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eToro Review

Steven Hatzakis

January 24th, 2022
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. 68% 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 a winner for its easy-to-use copy-trading platform, where traders can copy the trades of experienced investors – or receive exclusive perks for sharing their own trading strategies.

With over 3,000 tradeable symbols, including CFDs, forex, exchange-traded securities, and popular cryptocurrencies, eToro offers a comprehensive – albeit slightly pricey – trading experience.

eToro pros & cons

Pros:

  • eToro was founded in 2007 and is regulated in two tier-1 jurisdictions and one tier-2 jurisdiction, making it a safe broker (low-risk) for trading forex and CFDs.
  • eToro is excellent for social copy trading and cryptocurrency trading and is our top pick for both categories in 2022.
  • Fantastic for ease of use thanks to its user-friendly web platform and the eToro mobile app that is great for casual and beginner investors.
  • eToro continues to expand its available range of markets as a multi-asset broker with over 3,000 symbols available.
  • Offers indemnity insurance of up to EUR 1 million per client in the EU, the U.K., and Australia.
  • VIP-style perks are available for club members and popular investors that reach higher tier status.

Cons:

  • Trading forex and CFDs at eToro is slightly pricier than most of its competitors, despite recently cutting spreads and introducing zero-dollar commissions for U.S. stock trading.
  • eToro’s range of traditional research materials and tools is limited compared to its peers.
  • Automated (algorithmic) trading strategies are not supported at eToro.
  • Mandatory stop-loss and take-profit may hinder certain trading strategies.
  • Trading Central research and tools are only available to certain eToro Club members who have reached higher Club tiers.

Overall Summary

FeatureeToro
Overall 4.5 Stars
Trust Score91
Offering of Investments 4.5 Stars
Commissions & Fees 4.5 Stars
Platforms & Tools 4.5 Stars
Research 4 Stars
Mobile Trading Apps 4.5 Stars
Education 4 Stars

Is eToro safe?

help 91
Trust Score

eToro is considered low-risk, with an overall Trust Score of 91 out of 99. eToro is not publicly traded, does not operate a bank, and 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: Australian Securities & Investment Commission (ASIC) and the Financial Conduct Authority (FCA). Learn more about Trust Score.

Regulations Comparison

FeatureeToro
Year Founded2007
Publicly Traded (Listed) No
Bank No
Tier-1 Licenses2
Tier-2 Licenses1
Tier-3 Licenses0
Trust Score91

Offering of investments

eToro offers a total of 3,056 tradeable symbols. The following table summarizes the different investment products available to eToro clients.

Usability: As a multi-asset broker, eToro goes above and beyond to make the experience smooth for traders. For example, eToro provides the ability to select between trading CFDs and the underlying assets directly from the trade-ticket window. A subtle feature, but very useful.

Cryptocurrency: Cryptocurrency trading is available at eToro through CFDs and through trading the underlying asset (e.g. buying Bitcoin). Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents. In addition, cryptocurrency trading at eToro is not available in Russia, The Netherlands, and France (including French Territories).

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eToro offering of investments:

FeatureeToro
Forex Trading Yes
CFD Trading Yes
Tradeable Symbols (Total) 3056
Forex Pairs (Total)47
US Stock Trading (Non CFD) Yes
Int'l Stock Trading (Non CFD) Yes
Cryptocurrency (Physical) Yes
Cryptocurrency (CFD) Yes
Social Trading / Copy-Trading Yes

Commissions and fees

eToro is a market-maker broker and lists a typical variable spread of 1 pip on the EUR/USD, which is slightly higher than the industry average. Considering its trading fees, retail traders don't choose eToro for its spreads, but rather for its social copy trading platform capabilities.

VIP accounts: eToro offers a VIP club (called eToro Club) with five tiers of membership that range from Silver to Diamond. These tiers are for traders who maintain balances between $5,000-$250,000 and feature varying benefits depending on the level of membership. VIP perks range from access to Trading Central, to discounted withdrawal and deposit fees, to a dedicated account manager – among other VIP-style benefits.

