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eToro Review

Steven Hatzakis

Steven Hatzakis | July 12th, 2019

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

The ForexBrokers.com Annual Review (3 years running) is among the most cited in the industry. Our Head of Research, Steven Hatzakis, is frequently referenced as a leading analyst covering forex brokers and cryptocurrency. Learn more.

As an early pioneer in social copy trading, eToro was founded in Israel in 2006 as a financial trading technology developer. After launching its first product, it has since grown to service over 9 million users with an innovative platform that continually evolves to be one of the largest social networks globally, with clients in over 170 countries.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. In March 2018, eToro announced it had raised a $100 million round of private equity financing led by China Minsheng Financial, the SBI Group and Korea Investment Partner, and other investors, valuing the company at $800 million.

Review Summary

Rank: 13th (of 28)

eToro is popular for its powerful copy-trading platform on which traders harness the results of the crowd to find opportunities and copy the trades of other real-time users across over 1,400 instruments, including CFDs on popular cryptocurrencies.

Benefits

  • User-friendly and innovative web and mobile platforms.
  • Powerful social trading tools.
  • CopyPortfolios for investors.
  • CFDs on seven major cryptocurrency pairs, including bitcoin.

Considerations

  • Wide spreads on forex.
  • Risk/reward ratios are limited to predefined ranges.
  • Automated trading strategies are not permitted.

Is eToro Safe?

help 88
Trust Score

eToro is considered low-risk, with an overall Trust Score of 88 out of 99. eToro is not publicly traded and does not operate a bank. eToro is authorised by two tier-1 regulators (high trust), one tier-2 regulator (average trust), and zero tier-3 regulators (low trust). eToro is authorised by the following tier-1 regulators: Commodity Futures Trading Commission (CFTC) and the Financial Conduct Authority (FCA). Learn more about Trust Score.

Regulations Comparison

FeatureeToroPepperstoneIGSaxo Bank
Year Founded2007201019741992
Publicly Traded (Listed) No No Yes No
Bank No No Yes Yes
Tier-1 Licenses2266
Tier-2 Licenses1041
Tier-3 Licenses0000
Trust Score88799998

Commissions & Fees

Rank: 24th (of 28)

eToro is a market-maker broker and lists a typical minimum fixed spread of three pips on the EUR/USD, which is on the high end of the range when comparing brokers with fixed and floating spreads, making it a more expensive platform.

Benefits

  • For high volume traders who deposit over $20,000, eToro offers a premium account that provides additional perks such as withdrawal priority and access to an online trading room, among other VIP-style account benefits.
  • eToro’s Popular Investor program has four tiers – from cadet to elite – where you can be rewarded with various perks ranging from spread rebates to a monthly payment and even a management fee for those who reach elite status. Unlike an active trader program, which usually requires volumes and/or deposit thresholds to be met, the Popular Investor program encourages traders to focus on producing successful results to receive applicable incentives.

Considerations

  • When comparing fees alone, retail traders don’t choose eToro for its spreads, but rather for its platform and social trading capabilities tools (which are discussed further down), as its pricing is otherwise expensive.

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Further Reading

Fees Comparison

FeatureeToroPepperstoneIGSaxo Bank
Minimum Initial Deposit$200$200.00£250.00$2,000.00
Average Spread EUR/USD - Standard3.001.160.7500.900
All-in Cost EUR/USD - ActiveN/A0.8600.3630.600
Active Trader or VIP Discounts Yes Yes Yes Yes
Commissions & Fees 3.5 Stars 4 Stars 4.5 Stars 4.5 Stars

Platforms & Tools

Rank: 12th (of 28)

eToro has done well merging self-directed trading and copy trading together under a unified trading experience. It’s a winning combination.

