eToro: Social Trading Platform Review
Logo betterworldbroker.com

Analysis and opinions about eToro

8 / 10

Online trading platforms: proprietary development, available in WebTrader version and mobile application (iOS and Android) Both include advanced functions for social trading.

All trading involves risk. Only risk capital you’re prepared to lose.
Analysis and opinions about eToro
All content on name-of-the-site.com is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.

What is EToro?

It is one of the most recognized financial intermediaries in the world, with an online platform with innovative functions and cutting-edge technology. Since it began operations, it has been part of the technological revolution in the financial sector, standing out as a reliable broker that offers easy access to trading.

The eToro platform has also achieved dizzying growth (over 13 million users worldwide) and remains among the market leaders thanks to new investment alternatives. Below you can find out more about the eToro platform:

Characteristics of EToro broker:

  1.   Year founded: 2007
  2.  Online trading platforms: proprietary development, available in WebTrader version and mobile application (iOS and Android) Both include advanced functions for social trading.
  3.  Available financial assets: Cryptocurrencies (16 assets), Shares, ETFs and more than 2000 assets through CFDs in 5 different types (Forex, Stocks, ETFs, Indices and Commodities).
  4.  Minimum deposit: $50 - 200 (no commissions).
  5.  Maximum leverage: switches with the asset to be traded (1:400 maximum for professional accounts).

Experience with the EToro platform 

eToro is without a doubt the forerunner of social trading, as well as offering excellent results for beginner traders. It also offers various investment options, through traditional online trading (currency market, cryptoactives, Exchange Traded Funds and CDFs).

 There are 2 versions of the software available to users, described below:

  • eToro WebTrader: has been developed by the company and offers a variety of graphical tools, advanced features to enhance the trading experience. Users can have technical analysis on trading trends (% of traders who are buying, holding or selling according to financial assets). In addition, it offers the following basic and outstanding functions:
  1. One-Click Trading: is an option that allows you to speed up operations with a pre-established   configuration. Users can open positions with the usual characteristics (same investment amount with the same assets, but at different times), all with a single click.
  2. Risk Management: a widely used function to reduce capital risk in operations, customizable functions are available such as "Stop Loss" (closes the position when it reaches a set amount of loss) and "Take Profit" (in this case, closes the position when a positive value is achieved).
  3. Offline trading: Allows trading (short and long) when the platform is not available or offline.

Highlights of eToro social trading:

  1.  CopyTrader: is one of the most used functions by traders in the process of learning, it allows the possibility of copying (in real time) the trades of an advanced investor (between 1 and 100 simultaneous copies). eToro offers this interesting function without additional commissions or fees, however, the condition to use CopyTrader is with a minimum amount of 200 dollars. Furthermore, it can be executed in just 3 steps:

1. Choose the investor (users can compare basic parameters such as annual percentage of return, risk category and number of copies)

Select the amount of the copy (the software calculates the proportion according to the amount and the account to be copied).

3. Click on "Copy" (the function is executed in less than 1 second).

  1. CopyPortfolios: this function offers 2 copy options, CopyPortfolios TopTrader (copies to the most prominent traders on the platform), while CopyPortfolios Market (allows the copy of pre-set strategies on specific financial assets). Once the option is chosen, the same CopyTrader steps are performed to execute the copy, the minimum amount to use CopyPortfolios is 5 thousand dollars.

(GB) eToro App: The mobile version allows you to use all the functions available from a mobile device (smartphone or tablet). Users can download eToro (free of charge), track the markets or open new positions from anywhere. It is also available for computers with iOS and Android operating systems.

Investing in EToro

eToro's registered users are provided with a variety of financial instruments, the broker offers the possibility to invest in an underlying asset (purchase of the asset in the name of the investor, unleveraged purchase position) such as those described below:

Cryptocurrencies

They are one of the most traded assets on the eToro platform (they have a high percentage of volatility), offering up to 16 crypto assets and all the updated information for technical analysis. It also has an electronic wallet (eToro Wallet), which facilitates the administration of cryptocurrency (more than 120 accepted).   

Fees

EToro applies differential rates for investment with cryptoactives (it changes according to the asset, from 0.75% to 5%), while the cost for transfer to the eToro Wallet has a rate from 0.005 units (depending on the asset).

Shares

Allows trading in shares of the world's largest companies, if the investor opens a buy position (without leverage), he obtains ownership of the underlying asset. In addition, eToro allows you to open or close positions (unleveraged) without commissions, which is a very attractive feature for all traders.

ETFs: also known as "Exchange Traded Funds", they consist of several assets, but are traded as stocks.

Commissions on Shares and ETFs:

Investments in these assets (with long buying positions) have no commissions (management, incidences, for renewing positions). While investment in CFDs (short selling orders and leveraged positions) have a spread of 0.09%.