Popular Investor program: eToro's Popular Investor program (for traders who allow other investors to copy their strategy) has four levels – ranging from Cadet to Elite – where traders can become eligible for various perks. To qualify for the Cadet tier you must have more than $1,000 in account equity, attract $500 in customer assets that copy your strategy, and maintain a risk score below 7 for at least two months. Benefits available to Popular Investors include spread rebates, monthly payments, and even a management fee for those who reach elite status.

Cryptocurrency trading: Overall, eToro’s pricing is close to the industry average for trading physical cryptocurrency – such as 0.75% for buying or selling bitcoin – while its fiat-to-crypto conversion fee is high at 5% (1% eToro fee and 4% Simplex fee). Meanwhile, converting from crypto to crypto at eToro only costs 0.1% (in addition to prevailing spreads). With a large number of crypto assets – both CFDs and the underlying assets – eToro is our No. 1 broker for Crypto Trading for 2022.

Exchange-Traded Securities: In addition to trading CFD shares, eToro also offers zero-dollar commission for U.S. stock trading (not available to U.S. investors) and supports fractional shares. To learn more, see our UK.StockBrokers.com review of eToro.

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eToro pricing summary:

FeatureeToro
Minimum Deposit$10-$200
Average Spread EUR/USD - Standard1 (August 2021)
All-in Cost EUR/USD - ActiveN/A
Active Trader or VIP Discounts Yes
Execution: Agency Broker Yes
Execution: Market Maker Yes

Mobile trading apps

Overall, eToro offers an excellent mobile experience. The ease-of-use factor is high, and eToro delivers nearly all the same features across both its web platform and its mobile app, which multi-device clients will appreciate.

Apps overview: eToro provides two mobile apps: the eToro app and eToro Money for crypto and money transfers. Both apps are available on Google Play for Android, and Apple App Store for iOS devices.

Ease of use: Testing on Android, I found that the eToro mobile app maintains the look and feel of the web version, including useful functions such as dark and light mode themes, and synced watchlists that help to unify the platform experience across devices.

Charting: Like the rest of the mobile app, the charts are responsive and closely match the web platform experience, though just five indicators are present compared to 67 on the web. Drawing tools are missing from the app entirely and would be a welcome enhancement to an otherwise cleanly-designed and well-integrated mobile app.

Cryptocurrency wallet: The eToro wallet, known as eToro Money, is a separate mobile app where users can deposit and withdraw money and actual cryptocurrencies. Crypto assets are held by eToroX, which acts as the custodian of your cryptocurrency private keys. The eToro Money Wallet closely resembles the look and feel of the eToro mobile app, and includes support for social trading.

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eToro mobile trading:

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

Other trading platforms

eToro's main innovation is merging self-directed trading and copy trading under a unified trading experience. It is a winning combination. See our Best FX Brokers for Copy Trading.

Platforms overview: Ease of use and simplicity of design are at the heart of the eToro web platform experience, and carrying out basic operations is straightforward and painless. Traders gain access to functions such as the ability to create watchlists, as well as the option to add instruments simply by searching available markets. These design qualities helped eToro rank Best in Class in the Ease of Use and Beginners categories in 2022.

Charting: The full functionality of eToro’s charting truly comes alive when you launch its ProCharts setting. ProCharts comes with 66 indicators, 13 drawing tools and the ability to save and choose from predefined layouts.

Trading tools: Another innovative tool from eToro is its CopyPortfolios feature, which groups traders into single funds for copy trading. CopyPortfolios help to 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 trading, making it a potentially useful tool for all eToro clients.

Cryptocurrency tools: eToro users can find crypto-trading ideas and copy other individuals or groups of traders across 108 supported cryptocurrency pairs. For investors looking to withdraw underlying crypto assets from their eToro account, eToroX offers the eToro Mobile wallet app. This app acts as a custodian with a multi-signature scheme and closely mirrors the brand's forex mobile app.