Benefits

  • Ease of use is at the heart of the eToro platform experience. It is easy to carry out basic operations and do things quickly, such as creating several watchlists and adding instruments by searching available markets, as well as placing a trade from each watchlist directly.
  • One innovative tool is CopyPortfolios, where eToro groups top traders into a single fund you can copy trade. CopyPortfolios help bridge the gap for investors who want to use eToro on a passive basis, as they can create a portfolio based entirely on one or more CopyPortfolios. On the other hand, self-directed traders can also use CopyPortfolios to diversify their own trading, making it potentially useful for all eToro clients.
  • Besides CopyPortfolios, other features such as the Editors’ Choice and Popular Investor serve as additional ways eToro attempts to find you the best traders to copy and/or follow. With platform settings, eToro offers the ability to set a default trade size, leverage selection, and even a default stop and limit levels, per instrument traded.

Considerations

  • Chart drawing tools could be made more accessible by moving them to the upper toolbar of the chart window. In the current setup, they are bundled together with the technical indicators.
  • All traders on eToro trade manually. Fully automated trading systems are not permitted, which means when you copy another trader, you can be sure they are placing each trade manually. This is useful to know as many other social trading platforms that aggregate the performance of traders usually permit both discretionary (manual) trades as well as automated strategies, while eToro’s network consists solely of manual trading.
  • If you just want to use the eToro platform for just self-directed investing, it is balanced for that too, although there are unavoidable social elements woven throughout the experience.

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Further Reading

Tools Comparison

FeatureeToroPepperstoneIGSaxo Bank
Virtual Trading (Demo) Yes Yes Yes Yes
Proprietary Platform Yes No Yes Yes
Desktop Platform (Windows) No Yes Yes Yes
Web Platform Yes Yes Yes Yes
Social Trading / Copy-Trading Yes Yes Yes Yes
MetaTrader 4 (MT4) No Yes Yes No
MetaTrader 5 (MT5) No Yes No No
cTrader No Yes No No
Charting - Indicators / Studies (Total)67512247
Charting - Drawing Tools (Total)14311717
Charting - Trade From Chart No Yes Yes Yes
Watchlists - Total Fields671212
Order Type - Trailing Stop Yes Yes Yes Yes
Platform & Tools 4 Stars 3.5 Stars 4.5 Stars 4.5 Stars

Customer Service

Rank: 16th (of 28)

To score Customer Service, ForexBrokers.com partnered with customer experience research group Customerwise to conduct phone tests from locations throughout the UK. For our 2019 Review, 229 customer service tests were conducted over six weeks.

Results

  • Average Connection Time: <1 minute
  • Average Net Promoter Score: 5.6 / 10
  • Average Professionalism Score: 3.3 / 10
  • Overall Score: 5.3 / 10
  • Ranking: 16th (23 brokers)
  • View Infographic

Research

Rank: 21st (of 28)

Overall, eToro’s research offering has a good foundation but can be improved.

Benefits

  • In 2018, eToro boosted its research offering with the addition of TipRanks, which powers the new research tab on its platform.

Considerations

  • Beyond a standard economic calendar (which can only be viewed on the website) and news headlines (also found only on the website), there are few research options on eToro in the traditional sense of technical and fundamental analysis.
  • eToro does, however, incorporate many social elements into its available research tools when it comes to market sentiment. For example, rather than show sentiment based on all users – only the trades of top traders are used to calculate sentiment data (taking it a step above the usual sentiment tools brokers provide). In addition, collective commentary about an instrument will appear as a stream of updates from users to give you an idea of what other traders are posting about in the eToro network, compared to StockTwits, for example.
  • Adding news headlines and incorporating the economic calendar into the platform experience would help fill the gap in the research tools available on the eToro platform.

