Do not invest in crypto-assets unless you are prepared to lose all the money you invest. Please keep in mind that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
eToro combines stock trading, ETFs, forex, crypto, and more on one platform, offering a unique investor community.
This eToro review delves into its features and the advantages of building a diverse portfolio with eToro, highlighting what sets this innovative broker and crypto exchange apart.
I analyse each broker and platform across nine categories and give points to each based on qualitative factors. These points are then converted into star ratings. You can read about ‘how we test‘ here.
eToro stands out for its user-friendly copy-trading platform, enabling users to emulate the strategies of experienced traders. While it offers a diverse range of over 3,000 tradeable assets including stocks, ETFs, and cryptocurrencies, its higher non-trading fees and lack of advanced tools are slight drawbacks. Ideal for beginners and those seeking a comprehensive trading experience, eToro merges accessibility with a wide asset selection.
Overall Rating – 4.5 stars
Before I get into the nitty-gritty, take a look at the overall ratings.
Based on my analysis, eToro scored 75 points and the platform has a percentage score of 83.33%, which translates into a 4.5-star rating.
Some of the most notable plus points for eToro include:
- Low trading fees
- No regulatory incident reports
- Regulated by the Financial Conduct Authority (FCA) in the UK
- User-deposited funds are secured in segregated accounts
- Protection of £85,000 under the Financial Service Compensation Scheme (FSCS)
Here’s a breakdown of the rating table for each category:
|Deposit and withdrawal methods||6.7||3.5|
|Investment & trading platform||8.6||4.5|
Table of Contents
Who Is eToro Best For?
eToro is an exceptional option for those interested in low-cost stock, crypto, CFD, commodity, forex trading, and investing.
It has a simple account opening process that can be completed within minutes. Users can also create a demo account with virtual funds to practise and improve their trading and investment skills.
eToro is known for its copy trading. This feature allows users to track and mimic the investment and trading strategies of experienced traders.
eToro’s customer service is ideal, but could be better. Lastly, eToro has high withdrawal and currency conversion fees.
eToro Pros & Cons
Some key pros and cons are mentioned below:
|No deposit fees||Only one base currency (dollars)|
|Low trading fees||Currency conversion charges|
|Low fees for CFDs||$500 minimum investment for Smart Portfolios|
|Fast sign-up process|
eToro is a trading and investment platform that was founded in 2007. The platform aims to make trading and investment both simple and transparent for everyone.
eToro does so by providing investors and traders with tools and resources that can be used to make informed decisions.
eToro soon began to attract global attention, which led to them winning the Finovate Europe Best of Show for 20111. They started facilitating on-the-go trades in 2012 when they introduced their iOS and Android applications.
In 2013, eToro added a wide range of stocks to their list of assets, which had already included commodities and pioneered Bitcoin trading, too.
They expanded their digital assets offering by facilitating trade and investments for other cryptos in 2017.
Over the years, the platform has also launched other initiatives, such as Smart Portfolios and eToro Money. Smart Portfolios allow users to make group assets based on a theme.
eToro Money, on the other hand, is a financial service based on a holistic investment approach and facilitates users with an account, a debit card, and an app for streamlined management.
Today, eToro has more than 30 million users across 100 countries2.
Now that you’re familiar with eToro let’s dive into the review. The first category I will start with is fees.
Fees – 4.5 stars
eToro is a trading and investment platform that offers a wide range of options to its users.
Before discussing how much the platform charges, you must know the fee structure varies based on the type of asset you allocate your capital to.
First and foremost, you can open an account for free, and the platform claims to have no management fees.
eToro also has a 0% commission on stocks, and there are no markup and ticketing fees.
However, if you plan on using the platform, know that bid/ask market spread, FX conversion, withdrawal charges, and an inactivity fee of $10 do apply.
So, with that in mind, let’s get into all the details of the fees eToro charges and how it charges them.
Stock & ETFs
For this asset class, there are no management, rollover, ticket, or additional broker fees involved. However, FX fees may apply for non-USD deposits and withdrawals. The withdrawal fee at the time of writing is $5.