Copy trading structure: Fully automated trading systems (i.e. algorithmic trading) such as those supported on MetaTrader are not permitted at eToro. Therefore, when you copy another trader on eToro, you can be sure they are placing each trade manually. This is quite useful to know, as many other social trading platforms that aggregate the performance of traders usually permit discretionary (manual) trading as well as automated strategies.

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eToro trading platform:

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
DupliTrade No
ZuluTrade No
Charting - Indicators / Studies (Total)66
Charting - Drawing Tools (Total)13
Charting - Trade From Chart No
Watchlists - Total Fields6
Order Type - Market Yes

Market research

Overall, eToro's research is competitive and continues to improve year-over-year – but is still not award-winning. For example, there are no daily video updates with market analysis, and certain features are locked until specific account tiers are reached.

Research overview: eToro offers a standard economic calendar, an earnings reports calendar, news headlines, daily market analysis series, and podcasts. That said, several of these features are not directly integrated into the eToro platform. Trading Central is also available, but is not offered to all clients – it’s reserved for eToro club members that have reached a specific tier status. There are also research reports for stocks available to funded account holders.

Market news and analysis: eToro does an excellent job incorporating fundamental analysis into its platform for shares trading, and in the daily articles posted to eToro’s blog. However, the lack of technical analysis leaves eToro falling behind category leaders such as IG and Saxo Bank, and is a feature that would improve eToro’s Analyst Weekly series of articles.

Sentiment data: Only the trades of top traders at eToro are used to calculate sentiment data, rather than showing sentiment based on data from all users. This takes it a step above the usual sentiment tools brokers provide, and is similar to how CMC Markets displays this data.

Wall newsfeed: eToro uses a Twitter-style wall feed of collective commentary for each given instrument. This public feed appears as a stream of updates from other eToro users, designed to give you an idea of what other traders are posting about in the eToro network. As the content is sourced by eToro users, it can vary in quality. It is certainly unique; that said, I find content that is generated by in-house staff or from third-party professionals to generally be of higher quality.

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eToro research:

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

Education

While the eToro Learning Academy and blog offer a good number of videos, articles, and weekly webinars, the quality and volume trail educational leaders like AvaTrade, Saxo Bank or IG.

Learning center: eToro offers an online trading academy containing dozens of videos and articles that are organized by category and experience level.

Integrated educational tidbits: eToro provides extra details for beginners next to each symbol available within its platform, such as information about trading instruments (like the EUR/USD currency pair), and general facts to consider before investing.

Room for improvement: eToro has a decent number of videos on its YouTube channel, including archived webinars and market analysis, but I found it hard to distinguish between research, promotional, and educational videos. Organizing educational content by playlist and separating platform tutorials from financial market education would help to balance eToro’s video content in this category.

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eToro education:

FeatureeToro
Has Education - Forex or CFDs Yes
Client Webinars Yes
Client Webinars (Archived) Yes
Videos - Beginner Trading Videos Yes
Videos - Advanced Trading Videos Yes
Investor Dictionary (Glossary) Yes

Final thoughts

eToro is great for retail traders who want to crowdsource investment ideas using the power of copy trading, or for highly-experienced active traders who want to be rewarded for sharing their ideas with other traders.

Less experienced traders that require some degree of handholding may find the user-friendly platform an added benefit. That said, I do not recommend eToro for active or high-volume traders, as higher spreads and small maximum trade sizes will be a limiting factor. Likewise, algorithmic trading is not supported.

When it comes to social copy trading and crypto trading, eToro remains our number one choice in 2022, and won our award for #1 Trader Community.