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Further Reading

Research Comparison

FeatureeToroPepperstoneIGSaxo Bank
Daily Market Commentary Yes Yes Yes Yes
Forex News (Top-Tier Sources) No Yes Yes Yes
Weekly Webinars No No Yes Yes
AutoChartist No Yes Yes Yes
Trading Central (Recognia) No No No No
Delkos Research No No No No
Social Trading / Copy-Trading Yes Yes Yes Yes
Social Sentiment - Currency Pairs Yes Yes Yes Yes
Economic Calendar Yes Yes Yes Yes
Research 3 Stars 4 Stars 4.5 Stars 4.5 Stars

Mobile Trading

Rank: 10th (of 28)

Overall, eToro has done a great job with its mobile experience.

Benefits

  • Testing the mobile app on Android, I quickly noticed after logging in that eToro has done very well in maintaining the look and feel of the web version.
  • Functionality such as syncing watchlists helps to further unify the platform experience across devices.

Considerations

  • Like the rest of the mobile app, the charts were responsive and closely matched the web platform, even though just five indicators are present compared to 67 on the web.
  • Drawing tools were missing from the app entirely and would be a welcome enhancement. Otherwise, the charts in the mobile app are nicely integrated and function well, despite the lack of drawing tools.

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Further Reading

Mobile Apps Comparison

FeatureeToroPepperstoneIGSaxo Bank
Android App Yes Yes Yes Yes
Apple iOS App Yes Yes Yes Yes
Trading - Forex Yes Yes Yes Yes
Trading - CFDs Yes Yes Yes Yes
Alerts - Basic Fields No Yes Yes Yes
Watch List Yes Yes Yes Yes
Watch List Syncing Yes Yes Yes Yes
Charting - Indicators / Studies5302641
Charting - Draw Trend Lines No Yes Yes Yes
Charting - Trend Lines Moveable No Yes Yes Yes
Charting - Multiple Time Frames Yes Yes Yes Yes
Charting - Drawings Autosave No No Yes Yes
Forex Calendar No No Yes Yes
Mobile Trading 4 Stars 3 Stars 4 Stars 4.5 Stars

Offering of Investments

Rank: 8th (of 28)

The following table summarizes the different investment products available to eToro clients.

Offering Comparison

FeatureeToroPepperstoneIGSaxo Bank
Forex: Spot Trading Yes Yes Yes Yes
Currency Pairs (Total Forex pairs)475991182
CFDs - Total Offered1449311500032999
Cryptocurrency traded as actual Yes No No No
Cryptocurrency traded as CFD Yes Yes Yes No
Offering of Investments 4 Stars 3 Stars 4.5 Stars 4.5 Stars

Other Notes

When you place a trade on eToro, there is always a default stop-loss order and limit attached to manage the risk/reward of each trade, which can be adjusted within certain permissible ranges (usually up to an amount equal to the margin used). While this mandatory stop-loss and limit can be a good safety net to protect beginners, it may limit more experienced traders as certain strategies are not supported because of this rule.

eToro’s expansion of its Cryptocurrency CFD offering in 2018 took a leap forward compared to its peers (read our eToro Crypto review), and the broker further defined its position to stay ahead of trends. Also in 2018, the broker expanded its reach into the physical cryptocurrency market by obtaining a Money Service Business (MSB) registration in the US, as well as utilizing its ASIC-regulated entity to expand its offering. This helped eToro become our number one broker for crypto, from among 28 brokers in our 2019 annual review.

Final Thoughts

Rank: 13th (of 28)

eToro can be great for retail traders who want to crowd source investment ideas using the power of copy trading, or for highly experienced traders who want to be rewarded for sharing their ideas with other traders.

Newer traders requiring handholding may find the user-friendly platform an added benefit. That said, I do not recommend eToro for active or high-volume traders as high spreads and small maximum trade sizes will be a limiting factor.

For our 2019 Forex Broker Review we assessed, rated, and ranked 28 international forex brokers. Each FX broker was graded on 81 variables. How we test.

Forex Risk Disclaimer

"There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." Learn more.


Steven Hatzakis

About the author: Steven Hatzakis Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. All data was obtained from a published web site as of 02/18/2019 and is believed to be accurate, but is not guaranteed. The ForexBrokers.com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.

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