(RHL) In these 3 instruments (Cryptosystems, Shares and ETFs) it is also possible to open sell (short) positions through CFDs with leverage

eToro CFD:

Like most online brokers, eToro offers Contracts for Difference (CFDs) to speculate on price variation without ownership of the asset (the price difference is obtained if the prediction between opening and closing the position was correct). The following instruments can only be traded on eToro through CFDs:

  1. Commodities: the platform allows trading in 14 commodities through CFDs, these trades can be leveraged depending on the risk level and strategy of each investor.
  2. Currencies: One of the most popular financial instruments at eToro. There are 47 currency pairs (the most quoted worldwide).
  3. Indices: Allows for trading the world's major stock indices, traders can open long or short positions with leverage.

eToro also applies fees for spread (approximate value, may change) and night trading (fee depends on the value of the position).

  1. Currencies: have a spread from 1 pip (changes according to the currency pair to be invested).
  2. Indexes: the spread between the buy and sell amount on these assets is from 100 pips.
  3. Commodities: spread from 2 pips (changes according to the asset to be invested).

Types of Etoro accounts

Users can have 2 account types for trading with real money and 1 eToro demo account, described below:

EToro demo account

All registered traders have access to the virtual account or demo account, allowing an excellent opportunity to learn about most functions and open practice positions. It has a virtual balance of 100 thousand dollars, if this fund is depleted during training (it reaches the minimum amount of 2 thousand dollars), the user will have to request a reload for a specific amount.

EToro Retail Client Account

This is a standard account that allows trading with all available assets, either with a customised strategy or using the copy functions (according to the conditions set by the platform). Leverage is available for trading most assets. Despite the risk involved in using leverage, users may also use protective features such as "Stop Loss" and "Take Profit".

Etoro professional account

It is oriented to professional and advanced traders who require particular conditions to trade. Professional account users have no restrictions to use custom leverage, as well as the following benefits:

  1.  Defense against negative balance: if due to any circumstance, the investor results with a negative balance in any trade, the platform resets the funds to 0.
  2.  Use of Leverage: You can use a maximum leverage of 1:400 (on some financial instruments). They also have lower margin rates.

To get a professional eToro account, the user will have to fill out the application form on the website and meet the requirements (investment portfolio, trading volume and frequent activity on the platform).

eToro Registration Process

Opening an account with eToro requires a quick process in 2 simple steps, the new user only has to fill in the online form (with basic data such as: name, email address and password), once he confirms the email he can access the platform with the demo account.

The second part of registration consists of account verification, which is an indispensable requirement for starting operations with the real account. The new investor will have to send (in a digital image) some documents: recent utility bill or receipt (proof of residence) and official identity card (ID card or valid passport). Finally, he will have to complete a questionnaire to measure his level of knowledge (related to financial and investment issues).

Deposits and Withdrawals at eToro

The eToro trading platform accepts different payment methods (these may change according to the country), generally the most used ones are available:

  1. Credit and debit card: the transaction is executed immediately and without any commission from eToro. The maximum deposit allowed is $40,000.
  2.  Bank Transfer: The transaction is executed within 4-7 business days and without any commissions from eToro.

eToro Minimum Deposit

 The minimum deposit allowed to open a trade (with the standard real account) is $200. Please note that investment accounts are in USD, if the user deposits with another currency the conversion is done at the official rate of the day (conversion fees also apply, from EUR to USD is 50 pips).

Withdrawal Conditions

 The withdrawal process takes place within 24 business hours, provided that the applicant makes the corresponding arrangements (according to eToro's terms and conditions). Here are some basic conditions for withdrawing money from the platform:

  • The investor must have a verified account.
  • Fill out the application form to withdraw funds.
  • Withdrawals have a minimum amount of $30.
  •  Commission of 5 dollars (per transaction).

eToro Opinions

Advantages of the eToro platform:

  • It is a company with more than 13 years of experience in the online brokerage market.
  • It offers an innovative and robust trading platform that adapts to different investment objectives (novice and professional investors).
  •  It allows social trading with attractive trading options.
  •  It offers a great diversity of financial assets.
  • Mobile version to track and open new positions from anywhere (it has most of the functions available in the platform).
  • Deposits without commission.
  •  Allows opening and closing operations in shares without commission or additional fees.
  • Popular Investors" program, offers excellent bonuses to advanced traders (according to the amount of copies your investment portfolio receives).

Disadvantages of eToro

  • It has a commission for withdrawals, however, it is a low and fixed amount.
  •  The demo account is only recharged on request to the customer service department. Although users can register other accounts and get the full amount.
  • Although it offers extensive training content, it does not have video tutorials.
Broker: EToro
Founded in: 2007
Minimum deposit: 200$
Demo account: Free
Commissions & fees: 5-10$
Regulation: NFA, CySEC, ASIC, CFTC, MiFID, FCA
Visit official website
Broker’s statistic
Broker: EToro
Founded in: 2007
Minimum deposit: 200$
Demo account: Free
Commissions & fees: 5-10$
Regulation: NFA, CySEC, ASIC, CFTC, MiFID, FCA