eToro is an Israeli company which is headquartered in Limassol Cyprus.
Year founded
2007
Address:
eToro (Europe) Ltd. KIBC Kanika International Business Center 7th Floor, 4 Profiti Ilia Street Germasogeia, Limassol, Cyprus 4046
UK address: eToro (UK) Ltd, 24th floor, One Canada Square, Canary Wharf, London, E14 5AB
Account opening
The following link will take you to account opening.
Minimum deposit
$200
Regulated by
FCA, Cyprus Securities and Exchange Commission (CySEC), Australian Securities & Investments Commission (ASIC)
How does eToro earn a profit?
They do so by charging overnight fees for leverage and on the spread on certain riskier products such as CFDs.
The firm's main research and development office is based in Tel Aviv Israel. It originally specialized in Forex and indices spreadbetting and CFDs but has recently expanded in stock trading also.
At the time of writing, eToro has 2.2 out of 5 star on Trust pilot. The comments suggest that the platform offers some impressive features but withdrawing money can be difficult. Having said that, some of the negative reviews appear to be rants rather than constructive criticism. This can be examples of traders losing money through their own recklessness rather than eToro's fault. You should therefore take this reviews with a pinch of salt.
“the platform offers some impressive features but withdrawing money can be difficult.”
Although we have listed the major assets below, eToro is regularly adding new assets and securities as and when they become available. A recent examples was Dodgecoin.
Stocks
Google, Microsoft, Tesla, Apple, Amazon, Netflix Facebook, American Express, Adobe, Disney, Ebay, Nike McDonalds, Spotify, Johnson & Johnson ASML, BMW, Adidas, LVMH, ASOS, Total, Nestle, Alibaba, Tencent
All the major currency pairs are there, such as USD, EUR, GBP, JPY, CHF but there are also some more esoteric currencies, such Hungarian Forint (HUF), South African Rand (ZAR), Poland z?oty (PLN) and Czech Koruna (CZK)
ETFs
You will find all the 'core' ETFs, i.e. which track the main markets such as S&P500, FTSE100, STOXX50 and various government bonds such as US 7-10 year treasuries and Treasury Inflation-Protected Security (TIPS). At this time, some of the more thematic ETFs (e.g. environmental ones) are not available.
Please note that the above securities were correct as at the time of publication. Since then it is likely the above list has evolved.
How Much Leverage does eToro provide?
leverage**
Does eToro accept US clients?
No they do not if you are a US client who resides outside the US. If you are a US client who resides within the USA then you are to open an account with eToro USA.
Is eToro regulated and are my funds protected?
eToro (UK) Ltd is registered with UK’s Financial Conduct Authority (FCA). It has gained regulatory approval by “passporting” its authorization to the UK from Cyprus.
Although regulated by several different regulators such as Cyprus Securities and Exchange Commission (CySEC), the UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC), it is worth checking the detail. You may find that although the firm is authorised, some of the products you are using are not covered by various consumer protection schemes such as the FSCS.
All client funds are held in segregated client accounts as per the FCA's CASS rules.
Interestingly for a platform which allows users to trade shares, eToro has also become a listed company in itself. It recently merged with a SPAC called FinTech Acquisition Corp. V. SPAC's are an area to keep an eye on, the speed at which many area appearing could lead to risks that are so far not appreciated.
Account Opening
To open an account you will be asked for personal details such as your name and date of birth but also a proof of identification which you can upload as a picture. This check will also require a proof of address document. You will be also be asked questions to ensure you understand the risks involved in trading. These questions are likely to involve your understand of leverage.
There is a minimum account opening amount of $200 in normal times. During times of stress, eToro has been known to temporarily increase this to $1,000. Anyone wishing to open their account with the smaller amount should wait 2 weeks, as the minimum amount which decrease as volatility calms down!
You can deposit funds using a variety of methods such as bank transfer, Paypal credit/debit card, Neteller, iDEAL, Skrill and other e-wallets. You are able to send in the following currencies: USD, GBP, EUR and AUD.
Account Closing Process
At the bottom of the account settings page, you will need to follow the follow the self-service account closure link. You will need to ensure that you have $25 in your account to close the account down.
You can withdraw cash by using your credit card, or through a Paypal or bank transfer. You have to have a minimum of $30 to withdraw for a request to be accepted and you will be charged $5. Your withdrawal request will be confirmed by email.
It takes the following time to repay you:
Asia Online Banking 1-2 business days
China Union Pay 1-2 business days
Credit / Debit card Up to 8 business days
Neteller 1-2 business days
PayPal 1-2 business days
Skrill 1-2 business days
Wire Transfer Up to 8 business days
Features
What Are The Advantages and Disadvantages of Trading with eToro?
