Etoro Review

Company

Trading platforms

Licenses

Local offices

Withdrawal options

Deposit options

Assets available for trading

Withdrawal commission

Minimum deposit amount

Year Founded

Demo account supported

Islamic account

Web, Mobile

FCA, ASIC, CySEC, FSAS

Forex, Indices, Stocks, Commodities, Crypto, ETFs, CFDs

Yes

10$

2007

Yes

Yes

Founded in 2007, eToro is a forex and CFD brokerage firm based in Tel Aviv, Israel. After starting as a VisualFX platform, the company has grown to become an industry leader in the Fintech sector. The multi-regulated firm facilitates trading across various asset classes, including forex, commodities, stocks, indices, ETFs, and cryptocurrencies. Accepting clients from all major parts of the world, the broker features user-friendly in-house trading platforms to take clients’ trading experience to the next level. While investors typically prefer the company for copy trading services, the platform is equally famous for trading stocks and cryptocurrencies. Though the company employs flexible spreads, its pricing structure is slightly expensive compared to the average industry standards. The company supports instant trader execution, but it doesn’t offer guaranteed stop losses. The customer facilitation department also trails the best industry standards. Let’s dig into more detail. 

Regulation & Business Reputation

eToro holds multiple regulations in various regions worldwide. For instance, the company is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, while the Australian Securities and Investment Commission (ASIC) regulates the firm in Australia. Other regulatory institutions include Cyprus Securities and Exchange Commission (CySEC) and Financial Services Authority Seychelles (FSAS). The company also holds registration with Financial Services Compensation Scheme (FSCS) to offer clients a compensation of up to a specific limit in case of liquidation or bankruptcy.

With a rating of 4.3 out of 5 stars on Trustpilot, the company holds an excellent reputation among clients. Most of the clients expressed extreme satisfaction with the overall brokerage services. However, a few investors denounced the company for various reasons, such as pricey spreads or commissions and limited customer support.

Available Accounts

eToro offers four account types: retail, professional, corporate, and Islamic accounts.

Retail: Being the default account for retail traders, it comes with the best trading conditions. Depending on your preference, you can either trade currencies or stake your interest in stocks and cryptocurrencies. However, retail traders can only access limited leverage compared to professional account holders.

Professional: Traders with professional accounts can open positions with greater leverage. To qualify for a professional account, clients must first meet several requirements;

1. Should have an investment portfolio of $500,000 or more.
2. Should hold one year of working experience in a managerial role in the same industry.
3. Should have sufficiently traded over the last year with a frequency of at least ten trades per quarter. 

Corporate Account:  The corporate account is for institutional clients who wish to engage in financial transactions using company funds.

Islamic Account: The Islamic account is tailored to the needs of Muslim traders. In conformity with Sharia law, overnight costs are not assessed or refunded for Islamic accounts.

Note: The broker also offers virtually funded demo accounts, enabling clients to practice their trading skills without risking their real funds.

Product Portfolio

eToro has an extensive product listing. Clients can trade 3000+ tradable assets across multiple asset classes, including forex (EUR/USD, GBP/JPY, USDCHF), stocks (Apple, Tesla, Microsoft), indices (UK 100, SPX 500), commodities (Oil, Sugar, Gold), ETFs (SPDR S&P 500, iShares, Energy Select Sector), and cryptocurrencies (BTC, LTC, ETH), etc. Being a hybrid trading platform, the company facilitates buying and selling of real stocks and crypto assets in addition to offering them as CFDs.

Trading Tools

Considering the increased market volatility, eToro equips clients with advanced trading tools, such as 70+ technical indicators, fundamental insights, economic calendar, etc. Clients can also access the broker’s rich educational resources to learn more about different trading strategies. Those new to markets or facing time constraints can also opt for the broker’s copy trading services. How-to trading guides, Video tutorials, and webinars are also accessible using the broker’s educational academy.

Deposit & Withdrawal

eToro supports multiple payment methods for deposits and withdrawals, including but not limited to Debit Cards, Credit Cards, Skrill, Neteller, Paypal, Bank Transfers, and other local payment options.

The minimum deposit to sign up for an account with the company is $10, though it varies depending on your selected payment method and respective jurisdiction. For instance, clients in most countries must deposit at least $200, but it shouldn’t be less than $500 when using bank transfers. There is even a higher minimum threshold for customers in countries like Gibraltar, Jersey Island or Kuwait, i.e. $1000. On the other hand, Israeli residents need to start with a minimum of $10,000.

While the company doesn’t charge any fee on deposits, all withdrawals are subject to a $5 fee. Notably, the broker applies a conversion fee on withdrawals made in a currency other than US dollars.

Pros and Cons

Here we list some pros and cons of signing up with eToro.

Pros

• eToro is a multi-regulated brokerage firm.
• The company facilitates social trading.
• Clients can start with the company for as low as $10 deposits.
• The broker offers easy-to-use proprietary trading platforms.
• Islamic accounts are available for shariah practicing traders.

Cons

• eToro has an expensive pricing structure.
• The company offers limited customer support.
• It applies a fee on withdrawals.

Company Evaluation Summary

eToro is a competitive choice for both newbies and veterans. While the advanced trading platforms suffice the trading needs of advanced-level traders, copy trading enables newbies to replicate the winning trades of expert professionals and start earning from day one. The company employs state-of-the-art technology to protect clients’ financial and confidential information, such as SSL web encryption and two-step authentication. The robust regulatory framework and funds compensation scheme even make it more reliable. However, the broker’s pricing structure might not suit clients looking for budgeted investment. The lack of guaranteed stop loss also puts traders at risk of slippage issues during highly volatile market conditions, which might instigate risk-averse investors to look for an alternative option.

Do We Recommend Trading With eToro?

Although eToro is one of the pioneer brokerage firms with a huge clientele base, we refrain from suggesting clients to sign up with it. Essentially, the number of clients or the broker’s prolonged existence shouldn’t serve as the basis for your selection. Instead, you must consider factors like broker’s regulation, reputation, fee and commissions before making a final choice.