As far as crypto is concerned, the platform charges a flat 1% fee when you buy or sell an asset. The 1% fee is included in the asset’s market price that is shown when you open or close a position.
When allocating capital to crypto on eToro, know that when you open a new position on the platform, you will initially see a “loss.” However, the Profit/Loss being displayed on the platform includes the 1% you have and will pay for opening and closing the position.
Contract for Difference (CFD)
CFDs allow you to trade different assets, leading to greater flexibility. Since this type of trading doesn’t involve the trading of any real assets, both spreads and overnight charges do occur.
CFD fees based on spreads and overnight charges vary based on the type of assets and from one asset to the other.
Below is an overview of how spread-based fees for CFDs on eToro are charged:
|Asset type||Charges start from…|
|CFDs – Stocks and ETFs||0.15%|
|Crypto||Same as regular crypto fees|
Overnight charges for CFD on the platform are incurred on a per-night and per-unit basis. The fee structure for these charges also varies by amount, asset type, and individual assets and the charges can incur based on both short and long positions.
eToro also allows you to trade currency pairs. Although the platform does not charge any commissions, users can experience spread-based charges and overnight fees. These charges are based on PIPs and vary among different currency pairs.
Below is an overview of these charges for some of the most commonly traded currency pairs:
|Currency pair||Charges start from…|
Although eToro does not have any management charges, if you plan on using the platform, you may experience some non-trading fees.
Below is an overview of non-trading fees:
|Type of fee||Amount|
|Replacement debit card fee||From £10 to £80|
|Deposit and withdraw conversion fee||Yes – charged based on pips|
|Stamp duty reserve tax||5%|
Let’s look at the pros, cons, and the total points eToro received for the ‘fees’ category:
Fees total points: 8.3
- No deposit fees
- Low trading fees
- Low fees for CFDs
- Free ETF and stock trading
- No account opening charges
- Fees for crypto trading and crypto CFDs are the same
- $10 inactivity fee
- $5 withdrawal fee
- Deposit and withdraw conversion fee
Safety – 4 stars
The next category analysed as part of my eToro review UK is how safe the platform is for users.
To evaluate how safe the platform is, I’ve examined how funds are managed, cybersecurity measures in place, and regulatory compliance.
The money you deposit including all the funds from users is stored in separate and segregated accounts. This ensures that in the unlikely event of eToro’s bankruptcy, all user funds will be safe.
eToro claims to use the highest cybersecurity standards when it comes to protecting client information and funds. The platform has remarkable two-factor authentication (2FA) for additional account security, ensuring that users log in through their credentials and a security code.
Once this setting is enabled, a user, upon signing in to their account, will receive the 2FA security code on their phone via SMS or call. Considering the commitment of eToro to manage information securely and safely, the company has been awarded the ISO 27001 certification.
The platform is also Payment Card Industry Data Security Standard (PCI-DSS) compliant. eToro also complies with regulations imposed by the FCA and other regulatory authorities in different regions worldwide.
Since eToro is regulated by the FCA, the funds you deposit are protected, up to a certain limit, under the FSCS.
Let’s look at the pros, cons, and total points of the platform for the ‘safety’ category:
Safety total points: 7.4
- FSCS protection
- Segregated funds
- 2FA for user accounts
- Regulatory compliance
- ISO and PCI-DSS certifications.
- Although eToro has denied reports of falling prey to cybercriminals, threat actors do claim to have breached the platform’s network
- News reports of account information of eToro users being sold also surfaced in 2020
Onboarding – 5 stars
The next thing I scrutinised for this eToro review was the onboarding process. For this category, I examined how easy opening an account on eToro is.
Based on my experience, the signup process is pretty intuitive, and a demo account with virtual funds is also available.
You can create an account on the platform using your Google or Facebook account. If you don’t have any of those accounts, you can create one using another email, too.
Once you’ve created an account, you will be asked to provide your legal name, gender, date of birth, and other verification details. This profile verification process is fairly impressive and can be completed seamlessly by following the on-screen prompts.