Advantages
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Disadvantages
They do not have every stock you want. This means so may only to buy the same stocks that everyone else is buying, which is not necessarily the best thing for contrarian investors.
eToro has struggled with increased volatility at times such as in February 2021. Clients were unable to log in, although this also affected many other online platforms.
eToro currently has a restricted offering for US clients. It is not possible for US clients to trade equities, nor can they copy EU based traders (many of whom have a 2/3 year track record). US clients are currently able to trade cryptocurrencies.
eToro has suffered from a couple of outages during times of increased volatility. For example in February 2021, the platform went down for period of time (usually a couple of hours). Technical issues were blamed each time. Although frustrating and something to pain attention to, it is becoming relatively common for platforms to suffer these kind of outages.
Commission and charges
Overview
Some overview
Stocks & ETFs
0.09%
Cryptocurrencies
Bitcoin
0.75 %
Ethereum
1.90 %
Bitcoin Cash
1.90 %
Dash
2.90 %
Litecoin
1.90 %
Ethereum Classic
1.90 %
Cardano
2.90 %
IOTA
4.5 %
Stellar
2.45 %
EOS
2.90 %
The following crypto currency transfer fees apply:
Crypto
Min. Withdrawal Amount
FEE
Bitcoin
0.008 BTC
0.0005 BTC
Ethereum
0.26 ETH
0.006 ETH
PRipple
25 XRP
0.25 XRP*
Litecoin
0.68 LTC
0.001 LTC
Bitcoin Cash
0.18 BCH
0.001 BCH
Stellar
534 XLM
0.01 XLM
Currencies
A pip is short for "percentage in point". It is the smallest standardized unit and therefore amount by which a currency price can change and be quoted at.
EURUSD
1 Pips
USDJPY
1 Pips
GBPUSD
2 Pips
USDCHF
1.5 Pips
NZDUSD
2.5 Pips
EURGBP
1.5 Pips
EURJPY
2 Pips
GBPJPY
3 Pips
AUDJPY
2 Pips
AUDUSD
1 Pips
Commodities
Oil
5 Pips
Gold
45 Pips
Silver
5 Pips
Copper
2 Pips
Natural Gas
10 Pips
Platinum
35 Pips
Palladium Future Contract
20000 Pips
Sugar Future Contract
8 Pips
Cocoa Future Contract
650 Pips
Wheat Future Contract
Contract 100 Pips
Indices
US Dollar Index
4 Pips
China A50 Index
1200 Pips
SPX500
75 Pips
NASDAQ100
240 Pips
DJ30
600 Pips
UK100
150 Pips
FRA40
100 Pips
GER30
200 Pips
AUS200
200 Pips
ESP35
700 Pips
Usability
From a visual perspective, eToro is impressive and easy to navigate. They have also taken some decisions to simplify trading for clients. For example, although trading name is Alphabet, they have renamed it Google. This helps new investors who may not be aware of this.
Does eToro Offer Demo Accounts?
The demo account is found in the same location as the live account. When you log in on the top left hand side there is a relatively small drop-down arrow under your profile picture. You have the 'real portfolio option' option and the 'virtual portfolio' option. Each time you switch you will be prompted, so it is unlikely you will get confused. Indeed once in the 'virtual portfolio' the top bar is a different colour allowing you to have a visual check of which account you are in.
The Virtual portfolio gives you the same features as the real portfolio.
Value added services
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What Are eToro's Opening Hours?
open tradining houtr
Customer Services
cusstpomer services
Does eToro Provide Mobile Trading?
mbvile trading
Does eToro Provide Trading Education?
edcation
Frequently Asked Questions (FAQs)
Is eToro regulated?
Yes, by the FCA, CySEC and ASIC.
Where is eToro based?
eToro is based at eToro (UK) Ltd, 24th floor, One Canada Square, Canary Wharf, London, E14 5AB.
How does eToro make money?
eToro makes money mainly through spreads and swaps on certain products.
How do I deposit in eToro account?
Funds can be deposited into a trading account via bank wire transfer, credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL and Klarna.
Conclusion
There is little research available on the platform which may explain why it is launching its analysts consultation service (for Premium and above members). The platform is easy to use, indeed it is a market leader in this field.
The 14 day response time for customer service is long, although in the current times of exceptional high retail trading not necessarily so. Indeed the detailed answers you receive is an improvement on the unhelpful 'firm line' one normally gets from these platforms.
Finally eToro clear advantage is the copy trader space, where traders who want to get their own clients or are looking to copy successful traders can do so at their heart's content.
76% of retail investor accounts lose money when trading CFDs with this provider.
Top User Reviews
Latest 2 user reviews sorted by highest rating
R
Robert Firmin
5 / 5
Mar 27, 2018
Excellent Broker
Have been using them for over a year now and never had a problem. All in all nothing to complain about.
m
mitchell8
5 / 5
Aug 1, 2022
Etoro Openbook review
I have been involved in a number of forex trading systems, they each cost alot of money, with no results. When I stumbled upon etoro openbook, I couldn't believe it was free to join. Everything about the site leaves the others I previously joined for dead. I would recommend this site to anyone.