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eToro Review

Steven Hatzakis

Steven Hatzakis | September 17th, 2019

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75 % 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.

eToro is our winner in 2019 for its easy-to-use copy-trading platform where traders can copy the trades of other users across over 1,400 instruments, including CFDs on popular cryptocurrencies.

Top Takeaways for 2019

After spending several hundred hours testing 28 forex brokers over six months for our third annual forex broker review, here are our top findings on eToro:

  • Founded in 2007, eToro is regulated in multiple jurisdictions, making it a safe broker to trade forex and CFDs with.
  • eToro is excellent for social copy trading, our No 1 pick for 2019.
  • eToro is great for cryptocurrency trading, also our No 1 pick for 2019.
  • eToro offers a user-friendly web platform and mobile app that is great for less experienced investors; the broker finished Best in Class (top 7) for both Ease of Use and Education.
  • For regular CFDs and spot trading, eToro is pricier than most forex brokers and charges wide spreads, despite offering a premium account for high deposit clients.
  • Unfortunately, MetaTrader is not offered at eToro.
  • While eToro offers traders unique research for social trading, its market research tools are lackluster and unimpressive.
  • eToro is just average for customer service. The broker finished 16th (out of 23) in our national testing from locations across the United Kingdom.
  • Given the higher costs, eToro is not a good choice for active or high-volume traders.

Overall Summary

FeatureeToro
Overall 4 Stars
Trust Score88
Offering of Investments 4 Stars
Commissions & Fees 3.5 Stars
Platform & Tools 4 Stars
Research 3 Stars
Mobile Trading 4 Stars
Customer Service 3.5 Stars
Education 4 Stars

Is eToro Safe?

help 88
Trust Score

The bottom line is that eToro is regulated, licensed, and is a safe broker to trade forex and CFDs with. 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 (UK) Ltd, a Financial Services Company, is authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263. eToro (or one of its subsidiaries) is also authorised by Australian Securities & Investment Commission (Licensce 491139) and the Cyprus Securities and Exchange Commission (license # 109/10). Learn more about Trust Score.

FeatureeToro
Year Founded2007
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses2
Tier-2 Licenses1
Tier-3 Licenses0
Trust Score88

Offering of Investments

Rank: 8th (of 28)

eToro offers forex and CFD traders a wide variety of investment options. Alongside 47 currency pairs for spot trading, eToro also offer 1,449 CFDs and cryptocurrency trading as both a CFD and as the actual underlying.

When it comes to trading cryptocurrency, eToro is our top pick for 2019. Note: Because eToro does not permit crypto to be directly deposited or withdrawn, the broker has reduced its security risk as there are fewer attack vectors that hackers could try to exploit.

FeatureeToro
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs)47
CFDs - Total Offered1449
Cryptocurrency traded as actual Yes
Cryptocurrency traded as CFD Yes

Commissions & Fees

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.

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.

Premium accounts: 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.

Account tiers: 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.

Cryptocurrency trading: The fee for trading crypto at eToro ranges from 1.5% on crypto assets such as Bitcoin (BTC), to as much as 5% for Stellar (XLM) or Neo (NEO).

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. See: Best FX Brokers for Copy Trading 2019.

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.

CopyPortfolios: One innovative tool is CopyPortfolios, where eToro groups 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.

Cryptocurrency tools: In addition to self-directed trading across 12 cryptocurrency pairs, users can find crypto trading ideas and automate those signals by copying other individual crypto traders, as well as groups of traders.

Copy trading quality: 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.

MetaTrader: Unfortunately, MetaTrader is not offered at eToro (see: Best MetaTrader Brokers 2019).

Gallery

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Research

Rank: 21st (of 28)

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

Social Trading: 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.

Other market research: In 2018, eToro boosted its research offering with the addition of TipRanks, which powers the new research tab on its platform. That said, 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.

Gallery

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Mobile Trading

Rank: 10th (of 28)

Overall, eToro has done a great job with its mobile experience. Testing the mobile app on Android, eToro maintains the look and feel of the web version, which is great. Functionality such as syncing watchlists helps to further unify the platform experience across devices.

Charting: 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.

Gallery

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Customer Service

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)

Final Thoughts

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.

Less experienced 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.

About eToro

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.

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.

eToro Trading Features

FeatureeToro
Virtual Trading (Demo) Yes
Proprietary Platform Yes
Desktop Platform (Windows) No
Web Platform Yes
Social Trading / Copy-Trading Yes
MetaTrader 4 (MT4) No
MetaTrader 5 (MT5) No
cTrader No
Charting - Indicators / Studies (Total)67
Charting - Drawing Tools (Total)14
Charting - Trade From Chart No
Watchlists - Total Fields6
Order Type - Trailing Stop Yes

eToro Research Features

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

Mobile App Features

FeatureeToro
Android App Yes
Apple iOS App Yes
Trading - Forex Yes
Trading - CFDs Yes
Alerts - Basic Fields No
Watch List Yes
Watch List Syncing Yes
Charting - Indicators / Studies5
Charting - Draw Trend Lines No
Charting - Trend Lines Moveable No
Charting - Multiple Time Frames Yes
Charting - Drawings Autosave No
Forex Calendar No

Disclosures

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75 % 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.

Cryptocurrencies are a highly volatile unregulated investment product. No EU investor protection.

2019 Review Methodology

For our 2019 Forex Broker Review we assessed, rated, and ranked 28 international forex brokers over a six month time period. Each broker was graded on 81 different variables and, in total, over 60,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors quality data they can trust. Learn more about 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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