eToro is a highly innovative online trading brokerage that has become the world’s leading social trading network. eToro has disrupted and transformed the traditional money management industry by opening the financial markets to everyone, everywhere. The brokerage currently has millions of registered users from around the world and provides their services in 16 different languages.
eToro was first established in 2007 and has continued to innovate and progress their trading and money management services year after year. Their company headquarters are located in Cyprus at KIBC, Kanika International Business Center, 7th Floor, 4 Profiti Ilia Street, Germasogeia, Limassol, Cyprus 4046. As well, eToro has two other head offices located in the United Kingdom and the United States.
Since eToro is the global leading social trading network, it’s obviously a great brokerage to trade with, but what makes them so great and what types of services do they provide? In the following review, we’ll delve deep into all aspects that eToro has too offer. We’ll analyze their trading platform, types of accounts, associated fees and commissions, their level of customer care, and more.
Easy to Use Trading Platform
The eToro trading platform is intuitively designed to accommodate the needs of all types of traders.
The social and copy trading features of eToro are revolutionary in the online trading industry.
Wide Array of Tradeable Instruments
Traders have access to over 1000 tradeable instruments across various global markets.
Only 1 Trading Platform
Traders do not have the choice between trading platforms. Whether you are a social or individual trader, the platform is the same.
The customer support is only available 5 days a week, not on weekends.
With numerous successful traders using our platform to share their strategies, eToro clients have everything they need to pursue their financial goals.
Commissions & Fees
eToro has a very simple trading fee structure that offers traders competitive fees and commissions incorporated into the spread. Traders do not incur any annual trading fees or commissions for using their services, but rather incur fees through the spread on top of the price quotes of various assets. The spread fee varies between assets but is generally low or at least competitive with other leading trading brokerages. However, traders do not choose eToro because of their low spreads, they choose eToro because of their sophisticated social trading software. eToro’s spreads are actually higher than many leading trading brokers with average spreads of 3 pips for the EUR/USD forex currency pair.
Traders do not pay any fees on deposits but do pay a withdrawal fee of $25. Another fee a trader may incur is an account inactivity fee of $5 per month after account inactivity for 12 consecutive months. Also, traders will have to pay a conversion fee when depositing or withdrawing money from their account in a currency other than the US Dollar (USD).
Platform & Tools
eToro features an exceptional proprietary web based trading platform that supports numerous investment and trading options. The platform is highly advanced and complex yet very simple and easy to use. Traders have access to advanced charting functionality where they can analyze the price and trends of their favorite investments. Multiple order types can be placed, and traders can create watch lists and notifications, so they never miss an opportunity.
Apart from the regular trading and investing functionalities that most brokerages feature, eToro’s most impressive aspect is their social and copy trading functionalities. Traders can harness the wisdom of the crowd by seeing other traders’ positions, statistics, profit levels and trading strategies all in real time. Not only can traders view this information, but they can automatically copy it. The copy trading aspect of eToro is very advanced and allows traders to choose which traders to follow and which of their investments to copy.
Apart from the web based trading platform for desktop computers, eToro also features an impressive mobile trading application for both iOS and Android devices. The mobile trading app can be downloaded from the Apple App Store and Google Play Store for free. The mobile app allows traders to not only view their portfolio and investments, but they can also view the feeds of other traders in real time. The app allows traders to manage their portfolio, follow and copy new traders, and more. Overall, it’s a highly functioning mobile app and is best used for the social trading aspect of eToro.
eToro keeps things simple by offering traders only 3 types of accounts so that beginners and newcomers to the platform do not get overwhelmed. See the accounts overviewed below.
Practice “Demo” Account
- $100,000 in virtual currency
- Free and unlimited access
Standard Trading Account
- Minimum initial deposit of $200 - $500
- Designed for retail traders
- Social trading, copy trading, individual trading
Professional Trading Account
This type of account is essentially the same as the standard trading account, only with better benefits that are not available to retail clients. For instance, traders in this account have the following benefits:
- Trade with higher leverage of up to 1:400
- No withdrawal fees
- Receive a credit line to boost their portfolio
- Exclusive assets
- Personal account manager
- Improved customer support
- Access to top tier events and conferences
- Professional webinars
Deposits & Withdrawals
eToro supports a variety of deposit options for traders to choose from and usually the funds deposited are posted immediately in the traders trading account. See below, a list of the available deposit methods.
- Credit / Debit card
- Bank Wire Transfer
- Skrill Limited
- China Union Pay
As for withdrawals, they can be completed via Credit / Debit cards, PayPal, and Bank Wire Transfers. Withdrawals are generally processed within 1 business day but may take longer to show in your account, depending on the method. Withdrawals can only be completed once the trader verifies their identity and submits the necessary documents. Withdrawals must be a minimum of $50 and come with a fee of $25.
The customer support at eToro is truly exceptional as the support representatives are very friendly and informative. Support representatives can be contacted 24 hours a day, 5 days a week via email, fax, or telephone. Support is available in several languages and the eToro website has an extensive and comprehensive help center.
Security & Fairness
eToro is a leader in the global fintech revolution that serves everyone, which is why they are licensed and regulated by multiple regulatory authorities including; the Cyprus Securities Exchange Commission (CySEC), the UK Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). With the regulation of these agencies, eToro maintains and provides a very safe, secure, transparent, and fair online trading environment for traders to interact and connect with one another.
In addition to the regulatory oversight protecting the integrity of eToro, the brokerage is also apart of the UK’s Financial Services Compensation Scheme and CySEC’s Investor Compensation Scheme. These investor protection schemes further protect client’s funds from fraud or broker insolvency. Also, all client funds are held in secure and segregated tier 1 bank accounts and eToro uses advanced SSL encryption technology to protect the transmission of sensitive client data. All in all, eToro is a very safe, fair, transparent, and ethical online trading brokerage.