if you keep a leveraged CFD position open overnight or your account remains inactive for over 12 months.
Wondering is eToro safe? Yes, eToro is regulated by the FCA, ASIC, and CySEC. As such, the broker is a trusted platform.
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Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.
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