However, you don’t need to follow these verification protocols if you want to try out the platform with a demo trading account.
If you want to switch to an actual account, you will be required to provide the following:
- Proof of identity – this can be a valid passport or an official photo ID
- Confirmation of residence – this could be a valid utility bill dated to the last 3 months
eToro also has a minimum deposit requirement. The exact amount users are required to deposit varies based on their residences but can be between $10 to $10,000. Those currently residing in the UK have to deposit $50.
Let’s examine the pros and cons for the ‘onboarding’ category and the total points:
Onboarding total points: 9.3
- Fast sign-up process
- Online verification
- Demo account with virtual funds
- Minimum deposit requirement
Deposit & Withdrawal Methods – 3.5 stars
Before I get into the details of the deposit and withdrawal methods eToro has, one thing you need to know is that the only base currency for eToro is USD.
You will have to pay conversion charges if you deposit or withdraw money in another currency.
Users can add or take money out of their account using the “Deposit Funds” or the “Withdraw Funds” options available on the dashboard.
If you plan on depositing funds using eToro money, the maximum limit for unverified accounts is $2,250.
As far as withdrawing your money is concerned:
- Your accounts need to be verified
- You need to have funds available in your account
- The minimum withdrawal amount is $30
Below is a breakdown of all the deposit methods available to users in the UK:
|Method||Time||Maximum limit||Supported currencies|
|eToro Money||Instant||£250k or unlimited for black cardholders||GBP|
|Credit or debit card||Instant||$40,000||USD, GBP, EUR and AUD|
|Bank transfer||4 to 7 days||Unlimited||USD, GBP, EUR|
Now that you’re well-versed with deposit methods, let’s look at how long it would take you to withdraw funds using these methods. It’s important to remember that you will be charged $5 for each withdrawal.
Withdrawal methods and durations for UK users:
|Credit or debit card||Up to 10 business days|
|Bank transfer||Up to 10 business days|
Although eToro Money can be used for instant withdrawals, some requests may be processed on the following business day due to various reasons like security.
Below are the pros, cons, and total points for the ‘deposit & withdrawal methods’ category:
Deposit & withdrawal methods total points: 6.7
- User friendly
- Both options can be accessed from the dashboard
- Withdrawal fees
- Limited options
- Only one base currency
- Currency conversion charges
- Minimum withdrawal requirements
Markets – 4.5 stars
Individuals in the UK who want to trade and invest using eToro have access to various markets and can trade different assets that include:
- Stocks and ETFs
Below is an overview of the different markets and the number of assets users in the UK have access to when trading or investing with eToro.
eToro – markets and assets:
Individuals using eToro to invest in stocks can choose from a wide variety of industries, such as technology, healthcare, and more, spanning all over the world.
Such comprehensiveness allows you to diversify your portfolio with ease. The best part about investing in stocks using eToro is the commission is 0%, and there is no limit on the trading volume.
It’s important to remember that the zero commission does not apply to short or leveraged positions. eToro can also be used to invest in commodities like gold, silver, and oil.
In addition, you can also trade commodity CFDs as per your investment amount requirements without being limited to units.
eToro allows users to trade currency pairs with up to 1:30 leverage, meaning that you can gain exposure using less capital.
eToro also allows users to invest in indices from around the world and gives you the flexibility needed to manage exposure.
The platform also facilitates investors with low capital by allowing them to invest in ETFs at a low-cost entry point. You can invest in ETFs as an underlying asset or trade them as CFDs.
However, the platform does not facilitate investments in bonds, Self-Invested Pension Plans (SIPPs), or Junior SIPPs. This could be a deal breaker if these are the investment vehicles you were looking for.
Let’s look at the pros, cons, and total points for the ‘markets’ review category:
Markets total points: 8.9
- Different markets to choose from
- Numerous assets available
- Option to invest in an ISA
- No bonds, SIPP, or Junior SIPP options
Tools – 4.5 stars
For the tools category, I examined the research and decision-making tools eToro has available.