Is eToro trustworthy?

eToro is trusted by over 13 million traders globally and is licensed to hold client funds and provide brokerage services in numerous countries. Following a $10.4 billion merger, eToro was listed on the NASDAQ in Q3 2021. Founded in 2007, eToro is regulated in two tier-1 jurisdictions and one tier-2 jurisdiction, making it a safe broker (low-risk) for trading forex and CFDs.

Factors that determine trust in financial services include proper regulatory licensing, operational history, adequate financial capital to ensure solvency, and a track record of excellent customer service. In all of these areas, eToro has proven itself more than capable of earning clients’ trust.

Is eToro really free?

The cost of eToro’s copy-trading service is incorporated into its spreads. So while it may be “free” to use eToro in terms of commissions, you will still incur trading costs – such as the bid/ask spreads.

All online brokers make money by charging commissions, spreads, or a combination of both (and may receive rebates and the like). You don’t pay anything extra beyond spreads, and carry costs if you choose to hold positions overnight.

Can you make money with eToro?

Yes, you can make money with eToro, though doing so — as with any broker — is never guaranteed. eToro’s value proposition lies in its social copy trading capabilities, which allow you to select from its vast database of traders and copy trades in real time. But bear in mind you can also lose money when dealing with investments such as forex, stocks, CFDs, and cryptocurrency, including with eToro.

The key to making money at eToro as a trader is making the right trading choices and risk-management decisions, so as to keep your average losses low relative to your average profits over time (whether you are trading manually or copy trading).

When copy trading at eToro, you still must do enough analysis to sort through the database of investors and decide which, if any, to copy. You also have to determine how much to allocate to each strategy provider, whether to set any maximum draw-down limits (that is, a value where you automatically stop copying if a certain loss threshold is breached), and if you’ll copy traders that are already open or only new trades.

Is eToro good for beginners?

Yes, eToro is a great choice for beginners. Its trading platform is easy to learn and not overly complex. eToro does an excellent job of balancing useful tools and features in a web platform and mobile trading app that is user-friendly. While being good for beginners doesn’t mean it is easy to make money, it’s easier to use eToro than some of the more sophisticated trading platforms out there.

One challenge beginners may face with eToro is conducting sufficient analysis when deciding which investors to copy, and learning to look at more than just the absolute returns that a given trader has achieved.

For example, you might consider the risk score, the average number of trades placed per week, and the average profit, loss, and holding time for a given investor that you are considering copying.

What type of broker is eToro?

eToro can act as a market-maker or agency broker, depending on factors such as which eToro entity holds your account. Market-maker brokers act as the counterparty to your trade, while agency brokers send your order to other market-makers in return for rebates, profit-sharing, widened spreads and commissions.

For example, eToro U.K. and eToro Europe both act as market-makers but can also hedge their client’s trades and act as a matched-principal (agency broker) if needed as part of the firm’s internal risk management process. What matters is that brokers adhere to best execution regulations, and eToro is obligated to do so where it is mandated by law.

About eToro

An early pioneer in social copy trading, eToro was founded in Israel in 2007 as a financial trading technology developer. After launching its first product, it has since grown to service over 13 million registered users with an innovative platform that continually evolves to be one of the largest social networks globally, with clients in over 140 countries.

In 2021, eToro went public via a $10.4 billion reverse merger with FinTech Acquisition Corp V (NASDAQ: FTCV), a Special Purpose Acquisition Company (SPAC). The brand's crypto exchange, eToroX, is regulated by the Gibraltar FSC and registered in the US with FinCEN as a Money Service Business (MSB). Read more on Wikipedia about eToro.

Disclosures

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

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

2022 Review Methodology

For our 2022 Forex Broker Review we assessed, rated, and ranked 39 international forex brokers over a three-month time period resulting in over 50,000 words of published research.

Each broker was graded on 113 different variables, including our proprietary Trust Score algorithm. This innovative scoring system ranks the level of trustworthiness for each broker based on factors such as licenses, regulation and corporate structure. Read about Trust Score here.

As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy.

Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors with 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.


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.








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eToro - 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

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