I felt that eToro does an excellent job of providing technical information.
You can access the information by clicking the “Discover” tab from the main dashboard, and access the top-notch insights for different assets in a cohesive manner.
Users can also choose a specific type of investment asset and access tailored insights.
You can also click-open an asset and gain insights into that specific asset. These insights will initially be shown on the overview page. Here, you can see a graph that displays the asset’s performance over the week by default.
You have the option to view the performance based on a daily, weekly, monthly, and yearly basis. Information about the asset market cap, trading volume, and price-earning ratio are also available.
In addition to these insights, you can also see the latest news, upcoming events, and analysts’ forecasts for that asset. If it’s the stock of a company, you can even see the company’s environmental, social, and governance (ESG) scores.
You also have the option to view different charts and analyses from the tab options at the top. The only drawback is that the “Analysis” and “News” are not available with demo accounts.
Another excellent tool that eToro offers is “Smart Portfolios.”
The portfolios offer research-backed opportunities, are managed by experts, and do not have any management fees.
The portfolios are diversified based on themes, types of assets, risk scores, and more. However, the only drawback is that a minimum investment of $500 is required.
eToro also has a built-in ticker that users can access right from their “Home” tab of the dashboard.
The ticker provides concise information about different investment assets.
In addition, this tab also has a news feed that users can tailor based on their preferences.
Another tool that is great for research and making informed decisions is eToro’s economic calendar.
The option can be accessed from the main dashboard.
It provides you with an overview of different events for varying assets.
The events are ones that are likely to occur throughout the current month.
Let’s look at the pros, cons, and total points for the ‘tools’ review category:
Tools total points: 4.5 points
- Smart portfolios
- Economic calendar
- Technical information
- $500 minimum investment for Smart Portfolios
- Some features are not available in the demo account
Investment & Trading Platform – 4.5 stars
When it comes to investment and trading platforms, one of the first things you need to remember is that eToro does not have a desktop platform.
However, eToro does have mobile applications for both iOS and Android devices. Desktop users, on the other hand, have to use the web application for trading and investing with eToro.
The overall user experience on the mobile and web apps is very intuitive and doesn’t come with a severe learning curve.
One unique trading and investing feature is CopyTrader.
This feature, as the name suggests, allows you to copy investments made by top investors on eToro. You can start and stop the trades anytime you want, and all trades are copied automatically.
All you have to do is set the criteria, and you can leverage the expertise of pro-level traders without any additional charges.
Users in the UK set the criteria for finding suitable matches based on return, duration, and asset type requirements.
However, there is one drawback. Although the copied trades are executed instantly, you do need to have a minimum trade of $200.
Let’s look at the pros, cons, and total points of the ‘investment and trading platform’ category.
Investment and trading platform total points: 8.6 points
- Simple and intuitive
- Users can copy expert traders
- Available as a web app
- Available on iOS and Android devices
- No desktop app is available
- $200 minimum requirement for copying trades
- Lack of advanced trading features
Education – 5 stars
For the education category, I examined the educational content the platform offers to its uses.
First is the news and analysis eToro offers.
You can easily access this resource under the “Education” tab on the website. It provides you with featured articles for different assets, and you can even filter results based on your desired investment vehicles or topics of concern.
Another valuable resource this eToro has is the eToro Academy. It has four courses, each with a varying number of lessons.
The courses teach beginner investors about different topics like investing, trading, and building a portfolio.
The eToro academy also has guides and tutorials for different trading and investment assets and how the platform should be used.
The learning resources are available in both video and text format and can help you become a more informed and knowledgeable investor.
It also has other video, text, and audio-based resources like Digest & Invest, eToro Plus, and Retail Investor Beat that help you gain even more insightful information.
Let’s look at the pros, cons, and total points for the ‘education’ category:
Education category total points: 10 points
- Selection of educational courses
- Featured articles and analysis
- Guides and tutorials
- Slight lack of technical analysis
Customer Service – 3.5 stars
When it comes to eToro’s customer service, there is room for improvement.
You can contact the support staff by opening web-based tickets.
On the customer service page, you are encouraged to visit the eToro Help Center, where you can find answers to frequently asked questions.
Both these options are helpful; however, customer support is only available during office hours.
Let’s look at the pros, cons, and total points for the customer service category:
Customer service total points: 7 points
- Help centre
- Ticket system
- Only available during office hours
Should You Use eToro?
Deciding to use eToro hinges on individual trading needs and preferences.
It’s a strong choice for those valuing low fees, diverse markets, educational resources, and a user-friendly platform, especially appealing for its copy trading feature and zero-commission stock trades.
However, limitations such as fewer deposit and withdrawal options, less comprehensive customer service, and restricted research capabilities should be considered.
eToro may not be ideal for high-volume or active traders due to higher spreads and small maximum trade sizes, and it doesn’t support algorithmic trading.
eToro suits investors interested in a mix of assets like forex, ETFs, cryptocurrencies, and CFDs, but may fall short for those seeking traditional investment accounts or a broader range of investments.
Frequently Asked Questions
Can eToro be trusted?
Yes, eToro can be trusted. It is regulated by reputable authorities including CySEC in Cyprus, ASIC in Australia, the FCA in the UK, and the SEC in the US, which indicates a level of oversight and compliance with financial standards. Although eToro is not listed on any stock exchange and does not publish its financial data, it is recognised as a low-risk broker, licensed in multiple jurisdictions. With over 30 million traders globally and a track record dating back to 2007, eToro has established a reputation for reliability in the financial services sector.
Is eToro regulated in the UK?
Yes, eToro is regulated in the UK. It operates under eToro Money UK Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA). This regulation focuses on the provision of electronic money and payment services, and the firm has been assigned the Firm Reference Number 900923 by the FCA. This confirms eToro’s compliance with UK financial regulations.
Do you actually make money on eToro?
Yes, it is possible to make money on eToro, but like any trading platform, profits are not guaranteed. eToro’s unique feature is its social copy trading, where you can mimic the trades of successful traders in real time. However, risks are involved, especially with investments like forex, stocks, and CFDs. Successful trading on eToro requires informed decision-making, effective risk management, and careful analysis, particularly in copy trading where you need to choose the right traders and strategies to follow. Additionally, eToro allows for profiting from market downturns by shorting stocks, indices, or commodities using CFDs.
What is the downside to eToro?
The downside to eToro includes its high-risk factor, especially with CFD trading where a significant percentage of retail investor accounts lose money, partly due to leveraging. Additionally, eToro’s trading fees for certain assets like crypto are higher compared to some competitors. Non-trading fees also add to the costs, with a $5 withdrawal fee and a $10 monthly inactivity fee after a year without account activity. While eToro offers free stock and ETF trading, and low forex and CFD fees, these fees are incorporated into the spread, averaging 0.75 points during peak hours.
Is eToro good for beginners?
eToro is indeed favorable for beginners, offering an easy-to-learn platform that balances simplicity with essential trading tools and features. Its user-friendly nature extends to both web and mobile applications, making it more accessible than some complex trading platforms. However, beginners should exercise caution, especially with features like copy trading, where they need to conduct thorough analysis beyond just looking at a trader’s returns. Additionally, eToro’s regulatory compliance with bodies like the FCA adds a layer of reliability. With a diverse range of investment options including stocks, ETFs, cryptocurrencies, and CFDs, along with educational resources and community engagement through social trading, eToro provides an ideal starting point for novice investors.
Is eToro safe?
eToro is considered safe for users, especially in the UK. It is authorised and regulated by the Financial Conduct Authority (FCA), which ensures a high standard of financial practices and client protection. Additionally, eToro’s adherence to regulations by CySEC and ASIC further reinforces its security measures. Clients’ funds are secured in top-tier banks, and personal data is protected with SSL encryption. Moreover, UK customers benefit from the Financial Services Compensation Scheme, which covers up to £85,000 per client in the unlikely event of eToro’s insolvency, adding another layer of safety for investors.
You may also like: